Books 800 mln euro in provisions on Russia
Lowers fullyear profit goal by 1 bln euros
Awaiting ECB approval of 3.4 bln euro share buyback
Trading gains drive Q1 profit above consensus

MILAN, May 6 Reuters Italy39;s biggest bank Intesa Sanpaolo on Friday cut its profit guidance for the year after setting aside 800 million euros 847 million to cover potential losses from its exposure to Russia.

Intesa joins peers including rival domestic heavyweight UniCredit, as well as France39;s Societe Generale and Credit Agricole, in taking a hit to firstquarter earnings from Russia.

Intesa now expects net profit of more than 4 billion euros in 2022, compared with an estimate of more than 5 billion euros provided in early February before Russia39;s invasion of Ukraine.

It otherwise stuck to profit and payout goals it set then under a new plan through 2025.

Were it to further raise provisions on Russia and Ukraine to cover 40 of its exposure, fullyear net income would be lower still, though well above 3 billion euros, it said.

The outlook for 2022 is subject to finetuning in the coming months based on the evolution of the events involving Russia and Ukraine, Intesa said.

Jefferies analysts said it had been a tough quarter for Intesa, though the profit goal reduction had been largely discounted by investors.

But with no firm update on timing of the targeted 3.4 billion euro buyback still subject to European Central Bank approval and warning of potential tail risks on…