Putin authorizes sale of Intesa Sanpaolo's Russian assets

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Putin authorizes sale of Intesa Sanpaolo's Russian assets
Credit: © Reuters.

Italian banking group Intesa Sanpaolo (OTC: ISNPY ) has been granted permission by Russian President Vladimir Putin to sell its assets in Russia, according to a decree signed by Putin on Friday and published on a Russian government website. The move comes following a period of heightened tensions in the region, with many financial organizations halting their operations in Russia due to the ongoing "special military operation" in Ukraine.

Intesa Sanpaolo had previously announced in August that it would scale back activities at its Moscow representative office. This decision was part of a broader trend among financial institutions, which have been navigating an increasingly complex geopolitical landscape in Eastern Europe.

In response to the potential for mass capital outflow, the Russian government implemented a special procedure requiring foreign companies to obtain prior government authorization before proceeding with asset sales. This measure is designed to maintain economic stability amid the current climate of uncertainty.

The authorization for Intesa Sanpaolo's asset sale signifies that it has met the requirements of this new procedure. According to InvestingPro data, Intesa Sanpaolo has a significant market cap of 47269.84M USD and has shown robust revenue growth, with a rate of 20.76% LTM2023.Q2. The bank's strong earnings, reflected in a P/E ratio of 7.41, have allowed it to maintain dividend payments, with a dividend yield of 6.69% as of Y2023.D272.

In terms of future operations, InvestingPro Tips suggest that Intesa Sanpaolo's high earnings quality, with free cash flow exceeding net income, and consistent increase in earnings per share, could provide a solid foundation for the bank's strategy. Additionally, the bank's management has been actively buying back shares, indicating confidence in the company's performance.

It remains to be seen how this development will impact the bank's overall strategy in the region. For more in-depth insights, including additional InvestingPro Tips, visit InvestingPro.

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