Published by Global Banking and Finance Review
Posted on February 21, 2025
MILAN (Reuters) -State-backed financial conglomerate Poste Italiane on Friday raised investor payouts in a boost for public coffers, and set better than forecast 2025 profit goals after a solid quarter.
Poste said it aims to distribute around 7.5 billion euros ($7.9 billion) to investors from 2024-2027 profit, after increasing its latest dividend payment by more than a third versus the previous year.
Shares in Poste extended gains after the results to rise 3% by 1358 GMT.
The Italian state is the main beneficiary of Poste's capital distribution thanks to a direct 29.3% holding and another 35% stake held through state investor Cassa Depositi e Prestiti.
Italy's conservative government last year explored reducing its ownership to raise cash but eventually put the plan on hold.
"Poste Italiane has reported stronger than expected fourth quarter results," JPMorgan analysts said, adding the 2025 operating profit goal of 3.1 billion euros was also slightly ahead of markets' consensus estimate.
In raising its targeted payout ratio to 70% of earnings from the level of at least 65% it had announced in March, Poste also guided for a 2.1 billion euro net profit in 2025, slightly above last year's 2.0 billion euro result, which was its highest ever.
Poste said it had booked a 341 million euro charge in the fourth quarter to reflect risks on tax credits which it may not be able to claim back from the state.
Excluding that charge and Poste's contribution to a new fund the government has set up to protect holders of life insurance policies, the adjusted operating profit totalled 685 million euros in the fourth quarter, up by one third year-on-year.
"Fourth-quarter numbers confirmed a positive quarter-on-quarter revenue progression across all segments and good cost control," KBW analysts said.
Poste's business has expanded beyond traditional mail and parcels to comprise insurance, payments, savings management, energy and mobile phone services.
Poste this month acquired 9.8% of Telecom Italia and sources told Reuters the group was open to increasing the holding.
($1 = 0.9555 euros)
(Reporting by Elvira Pollina and Valentina Za; editing by Alvise Armellini, Tomasz Janowski and David Evans)
