BUY INTESA

U/P PROVIDES NICE ENTRY POINT

Underperformed the sector and we feel unfairly considering fundamentals are solid. MIB and banks in particular have suffered due to the NPL issues and the constitutional reform vote .

Numbers will be solid tomorrow and the capital position strong, with CET1 of over 13%.

However the real story for us is the yield story. Numbers will give further investor comfort to the dividend promises of 3bn which equates to 9% dividend yield. Not bad in a low yield world.

Buy as numbers will be a catalyst for catch up from recent underperformance.

ISP has underperformed the SX7E by 6.2% MTD & 17% YTD and the SX7P 2.9% MTD & 16.8% YTD.