By Pierre Bertrand

Intesa Sanpaolo said late Wednesday that it will propose to shareholders that it exercise the option given to it by the Italian government to put funds aside rather than pay the government's banking windfall tax.

Intesa said that it will instruct its subsidiary banks, Fideuram, Intesa Sanpaolo Private Banking and Isybank, to follow its lead in setting aside two-and-a-half times the amount they would have paid as tax.

Across the whole group, 2.07 billion euros ($2.19 billion) will be put in a non-distributable reserve-- a fund that can't be distributed to shareholders--based on a tax amount of around EUR828 million, Instesa said.

Intesa, the parent company, intends to put around EUR1.99 billion aside, based on a calculated tax amount of around EUR797 million, the bank said.

Shareholders will consider the proposal when approving the bank's 2023 financial statements, Intesa said.

Write to Pierre Bertrand at pierre.bertrand@wsj.com

(END) Dow Jones Newswires

October 26, 2023 03:10 ET (07:10 GMT)

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