MILAN (Reuters – Italy’s largest bank Intesa Sanpaolo cut Friday its profit guidance after setting aside 0.8 Billion Euros ($847 M) for potential losses due to Russia.

Intesa stated that it expects a net profit exceeding 4 billion euro in 2022. This is in contrast to the estimate of 5 billion euros given in February, before Russia invaded Ukraine.

It otherwise remained faithful to its profit and payout goals, which it established under the new plan up through 2025.

It stated that if it increased its provisions against Russia and Ukraine, to make up 40% of its exposures, then the total income for the year would be more than 3 billion Euros.

Following the release of results, shares plunged 1% and fell to 11.19 GMT.

The first quarter net income rose to 1.02 Billion Euros for January and March, thanks to strong trading results. This is well over the average of 709.4 M euros as estimated by eight analysts in a Reuters poll.

Intesa reported that Russia’s cross-border exposure before provisions were booked was at 3.9 Billion Euros. This excludes guarantees from Export Credit Agencies.

Additional 1.1 billion euro is being exposed to local units of Banca Intesa Russia, and Ukraine’s Pravex Bank.

If you add off-balance items like untapped credit line, your overall exposure net to guarantees is at 6.9 billion Euros. ($1 = 0.9441 euros)