Investor Presentation • Feb 6, 2024
Investor Presentation
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A strong bank for a sustainable world
Well-diversified business model, ready to leverage on our leadership in Wealth Management, Protection & Advisory
February 6, 2024
€7.7bn FY23 Net income (+76% vs FY22(1)), the best year ever (€7.9bn when excluding the final Resolution Fund contribution)
€1.6bn Net income in Q4 (+49% vs 4Q22(1)), the best Q4 ever, while strengthening the Balance sheet
€5.4bn cash dividends for 2023, equal to a 70% of cash payout ratio(2) and 12% dividend yield(3)
Buyback equivalent to ~55bps of CET1 ratio intended to be launched in June 2024(4)
Best-ever year for Operating income (+17% vs FY22(1)), Operating margin (+31% vs FY22(1)) and Gross income (+65% vs FY22(1))
Q4 the best quarter ever for Operating income, with further growth in Net interest income (+4.8% vs 3Q23)
Lowest-ever Cost/Income ratio (45.1%)
€102bn increase in Customer financial assets in 2023, reaching €1.3 trillion
Lowest-ever NPL inflow with further increase in NPL coverage ratio
Lowest-ever NPL stock and ratio (net NPL ratio at 0.9%(5)) with €0.6bn gross NPL stock reduction in Q4
Fully phased-in Common Equity ratio up at 13.7% (13.2% taking into account ~55bps buyback impact(6))
World-class position in Social Impact further strengthened with ~€1.5bn contribution(7) (€0.3bn already deployed) and ~1,000 dedicated People
Well-diversified business model and sustainable strong value creation and distribution, ready to leverage on our leadership in Wealth Management, Protection & Advisory
(1) Restated for the adoption of IFRS 17 and IFRS 9 by the Group's insurance companies
(4) Subject to ECB and shareholders' approvals
(5) According to EBA definition
(6) Intended to be launched in June 2024. Subject to ECB and shareholders' approvals
(7) Over the 2023-2027 period. Italian perimeter. As a cost for the Bank (including ~€0.5bn structure costs related to the ~1,000 People dedicated to sustain the initiatives/projects), already taken into account in the 2024-2025 guidance
MIL-BVA362-03032014-90141/VR
(1) Excluding goodwill and intangible assets impairment
(2) Management data including the contribution of the two former Venetian banks – excluding public cash contribution – and the Morval Group consolidation
(3) Excluding accounting effects from the combination with UBI Banca and goodwill impairment
(4) Restated for the adoption of IFRS 17 and IFRS 9 by the Group's insurance companies
Note: figures may not add up exactly due to rounding
(6) Based on ISP average share price in 2023. Subject to shareholders' approval
| 2023 results | 2022-2025 Business Plan targets | ||
|---|---|---|---|
| 2023 Net income | €7.7bn | €6.5bn Business Plan target for 2025 |
|
| Cash payout ratio | 70% €5.4bn cash dividends(1) for 2023 |
70% 2022-2025 |
|
| Buyback | ~55bps buyback intended to be launched in June 2024(2) on top of €3.4bn already distributed in 2022-2023. Any additional distribution to be evaluated year-by-year |
€3.4bn in 2022 with any additional distribution to be evaluated year-by-year |
|
| Basel 3/Basel 4 fully phased-in CET1 ratio |
14.5% taking into account 13.7% 13.2% taking into account ~55bps buyback(2) ~55bps buyback(2) 15.1% taking into account the additional benefit from DTA absorption(3) |
>12% throughout the Business Plan horizon |
|
| Net NPL ratio(4) | 0.9% | ~1% throughout the Business Plan horizon |
|
| Cost/income ratio | 45.1% | 46.4% Business Plan target for 2025 |
(2) Subject to ECB and shareholders' approvals
(3) And the expected distribution on FY23 Net income of insurance companies
(4) According to EBA definition
(1) Clients currently served by Banca dei Territori with one of the following features: high income/spending or combinations of significant AuM/age/complex investment products
Well-diversified business model to succeed in any rate scenario thanks to a strong contribution from Wealth Management and Protection (averaging 56% of Gross income(1) over the past six years)
2024-2025 dividend yield(3) 11%
(1) Excluding Corporate Centre
(2) Intended to be launched in June 2024. Subject to ECB and shareholders' approvals
(3) Based on ISP share price and number of shares as at 2.2.24, above €8bn 2024-2025 Net income guidance and 70% cash payout ratio. Subject to shareholders' approval
(1) Including €2.6bn paid as an interim dividend on 22.11.23 (€14.4 cents per share) and €2.8bn to be paid in May 2024 (€15.2 cents per share), equal to €29.6 cents per share for 2023
(2) Intended to be launched in June 2024. Subject to ECB and shareholders' approvals
(3) By Top Employers Institute
(4) Direct and indirect. Increase vs FY22 entirely due to direct taxes
(5) Deriving from Non-performing loans outflow
| ARK н. O |
|---|
| CERTIFIED |
| NOT EXHAUSTIVE Result achieved vs BP target x |
||||||
|---|---|---|---|---|---|---|
| 2022-2025 Business | Plan main ESG initiatives | Results achieved as 2022-2025 Business Plan at 31.12.23 (2022-2023) targets |
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| Unparalleled support to address social needs |
Expanding food and shelter program for people in need |
36.8m interventions |
50m 74% |
|||
| Strong focus on financial inclusion |
New social lending(1) | €14.8bn | €25bn 59% |
|||
| Continuous commitment to culture |
Gallerie d'Italia museums |
30,000sqm across 4 venues with ~1,200,000 visitors |
30,000sqm 100% |
|||
| Promoting innovation |
Promoting innovation | €85m investments in startups 405 innovation projects financed |
€100m 85% 800 51% |
(1) New lending to support non-profit activities, vulnerable and young people and urban regeneration
(7) New reporting on financed emissions to be presented within the 2023 TCFD/Climate Report (March 2024)
| x | Result achieved vs BP target |
|---|---|
| NOT EXHAUSTIVE | x | Result achieved vs BP target | ||
|---|---|---|---|---|
| 2022-2025 Business | Plan main ESG initiatives | Results achieved as at 31.12.23 (2022-2023) |
2022-2025 Business Plan targets |
|
| New lending to support the green economy, circular economy and ecological transition (Mission 2 NRRP(1)) |
~€45bn(4) | €76bn(5) | 59% | |
| Supporting clients | of which circular economy new lending(2) |
€8.7bn | €8bn | >100% |
| through the ESG/climate transition |
New green lending to individuals | €4.3bn | €12bn | 36% |
| ESG Labs | 13 opened |
>12 | >100% | |
| AuM invested in ESG products in % of total AuM(3) |
74% | 60% | >100% | |
| Accelerating on commitment to Net-Zero |
Energy acquired from renewable sources | ~90% 100% in Italy |
100%(6) | ~90% |
| Financed emissions reduction(7): ▪ |
||||
| (1) National Recovery and Resilience Plan (2) Including green and circular criteria (3) Eurizon perimeter – funds and AM products pursuant to art.8 and 9 SFDR 2019/2088 (4) 2021-2023 (5) In the 2021-2026 period (6) At Group level in 2030 |
― ― ▪ €7.8bn green and social bonds (8 issuances in 2022-2023 period) |
62% absolute reduction in 2022 vs 2021 for the 4 high-emitting NZBA sectors with disclosed 2030 targets (Oil & Gas, Power generation, Automotive, Coal mining) SBTi documentation for validation will be presented by March 2024 |
FY23: the best year ever
ISP is fully equipped for further success
Appendix: 2022-2025 Business Plan proceeding at full speed
MIL-BVA362-03032014-90141/VR
Note: figures may not add up exactly due to rounding
(1) Restated for the adoption of IFRS 17 and IFRS 9 by the Group's insurance companies
(2) Net provisions and net impairment losses on other assets, Other income (expenses), Income (Loss) from discontinued operations
(3) Including the final contribution to the Resolution Fund and charges for the Deposit guarantee scheme: respectively €323m pre-tax (€221m net of tax) and €373m pre-tax (€253m net of tax)
(4) Charges (net of tax) for integration and exit incentives, Effect of purchase price allocation (net of tax), Levies and other charges concerning the banking industry (net of tax), Impairment (net of tax) of goodwill and other intangible assets, Minority interests
Note: figures may not add up exactly due to rounding
(1) Restated for the adoption of IFRS 17 and IFRS 9 by the Group's insurance companies
(2) Net provisions and net impairment losses on other assets, Other income (expenses), Income (Loss) from discontinued operations
(3) Charges (net of tax) for integration and exit incentives, Effect of purchase price allocation (net of tax), Levies and other charges concerning the banking industry (net of tax), Impairment (net of tax) of goodwill and other intangible assets, Minority interests
MIL-BVA362-03032014-90141/VR
components
4,946 367 14,646
Note: figures may not add up exactly due to rounding
(1) Including hedging on core deposits (as at 31.12.23: ~€160bn core deposits hedged, 4-year duration, ~90bps yield, ~€2.4bn monthly maturities)
FY23
% Euribor 1M (average data)
Note: figures may not add up exactly due to rounding. The amount for Indirect customer deposits as at 31.12.22 has been restated, for the Assets under administration and in custody component, as a result of the delisting of shares, which, as they are no longer listed, are included at nominal value
(1) Net of duplications between Direct deposits and Indirect customer deposits
Note: figures may not add up exactly due to rounding
(1) Excluding Corporate Centre
(2) AM = Asset Management
(3) BdT WM = Banca dei Territori Wealth Management
(4) Individuals. Not including Credit Protection Insurance. Banca dei Territori division perimeter
(5) Including collective policies
Note: figures may not add up exactly due to rounding
(1) Sample: BBVA, BNP Paribas, Deutsche Bank, ING Group, Nordea, Santander and UniCredit (31.12.23 data); Barclays, Commerzbank, Crédit Agricole S.A., HSBC, Lloyds Banking Group, Société Générale, Standard Chartered and UBS (30.9.23 data)
19
▪ ~3,000 hires in 2021-2022-2023 and an additional ~1,600 hires of young people by 2025
(1) According to EBA definition
(2) Inflow to NPL (Bad loans, Unlikely to pay and Past due) from Performing loans
(3) Inflow to NPL (Bad loans, Unlikely to pay and Past due) from Performing loans minus outflow from NPL into Performing loans
(1) Including only banks in the EBA Transparency Exercise. Sample: BBVA, BNP Paribas, Deutsche Bank, ING Group, Nordea, Santander and UniCredit as at 31.12.23; Commerzbank, Crédit Agricole Group and Société Générale as at 30.9.23 (2) According to EBA definition. Data as at 30.6.23
(1) Including only banks in the EBA Transparency Exercise. Sample: BNP Paribas, Deutsche Bank, Nordea and UniCredit as at 31.12.23; BBVA and Société Générale as at 30.9.23; Crédit Agricole Group and Santander as at 30.6.23; ING Group as at 31.12.22
Source: Investor presentations, press releases, conference calls and financial statements
23
Note: figures may not add up exactly due to rounding
Note: figures may not add up exactly due to rounding (1) Export Credit Agencies
(1) €5.4bn dividends and €0.3bn AT1 coupon for 2023 (2) Intended to be launched in June 2024. Subject to ECB and shareholders' approvals
(3) 31.12.23 financial statements considering the total absorption of DTA related to IFRS9 FTA, DTA convertible in tax credit related to goodwill realignment and adjustments to loans, DTA related to non-taxable public cash contribution of €1,285m covering the integration and rationalisation charges relating to the acquisition of operations of the two former Venetian banks, as well as the expected absorption of DTA related to the combination with UBI Banca and to the new agreement with trade unions signed on 16.11.21 and DTA on losses carried forward, and the expected distribution on FY23 Net income of insurance companies
MIL-BVA362-03032014-90141/VR
Note: figures may not add up exactly due to rounding
(1) Including the impact of ~55bps buyback intended to be launched in June 2024. Subject to ECB and shareholders' approvals
28
(1) Fully loaded CET1 ratio according to EBA definition
(2) Considering all announced changes to macroprudential capital buffers as at 31.7.23 and estimating the Countercyclical Capital Buffer
(3) Sample: BBVA, BNP Paribas, Commerzbank, Crédit Agricole Group, Deutsche Bank, ING Group, Nordea, Santander, Société Générale and UniCredit
(4) Taking into account 2022 share buyback impact (103bps)
Note: figures may not add up exactly due to rounding
(4) Not considering the impact of ~55bps buyback intended to be launched in June 2024. Subject to ECB and shareholders' approvals
(5) Funding mix and size could change according to market conditions and asset growth. Not considering any 2025 pre-funding
Note: figures may not add up exactly due to rounding
(1) Stock of own-account eligible assets (including assets used as collateral and excluding eligible assets received as collateral) and cash and deposits with Central Banks
(2) Eligible assets freely available (excluding assets used as collateral and including eligible assets received as collateral) and cash and deposits with Central Banks
(3) Excluding the Reserve Requirement
FY23: the best year ever
ISP is fully equipped for further success
Appendix: 2022-2025 Business Plan proceeding at full speed
| The Italian economy is resilient thanks to solid fundamentals | ||
|---|---|---|
| Households | ▪ Strong Italian household gross wealth at ~€11,500bn, of which >€5,100bn in financial assets, coupled with low household debt and debt-service ratios ▪ Household debt to gross disposable income at 59% in 3Q23, far lower than 89% in the Euro area ▪ Less vulnerability to mortgage rates growth: 65% of mortgages at fixed rates (vs ~20% before the financial crisis) and 18% of floating-rate mortgages issued in 9M23 had interest-rate caps (>30% in 2022) ▪ Outstanding deposits 60% higher than 2008 and almost double the stock of loans |
% |
| Corporates | ▪ Very resilient Italian SMEs, quickly recovering after the COVID-19 emergency with historically-low default rates, high and increased liquidity and improved financial leverage ▪ Export-oriented companies highly diversified in terms of industry and markets; Italian exports have outperformed Germany's by ~11% over the past 5 years(2) ▪ Lower dependence on bank credit: from 2011 to 2022, bank debt as a percentage of total financial debt fell from 67% to 52% |
|
| Italian Government/ EU support |
▪ As part of the revised Italian Recovery and Resilience Plan (approved by the EU last November), total EU support rises to €194bn, of which €102bn was already received and partially invested. An acceleration in government spending is expected to gain momentum this year |
|
| Banking system | ▪ The banking system is massively capitalised, highly liquid, strongly supporting households and companies, and heavily engaged in the twin transition (digital and green) of the Italian economy |
|
| ▪ Inflation peaked in October-November 2022, at 12.6%, and then declined to 0.5% in December 2023, vs 2.9% in the Eurozone ▪ The unemployment rate fell to 7.2% in December 2023, the lowest level of the past fifteen years |
(1) Source: Bank of Italy (December 2023)
(2) % change exports in goods (in nominal values), November 2023 vs November 2018: Italy +30.1%, Germany +19.2%
Note: figures may not add up exactly due to rounding
Fully equipped for further success thanks to a well-diversified and resilient business model
(1) Intended to be launched in June 2024. Subject to ECB and shareholders' approvals
(2) Of which €2.6bn paid as an interim dividend on 22.11.23
(3) According to EBA definition
| Revenues | Solid growth in Revenues driven by further increase in Net interest income (also thanks to higher contribution from core deposits hedging) and growth in Commissions and Insurance, leveraging on our leadership in Wealth Management, Protection & Advisory |
|
|---|---|---|
| Operating costs | Stable Operating costs despite tech investments mainly thanks to lower Personnel expenses (already agreed voluntary exits and non-recurring component in 2023) |
▪ Net income above €8bn ▪ 70% cash payout ratio |
| Cost of risk | Low cost of risk driven by Zero-NPL Bank status and high-quality loan portfolio |
▪ Further growth in DPS and EPS vs 2023 |
| Levies and other charges concerning the banking industry |
Lower Levies and other charges concerning the banking industry due to no further contribution to the Resolution Fund |
Dividend yield: 11%(1) |
| Any additional distribution for 2024 and 2025 to be evaluated year-by-year |
(1) Based on ISP share price and number of shares as at 2.2.24, above €8bn 2024-2025 Net income guidance and 70% cash payout ratio. Subject to shareholders' approval
FY23: the best year ever
ISP is fully equipped for further success
Appendix: 2022-2025 Business Plan proceeding at full speed
▪ ISP recognised as Top Employer 2024(1) for the third consecutive year and received the Best Talent Acquisition Team prize in the 2023 LinkedIn Talent Awards
| ▪ Massive deleveraging with €5.4bn gross NPL stock reduction in 2022-2023, reducing Net NPL ratio to 0.9%(1) and anticipating Business Plan target |
|
|---|---|
| ▪ Focus on modular approach and sectorial forward looking – factoring in the macroeconomic scenario – and on proactive credit management |
|
| ▪ Focus on dedicated Banca dei Territori Division action plan, with strong management of underlying Cost of risk, NPL inflow from Performing loans and new solutions for new needs arising in the current scenario |
|
| ▪ Enhanced risk management capabilities: comprehensive and robust Risk Appetite Framework encompasses all the key risk dimensions of the Group |
|
| ▪ Credit assessment capabilities further strengthened with the introduction of a Sectorial Framework which assesses the forward-looking profile of each economic sector on a quarterly basis across different countries. The sectorial view, approved by a specific management committee, feeds all the credit processes in order to prioritise credit decisions and action plans |
|
| Massive upfront de-risking, slashing |
▪ Cybersecurity anti-fraud protection extended to new products and services for retail customers, including the use of Artificial Intelligence; adoption of Open Source Intelligence solutions to empower cyber threat intelligence capability |
| Cost of risk | ▪ Enhanced protection of both the remote access to company applications and the access to corporate workstations enabling multi-factor authentication, and at the same time improving user experiences through frictionless processes |
| ▪ Enhanced protection from cyber-attacks in terms of detection/recovery and improved internal awareness of cyber-attacks (e.g. phishing) |
|
| ▪ Increased customer login protection by leveraging biometric identification, replacing previous codes with non-transferable security codes (i.e. dynamic QR codes), and by improving identification through electronic document verification (Passport, ID Card) |
|
| ▪ Further enhanced security levels of digital services (including , our new digital bank) also through the adoption of advanced solutions and technologies for the remote biometric recognition of users, improving the user experience |
|
| ▪ Set up of the Anti Financial Crime (AFC) Digital Hub, aimed at becoming a national and international centre open to other financial institutions and intermediaries in the system, with the goal of combating money laundering and terrorism through new technologies and Artificial Intelligence, based on a public-private collaboration model which enables the introduction of innovation (applied research) in business processes |
|
| ▪ Set up of the new AFC model based on an international platform and competence centres specialised in Transaction Monitoring and Know Your Customers |
|
| ▪ The Active Credit Portfolio Steering (ACPS) unit continued to expand the credit risk hedging schemes to optimise capital absorption. In 4Q23, three new synthetic securitisations were completed: the first on a €3.4bn corporate loan portfolio, and the other two on a €1bn SME loan portfolio and on a €1.6bn residential mortgage portfolio with a high loan-to-value ratio. At the end of 2023, the outstanding volume of synthetic securitisation transactions included in the GARC Program (Active Credit Risk Management) was equal to ~€28bn |
|
| ▪ The ACPS unit also strengthened the capital efficiency initiatives in view of Basel 4 and extended the scope of Credit Strategy to ESG criteria, shifting €20bn of new lending in 2022 and ~€18.1bn in 2023 to more sustainable economic sectors with the best risk/return profile |
|
| ▪ Winner of the "Innovation of the Year" category in SCI's(2) ESG Securitisation Awards for applying proprietary ESG Scoring model to its risk transfer transactions ▪ Scale up of the Originate-to-share business model, increasing the distribution capabilities to optimise the return on capital |
| Key highlights | |
|---|---|
| Structural Cost reduction, enabled by technology |
▪ isytech already operational with ~470 dedicated specialists, contract with Thought Machine finalised and technological masterplan defined. Defined the offering structure and functionalities ▪ New head of , new head of isytech and new head of Sales & Marketing Digital Retail hired and operational ▪ Completed Family&Friends initiative with the involvement of ISP People and selected external "friends" ▪ Commercial launch of on 15.6.23 and release of the App on iOS and Android stores; go live of the new official showcase website ▪ Defined the plan for the business unit transfer from ISP to and on 14-15 October completed the first planned customer migration (~300k clients) ▪ The transformation and simplification of 's technology platform and operating model is proceeding successfully ▪ Insourcing of core capabilities in IT ongoing with ~1,550 people already hired ▪ product range has been consolidated and enriched ("SpensieRata", virtual cards, etc) ▪ Ongoing preparatory activities for the second ISP customer migration to scheduled for March 2024 ▪ AI Lab in Turin already operating (setup of Centai Institute) ▪ ~830 branches closed since 4Q21 in light of launch ▪ Digital platform for analytical cost management up and running, with 37 efficiency initiatives already identified ▪ Extended the Hub Procurement system, with full coverage of the centralised purchasing management perimeter. Defined use cases in the procurement analytics field ▪ Rationalisation of real estate in Italy in progress, with a reduction of ~490k sqm since 4Q21 ▪ ~4,300 voluntary exits(1) since 2022 ▪ Implementation of digital functions and services in Serbia, Hungary and Romania completed. Implementation ongoing in Slovakia: the roll-out phase started in June is underway with gradual releases on a monthly basis ▪ Completed the activities to improve the customer experience of digital processes in Hungary, Slovenia, Albania and Croatia (i.e. use of Artificial Intelligence and the new chatbot Navigated Experience functionality) ▪ Go-live of the new core banking system in Egypt and alignment of digital channels ▪ Ongoing activities to progressively release applications for the target platform in the remaining countries of the International Subsidiary Banks Division ▪ Digital Process Transformation: processes identified and activated E2E transformation activities (especially involving procurement processes, customer onboarding, hereditary succession process management, bank account closing process and control management processes). The E2E transformation activities will leverage both on Process Intelligent Automation (e.g. with Artificial Intelligence and/or Robotic Process Automation) and traditional reengineering methods. Released new digital solutions for customer onboarding and inheritance management processes for a first group of branches ▪ In line with the SkyRocket plan, the new Cloud Region in Turin is fully operational (in addition to the Milan Cloud Region made available in June 2022) and has enabled launch with an entirely Italy-based infrastructure (including disaster recovery) ▪ Launched digitalisation projects related to Artificial Intelligence and Digital Ledger Technology at Eurizon The Intesa Sanpaolo Mobile app was recognised by Forrester as the "Global Mobile Banking Apps Leader" and "Global |
| Digital Experience Leader" for the second consecutive year, ranking first worldwide among all banking apps evaluated |
New technology backbone already available to mass market retail clients through , to be progressively extended to the entire Group
New digital channels ( ) to attract new customers and better serve ISP customers with a low cost-to-serve model
Artificial intelligence to further unlock new business opportunities, increase operational efficiency and further improve the management of risks
(1) Additional contribution to 2025 Gross income from isytech, isybank, Fideuram Direct and AI not envisaged in the Business Plan, offsetting the impact from higher inflation and renewal of the Labour contract
MIL-BVA362-03032014-90141/VR Mooney Enel New technology backbone (isytech) already available to mass market retail clients through ; started the progressive extension to the entire Group 2022-2025 Business Plan proceeding at full speed
The first leading bank fully adopting a next-gen, cloud-based core banking solution
MIL-BVA362-03032014-90141/VR
Unique digital customer experience…
… already appreciated by the market
<3 minutes average onboarding time
accounts and cards for client banking needs
▪ Qorus Banking Innovation Award 2023
▪ CIO+ Italia Award 2023
▪ >40% of total sales to retail ISP Group customers already digital(1) today
~300,000 migrated customers(2)
required to open an account ~60,000 accounts opened by new customers
~400 new clients/day
~25m transactions completed
(2) ISP customers already not using branches. Second customer migration planned in mid-March 2024
| Product offering broader than digital challengers(1)… | ||||||
|---|---|---|---|---|---|---|
| in continuous evolution(2) | Fully accessible product catalogue, | Peer 1 | Peer 2 | Peer 3 | Peer 4 | |
| Debit cards | ||||||
| Cards | Cards in eco-sustainable material |
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| EU and extra-EU withdrawals |
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| Transfers | ||||||
| Tax incentives related transfer |
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| Payments | Payments from account to account |
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| Payments to Public Administration |
(3) | (4) | (4) | (4) | ||
| Salary advance | ||||||
| Credit | Personal loans | |||||
| Mortgages |
(1) Sample: BBVA Italy, Hype, N26 Italy and Revolut Italy
(2) E.g., to be complemented with credit cards, prepaid cards, simple protection products
(3) Including MAV, F24, Pago PA
(4) Partial functionalities
MIL-BVA362-03032014-90141/VR Accelerated the development of isytech's innovative digital features, further enriching the customer experience 2022-2025 Business Plan proceeding at full speed
An innovative digital bank business model with <30% Cost/Income:
Plan, not including potential upside from the adoption of generative AI solutions
| Dedicated program to adopt AI at scale… | … with strong benefits for the Group | ||
|---|---|---|---|
| Holistic impact | ▪ Group-wide adoption of AI through the development of AI use cases favouring: ― Better commercial effectiveness (examples of use cases underway/live: pricing optimisation through one-to-one pricing based on AI models, marketing propensity intelligence to identify cross/up-selling opportunities analysing purchasing behavioural patterns) ― Operational efficiency (e.g., conversational platform, with 80% of conversations already managed end-to-end, chatbot, controls) ― Strengthened Risk management (e.g., cyber security, cyber fraud, AML, VaR), regulatory analysis (ISP is the first European bank to use AI for regulatory analysis thanks to Aptus.AI) and ESG (e.g., Real Estate management) |
AI use cases, # 70 |
Dedicated AI specialists x ~150 77 |
| Partnerships and agreements |
▪ Skills and solutions sourcing with: ― Third-party agreements (e.g., Google, Microsoft, iGenius) ― Partnerships with Academia (e.g., Normale di Pisa, London City University & Fujitsu Laboratory of Europe, ZHAW Zurich University of Applied Sciences, Bicocca University) ― CENTAI, ISP research center for artificial intelligence |
35 | |
| Responsible and effective adoption |
▪ Ethical principles of responsible adoption through: ― Clear responsibility of business owner and guaranteed human presence in the loop ― Guardrail adoption ensures data quality, fairness and explainability ▪ >300 resources involved in AI Project and Cloud Center of Excellence ▪ Rationalised solutions/tools to empower ISP People |
30.6.23 30.9.23 ~150 |
31.12.23 2025 ~300 ~€100m additional contribution to 2025 Gross |
Completed the activities of the GenAI Laboratory with trials already concluded in several areas (e.g., HR support, regulatory analysis, technical support and coding) and first adoptions planned for 2024
Growth in Commissions, driven by Wealth Management, Protection & Advisory
(1) Fideuram Asset Management/Fideuram Asset Management Ireland (2) Ultra High Net Worth Individuals
(1) Eurizon perimeter – funds and AM products pursuant to art.8 and 9 SFDR 2019/2088
(2) National Recovery and Resilience Plan
MIL-BVA362-03032014-90141/VR
A unique Digital Wealth Platform for customers seeking to invest remotely in listed markets and asset management products enabled by state-of-the-art technology
| Advanced Trading | In-Self Investments | Direct Advisory | |
|---|---|---|---|
| Overview | • Professional platform for heavy-trader and expert users in >50 cash and derivatives |
• Access to ~150 sustainable funds among the best international asset managers |
• Team of financial advisors available anytime - anywhere (by appointment, remotely, via app) |
| markets • Sophisticated real-time model with contact and execution desks with >15 years of experience |
• Online investments in pre-built ESG portfolios managed by Fideuram Asset Management |
• Enhanced advisory tools and features, such as Aladdin's Robo4Advisory platform |
|
| Recent developments |
• Expansion of trading instruments with ~700 securities and ~9,000 derivatives added |
• Introduction of Cash Deposit for short term liquidity management |
• Scale-up of Direct Advisory (advanced advisory services) |
| • Strengthened the international news service |
• New desk for commercial and operative support for Premium clients |
• Certificates added to the product offering |
|
| Key figures | • ~8,300 clients operating in trading |
• ~9,500 clients utilising in In-Self |
• ~200 new clients in the first months and ~7,000 |
| • +16% growth in number of transactions(1) |
investments | clients from the network in view of self/advisory • 3 Direct Banker Teams when fully operational |
Significant developments for all services with €2.65bn AuM and ~71k clients as at 31.12.23
‒ In Action Esg NEET: a social impact initiative launched by the Insurance Division in early 2022 and dedicated to the promotion and inclusion of NEET youth and other fragile categories in the world of work. The initiative, in partnership with Dynamo Academy, aims to train young NEETs in professions in the area of caring. To date, the program has seen the launch of 8 classes in Tuscany, Campania and Lazio, involving a total of 112 young people. The success of the initiative is monitored quarterly through the timely survey of the employment status of graduated students; initial data show that 77% of NEETs have found a job and/or have resumed their studies within a few months after the end of the course
Social housing: enhancement of the Group's ongoing initiatives in terms of promoting housing units, also identifying some new partnerships with leading operators in the sector, to achieve the Business Plan targets (promotion of 6k-8k units of social housing and student bed places)
Unparalleled support to
address social
needs
Proprietary art collections: 363 works requested on loan to 73 exhibitions in Italy and abroad; 52 works on free loan; 132 restorations; initiatives to enhance the value of collections linked to communities in cooperation with local institutions (from Pistoia with Fondazione Caript to Arezzo with Fondazione Bruschi)
Historical Archives: activities continued on traditional, hybrid and native digital archives related to the preservation, restoration, digitisation, cataloguing and release for public use, also using the most advanced technologies available, of both the Bank's Archives and the Publifoto Archive
Promoting innovation (1/2)
Continuous
to culture
▪ Diffusion of innovation mindset/culture: in 2023, 36 positioning and match making(1) events held (13 in 4Q23) with >3,000 participants (since 2022, 68 events with >5,200 participants). In 4Q23 ISPIC moderated, with Intesa Sanpaolo, the panel "How to accelerate the transition towards Circular Economy and its impact on Technologies, Finance and Industries" in a side event at COP28 Dubai. In 2023, ISPIC released 9 innovation reports on technologies and trends and 6 other publications on innovation topics (30 since 2022)
Accelerating commitment to Net-Zero
Promoting innovation
(2/2)
Supporting clients through the ESG/climate transition ▪ ~€44.9bn disbursed in the period 2021-2023 out of the €76bn in new lending available for the green economy, circular economy and green transition in relation to the "2021-2026 Piano Nazionale di Ripresa e Resilienza" (1) ▪ ~€1.7bn of Green Mortgages in 2023 (€4.3bn in 2022-2023) out of the €12bn of new Green lending to individuals throughout the 2022-2025 Business Plan ▪ €8bn circular economy credit facility announced in the 2022-2025 Business Plan. In 2023, 366 projects assessed and validated for an amount of ~11.7bn; granted ~€7.2bn for 242 transactions (of which €4.8bn related to green criteria) and €5.6bn disbursed, taking into account previously granted amounts (of which €4.7bn related to green criteria). Overall, since 2022, 786 projects assessed and validated for an amount of >€20.8bn, granted 472 transactions for an amount of >€12bn (of which €7.4bn related to green criteria), with €8.7bn disbursed taking into account projects previously agreed (of which €6.9bn related to green criteria). In April, updated the criteria for accessing the plafond for the circular framework according to the criteria of the Ellen MacArthur Foundation (EMF), and for the green framework in line with Intesa Sanpaolo's Green, Social & Sustainability Bond Framework. The activities of ISPIC to support the management of Intesa Sanpaolo's partnership with EMF are in progress.In 2023, ISPIC and EMF collaborated with Eurizon Capital SGR in the production of the white paper "Identification of leading companies in the transition to the Circular Economy". ISPIC and Intesa Sanpaolo (IMI C&IB Division) signed a Memorandum of Understanding (MoU) with the Ministry of Economy of the UAE to promote the adoption of circular economy principles and to design and implement, with Cariplo Factory, the country's circular ecosystem ▪ Activated 13 ESG Laboratories (in Venice, Padua, Brescia, Bergamo, Cuneo, Bari-Taranto, Rome, Naples-Palermo, Milan, Turin and Florence), physical and virtual meeting points to support SMEs in approaching sustainability, and evolution of the advisory services offered by partners (e.g. Circularity, Nativa, CE Lab and others) ▪ Continued success of the S-Loan product range dedicated to SMEs to finance projects aimed at improving their sustainability profile (on 6 product lines: S-Loan ESG, S-Loan Diversity, S-Loan Climate Change; S-Loan Agribusiness, S-Loan Tourism and S-Loan CER). Disbursed ~€1.7bn in 2023 (~€5.2bn since launch in July 2020) ▪ Digital Loans (D-Loans) aimed at improving the digitalisation of companies: €25m disbursed since launch in October 2021 ▪ Suite Loans aimed at incentivising investments in the redevelopment/improvement of hotel facilities and accommodation services: €12m disbursed since launch in December 2021 ▪ Completed the implementation of the ESG/Climate evolution of the Non-Financial Corporate credit framework, leveraging on ESG sectoral assessment and ESG sectoral strategy, ESG scoring at counterparty level and new guidelines on sustainable products; defined the methodology of analysis of the transition plan of Oil & Gas, Power Gen and Automotive customers and gradual extension to other Net Zero sectors ▪ Completed activities to verify the alignment of existing portfolios (mortgages, bonds, non-financial corporate lending) to the EU taxonomy criteria for the first disclosure of the Green Asset Ratio. Defined new business actions for the purpose of steering the metric ▪ ESG advisory to corporates to steer the energy transition through a scalable approach, with a focus on energy, infrastructure and the automotive & industrial sectors ▪ Significant development of the ESG value proposition initiative for Corporate, SME and Retail segments in all the banks of the International Subsidiary Banks Division(2) ▪ Enhancement of ESG investment products for asset management with penetration increasing to ~74% of total AuM(3); continued expansion of IBIPs(4) product catalog of new Art.8 products; increase in investment options (art. 8 and 9 of SFDR) underlying the insurance products available to customers to ~80.4% (2023) ▪ Continuous commitment to Stewardship activities: in 2023, Eurizon Capital SGR took part in 1,413 shareholders' meetings (of which 93% are issuers listed abroad) and 592 engagements (of which 40% on ESG issues) ▪ The "ESG Ambassador" role was established – for the first phase 34 Private Bankers, selected among the approximately 6,000 belonging to the Fideuram and Intesa Sanpaolo Private Banking Networks on the basis of their attention to ESG issues - with the aim of promoting a culture of sustainability in the territories to which they belong, promoting sustainable behavior and representing a listening point for the needs of customers and Private Bankers Reinforced ISP ESG governance, with the Risks Committee becoming the Risks and Sustainability Committee with enhanced ESG responsibilities since April 2022
(1) 2021-2026 National Recovery and Resilience Plan
(2) Excluding Moldova and Ukraine
(3) Eurizon perimeter – funds and AM products pursuant to art.8 and 9 SFDR 2019/2088
(4) Insurance Based Investment Products 57
The only Italian bank included in the Dow Jones Sustainability Indices
Top ranking(1) for Sustainability
First bank in Europe and second world-wide in 2024 Corporate Knights ''Global 100 Most Sustainable Corporations in the World Index''
Ranked first among peer group by Sustainalytics (2024 ESG Industry Top rated and 2024 ESG Regional Top rated)
In September 2023, ISP was ranked the first bank in Europe in the Refinitiv D&I Index
In the 2023 ranking by Institutional Investor, ISP was confirmed first in Europe for ESG aspects
| (2) | (3) | |||
|---|---|---|---|---|
| 74 | A | AA | 84 | 10.9 |
| 67 | A | AA | 80 | 14.2 |
| 66 | A | AA | 78 | 15.8 |
| 63 | A | AA | 73 | 19.6 |
| 63 | A | AA | 69 | 19.7 |
| 61 | A | AA | 69 | 20.9 |
| 61 | B | AA | 66 | 22.3 |
| 60 | B | AA | 60 | 22.9 |
| 59 | B | AA | 56 | 23.8 |
| 59 | B | AA | 55 | 24.6 |
| 58 | B | AA | 55 | 24.7 |
| 55 | B | AA | 55 | 24.9 |
| 53 | B | AA | 55 | 26.0 |
| 53 | B | AA | 50 | 26.5 |
| 53 | C | AA | 44 | 27.5 |
| 49 | N/S | A | 43 | 27.9 |
(1) ISP peer group
(2) Bloomberg Disclosure Score
(3) Ranking refers to 2022. 2023 results will be updated in 2024
Source: Bloomberg ESG Disclosure Score (Bloomberg as at 23.1.24), CDP Climate Change Score 2022 (https://www.cdp.net/en/companies/companies-scores); MSCI ESG Score (https://www.msci.com/esg-ratings) data as at 23.1.24; S&P Global ESG Score (https://www.spglobal.com/esg/solutions/data-intelligence-esg-scores as at 23.1.24); Sustainalytics score (https://www.sustainalytics.com/esg-ratings as at 23.1.24)
LinkedIn Talent Awards
(1) By Top Employers Institute
| EMARKE DIR |
|---|
| CERTIFIED |
| € m | 2023 | 31.12.23 | |
|---|---|---|---|
| Operating income |
25,138 | Loans to customers | 429,540 |
| Operating costs |
(11,329) | Customer financial assets(1) | 1,305,533 |
| Cost/Income ratio | 45.1% | of which Direct deposits from banking business | 576,136 |
| Operating margin | 13,809 | of which Direct deposits from insurance business | 172,746 |
| Gross income (loss) | 12,058 | of which Indirect customer deposits | 722,194 |
| Net income | 7,724 | - Assets under management |
444,031 |
| - Assets under administration |
278,163 | ||
| RWA | 302,110 | ||
| Total assets | 963,570 |
Detailed consolidated P&L results
Liquidity, Funding and capital base
Asset quality
Divisional results and other information
| 2022(1) | 2023 | % |
|
|---|---|---|---|
| Net interest income | 9,500 | 14,646 | 54.2 |
| Net fee and commission income | 8,919 | 8,558 | (4.0) |
| Income from insurance business | 1,675 | 1,666 | (0.5) |
| Profits on financial assets and liabilities at fair value | 1,378 | 298 | (78.4) |
| Other operating income (expenses) | (32) | (30) | (6.3) |
| Operating income | 21,440 | 25,138 | 17.2 |
| Personnel expenses | (6,742) | (6,981) | 3.5 |
| Other administrative expenses | (2,912) | (3,002) | 3.1 |
| Adjustments to property, equipment and intangible assets | (1,280) | (1,346) | 5.2 |
| Operating costs | (10,934) | (11,329) | 3.6 |
| Operating margin | 10,506 | 13,809 | 31.4 |
| Net adjustments to loans | (3,113) | (1,529) | (50.9) |
| Net provisions and net impairment losses on other assets | (270) | (570) | 111.1 |
| Other income (expenses) | 202 | 348 | 72.3 |
| Income (Loss) from discontinued operations | 0 | 0 | n.m. |
| Gross income (loss) | 7,325 | 12,058 | 64.6 |
| Taxes on income | (2,080) | (3,438) | 65.3 |
| Charges (net of tax) for integration and exit incentives | (140) | (222) | 58.6 |
| Effect of purchase price allocation (net of tax) | (146) | (161) | 10.3 |
| Levies and other charges concerning the banking industry (net of tax) | (576) | (2) (485) |
(15.8) |
| Impairment (net of tax) of goodwill and other intangible assets | 0 | 0 | n.m. |
| Minority interests | (4) | (28) | 600.0 |
| Net income | 4,379 | 7,724 | 76.4 |
Note: figures may not add up exactly due to rounding
(1) Restated for the adoption of IFRS 17 and IFRS 9 by the Group's insurance companies
(2) Including the final contribution to the Resolution Fund: €323m pre-tax (€221m net of tax) and charges for the Deposit Guarantee Scheme: €373m pre-tax (€253m net of tax)
| 3Q23 | 4Q23 | % |
|
|---|---|---|---|
| Net interest income | 3,813 | 3,995 | 4.8 |
| Net fee and commission income | 2,095 | 2,110 | 0.7 |
| Income from insurance business | 419 | 391 | (6.7) |
| Profits on financial assets and liabilities at fair value | 52 | (91) | n.m. |
| Other operating income (expenses) | (12) | (32) | 166.7 |
| Operating income | 6,367 | 6,373 | 0.1 |
| Personnel expenses | (1,612) | (2,184) | 35.5 |
| Other administrative expenses | (710) | (917) | 29.2 |
| Adjustments to property, equipment and intangible assets | (328) | (367) | 11.9 |
| Operating costs | (2,650) | (3,468) | 30.9 |
| Operating margin | 3,717 | 2,905 | (21.8) |
| Net adjustments to loans | (357) | (616) | 72.5 |
| Net provisions and net impairment losses on other assets | (47) | (332) | 606.4 |
| Other income (expenses) | 15 | 29 | 93.3 |
| Income (Loss) from discontinued operations | 0 | 0 | n.m. |
| Gross income (loss) | 3,328 | 1,986 | (40.3) |
| Taxes on income | (1,066) | (288) | (73.0) |
| Charges (net of tax) for integration and exit incentives | (56) | (80) | 42.9 |
| Effect of purchase price allocation (net of tax) | (36) | (35) | (2.8) |
| Levies and other charges concerning the banking industry (net of tax) | (264) | 18 | n.m. |
| Impairment (net of tax) of goodwill and other intangible assets | 0 | 0 | n.m. |
| Minority interests | (6) | 1 | n.m. |
| Net income | 1,900 | 1,602 | (15.7) |
€ m
| 1Q22(1) | 2Q22(1) | 3Q22(1) | 4Q22(1) | 1Q23 | 2Q23 | 3Q23 | 4Q23 | |
|---|---|---|---|---|---|---|---|---|
| Net interest income | 1,957 | 2,092 | 2,387 | 3,064 | 3,254 | 3,584 | 3,813 | 3,995 |
| Net fee and commission income | 2,289 | 2,255 | 2,153 | 2,222 | 2,137 | 2,216 | 2,095 | 2,110 |
| Income from insurance business | 392 | 449 | 439 | 395 | 397 | 459 | 419 | 391 |
| Profits on financial assets and liabilities at fair value | 769 | 560 | 51 | (2) | 262 | 75 | 52 | (91) |
| Other operating income (expenses) | 4 | (12) | (12) | (12) | 7 | 7 | (12) | (32) |
| Operating income | 5,411 | 5,344 | 5,018 | 5,667 | 6,057 | 6,341 | 6,367 | 6,373 |
| Personnel expenses | (1,576) | (1,613) | (1,632) | (1,921) | (1,560) | (1,625) | (1,612) | (2,184) |
| Other administrative expenses | (634) | (718) | (695) | (865) | (644) | (731) | (710) | (917) |
| Adjustments to property, equipment and intangible assets | (314) | (309) | (313) | (344) | (332) | (319) | (328) | (367) |
| Operating costs | (2,524) | (2,640) | (2,640) | (3,130) | (2,536) | (2,675) | (2,650) | (3,468) |
| Operating margin | 2,887 | 2,704 | 2,378 | 2,537 | 3,521 | 3,666 | 3,717 | 2,905 |
| Net adjustments to loans | (702) | (730) | (496) | (1,185) | (189) | (367) | (357) | (616) |
| Net provisions and net impairment losses on other assets | (52) | (62) | (42) | (114) | (70) | (121) | (47) | (332) |
| Other income (expenses) | (4) | 147 | 4 | 55 | 101 | 203 | 15 | 29 |
| Income (Loss) from discontinued operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Gross income (loss) | 2,129 | 2,059 | 1,844 | 1,293 | 3,363 | 3,381 | 3,328 | 1,986 |
| Taxes on income | (776) | (699) | (560) | (45) | (1,084) | (1,000) | (1,066) | (288) |
| Charges (net of tax) for integration and exit incentives | (16) | (23) | (23) | (78) | (42) | (44) | (56) | (80) |
| Effect of purchase price allocation (net of tax) | (34) | (30) | (32) | (50) | (46) | (44) | (36) | (35) |
| Levies and other charges concerning the banking industry (net of tax) | (266) | (12) | (266) | (32) | (228) | (11) | (264) | 18 |
| Impairment (net of tax) of goodwill and other intangible assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority interests | 6 | 8 | (6) | (12) | (7) | (16) | (6) | 1 |
| Net income | 1,043 | 1,303 | 957 | 1,076 | 1,956 | 2,266 | 1,900 | 1,602 |
Note: figures may not add up exactly due to rounding
(1) Including hedging on core deposits (as at 31.12.23: ~€160bn core deposits hedged, 4y duration, ~90bps yield, and ~€2.4bn monthly maturities)
▪ Increase vs Q3 due to Commissions from Management, dealing and consultancy activities (+2.9%; +€36m)
▪ Decline largely due to Commissions from Management, dealing and consultancy activities (-2.8%; -€145m)
€ m
| Net fee and commission income | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 2022 2023 |
||||||||||||||
| Guarantees given / received | 47 | 54 | 86 | 59 | 34 | 41 | 41 | 39 | 246 | 155 | ||||
| Collection and payment services | 139 | 164 | 156 | 164 | 156 | 164 | 169 | 180 | 623 | 669 | ||||
| Current accounts | 346 | 348 | 348 | 344 | 341 | 344 | 339 | 336 | 1,386 | 1,360 | ||||
| Credit and debit cards | 83 | 108 | 114 | 109 | 94 | 107 | 105 | 99 | 414 | 405 | ||||
| Commercial banking activities | 615 | 674 | 704 | 676 | 625 | 656 | 654 | 654 | 2,669 | 2,589 | ||||
| Dealing and placement of securities | 228 | 153 | 134 | 167 | 230 | 193 | 154 | 190 | 682 | 767 | ||||
| Currency dealing | 2 | 3 | 4 | 0 | 2 | 2 | 3 | 2 | 9 | 9 | ||||
| Portfolio management | 704 | 676 | 660 | 670 | 614 | 641 | 627 | 627 | 2,710 | 2,509 | ||||
| Distribution of insurance products | 403 | 421 | 357 | 406 | 396 | 403 | 368 | 345 | 1,587 | 1,512 | ||||
| Other | 75 | 56 | 59 | 52 | 57 | 69 | 69 | 93 | 242 | 288 | ||||
| Management, dealing and consultancy activities | 1,412 | 1,309 | 1,214 | 1,295 | 1,299 | 1,308 | 1,221 | 1,257 | 5,230 | 5,085 | ||||
| Other net fee and commission income | 262 | 272 | 235 | 251 | 213 | 252 | 220 | 199 | 1,020 | 884 | ||||
| Net fee and commission income | 2,289 | 2,255 | 2,153 | 2,222 | 2,137 | 2,216 | 2,095 | 2,110 | 8,919 | 8,558 |
n.m. n.m. (78.4)
| 4Q22 | 3Q23 | 4Q23 | 2022 | 2023 | |
|---|---|---|---|---|---|
| Customers | 91 | 88 | 80 | 374 | 337 |
| Capital markets | (74) | (342) | (136) | (336) | (481) |
| Trading and Treasury | (2) | 303 | (36) | 1,389 | 437 |
| Structured credit products | (17) | 3 | 1 | (49) | 5 |
MIL-BVA362-03032014-90141/VR
Detailed consolidated P&L results
Liquidity, Funding and capital base
Asset quality
Divisional results and other information
Note: figures may not add up exactly due to rounding
(1) Net of duplications between Direct deposits and Indirect customer deposits
(2) The amount for Indirect customer deposits has been restated, for the Assets under administration and in custody component, as a result of the delisting of shares, which, as they are no longer listed, are included at nominal value
Note: figures may not add up exactly due to rounding
(1) Including Senior non-preferred
(2) Certificates of deposit + Commercial papers
Note: figures may not add up exactly due to rounding
◼ €1bn AT1, €1bn green senior non-preferred, £400m Tier 2, €750m social senior preferred and dual tranche for a total of \$2bn senior and senior non-preferred placed. On average 91% demand from foreign investors; orderbooks average oversubscription ~3.2x
Note: figures may not add up exactly due to rounding
(4) Last twelve-month average
(1) Stock of own-account eligible assets (including assets used as collateral and excluding eligible assets received as collateral) and cash and deposits with Central Banks
(2) Eligible assets freely available (excluding assets used as collateral and including eligible assets received as collateral) and cash and deposits with Central Banks
(3) Excluding the Reserve Requirement
(5) Loans to customers/Direct deposits from banking business
(2) Pro-forma fully loaded Basel 3 (31.12.23 financial statements considering the total absorption of DTA related to IFRS 9 FTA (€0.8bn as at 31.12.23), DTA convertible in tax credit related to goodwill realignment (€4.3bn as at 31.12.23) and adjustments to loans (€1.8bn as at 31.12.23), DTA related to non-taxable public cash contribution of €1,285m covering the integration and rationalisation charges relating to the acquisition of operations of the two former Venetian banks (€0.03bn as at 31.12.23), as well as the expected absorption of DTA related to the combination with UBI Banca and to the new agreement with trade unions signed on 16.11.21 (€0.3bn as at 31.12.23) and DTA on losses carried forward (€2.7bn as at 31.12.23), and the expected distribution on FY23 Net income of insurance companies)
(3) Including exposures with the ECB
Detailed consolidated P&L results
Liquidity, Funding and capital base
Asset quality
Divisional results and other information
| x Gross NPL ratio, % |
x Net NPL ratio, % |
x Gross and net NPL ratio based on EBA definition, % |
|||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross NPL | Net NPL | ||||||||||
| € bn |
30.9.22 | 31.12.22 | 30.9.23 | 31.12.23 | € bn |
30.9.22 | 31.12.22 | 30.9.23 | 31.12.23 | ||
| Bad loans | 3.8 | 3.7 | 3.9 | 3.4 | Bad loans | 1.3 | 1.1 | 1.2 | 0.9 | ||
| - of which forborne |
0.8 | 0.8 | 1.0 | 0.7 | - of which forborne |
0.3 | 0.3 | 0.3 | 0.2 | ||
| Unlikely to pay | 7.0 | 6.4 | 6.0 | 5.9 | Unlikely to pay | 4.2 | 4.0 | 3.6 | 3.6 | ||
| - of which forborne |
2.9 | 2.6 | 2.6 | 2.4 | - of which forborne |
1.9 | 1.7 | 1.6 | 1.6 | ||
| Past due | 0.6 | 0.6 | 0.6 | 0.6 | Past due | 0.5 | 0.4 | 0.4 | 0.5 | ||
| - of which forborne |
0.1 | - | - | 0.1 | - of which forborne |
0.1 | - | - | - | ||
| Total | 11.4 | 10.6 | 10.5 | 9.9 | Total | 6.0 | 5.5 | 5.2 | 5.0 | ||
| 2.4 | 2.3 | 2.4 | 2.3 | 1.3 | 1.2 | 1.2 | 1.2 | ||||
| 1.9 | 1.9 | 1.9 | 1.8 | 1.0 | 1.0 | 1.0 | 0.9 |
Note: figures may not add up exactly due to rounding
Note: figures may not add up exactly due to rounding
Note: figures may not add up exactly due to rounding
| 31.12.23 | |
|---|---|
| Public Administration | 5.1% |
| Financial companies | 8.1% |
| Non-financial companies | 42.6% |
| of which: | |
| SERVICES | 4.7% |
| UTILITIES | 4.3% |
| DISTRIBUTION | 3.1% |
| REAL ESTATE | 3.0% |
| CONSTRUCTION AND MATERIALS FOR CONSTR. | 2.9% |
| FOOD AND DRINK | 2.7% |
| METALS AND METAL PRODUCTS | 2.2% |
| FASHION | 2.1% |
| INFRASTRUCTURE | 2.1% |
| TRANSPORTATION MEANS | 1.9% |
| ENERGY AND EXTRACTION | 1.9% |
| MECHANICAL | 1.8% |
| AGRICULTURE | 1.7% |
| TOURISM | 1.6% |
| TRANSPORT | 1.6% |
| CHEMICALS, RUBBER AND PLASTICS | 1.6% |
| ELECTRICAL COMPONENTS AND EQUIPMENT | 0.9% |
| PHARMACEUTICAL | 0.8% |
| FURNITURE AND WHITE GOODS | 0.7% |
| MEDIA | 0.5% |
| WOOD AND PAPER | 0.4% |
| OTHER CONSUMPTION GOODS | 0.2% |
| orohibited | EMARKE I SDIR |
|---|---|
| CERTIFIED | |
| € bn, data as at 31.12.23 | ||||||
|---|---|---|---|---|---|---|
| -- | -- | -- | -- | -- | -- | --------------------------- |
| Local presence Russia | Cross-border exposure to Russia(1) | |
|---|---|---|
| Loans to customers (net of ECA guarantees and provisions) |
0.1(2) | 0.5 |
| ECA(3) guarantees |
- | 0.7(4) |
| Due from banks (net of provisions) | 0.7 | 0.01(5) |
| Bonds (net of writedowns) | 0.01 | n.m.(6) |
| Derivatives | n.m. | - |
| RWA | 1.9 | 2.2 |
| Total assets | 1.6 | n.a. |
| Intragroup funding | 0.3 | n.a. |
(1) Exposure to Russian counterparties included in the SDN lists of names to which sanctions apply is equal to only €0.2bn
(4) There are also Export Credit Agencies guarantees against an off-balance of €0.3bn (entirely against undrawn committed lines)
(5) There is also an off-balance of €0.07bn (no undrawn committed lines)
(6) Including insurance business (concerning policies where the total risk is not retained by the insured)
Detailed consolidated P&L results
Liquidity, Funding and capital base
Asset quality
Divisional results and other information
Data as at 31.12.23
| Banca dei Territori(1) |
IMI Corporate & Investment Banking |
International Subsidiary Banks(2) |
Private Banking(3) |
Asset Management(4) |
Insurance (5) |
Corporate Centre / Others(6) |
Total | |
|---|---|---|---|---|---|---|---|---|
| Operating income (€ m) | 11,285 | 3,910 | 2,925 | 3,184 | 908 | 1,613 | 1,313 | 25,138 |
| Operating margin (€ m) | 4,730 | 2,408 | 1,728 | 2,201 | 663 | 1,234 | 845 | 13,809 |
| Net income (€ m) | 1,945 | 1,478 | 1,173 | 1,366 | 475 | 876 | 411 | 7,724 |
| Cost/Income (%) | 58.1 | 38.4 | 40.9 | 30.9 | 27.0 | 23.5 | n.m. | 45.1 |
| RWA (€ bn) | 80.5 | 110.8 | 36.1 | 11.9 | 2.0 | 0.0 | 60.8 | 302.1 |
| Direct deposits from banking business (€ bn) | 270.4 | 113.5 | 57.9 | 45.8 | 0.0 | 0.0 | 88.6 | 576.1 |
| Loans to customers (€ bn) | 232.4 | 127.2 | 42.1 | 14.4 | 0.2 | 0.0 | 13.3 | 429.5 |
Note: figures may not add up exactly due to rounding
(1) Including isybank
(2) Excluding the Russian subsidiary Banca Intesa which is included in the IMI C&IB Division
(3) Fideuram, Intesa Sanpaolo Private Banking, Intesa Sanpaolo Wealth Management, IW Private Investments, REYL Intesa Sanpaolo, and Siref Fiduciaria
(4) Eurizon
(5) Fideuram Vita, Intesa Sanpaolo Assicura, Intesa Sanpaolo Insurance Agency, Intesa Sanpaolo RBM Salute, and Intesa Sanpaolo Vita
(6) Treasury Department, Central Structures and consolidation adjustments
| 2022 | 2023 | % | |
|---|---|---|---|
| Net interest income | 3,992 | 6,549 | 64.1 |
| Net fee and commission income | 4,739 | 4,630 | (2.3) |
| Income from insurance business | 0 | 0 | n.m. |
| Profits on financial assets and liabilities at fair value | 120 | 111 | (7.5) |
| Other operating income (expenses) | (4) | (5) | 25.0 |
| Operating income | 8,847 | 11,285 | 27.6 |
| Personnel expenses | (3,430) | (3,482) | 1.5 |
| Other administrative expenses | (2,964) | (3,071) | 3.6 |
| Adjustments to property, equipment and intangible assets | (3) | (2) | (33.3) |
| Operating costs | (6,397) | (6,555) | 2.5 |
| Operating margin | 2,450 | 4,730 | 93.1 |
| Net adjustments to loans | (1,239) | (1,318) | 6.4 |
| Net provisions and net impairment losses on other assets | (68) | (114) | 67.6 |
| Other income (expenses) | 11 | 17 | 54.5 |
| Income (Loss) from discontinued operations | 0 | 0 | n.m. |
| Gross income (loss) | 1,154 | 3,315 | 187.3 |
| Taxes on income | (386) | (1,088) | 181.9 |
| Charges (net of tax) for integration and exit incentives | (41) | (70) | 70.7 |
| Effect of purchase price allocation (net of tax) | (32) | (24) | (25.0) |
| Levies and other charges concerning the banking industry (net of tax) | (214) | (188) | (12.1) |
| Impairment (net of tax) of goodwill and other intangible assets | 0 | 0 | n.m. |
| Minority interests | 13 | 0 | (100.0) |
| Net income | 494 | 1,945 | 293.7 |
+76% considering the benefit of actual market rate trends not entirely reflected in the internal fund transfer price applied to the Division
| 3Q23 | 4Q23 | % | |
|---|---|---|---|
| Net interest income | 1,639 | 1,630 | (0.6) |
| Net fee and commission income | 1,122 | 1,149 | 2.4 |
| Income from insurance business | 0 | 0 | n.m. |
| Profits on financial assets and liabilities at fair value | 25 | 27 | 9.3 |
| Other operating income (expenses) | (1) | (2) | 58.2 |
| Operating income | 2,783 | 2,803 | 0.7 |
| Personnel expenses | (806) | (1,035) | 28.5 |
| Other administrative expenses | (754) | (883) | 17.2 |
| Adjustments to property, equipment and intangible assets | (0) | (0) | 14.6 |
| Operating costs | (1,560) | (1,919) | 23.0 |
| Operating margin | 1,224 | 884 | (27.8) |
| Net adjustments to loans | (228) | (479) | 110.6 |
| Net provisions and net impairment losses on other assets | (17) | (36) | 115.4 |
| Other income (expenses) | 0 | 17 | n.m. |
| Income (Loss) from discontinued operations | 0 | 0 | n.m. |
| Gross income (loss) | 979 | 385 | (60.7) |
| Taxes on income | (322) | (124) | (61.5) |
| Charges (net of tax) for integration and exit incentives | (18) | (28) | 61.2 |
| Effect of purchase price allocation (net of tax) | (6) | (5) | (13.1) |
| Levies and other charges concerning the banking industry (net of tax) | (211) | 23 | n.m. |
| Impairment (net of tax) of goodwill and other intangible assets | 0 | 0 | n.m. |
| Minority interests | 0 | 0 | n.m. |
| Net income | 423 | 250 | (40.9) |
+3% considering the benefit of actual market rate trends not entirely reflected in the internal fund transfer price applied to the Division
| € m |
|---|
| 2022 | 2023 | % | |
|---|---|---|---|
| Net interest income | 2,107 | 2,797 | 32.7 |
| Net fee and commission income | 1,146 | 1,112 | (3.0) |
| Income from insurance business | 0 | 0 | n.m. |
| Profits on financial assets and liabilities at fair value | 1,047 | 3 | (99.7) |
| Other operating income (expenses) | (2) | (2) | 0.0 |
| Operating income | 4,298 | 3,910 | (9.0) |
| Personnel expenses | (528) | (559) | 5.9 |
| Other administrative expenses | (870) | (924) | 6.2 |
| Adjustments to property, equipment and intangible assets | (21) | (19) | (9.5) |
| Operating costs | (1,419) | (1,502) | 5.8 |
| Operating margin | 2,879 | 2,408 | (16.4) |
| Net adjustments to loans | (1,564) | (11) | (99.3) |
| Net provisions and net impairment losses on other assets | (131) | (182) | 38.9 |
| Other income (expenses) | 0 | 0 | n.m. |
| Income (Loss) from discontinued operations | 0 | 0 | n.m. |
| Gross income (loss) | 1,184 | 2,215 | 87.1 |
| Taxes on income | (508) | (711) | 40.0 |
| Charges (net of tax) for integration and exit incentives | (21) | (26) | 23.8 |
| Effect of purchase price allocation (net of tax) | 0 | 0 | n.m. |
| Levies and other charges concerning the banking industry (net of tax) | 0 | 0 | n.m. |
| Impairment (net of tax) of goodwill and other intangible assets | 0 | 0 | n.m. |
| Minority interests | 1 | 0 | (100.0) |
| Net income | 656 | 1,478 | 125.3 |
Including €1,079m provisions for Russia-Ukraine exposure in 2022
| 3Q23 | 4Q23 | % | |
|---|---|---|---|
| Net interest income | 712 | 777 | 9.1 |
| Net fee and commission income | 260 | 283 | 8.9 |
| Income from insurance business | 0 | 0 | n.m. |
| Profits on financial assets and liabilities at fair value | (46) | (37) | (19.7) |
| Other operating income (expenses) | (0) | (0) | 8.8 |
| Operating income | 925 | 1,023 | 10.5 |
| Personnel expenses | (129) | (175) | 35.0 |
| Other administrative expenses | (227) | (257) | 12.9 |
| Adjustments to property, equipment and intangible assets | (5) | (5) | (1.0) |
| Operating costs | (362) | (436) | 20.7 |
| Operating margin | 564 | 587 | 4.0 |
| Net adjustments to loans | (78) | (33) | (58.0) |
| Net provisions and net impairment losses on other assets | (34) | (43) | 26.7 |
| Other income (expenses) | 0 | 0 | n.m. |
| Income (Loss) from discontinued operations | 0 | 0 | n.m. |
| Gross income (loss) | 452 | 511 | 13.0 |
| Taxes on income | (152) | (166) | 9.4 |
| Charges (net of tax) for integration and exit incentives | (7) | (7) | 5.2 |
| Effect of purchase price allocation (net of tax) | 0 | 0 | n.m. |
| Levies and other charges concerning the banking industry (net of tax) | 0 | 0 | n.m. |
| Impairment (net of tax) of goodwill and other intangible assets | 0 | 0 | n.m. |
| Minority interests | 0 | 0 | n.m. |
| Net income | 293 | 337 | 15.1 |
€ m
| 2022 | 2023 | % | ||
|---|---|---|---|---|
| Net interest income | 1,592 | 2,332 | 46.5 | |
| Net fee and commission income | 574 | 583 | 1.6 | |
| Income from insurance business | 0 | 0 | n.m. | |
| Profits on financial assets and liabilities at fair value | 129 | 90 | (30.2) | |
| Other operating income (expenses) | (68) | (80) | 17.6 | |
| Operating income | 2,227 | 2,925 | 31.3 | |
| Personnel expenses | (573) | (619) | 8.0 | |
| Other administrative expenses | (431) | (461) | 7.0 | |
| Adjustments to property, equipment and intangible assets | (114) | (117) | 2.6 | |
| Operating costs | (1,118) | (1,197) | 7.1 | |
| Operating margin | 1,109 | 1,728 | 55.8 | |
| Net adjustments to loans | (345) | (206) | (40.3) | |
| Net provisions and net impairment losses on other assets | (20) | (54) | 170.0 | |
| Other income (expenses) | 35 | 123 | 251.4 | |
| Income (Loss) from discontinued operations | 0 | 0 | n.m. | |
| Gross income (loss) | 779 | 1,591 | 104.2 | |
| Taxes on income | (191) | (330) | 72.8 | |
| Charges (net of tax) for integration and exit incentives | (44) | (48) | 9.1 | |
| Effect of purchase price allocation (net of tax) | 0 | (6) | n.m. | |
| Levies and other charges concerning the banking industry (net of tax) | (40) | (34) | (15.0) | |
| Impairment (net of tax) of goodwill and other intangible assets | 0 | 0 | n.m. | |
| Minority interests | 0 | 0 | n.m. | |
| Net income | 504 | 1,173 | 132.7 |
Including €161m provisions for Russia-Ukraine exposure in 2022
| € m |
|---|
| 3Q23 | 4Q23 | % | |
|---|---|---|---|
| Net interest income | 611 | 628 | 2.8 |
| Net fee and commission income | 146 | 147 | 0.9 |
| Income from insurance business | 0 | 0 | n.m. |
| Profits on financial assets and liabilities at fair value | 26 | (2) | n.m. |
| Other operating income (expenses) | (20) | (27) | 38.2 |
| Operating income | 763 | 746 | (2.2) |
| Personnel expenses | (149) | (190) | 27.4 |
| Other administrative expenses | (110) | (139) | 26.8 |
| Adjustments to property, equipment and intangible assets | (30) | (31) | 1.8 |
| Operating costs | (289) | (360) | 24.5 |
| Operating margin | 474 | 386 | (18.5) |
| Net adjustments to loans | (25) | (135) | 430.6 |
| Net provisions and net impairment losses on other assets | (37) | 5 | n.m. |
| Other income (expenses) | 0 | 2 | 368.7 |
| Income (Loss) from discontinued operations | 0 | 0 | n.m. |
| Gross income (loss) | 412 | 258 | (37.4) |
| Taxes on income | (72) | (54) | (24.8) |
| Charges (net of tax) for integration and exit incentives | (12) | (16) | 29.9 |
| Effect of purchase price allocation (net of tax) | (1) | (4) | 647.6 |
| Levies and other charges concerning the banking industry (net of tax) | (5) | (13) | 151.8 |
| Impairment (net of tax) of goodwill and other intangible assets | 0 | 0 | n.m. |
| Minority interests | 0 | 1 | n.m. |
| Net income | 322 | 172 | (46.5) |
| 2022 | 2023 | % | |
|---|---|---|---|
| Net interest income | 419 | 1,267 | 202.4 |
| Net fee and commission income | 1,980 | 1,858 | (6.2) |
| Income from insurance business | 0 | 0 | n.m. |
| Profits on financial assets and liabilities at fair value | 60 | 54 | (10.0) |
| Other operating income (expenses) | 16 | 5 | (68.8) |
| Operating income | 2,475 | 3,184 | 28.6 |
| Personnel expenses | (486) | (519) | 6.8 |
| Other administrative expenses | (354) | (375) | 5.9 |
| Adjustments to property, equipment and intangible assets | (81) | (89) | 9.9 |
| Operating costs | (921) | (983) | 6.7 |
| Operating margin | 1,554 | 2,201 | 41.6 |
| Net adjustments to loans | (11) | (37) | 236.4 |
| Net provisions and net impairment losses on other assets | 12 | (73) | n.m. |
| Other income (expenses) | 0 | 15 | n.m. |
| Income (Loss) from discontinued operations | 0 | 0 | n.m. |
| Gross income (loss) | 1,555 | 2,106 | 35.4 |
| Taxes on income | (444) | (672) | 51.4 |
| Charges (net of tax) for integration and exit incentives | (37) | (25) | (32.4) |
| Effect of purchase price allocation (net of tax) | (21) | (23) | 9.5 |
| Levies and other charges concerning the banking industry (net of tax) | (21) | (18) | (14.3) |
| Impairment (net of tax) of goodwill and other intangible assets | 0 | 0 | n.m. |
| Minority interests | 2 | (2) | n.m. |
| Net income | 1,034 | 1,366 | 32.1 |
€ m
| 3Q23 | 4Q23 | % | |
|---|---|---|---|
| Net interest income | 331 | 334 | 1.1 |
| Net fee and commission income | 454 | 473 | 4.3 |
| Income from insurance business | 0 | 0 | n.m. |
| Profits on financial assets and liabilities at fair value | 7 | 13 | 101.5 |
| Other operating income (expenses) | 6 | 1 | (90.5) |
| Operating income | 797 | 821 | 3.0 |
| Personnel expenses | (118) | (161) | 36.3 |
| Other administrative expenses | (92) | (96) | 4.1 |
| Adjustments to property, equipment and intangible assets | (22) | (24) | 8.3 |
| Operating costs | (233) | (281) | 20.9 |
| Operating margin | 564 | 540 | (4.4) |
| Net adjustments to loans | (18) | (8) | (52.8) |
| Net provisions and net impairment losses on other assets | 2 | (58) | n.m. |
| Other income (expenses) | 0 | 14 | n.m. |
| Income (Loss) from discontinued operations | 0 | 0 | n.m. |
| Gross income (loss) | 549 | 487 | (11.2) |
| Taxes on income | (182) | (148) | (18.8) |
| Charges (net of tax) for integration and exit incentives | (6) | (8) | 42.6 |
| Effect of purchase price allocation (net of tax) | (6) | (5) | (5.5) |
| Levies and other charges concerning the banking industry (net of tax) | (21) | 2 | n.m. |
| Impairment (net of tax) of goodwill and other intangible assets | 0 | 0 | n.m. |
| Minority interests | 2 | (1) | n.m. |
| Net income | 337 | 328 | (2.8) |
| 2022 | 2023 | % | |
|---|---|---|---|
| Net interest income | 0 | 18 | n.m. |
| Net fee and commission income | 913 | 816 | (10.6) |
| Income from insurance business | 0 | 0 | n.m. |
| Profits on financial assets and liabilities at fair value | (21) | 20 | n.m. |
| Other operating income (expenses) | 70 | 54 | (22.9) |
| Operating income | 962 | 908 | (5.6) |
| Personnel expenses | (109) | (114) | 4.6 |
| Other administrative expenses | (106) | (122) | 15.1 |
| Adjustments to property, equipment and intangible assets | (7) | (9) | 28.6 |
| Operating costs | (222) | (245) | 10.4 |
| Operating margin | 740 | 663 | (10.4) |
| Net adjustments to loans | 0 | 0 | n.m. |
| Net provisions and net impairment losses on other assets | 0 | 0 | n.m. |
| Other income (expenses) | 0 | 0 | n.m. |
| Income (Loss) from discontinued operations | 0 | 0 | n.m. |
| Gross income (loss) | 740 | 663 | (10.4) |
| Taxes on income | (184) | (184) | 0.0 |
| Charges (net of tax) for integration and exit incentives | (1) | 0 | (100.0) |
| Effect of purchase price allocation (net of tax) | (4) | (4) | 0.0 |
| Levies and other charges concerning the banking industry (net of tax) | 0 | 0 | n.m. |
| Impairment (net of tax) of goodwill and other intangible assets | 0 | 0 | n.m. |
| Minority interests | (1) | 0 | (100.0) |
| Net income | 550 | 475 | (13.6) |
€ m
| 3Q23 | 4Q23 | % | |
|---|---|---|---|
| Net interest income | 4 | 12 | 238.7 |
| Net fee and commission income | 201 | 197 | (1.7) |
| Income from insurance business | 0 | 0 | n.m. |
| Profits on financial assets and liabilities at fair value | 6 | 1 | (84.5) |
| Other operating income (expenses) | 13 | 9 | (29.9) |
| Operating income | 223 | 219 | (1.7) |
| Personnel expenses | (26) | (38) | 45.9 |
| Other administrative expenses | (29) | (36) | 21.6 |
| Adjustments to property, equipment and intangible assets | (2) | (2) | 6.5 |
| Operating costs | (57) | (76) | 32.0 |
| Operating margin | 166 | 143 | (13.4) |
| Net adjustments to loans | 0 | 0 | n.m. |
| Net provisions and net impairment losses on other assets | 0 | (0) | n.m. |
| Other income (expenses) | 0 | 0 | n.m. |
| Income (Loss) from discontinued operations | 0 | 0 | n.m. |
| Gross income (loss) | 166 | 143 | (13.7) |
| Taxes on income | (52) | (39) | (24.6) |
| Charges (net of tax) for integration and exit incentives | (0) | (0) | 39.2 |
| Effect of purchase price allocation (net of tax) | (1) | (1) | 0.0 |
| Levies and other charges concerning the banking industry (net of tax) | 0 | 0 | n.m. |
| Impairment (net of tax) of goodwill and other intangible assets | 0 | 0 | n.m. |
| Minority interests | (0) | 0 | n.m. |
| Net income | 113 | 103 | (8.6) |
| 2022(1) | 2023 | % | |
|---|---|---|---|
| Net interest income | 0 | 0 | n.m. |
| Net fee and commission income | 3 | 3 | 0.0 |
| Income from insurance business | 1,598 | 1,625 | 1.7 |
| Profits on financial assets and liabilities at fair value | 0 | 0 | n.m. |
| Other operating income (expenses) | (12) | (15) | 25.0 |
| Operating income | 1,589 | 1,613 | 1.5 |
| Personnel expenses | (148) | (153) | 3.4 |
| Other administrative expenses | (205) | (194) | (5.4) |
| Adjustments to property, equipment and intangible assets | (32) | (32) | 0.0 |
| Operating costs | (385) | (379) | (1.6) |
| Operating margin | 1,204 | 1,234 | 2.5 |
| Net adjustments to loans | 0 | 0 | n.m. |
| Net provisions and net impairment losses on other assets | 101 | 61 | (39.6) |
| Other income (expenses) | 8 | 0 | (100.0) |
| Income (Loss) from discontinued operations | 0 | 0 | n.m. |
| Gross income (loss) | 1,313 | 1,295 | (1.4) |
| Taxes on income | (335) | (386) | 15.2 |
| Charges (net of tax) for integration and exit incentives | (14) | (21) | 50.0 |
| Effect of purchase price allocation (net of tax) | (7) | (10) | 42.9 |
| Levies and other charges concerning the banking industry (net of tax) | 0 | 0 | n.m. |
| Impairment (net of tax) of goodwill and other intangible assets | 0 | 0 | n.m. |
| Minority interests | (24) | (2) | (91.7) |
| Net income | 933 | 876 | (6.1) |
€ m
| 3Q23 | 4Q23 | % | |
|---|---|---|---|
| Net interest income | 0 | 0 | n.m. |
| Net fee and commission income | 1 | 1 | 1.1 |
| Income from insurance business | 408 | 383 | (6.0) |
| Profits on financial assets and liabilities at fair value | (0) | 0 | n.m. |
| Other operating income (expenses) | (4) | (4) | (15.9) |
| Operating income | 404 | 381 | (5.8) |
| Personnel expenses | (34) | (48) | 41.5 |
| Other administrative expenses | (51) | (59) | 15.6 |
| Adjustments to property, equipment and intangible assets | (8) | (8) | 6.5 |
| Operating costs | (93) | (115) | 24.2 |
| Operating margin | 311 | 265 | (14.8) |
| Net adjustments to loans | 0 | 0 | n.m. |
| Net provisions and net impairment losses on other assets | 18 | 4 | (78.4) |
| Other income (expenses) | 0 | 0 | n.m. |
| Income (Loss) from discontinued operations | 0 | 0 | n.m. |
| Gross income (loss) | 330 | 269 | (18.3) |
| Taxes on income | (90) | (91) | 0.5 |
| Charges (net of tax) for integration and exit incentives | (5) | (9) | 63.2 |
| Effect of purchase price allocation (net of tax) | (2) | (3) | 87.9 |
| Levies and other charges concerning the banking industry (net of tax) | 0 | 0 | n.m. |
| Impairment (net of tax) of goodwill and other intangible assets | 0 | 0 | n.m. |
| Minority interests | 0 | 0 | n.m. |
| Net income | 233 | 167 | (28.3) |
MIL-BVA362-03032014-90141/VR
Note: figures may not add up exactly due to rounding
| Hungary | Croatia | Bosnia | Serbia | Albania | Romania | Moldova | Ukraine (*) |
Total CEE |
Egypt | Total | % of the Group |
|||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Slovakia | Slovenia | |||||||||||||
| Operating income (€ m) | 425 | 688 | 155 | 632 | 49 | 449 | 70 | 50 | 16 | 12 | 2,546 | 387 | 2,933 | 11.7% |
| Operating costs (€ m) | 140 | 248 | 53 | 214 | 27 | 140 | 30 | 37 | 12 | 15 | 918 | 120 | 1,038 | 9.2% |
| Net adjustments to loans (€ m) | 37 | 58 | 7 | 12 | 3 | 64 | (1) | 2 | 1 | (36) | 147 | 59 | 206 | 13.5% |
| Net income (€ m) | 167 | 264 | 72 | 397 | 14 | 184 | 28 | 7 | 2 | 32 | 1,166 | 121 | 1,287 | 16.7% |
| Customer deposits (€ bn) | 6.2 | 20.7 | 3.4 | 13.1 | 1.0 | 6.4 | 1.6 | 1.1 | 0.2 | 0.2 | 53.9 | 3.9 | 57.8 | 10.0% |
| Customer loans (€ bn) | 4.1 | 17.9 | 2.3 | 8.8 | 0.9 | 5.0 | 0.5 | 0.8 | 0.1 | 0.0 | 40.3 | 1.7 | 42.0 | 9.8% |
| Performing loans (€ bn) of which: |
4.1 | 17.8 | 2.3 | 8.6 | 0.9 | 4.9 | 0.5 | 0.8 | 0.1 | 0.0 | 39.9 | 1.7 | 41.6 | 9.8% |
| Retail local currency | 45% | 60% | 43% | 52% | 34% | 23% | 30% | 14% | 54% | n.m. | 49% | 56% | 50% | |
| Retail foreign currency | 0% | 0% | 0% | 0% | 13% | 28% | 15% | 11% | 0% | n.m. | 4% | 0% | 4% | |
| Corporate local currency | 27% | 33% | 57% | 47% | 32% | 10% | 15% | 37% | 22% | n.m. | 34% | 26% | 34% | |
| Corporate foreign currency | 28% | 7% | 0% | 1% | 21% | 40% | 40% | 38% | 24% | n.m. | 13% | 18% | 13% | |
| Non-performing loans (€ m) | 39 | 135 | 7 | 140 | 9 | 46 | 6 | 6 | 2 | 0 | 390 | 18 | 408 | 8.2% |
| Non-performing loans coverage | 52% | 60% | 77% | 59% | 67% | 69% | 60% | 78% | 60% | 100% | 64% | 84% | 66% | |
| Cost of credit(1) (bps) | 91 | 33 | 30 | 14 | 34 | 128 | n.m. | 23 | 93 | n.m. | 36 | n.m. | 49 |
Note: figures may not add up exactly due to rounding
(*) Consolidated on the basis of the countervalue of 30.9.23 figures at the exchange rate as at 31.12.23
(1) Net adjustments to loans/Net customer loans
€ m
| DEBT SECURITIES | ||||||||
|---|---|---|---|---|---|---|---|---|
| Banking Business | ||||||||
| AC | FVTOCI | FVTPL(2) | Total(3) | LOANS | ||||
| EU Countries | 45,591 | 45,145 | 781 | 91,517 | 390,748 | |||
| Austria | 674 | 1,109 | 39 | 1,822 | 504 | |||
| Belgium | 3,239 | 3,464 | 102 | 6,805 | 1,402 | |||
| Bulgaria | 0 | 0 | 0 | 0 | 10 | |||
| Croatia | 280 | 545 | 51 | 876 | 8,608 | |||
| Cyprus | 0 | 0 | 2 | 2 | 71 | |||
| Czech Republic | 140 | 38 | 0 | 178 | 1,161 | |||
| Denmark | 24 | 94 | 5 | 123 | 182 | |||
| Estonia | 0 | 0 | 0 | 0 | 2 | |||
| Finland | 278 | 280 | 0 | 558 | 176 | |||
| France | 7,185 | 5,901 | -262 | 12,824 | 6,422 | |||
| Germany | 507 | 2,473 | 564 | 3,544 | 4,554 | |||
| Greece | 32 | 0 | 61 | 93 | 947 | |||
| Hungary | 605 | 1,498 | 39 | 2,142 | 4,403 | |||
| Ireland | 1,003 | 1,529 | 410 | 2,942 | 597 | |||
| Italy | 22,634 | 13,320 | -1,482 | 34,472 | 328,565 | |||
| Latvia | 0 | 0 | 0 | 0 | 16 | |||
| Lithuania | 0 | 0 | 0 | 0 | 2 | |||
| Luxembourg | 487 | 943 | 151 | 1,581 | 6,352 | |||
| Malta | 0 | 0 | 0 | 0 | 125 | |||
| The Netherlands | 1,047 | 1,211 | 199 | 2,457 | 2,063 | |||
| Poland | 278 | 108 | 6 | 392 | 773 | |||
| Portugal | 499 | 536 | -7 | 1,028 | 562 | |||
| Romania | 64 | 353 | 4 | 421 | 896 | |||
| Slovakia | 107 | 872 | 11 | 990 | 15,181 | |||
| Slovenia | 1 | 194 | 0 | 195 | 2,320 | |||
| Spain | 6,464 | 10,355 | 877 | 17,696 | 4,448 | |||
| Sweden | 43 | 322 | 11 | 376 | 406 | |||
| Albania | 69 | 657 | 1 | 727 | 516 | |||
| Egypt | 138 | 1,087 | 0 | 1,225 | 2,379 | |||
| Japan | 85 | 2,263 | 7 | 2,355 | 455 | |||
| Russia | 4 | 10 | 0 | 14 | 1,399 | |||
| Serbia | 7 | 515 | 0 | 522 | 5,147 | |||
| United Kingdom | 602 | 719 | 109 | 1,430 | 14,820 | |||
| U.S.A. | 4,074 | 9,719 | 475 | 14,268 | 8,030 | |||
| Other Countries | 6,548 | 7,181 | 287 | 14,016 | 20,812 | |||
| Total | 57,118 | 67,296 | 1,660 | 126,074 | 0 444,306 |
Note: management accounts. Figures may not add up exactly due to rounding
(1) Exposure to sovereign risks (central and local governments), banks and other customers. Book Value of Debt Securities and Net Loans as at 31.12.23
(2) Taking into account cash short positions
(3) The total of debt securities from Insurance business (excluding securities in which money is collected through insurance policies where the total risk is retained by the insured) amounts to €74,416m (of which €51,490m in Italy)
€ m
| DEBT SECURITIES | ||||||
|---|---|---|---|---|---|---|
| Banking Business | LOANS | |||||
| AC | FVTOCI | FVTPL(2) Total(3) | ||||
| EU Countries | 35,748 | 31,896 | -2,279 | 65,365 | 10,716 | |
| Austria | 616 | 834 | 9 | 1,459 | 0 | |
| Belgium | 3,225 | 3,284 | 87 | 6,596 | 391 | |
| Bulgaria | 0 | 0 | 0 | 0 | 0 | |
| Croatia | 170 | 545 | 51 | 766 | 1,419 | |
| Cyprus | 0 | 0 | 0 | 0 | 0 | |
| Czech Republic | 0 | 0 | 0 | 0 | 0 | |
| Denmark | 0 | 0 | 0 | 0 | 0 | |
| Estonia | 0 | 0 | 0 | 0 | 0 | |
| Finland | 254 | 190 | 0 | 444 | 0 | |
| France | 6,656 | 3,145 | -577 | 9,224 | 2 | |
| Germany | 49 | 1,250 | 388 | 1,687 | 0 | |
| Greece | 0 | 0 | 0 | 0 | 0 | |
| Hungary | 384 | 1,443 | 39 | 1,866 | 216 | |
| Ireland | 335 | 48 | 20 | 403 | 0 | Banking business government bond |
| duration: 6y | ||||||
| Italy | 16,241 | 9,068 | -2,809 | 22,500 | 8,170 | Adjusted duration due to hedging: 0.8y |
| Latvia | 0 | 0 | 0 | 0 | 16 | |
| Lithuania | 0 | 0 | 0 | 0 | 0 | |
| Luxembourg | 312 | 540 | 30 | 882 | 0 | |
| Malta | 0 | 0 | 0 | 0 | 0 | |
| The Netherlands | 828 | 79 | 68 | 975 | 0 | |
| Poland | 26 | 65 | 6 | 97 | 0 | |
| Portugal | 386 | 361 | -29 | 718 | 74 | |
| Romania | 64 | 353 | 0 | 417 | 3 | |
| Slovakia | 107 | 747 | 11 | 865 | 171 | |
| Slovenia | 1 | 187 | 0 | 188 | 180 | |
| Spain | 6,094 | 9,757 | 427 | 16,278 | 74 | |
| Sweden | 0 | 0 | 0 | 0 | 0 | |
| Albania | 69 | 657 | 1 | 727 | 0 | |
| Egypt | 138 | 1,087 | 0 | 1,225 | 711 | |
| Japan | 0 | 1,783 | 0 | 1,783 | 0 | |
| Russia | 0 | 10 | 0 | 10 | 0 | |
| Serbia | 7 | 515 | 0 | 522 | 347 | |
| United Kingdom | 0 | 230 | -2 | 228 | 0 | |
| U.S.A. | 3,332 | 8,185 | 330 | 11,847 | 0 | |
| Other Countries | 2,477 | 4,181 | 194 | 6,852 | 4,414 | |
| Total | 41,771 | 48,544 | -1,756 | 88,559 | 0 16,188 |
Note: management accounts. Figures may not add up exactly due to rounding
(1) Exposure to central and local governments. Book Value of Debt Securities and Net Loans as at 31.12.23
(2) Taking into account cash short positions
(3) The total of debt securities from Insurance business (excluding securities in which money is collected through insurance policies where the total risk is retained by the insured) amounts to €56,451m (of which €48,756m in Italy). The total of FVTOCI reserves (net of tax and allocation to insurance products under management) amounts to -€1,839m (of which -€597m in Italy)
€ m
| AC | FVTOCI | FVTPL(2) | Total(3) | LOANS | |
|---|---|---|---|---|---|
| EU Countries | 1,892 | 8,078 | 1,889 | 11,859 | 17,041 |
| Austria | 48 | 263 | 30 | 341 | 190 |
| Belgium | 4 | 163 | 15 | 182 | 119 |
| Bulgaria | 0 | 0 | 0 | 0 | 0 |
| Croatia | 0 | 0 | 0 | 0 | 50 |
| Cyprus | 0 | 0 | 2 | 2 | 0 |
| Czech Republic | 0 | 38 | 0 | 38 | 0 |
| Denmark | 24 | 33 | 2 | 59 | 21 |
| Estonia | 0 | 0 | 0 | 0 | 0 |
| Finland | 21 | 49 | 0 | 70 | 11 |
| France | 323 | 1,797 | 226 | 2,346 | 3,469 |
| Germany | 288 | 647 | 136 | 1,071 | 2,072 |
| Greece | 0 | 0 | 61 | 61 | 939 |
| Hungary | 157 | 55 | 0 | 212 | 413 |
| Ireland | 60 | 10 | 22 | 92 | 221 |
| Italy | 684 | 3,178 | 820 | 4,682 | 7,945 |
| Latvia | 0 | 0 | 0 | 0 | 0 |
| Lithuania | 0 | 0 | 0 | 0 | 0 |
| Luxembourg | 92 | 288 | 104 | 484 | 21 |
| Malta | 0 | 0 | 0 | 0 | 94 |
| The Netherlands | 54 | 593 | 34 | 681 | 245 |
| Poland | 0 | 35 | 0 | 35 | 12 |
| Portugal | 0 | 138 | 9 | 147 | 450 |
| Romania | 0 | 0 | 4 | 4 | 89 |
| Slovakia | 0 | 125 | 0 | 125 | 0 |
| Slovenia | 0 | 7 | 0 | 7 | 12 |
| Spain | 119 | 448 | 415 | 982 | 668 |
| Sweden | 18 | 211 | 9 | 238 | 0 |
| Albania | 0 | 0 | 0 | 0 | 0 |
| Egypt | 0 | 0 | 0 | 0 | 48 |
| Japan | 45 | 388 | 0 | 433 | 45 |
| Russia | 0 | 0 | 0 | 0 | 38 |
| Serbia | 0 | 0 | 0 | 0 | 29 |
| United Kingdom | 170 | 293 | 103 | 566 | 633 |
| U.S.A. | 150 | 549 | 117 | 816 | 647 |
| Other Countries | 96 | 2,268 | 46 | 2,410 | 2,319 |
| Total | 2,353 | 11,576 | 2,155 | 16,084 | 0 20,800 |
Note: management accounts. Figures may not add up exactly due to rounding
(1) Book Value of Debt Securities and Net Loans as at 31.12.23
(2) Taking into account cash short positions
(3) The total of debt securities from Insurance business (excluding securities in which money is collected through insurance policies where the total risk is retained by the insured) amounts to €10,162m (of which €1,375m in Italy)
| DEBT SECURITIES | |||||
|---|---|---|---|---|---|
| Banking Business | LOANS | ||||
| AC | FVTOCI | FVTPL(2) | Total(3) | ||
| EU Countries | 7,951 | 5,171 | 1,171 | 14,293 | 362,991 |
| Austria | 10 | 12 | 0 | 22 | 314 |
| Belgium | 10 | 17 | 0 | 27 | 892 |
| Bulgaria | 0 | 0 | 0 | 0 | 10 |
| Croatia | 110 | 0 | 0 | 110 | 7,139 |
| Cyprus | 0 | 0 | 0 | 0 | 71 |
| Czech Republic | 140 | 0 | 0 | 140 | 1,161 |
| Denmark | 0 | 61 | 3 | 64 | 161 |
| Estonia | 0 | 0 | 0 | 0 | |
| Finland | 3 | 41 | 0 | 44 | 165 |
| France | 206 | 959 | 89 | 1,254 | 2,951 |
| Germany | 170 | 576 | 40 | 786 | 2,482 |
| Greece | 32 | 0 | 0 | 32 | |
| Hungary | 64 | 0 | 0 | 64 | 3,774 |
| Ireland | 608 | 1,471 | 368 | 2,447 | 376 |
| Italy | 5,709 | 1,074 | 507 | 7,290 | 312,450 |
| Latvia | 0 | 0 | 0 | 0 | |
| Lithuania | 0 | 0 | 0 | 0 | |
| Luxembourg | 83 | 115 | 17 | 215 | 6,331 |
| Malta | 0 | 0 | 0 | 0 | 31 |
| The Netherlands | 165 | 539 | 97 | 801 | 1,818 |
| Poland | 252 | 8 | 0 | 260 | 761 |
| Portugal | 113 | 37 | 13 | 163 | |
| Romania | 0 | 0 | 0 | 0 | 804 |
| Slovakia | 0 | 0 | 0 | 0 | 15,010 |
| Slovenia | 0 | 0 | 0 | 0 | 2,128 |
| Spain | 251 | 150 | 35 | 436 | 3,706 |
| Sweden | 25 | 111 | 2 | 138 | 406 |
| Albania | 0 | 0 | 0 | 0 | 516 |
| Egypt | 0 | 0 | 0 | 0 | 1,620 |
| Japan | 40 | 92 | 7 | 139 | 410 |
| Russia | 4 | 0 | 0 | 4 | 1,361 |
| Serbia | 0 | 0 | 0 | 0 | 4,771 |
| United Kingdom | 432 | 196 | 8 | 636 | 14,187 |
| U.S.A. | 592 | 985 | 28 | 1,605 | 7,383 |
| Other Countries | 3,975 | 732 | 47 | 4,754 | 14,079 |
| Total | 12,994 | 7,176 | 1,261 | 21,431 |
Note: management accounts. Figures may not add up exactly due to rounding
(1) Book Value of Debt Securities and Net Loans as at 31.12.23
(2) Taking into account cash short positions
(3) The total of debt securities from Insurance business (excluding securities in which money is collected through insurance policies where the total risk is retained by the insured) amounts to €7,803m (of which €1,359m in Italy)
"The manager responsible for preparing the company's financial reports, Fabrizio Dabbene, declares, pursuant to paragraph 2 of Article 154 bis of the Consolidated Law on Finance, that the accounting information contained in this presentation corresponds to the document results, books and accounting records".
* * *
This presentation includes certain forward looking statements, projections, objectives and estimates reflecting the current views of the management of the Company with respect to future events. Forward looking statements, projections, objectives, estimates and forecasts are generally identifiable by the use of the words "may," "will," "should," "plan," "expect," "anticipate," "estimate," "believe," "intend," "project," "goal" or "target" or the negative of these words or other variations on these words or comparable terminology. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts, including, without limitation, those regarding the Company's future financial position and results of operations, strategy, plans, objectives, goals and targets and future developments in the markets where the Company participates or is seeking to participate.
Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements as a prediction of actual results. The Group's ability to achieve its projected objectives or results is dependent on many factors which are outside management's control. Actual results may differ materially from (and be more negative than) those projected or implied in the forward-looking statements. Such forward-looking information involves risks and uncertainties that could significantly affect expected results and is based on certain key assumptions.
All forward-looking statements included herein are based on information available to the Company as of the date hereof. The Company undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by applicable law. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements.
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