Investor Presentation • May 5, 2023
Investor Presentation
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€2bn Net income with Balance Sheet further strengthened
€2.0bn Net income (+88% vs 1Q22(1)), the best quarter since 2007 (€2.2bn when excluding the final contribution to the Resolution Fund)
Rock-solid capital position with fully phased-in Common Equity ratio up to 13.7%, despite ~60bps Q1 impact from regulatory headwinds
Best quarter ever for Operating income (+12% vs 1Q22(1)), Operating margin (+22% vs 1Q22(1)) and Gross income (+58% vs 1Q22(1))
Significant growth in Net interest income (+66% vs 1Q22 and +6% vs 4Q22) with no contribution from TLTRO
Stable Operating costs (+0.5% vs 1Q22) despite inflation and while investing in technology, with lowest-ever Cost/Income ratio (41.9%)
Zero-NPL Bank with NPL inflow at historical low, driving lowest-ever annualised Cost of risk (17bps) with no reduction in overlays
Further increase in NPL coverage ratio (+1.7pp vs 4Q22) with lowest-ever net NPL stock and ratio (at 1.0%(2))
Strong liquidity position with a very diversified and sticky deposit base
Execution of the 2022-2025 Business Plan proceeding at full speed and 2023 Net income guidance raised to ~€7bn
(1) Restated for the adoption of IFRS 17 and IFRS 9 by the Group's insurance companies (2) Net NPL ratio according to EBA definition
(1) Restated for the adoption of IFRS 17 and IFRS 9 by the Group's insurance companies
Rock-solid and increased capital base despite absorbing in Q1 the vast majority of expected regulatory headwinds…
(1) 31.3.23 financial statements considering the total absorption of DTA related to IFRS 9 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 1Q23 Net income of insurance companies
▪ 83% of Household deposits are guaranteed by the Deposit Guarantee Scheme (62% including Corporates)
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. Net of haircuts
1Q23: the best-ever start to the year
2022-2025 Business Plan proceeding at full speed
ISP is fully equipped for further success
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: €330m pre-tax (€227m net of tax), our estimated commitment for the year
(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
(1) Data redetermined considering, on the basis of management accounts, the reallocation of the contribution of branches sold in 1H21 to Income (Loss) from discontinued operations, the full line-by-line consolidation of Assicurazioni Vita (former Aviva Vita), Lombarda Vita and Cargeas Assicurazioni (not considering, on the basis of management accounts, the contribution of branches sold in 1H21), and the effects of the acquisition of the REYL Group
(2) Quarterly average
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(1) Including hedging on core deposits
(2) Quarterly average
Note: figures may not add up exactly due to rounding (1) Net of duplications between Direct deposits and Indirect customer deposits
(1) Sample: Barclays, BBVA, BNP Paribas, Deutsche Bank, HSBC, Lloyds Banking Group, Nordea, Santander, Standard Chartered, UBS and UniCredit (31.3.23 data); Commerzbank, Crédit Agricole S.A., ING Group and Société Générale (31.12.22 data)
(1) According to EBA definition
(2) Inflow to NPL (Bad loans, Unlikely to pay and Past due) from Performing loans
(3) 2012 figures recalculated to take into consideration the regulatory changes to Past due classification criteria introduced by the Bank of Italy (90 days since 2012 vs 180 days up until 31.12.11)
(4) Inflow to NPL (Bad loans, Unlikely to pay and Past due) from Performing loans minus outflow from NPL into Performing loans
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(1) Including only banks in the EBA Transparency Exercise. Sample: BBVA, Deutsche Bank, Nordea, Santander and UniCredit as at 31.3.23; BNP Paribas, Commerzbank, Crédit Agricole Group, ING Group and Société Générale as at 31.12.22 (2) According to EBA definition. Data as at 30.6.22
Source: EBA Transparency Exercise, Investor presentations, press releases, conference calls and financial statements
| Loan loss provisions (LLP) | Cost of risk | ||
|---|---|---|---|
| € m | Provisions for Russia-Ukraine exposure (net of release of part of generic provisions booked in 2020 for COVID-19 impacts) |
bps; annualised | Provisions for Russia-Ukraine exposure, provisions as overlays and additional provisions to favour de-risking (net of release of generic provisions booked in 2020 for COVID-19 impacts) |
| 702 | 70 | ||
| 215 | 189 | 30 | 17 |
| 1Q22 | 1Q23 | FY22 | 1Q23 |
| No reduction in overlays vs 4Q22 (€0.9bn still available) | Low Cost of risk in line with Zero-NPL Bank status and with Russia exposure approaching zero |
Significant increase in NPL coverage ratio (+1.7pp vs 4Q22)
(1) 31.3.23 financial statements considering the total absorption of DTA related to IFRS 9 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 1Q23 Net income of insurance companies
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1Q23: the best-ever start to the year
2022-2025 Business Plan proceeding at full speed
ISP is fully equipped for further success
Our People are our most important asset
100% of initiatives launched, of which ~80% progressing ahead of schedule
| Key highlights | ||
|---|---|---|
| ▪ ▪ ▪ |
Massive deleveraging with €4.5bn gross NPL stock reduction in 2022-1Q23, reducing Net NPL ratio to 1%(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 inflows from Performing loans and new solutions for new needs arising in the current scenario |
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| ▪ | Enhanced risk management capabilities: comprehensive and robust Risk Appetite Framework encompasses all the key risk dimensions of the Group |
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| Massive upfront | ▪ | 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 |
| de-risking, slashing Cost of risk |
▪ | 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 |
| ▪ | 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 |
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| ▪ | Enhanced protection from cyber-attacks in terms of detection/recovery and improved internal awareness of cyber-attacks (e.g. phishing) | |
| ▪ | 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 |
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| ▪ | Set up of the new AFC model based on an international platform and competence centres specialised in Transaction Monitoring and Know Your Customers |
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| ▪ | The Active Credit Portfolio Steering (ACPS) unit continued expanding the credit risk hedging schemes to optimise capital absorption. At the end of 1Q23, the outstanding volume of synthetic securitisation transactions, included in the GARC Program (Active Credit Risk Management), was equal to ~€26bn |
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| ▪ | The ACPS unit also strengthened the capital efficiency initiatives and extended the scope of credit strategy application, shifting €20bn of new lending in 2022 and ~€4.5bn in 1Q23 to more sustainable economic sectors with the best risk/return profile and broadening the perimeter of alternative financing solutions for "high risk" clients |
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| ▪ | 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 |
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| ▪ | Scale up of the Originate-to-share business model, increasing the distribution capabilities to optimise the return on capital |
(1) According to EBA definition
(2) Structured Credit Investor is a leading financial information provider focusing on the global securitisation markets
| Key highlights | |
|---|---|
| ▪ New Digital Bank (Isybank ) setup well underway: Delivery Unit "Domain Isy Tech" already operational with ~390 dedicated specialists, contract with Thought Machine finalised and technological masterplan defined. Defined the Isybank offering structure and functionalities |
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| ▪ New head of Isybank , new head of Domain Isy Tech and new head of Sales & Marketing Digital Retail hired and operational |
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| ▪ Launched Isybank Family&Friends initiative with the involvement of ISP People and selected external "friends" |
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| ▪ Defined the plan for the business unit transfer from ISP to Isybank |
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| ▪ Insourcing of core capabilities in IT ongoing with ~750 people already hired |
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| Structural Cost | ▪ AI Lab in Turin already operating (setup of Centai Institute) |
| reduction, enabled by | ▪ More than 660 branches closed since 4Q21 in light of Isybank launch |
| technology | ▪ Digital platform for analytical cost management up and running, with ~30 efficiency initiatives already identified |
| ▪ Implemented the tools to support the negotiation and scouting activities of potential suppliers and started the program of procurement analytics |
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| ▪ Rationalisation of real estate in Italy in progress, with a reduction of ~383k sqm since 4Q21 |
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| ▪ ~3,250 voluntary exits(1) in 2022 and 1Q23 |
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| ▪ Implementation of digital functions and services in Serbia and Hungary completed. Implementation ongoing in Slovakia and go-live planned for 2Q23 in Romania |
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| ▪ Go-live of the new core banking system in Egypt and alignment of digital channels |
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| ▪ Ongoing activities to progressively release applications for the target platform in the remaining countries of the International Subsidiary Banks Division |
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| ▪ 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 |
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| ▪ 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 will enable Isybank launch with an entirely Italy-based infrastructure (including disaster recovery) |
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| The Intesa Sanpaolo Mobile app was recognised by Forrester as the "Global Mobile Banking Apps Leader" ranking first worldwide among all banking apps evaluated |
| Key highlights | |
|---|---|
| ▪ New dedicated service model for Exclusive clients fully implemented |
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| ▪ Enhancement of the product offering (new AM/Insurance products) and further growth of the advanced advisory service "Valore Insieme" for Affluent and Exclusive clients: 15,000 new contracts and €4.7bn in Customer financial asset inflows in 1Q23 |
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| ▪ Launched in March 2023 the first co-badge debit card in Italy, dedicated to business customers, equipped with a dual circuit (Bancomat®, PagoBancomat® and MasterCard or Visa) and Instant Issuing service that can be activated from the website and App |
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| Growth in Commissions, |
▪ Introduction of new functionalities of Robo4Advisor by BlackRock to generate investment advice on selected products (funds, insurance products and certificates) to support relationship managers |
| driven by Wealth Management, Protection & Advisory |
▪ Adoption of the BlackRock Aladdin Wealth and Aladdin Risk platforms for investment services: Aladdin Wealth module for BdT and (first and second release), Aladdin Risk and Aladdin Enterprise module for FAM/FAMI(1), ECSA/ESLJ (2), EC SGR (2) , ECAL(2) Fideuram , EPSILON |
| ▪ New features for UHNWI(3) client advisory tools, strengthening of service model for family offices. On 1 April, released both the new We Add advanced advisory service for the Intesa Sanpaolo Private Banking network and the new Aladdin Robo4advisory functions for the Fideuram and IW networks. The integration of ESG principles into the current advisory models is progressively evolving. Launched the process to define the new single divisional consultancy model, which will natively envisage the full integration of sustainability principles |
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| ▪ Completed the second closing of the alternative fund Art.8 Fideuram Alternative Investments Sustainable Private Markets and ongoing enrichment of the alternative funds offering from leading international players through partnerships with specialised platforms |
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| ▪ Ongoing expansion of Fideuram Direct (Fideuram's digital wealth management service for investing in managed products and trading on over 50 cash and derivative markets, with advanced services). After the launch of the new brand and services enabling clients to independently open accounts and subscribe to asset management products, the new remote advisory service (close to completion) will allow customers to build investment portfolios with the help of direct bankers operating remotely. Alpian – the first Swiss private digital Bank – is fully operational as a mobile-only platform providing multi-currency, wealth management and financial advisory services with experienced consultants |
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(1) Fideuram Asset Management/Fideuram Asset Management Ireland
(2) Eurizon Capital SA/Eurizon SLJ Capital, Eurizon Capital SGR, Eurizon Capital Asia Limited
(3) Ultra High Net Worth Individuals
| Key highlights | |
|---|---|
| Growth in Commissions, driven by Wealth Management, Protection & Advisory |
▪ On 1.1.23 completed the merger of the two Private Banks in Luxembourg with the new Intesa Sanpaolo Wealth Management (ISWM) fully operational. Together with the Division's Swiss Hub, ISWM will contribute to the growth of fee income abroad |
| ▪ Enriched Eurizon offering dedicated to captive and third-party distributors and launched multiple new asset management and insurance products (e.g. dedicated offer for clients with excess liquidity, capital protection, protected mutual funds with predefined amount at maturity, PIR compliant mutual funds, thematic mutual funds, fixed income mutual funds). Eurizon acquired new traditional and private market mandates from institutional third parties |
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| ▪ Continued enhancement of ESG product offering for asset management and insurance, with a ~67%(1) penetration on total AUM |
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| ▪ business |
Launched the new IMI C&IB organisational set-up, with a focus on strengthening client advisory activities and Originate-to-Share |
| ▪ Continued focus on origination activities in Italy and abroad, with acceleration of the Originate-to-Share model, also through the development of dedicated initiatives |
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| ▪ Approved the purchase of 26.2% of Intesa Sanpaolo RBM Salute shares, anticipating the exercise of the two call options, initially set for 2026 and 2029 |
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| ▪ InSalute Servizi, an Intesa Sanpaolo Insurance Division company, is becoming fully operational thanks to the contribution of a business unit by Blue Assistance (a Reale Group company), which includes a technological platform, a network of affiliated healthcare facilities, know-how and a team of specialised personnel. With this contribution, Blue Assistance has acquired a 35% stake in InSalute Servizi, the remaining 65% of which is held by Intesa Sanpaolo Vita |
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| ▪ Launched digital platform "IncentNow" for enterprises to provide information to Italian companies and institutions on the opportunities (2) offered by public tenders related to the "Piano Nazionale di Ripresa e Resilienza" |
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| ▪ Launched webinars and workshops with clients aimed at educating and sharing views on key topics (e.g. digital transition) |
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| ▪ Developed commercial initiatives to support clients in different sectors (e.g. Energy, TMT, Infrastructure) to optimise the incorporation of European and Italian post-pandemic recovery plans |
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| Key highlights | |
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| Growth in Commissions, driven by Wealth Management, Protection & Advisory |
▪ Go live of Cardea, an innovative and digital platform for financial institutions ▪ Strengthening the corporate digital platform (Inbiz) in the EU with focus on Cash & Trade, leveraging the partnership approach with Fintechs ▪ Ongoing upgrade of Global Markets IT platforms (e.g. equity) and launched commercial activities to strengthen the equity business ▪ Launched an ESG value proposition initiative for the corporate and SME segments of Group banks in Slovakia, Hungary, Croatia, Serbia and Egypt ▪ Ongoing development of synergies - in Global Market, Structured Finance and Investment Banking - between IMI C&IB and Group banks in Slovakia, Czech Republic, Hungary and Croatia with a significant increase in business and pipeline since the start of the Business Plan ▪ Accelerated ESG advisory to corporates to steer the energy transition through a scalable approach, with a focus on energy, infrastructure and the automotive & industrial sectors, also through supply chain agreements with specialised partners ▪ Finalised the Master Cooperation Agreement with a leading insurance group to distribute bancassurance products in Slovakia, Croatia, Hungary, Serbia and Slovenia and signed the Local Distribution Agreements ▪ Launched "Confirming" factoring product in five additional markets: Slovakia, Serbia, Romania, Slovenia and Albania ▪ Launched a project between the International Subsidiary Banks Division (ISBD) and the Banca dei Territori Division to further enhance cross-border business opportunities for mid-corporates operating in markets where foreign subsidiaries are present ▪ Launched a project between the International Subsidiary Banks Division (ISBD) and the Private Banking Division for the definition and implementation of a new Service model for High Net Worth Individuals (HNWI) of ISBD, specifically tailored for entrepreneurs with advanced asset management needs |
‒ Launched in April 2023 "Futura", a new program promoted by Save the Children, Forum Disuguaglianze e Diversità and Yolk, with the collaboration of ISP, against female educational poverty, educational failure and early school leaving. The pilot project will run for two years in 3 areas with socio-economic disadvantages. It will promote growth and autonomy through personalised training courses for 300 girls and young women, including 50 young mothers
Social housing: the Group's ongoing initiatives in terms of housing units have been enhanced, also identifying some new partnerships with leading operators in the sector, to achieve the Business Plan targets (promotion of the development of 6k-8k units of social housing and student bed places)
‒ Fund for Impact: in 1Q23, €14m made available to support the needs of people and families to ensure wider and more sustainable access to credit, with dedicated programs such as: per Merito (credit line without guarantees to be repaid in 30 years dedicated to university students, studying in Italy or abroad), mamma@work (loan to discourage new mothers from leaving work and supporting motherhood in the first years of life of the children), per Crescere (funds for the training and education of school-age children dedicated to fragile families), per avere Cura (lending to support families taking care of non self-sufficient people) and other solutions (e.g. Obiettivo Pensione, per Esempio, XME Studio Station)
‒ Lending for Urban Regeneration: in 1Q23, committed ~€262m in new loans to support investments in housing, services and sustainable infrastructure, in addition to the most important urban regeneration initiatives underway in Italy
| Continuous commitment to culture |
▪ Gallerie d'Italia, the 4 venues of Intesa Sanpaolo's museum, in Milan, Naples, Turin and Vicenza. In Q1: ‒ almost 250,000 visitors (free admission up to 18 years) ‒ ended in March the exhibition Artemisia (Naples), which received great success with the public and critics, and to which an international study congress was dedicated in March ‒ Inaugurated in February Déplacé.e.s (Turin), the first solo exhibition in Italy by the French artist JR on the theme of social fragility, preceded by a public art performance attended by around 2,000 people which, filmed by drones, has become an iconic image ‒ 1,438 educational workshops for schools attended by 33,733 students; 160 courses designed for fragile audiences counting 2,244 participants. All educational activities are free. 373 visits and activities for adults and families and 80 cultural initiatives with 14,357 participants ‒ TIME magazine has included Naples in its World's Greatest Places 2023 list, mentioning the new Gallerie d'Italia as a place to visit ▪ Partnership ‒ ISP is institutional partner of the Bergamo Brescia Italian Capital of Culture 2023 event officially started in January, a program of activities including initiatives related to Progetto Cultura ‒ As part of the Turin International Book Fair, the support for "Un Libro Tante Scuole" together with the Ministry of Education and Merit, a project involving 6,000 students from all over Italy (1,060 of whom hosted for four lessons at Gallerie d'Italia) rd edition ▪ Education and projects for young people to acquire professional competences in art and culture: the 3 of the Executive Course in Management of Cultural Heritage of the Gallerie d'Italia Academy was launched in February with the support of Fondazione Compagnia di San Paolo, Fondazione Cariplo, Digit'Ed, the Ministry of Culture-Foundation School of Cultural Heritage and Activities (30 students, 8 scholarship holders); projects with students of IED-European Institute of Design, IAAD-Institute of Applied Art and Design, Scuola Holden are underway; the Euploos Project continues to digitalise works from the Uffizi Galleries-Cabinet of Drawings and Prints |
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| Promoting innovation (1/2) |
▪ Innovation projects: 41 innovation projects released in 1Q23 by Intesa Sanpaolo Innovation Center for a total of 242 released since 2022 (~800 innovation projects expected in the 2022-2025 Business Plan) ▪ Initiatives for startup growth and the development of innovation ecosystems: th class – Turin: in progress the acceleration of the 10 startups selected for the 4 of "Torino Cities of the Future Accelerator" program managed by Techstars. Since 2019, 35 accelerated startups (11 Italian teams), >50 proofs of concept and other contractual collaborations with local stakeholders, ~€64m in capital raised and ~500 new resources hired after acceleration nd class – Florence: in progress the acceleration of the 6 startups selected for the 2 of the three-year program "Italian Lifestyle Acceleration Program" managed by Nana Bianca; since launch in 2021, 6 Italian startups accelerated, >30 proofs of concept and other contractual collaborations with local stakeholders, ~€2m in capital raised – Naples: in progress the selection process of the startups for the 2 nd class (>130 candidates, 96% Italian) of the three-year acceleration program on Bioeconomy "Terra Next" started in 2022, with Cassa Depositi e Prestiti, Cariplo Factory, local corporate and scientific partners and the patronage of "Ministry of Environment and Energy Security". Since 2022, 8 startups accelerated – Venice: closed the call (350 candidates, 71% Italian) and started in early April the acceleration of the 10 startups of the 1 st class of the three-year program "Argo" (Hospitality and Tourism) sponsored by Banca dei Territori Division and Intesa Sanpaolo Innovation Center, developed by Cassa Depositi e Prestiti, LVenture and with the collaboration of Ministry of Tourism – In Action ESG Climate, 2 nd edition of the initiative developed by the Insurance Division with the support of Intesa Sanpaolo Innovation Center, to promote the development of new st edition solutions to combat climate change and support the green transition through technological innovation and development of new business models. The 2022 1 concluded with a total €500k amount awarded to the best three projects presented |
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| ▪ Development of multi-disciplinary applied research projects: |
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| – 12 projects in progress (8 in the neuroscience field and 4 in the AI and robotics field), of which 1 launched in 1Q23 – In 1Q23, obtained patent for an industrial invention in the field of artificial intelligence |
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| ▪ Business transformation: since 2022, 26 corporates involved in open innovation programs, of which 4 involved in projects focused on Circular Economy transformation (2 completed in 2022 and 2 in 1Q23) |
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| Promoting innovation (2/2) |
making(1) ▪ Diffusion of innovation mindset/culture: in 1Q23, 9 positioning and match events held; since 2022, 41 events with ~2,800 participants. In 1Q23, 2 innovation reports on technologies and trends released (17 since 2022), and contributed to the drafting of the White paper 2023 Valore Acqua per l'Italia with other partners |
| ▪ Neva SGR in 1Q23 >€11m investments in startups, ~€66m since 2022. In 2022, successfully completed €250m fundraising for its Fondo Neva First (launched in 2020) and Fondo Neva First Italia (launched in 2021), and launched the Fondo Sviluppo Ecosistemi di Innovazione aimed at supporting the development of innovation ecosystems, raising €15m, with first investment in Tech4Planet, tech transfer initiative in collaboration with CDP, Politecnico Milano, Politecnico Torino and Politecnico Bari and the support of Circular Economy Lab |
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| ▪ Following the Group's adherence to Net-Zero alliances (NZBA, NZAMI, NZAOA and NZIA) (2) : |
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| – In February 2022, interim 2030 targets set for 4 high-emitting sectors (Oil & Gas, Power Generation, Automotive and Coal Mining – over 60% of financed emissions for Non-financial Corporates in NZBA sectors as at 30.6.21) published in the 2022-2025 Business Plan; In April 2022, ISP's commitment to the SBTi validation was published on the SBTi website. The first annual reporting as at 31.12.22 on the 4 sectors' absolute financed emissions show a decrease of 60% GFANZ(3) compared to 2021 (see dedicated chapter in the 2022 TCFD report which also includes a high-level Transition Plan under the guidelines) – In October 2022, Eurizon Capital SGR, Fideuram Asset Management SGR, Fideuram Asset Management Ireland and the Intesa Sanpaolo Vita Insurance Group targets(4) published their first interim |
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| Accelerating | ▪ Ongoing active engagement (among others): |
| commitment to Net-Zero |
GFANZ(3) IIGCC(5) – Participation in , NZBA, NZAOA, NZIA, workgroups/workstreams, with contribution to relevant publications and dedicated case studies (inclusion of ISP targets in the first NZBA 2022 Progress Report, case studies on ISP target setting and Transition finance, lead for the drafting of a white paper on Life&Health contribution to the Net-Zero transition, etc.) |
| – In June 2022, ISP became an investor signatory of CDP |
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| – In October 2022, Eurizon joined the CDP Science-Based Targets Campaign, promoting the environmental transparency of companies |
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| ▪ In November 2022, ISP was the only Italian Bank to participate at the COP27 in Sharm El Sheik |
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| ▪ Designed new group proposition in the voluntary carbon market, aimed at supporting clients in reducing gross CO emissions, managing residual emissions and 2 protecting and safeguarding forestland |
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| (1) (2) |
Positioning event: event in which a leading player illustrates innovation topics; match-making event: event which fosters a match between supply and demand of innovation In 4Q21 adhesion to Net-Zero Banking Alliance, Net-Zero Asset Managers Initiative, Net-Zero Asset Owner Alliance and Net-Zero Insurance Alliance |
| (3) Glasgow Financial Alliance for Net-Zero (4) |
Please refer to https://group.intesasanpaolo.com/content/dam/portalgroup/repository-documenti/sostenibilt%C3%A0/comunicati-stampa/2022/PR_Obiettivi%20Net_Zero_wealth_management_Gruppo_ISP.pdf |
(5) Institutional Investors' Group on Climate Change
| ▪ ~€35bn disbursed in the period 2021-1Q23 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) |
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| ▪ ~€0.3bn of Green Mortgages in 1Q23 (€2.9bn in 2022-1Q23) out of the €12bn of new Green lending to individuals throughout the 2022-2025 Business Plan |
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| ▪ €8bn circular economy credit facility announced in the 2022-2025 Business Plan. In 1Q23, 92 projects assessed and validated for an amount of >€1.9bn; granted ~€0.3bn for 28 transactions (out of which €0.1bn related to green finance) and €0.9bn disbursed, taking into account previously granted amounts (of which €0.8bn related to green finance). Overall, since 2022, 512 projects assessed and validated for an amount of >€11bn, granted 258 transactions for an amount of >€5bn (of which €2.7bn related to green finance), with €4bn disbursed. In progress activities set out in the collaboration agreements with the Ellen MacArthur Foundation and Cariplo Factory on Circular Economy Lab |
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| ▪ Activated the first 11 ESG Laboratories (in Venice, Padua, Brescia, Bergamo, Cuneo, Bari-Taranto, Rome and Naples-Palermo, Milan), a physical and virtual meeting point to support SMEs in approaching sustainability, and evolution of the advisory services offered by partners (e.g. Circularity, Nativa, CE Lab and others) |
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| ▪ Continued success of the S-Loan product range dedicated to SMEs to finance projects aimed at improving their sustainability profile (5 product lines: S-Loan ESG, S-Loan Diversity, S-Loan Climate Change; S-Loan Agribusiness and S-Loan Tourism). Disbursed ~€0.4bn in 1Q23 (~€3.9bn since launch in July 2020) |
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| Supporting | ▪ Digital Loans (D-Loans) aimed at improving the digitalisation of companies: €23m disbursed since launch in October 2021 |
| clients | ▪ Suite Loans aimed at incentivising investments in the redevelopment/improvement of hotel facilities and accommodation services: €10m disbursed since launch in December 2021 |
| through the ESG/climate |
▪ 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 customers and gradual extension to other priority sectors |
| transition | ▪ Ongoing projects to verify the alignment of existing portfolios (mortgages, bonds, non-financial corporate lending) to the EU taxonomy criteria for the purpose of steering the Green Asset Ratio |
| ▪ Accelerated ESG advisory to corporates to steer the energy transition through a scalable approach, with a focus on energy, infrastructure and the automotive & industrial sectors |
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| ▪ Division(2) Defined an ESG value proposition initiative for the corporate and SME segments in all the banks of the International Subsidiary Banks |
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| ▪ Enhancement of ESG investment products for asset management with penetration increasing to 67% of total AuM(3) ; increase in investment options (art. 8 and 9 of SFDR) underlying the insurance products available to customers to ~70% (end of 2022 vs 48% in 2021) |
|
| ▪ Launch of two funds "Eurizon Step 50 Obiettivo Net Zero" which invest in companies with targets for net zero greenhouse gas emissions by 2050 |
|
| ▪ Continuous commitment to Stewardship activities: in 1Q23, Eurizon Capital SGR took part in 193 shareholders' meetings (of which 97% are issuers listed abroad) and 120 engagements (of which 30% on ESG issues) |
|
| ▪ Fideuram Advisory model revised to incorporate ESG principles into need-based financial planning and a comprehensive ESG certification training program launched for financial advisors (more than 13,000 hours delivered to ~700 participants in 1Q23) |
(1) 2021-2026 National Recovery and Resilience Plan
(2) Excluding Moldova and Ukraine
(3) Eurizon perimeter – funds pursuant to art. 8 and 9 SFDR 2019/2088 31
Top ranking(1) for Sustainability
The only Italian bank listed in the Dow Jones Sustainability Indices, the CDP Climate A List 2022 and 2023 Corporate Knights ''Global 100 Most Sustainable Corporations in the World Index'' Ranked first among peer group by Bloomberg (ESG Disclosure Score) and Sustainalytics
In January 2023, ISP was confirmed in the Bloomberg Gender-Equality Index
In September 2022, ISP was ranked second bank worldwide in the Refinitiv D&I Index
In the 2022 ranking by Institutional Investor, ISP was confirmed first in Europe for ESG aspects
Source: Bloomberg ESG Disclosure Score (Bloomberg as at 21.4.23), 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 21.4.23; S&P Global (https://www.spglobal.com/esg/solutions/data-intelligence-esg-scores as at 21.4.23); Sustainalytics score (https://www.sustainalytics.com/esg-ratings as at 21.4.23)
| 74 | A | AAA | 86 | 15.8 | |
|---|---|---|---|---|---|
| 67 | A | AA | 84 | 16.9 | |
| 63 | A | AA | 83 | 19.4 | |
| 62 | A | AA | 83 | 19.5 | |
| 62 | A | AA | 79 | 20.3 | |
| 60 | A | AA | 79 | 20.4 | |
| 59 | B | AA | 70 | 20.9 | |
| 59 | B | AA | 68 | 21.7 | |
| 58 | B | AA | 65 | 22.4 | |
| 58 | B | AA | 62 | 22.5 | |
| 57 | B | AA | 59 | 22.8 | |
| 55 | B | AA | 52 | 23.8 | |
| 54 | B | AA | 47 | 25.1 | |
| 54 | C | AA | 46 | 25.5 | |
| 53 | C | A | 46 | 25.7 | |
| 44 | N/S | A | 40 | 27.9 |
Our People are our most
important asset
| Our People are our most important asset | |||
|---|---|---|---|
| Massive upfront de-risking, slashing Cost of risk |
Structural Cost reduction, enabled by technology |
Growth in Commissions, driven by Wealth Management, Protection & Advisory |
Significant ESG commitment, with a world-class position in Social Impact and strong focus on climate |
| ~1% net NPL ratio(1) | €2bn Cost savings | ~€100bn growth in AuM | ~€25bn in social lending/contribution to society |
| ~40bps Cost of risk(1) | €5bn investments in technology and growth |
~57% of Revenues from fee based business(2) |
~€90bn in new loans to support the green transition |
Clear and strong upside to the €6.5bn Net income target for 2025 from interest rate increases
(1) Throughout the entire Business Plan horizon
(2) Commissions and Insurance income
1Q23: the best-ever start to the year
2022-2025 Business Plan proceeding at full speed
ISP is fully equipped for further success
| % Italian GDP YoY evolution |
The Italian economy is resilient thanks to solid fundamentals | ||
|---|---|---|---|
| % | ▪ Strong Italian household gross wealth at more than €11,400bn, of which €5,200bn in Households financial assets, coupled with low household debt and debt-service ratios |
||
| Further potential upside after better than expected +0.5% QoQ growth in 1Q23 3.7 |
▪ Very resilient Italian SMEs, quickly recovering after the COVID-19 emergency with historically-low default rates, high liquidity and improved financial leverage ▪ Export-oriented companies highly diversified in terms of industry and markets; Italian Corporates exports have outperformed Germany's by 17% over the past 5 years(3) ▪ High manufacturing trade surplus: ~€105bn both in 2021 and 2022 |
||
| 1.5 1.0 |
▪ Banking system played an important role in mitigating the economic impact of COVID Banking 19, has supported households and companies to overcome the energy crisis and is system now barely affected by recent turmoil, due to strong capitalisation |
and high liquidity | |
| 2022(1) 2023 2024 forecast(2) forecast(2) |
▪ Extensive support to the economy from the Italian Government, with measures Italian worth a total 4.3% of GDP in 2021-2023, of which 1.2% of GDP (€25bn) in 2023 Government ▪ EU financial support (Next Generation EU) to fund the National Recovery and and EU Resilience Plan, providing Italy with more than €200bn in grants and loans, of which support €25bn received in 2021, €42bn in 2022 and €35bn expected in 2023 |
||
| ▪ ▪ The labour ▪ |
Lower than expected energy prices should reduce Italian inflation by end-2023 market remains solid and, as inflation slows, the economy is set to reaccelerate In 2024, the global recovery will also support external demand for Italian companies |
(1) Source: ISTAT (not corrected for working days)
(2) Source: Government, April 2023
(3) At current prices (February 2023 vs February 2018)
MIL-BVA362-03032014-90141/VR … and ISP is far better equipped than its peers thanks to a best-in-class risk profile, rock-solid capital position and a well-diversified and resilient business model
Note: figures may not add up exactly due to rounding
Fully equipped for further success thanks to a well-diversified and resilient business model
Execution of the 2022-2025 Business Plan proceeding at full speed, with key industrial initiatives well underway
MIL-BVA362-03032014-90141/VR
Solid growth in Revenues driven by Net interest income, coupled with a continuous focus on Cost management… Strong decline in Loan loss provisions… … leading to significant Operating margin growth … triggering Net income growth to ~€7bn
Strong and sustainable value creation and distribution: 70% cash payout ratio and any additional distribution to be evaluated year-by-year
| € m | 1Q23 | 31.3.23 | |
|---|---|---|---|
| Operating income |
6,057 | Loans to customers | 449,860 |
| Operating costs |
(2,536) | Customer financial assets(1) | 1,233,091 |
| Cost/Income ratio | 41.9% | of which Direct deposits from banking business | 534,462 |
| Operating margin | 3,521 | of which Direct deposits from insurance business | 175,497 |
| Gross income (loss) | 3,363 | of which Indirect customer deposits | 694,749 |
| Net income | 1,956 | - Assets under management |
434,996 |
| - Assets under administration |
259,753 | ||
| RWA | 295,075 | ||
| Total assets | 955,175 |
Liquidity, Funding and capital base
Asset quality
Divisional results and other information
€ m
| 1Q22(1) | 1Q23 | % |
|
|---|---|---|---|
| Net interest income | 1,957 | 3,254 | 66.3 |
| Net fee and commission income | 2,289 | 2,137 | (6.6) |
| Income from insurance business | 392 | 397 | 1.3 |
| Profits on financial assets and liabilities at fair value | 769 | 262 | (65.9) |
| Other operating income (expenses) | 4 | 7 | 75.0 |
| Operating income | 5,411 | 6,057 | 11.9 |
| Personnel expenses | (1,576) | (1,560) | (1.0) |
| Other administrative expenses | (634) | (644) | 1.6 |
| Adjustments to property, equipment and intangible assets | (314) | (332) | 5.7 |
| Operating costs | (2,524) | (2,536) | 0.5 |
| Operating margin | 2,887 | 3,521 | 22.0 |
| Net adjustments to loans | (702) | (189) | (73.1) |
| Net provisions and net impairment losses on other assets | (52) | (70) | 34.6 |
| Other income (expenses) | (4) | 101 | n.m. |
| Income (Loss) from discontinued operations | 0 | 0 | n.m. |
| Gross income (loss) | 2,129 | 3,363 | 58.0 |
| Taxes on income | (776) | (1,084) | 39.7 |
| Charges (net of tax) for integration and exit incentives | (16) | (42) | 162.5 |
| Effect of purchase price allocation (net of tax) | (34) | (46) | 35.3 |
| Levies and other charges concerning the banking industry (net of tax) | (266) | (2) (228) |
(14.3) |
| Impairment (net of tax) of goodwill and other intangible assets | 0 | 0 | n.m. |
| Minority interests | 6 | (7) | n.m. |
| Net income | 1,043 | 1,956 | 87.5 |
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: €330m pre-tax (€227m net of tax), our estimated commitment for the year
€ m
| 4Q22(1) | 1Q23 | % |
|
|---|---|---|---|
| Net interest income | 3,064 | 3,254 | 6.2 |
| Net fee and commission income | 2,222 | 2,137 | (3.8) |
| Income from insurance business | 395 | 397 | 0.5 |
| Profits on financial assets and liabilities at fair value | (2) | 262 | n.m. |
| Other operating income (expenses) | (12) | 7 | n.m. |
| Operating income | 5,667 | 6,057 | 6.9 |
| Personnel expenses | (1,921) | (1,560) | (18.8) |
| Other administrative expenses | (865) | (644) | (25.5) |
| Adjustments to property, equipment and intangible assets | (344) | (332) | (3.5) |
| Operating costs | (3,130) | (2,536) | (19.0) |
| Operating margin | 2,537 | 3,521 | 38.8 |
| Net adjustments to loans | (1,185) | (189) | (84.1) |
| Net provisions and net impairment losses on other assets | (114) | (70) | (38.6) |
| Other income (expenses) | 55 | 101 | 83.6 |
| Income (Loss) from discontinued operations | 0 | 0 | n.m. |
| Gross income (loss) | 1,293 | 3,363 | 160.1 |
| Taxes on income | (45) | (1,084) | n.m. |
| Charges (net of tax) for integration and exit incentives | (78) | (42) | (46.2) |
| Effect of purchase price allocation (net of tax) | (50) | (46) | (8.0) |
| Levies and other charges concerning the banking industry (net of tax) | (32) | (2) (228) |
612.5 |
| Impairment (net of tax) of goodwill and other intangible assets | 0 | 0 | n.m. |
| Minority interests | (12) | (7) | (41.7) |
| Net income | 1,076 | 1,956 | 81.8 |
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: €330m pre-tax (€227m net of tax), our estimated commitment for the year
| € m |
|---|
| 1Q22(1) | 2Q22(1) | 3Q22(1) | 4Q22(1) | 1Q23 | |
|---|---|---|---|---|---|
| Net interest income | 1,957 | 2,092 | 2,387 | 3,064 | 3,254 |
| Net fee and commission income | 2,289 | 2,255 | 2,153 | 2,222 | 2,137 |
| Income from insurance business | 392 | 449 | 439 | 395 | 397 |
| Profits on financial assets and liabilities at fair value | 769 | 560 | 51 | (2) | 262 |
| Other operating income (expenses) | 4 | (12) | (12) | (12) | 7 |
| Operating income | 5,411 | 5,344 | 5,018 | 5,667 | 6,057 |
| Personnel expenses | (1,576) | (1,613) | (1,632) | (1,921) | (1,560) |
| Other administrative expenses | (634) | (718) | (695) | (865) | (644) |
| Adjustments to property, equipment and intangible assets | (314) | (309) | (313) | (344) | (332) |
| Operating costs | (2,524) | (2,640) | (2,640) | (3,130) | (2,536) |
| Operating margin | 2,887 | 2,704 | 2,378 | 2,537 | 3,521 |
| Net adjustments to loans | (702) | (730) | (496) | (1,185) | (189) |
| Net provisions and net impairment losses on other assets | (52) | (62) | (42) | (114) | (70) |
| Other income (expenses) | (4) | 147 | 4 | 55 | 101 |
| Income (Loss) from discontinued operations | 0 | 0 | 0 | 0 | 0 |
| Gross income (loss) | 2,129 | 2,059 | 1,844 | 1,293 | 3,363 |
| Taxes on income | (776) | (699) | (560) | (45) | (1,084) |
| Charges (net of tax) for integration and exit incentives | (16) | (23) | (23) | (78) | (42) |
| Effect of purchase price allocation (net of tax) | (34) | (30) | (32) | (50) | (46) |
| Levies and other charges concerning the banking industry (net of tax) | (266) | (12) | (266) | (32) | (228) |
| Impairment (net of tax) of goodwill and other intangible assets | 0 | 0 | 0 | 0 | 0 |
| Minority interests | 6 | 8 | (6) | (12) | (7) |
| Net income | 1,043 | 1,303 | 957 | 1,076 | 1,956 |
| Net fee and commission income | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| 1Q22 | 2Q22 | 3Q22 | 4Q22 | 1Q23 | |||||
| Guarantees given / received | 47 | 54 | 86 | 59 | 34 | ||||
| Collection and payment services | 139 | 164 | 156 | 164 | 156 | ||||
| Current accounts | 346 | 348 | 348 | 344 | 341 | ||||
| Credit and debit cards | 83 | 108 | 114 | 109 | 94 | ||||
| Commercial banking activities | 615 | 674 | 704 | 676 | 625 | ||||
| Dealing and placement of securities | 228 | 153 | 134 | 167 | 230 | ||||
| Currency dealing | 2 | 3 | 4 | 0 | 2 | ||||
| Portfolio management | 704 | 676 | 660 | 670 | 614 | ||||
| Distribution of insurance products | 403 | 421 | 357 | 406 | 396 | ||||
| Other | 75 | 56 | 59 | 52 | 57 | ||||
| Management, dealing and consultancy activities | 1,412 | 1,309 | 1,214 | 1,295 | 1,299 | ||||
| Other net fee and commission income | 262 | 272 | 235 | 251 | 213 | ||||
| Net fee and commission income | 2,289 | 2,255 | 2,153 | 2,222 | 2,137 |
| 1Q22 | 4Q22 | 1Q23 | |
|---|---|---|---|
| Customers | 90 | 91 | 89 |
| Capital markets | (11) | (74) | 65 |
| Trading and Treasury | 694 | (2) | 107 |
| Structured credit products | (4) | (17) | 1 |
MIL-BVA362-03032014-90141/VR
1Q22 1Q23
▪ Lowest-ever Cost/Income ratio, down to 41.9% (vs 46.6% in 1Q22)
1Q22 1Q23
| Other administrative expenses | Adjustments | ||||||
|---|---|---|---|---|---|---|---|
| € m | € m | ||||||
| 865 | 644 | -25.5% | 344 | 332 | |||
| 4Q22 | 1Q23 | 4Q22 | 1Q23 |
▪ NPL inflow and NPL stock at historical low
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) Funding mix and size could change according to market conditions and asset growth
(2) Aligned with ICMA's Green Bond Principles (2021), Social Bond Principles (2021) and Sustainability Bond Guidelines (2021), as well as - wherever possible and on a best effort basis - with the EU Taxonomy Climate Delegated Act (2021)
(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. As at 31.3.23 €159bn in HQLA
(2) Eligible assets freely available (excluding assets used as collateral and including eligible assets received as collateral) and cash and deposits with Central Banks. As at 31.3.23 €148bn in HQLA
(3) TLTRO tranches: III.4: €31bn - maturity 28.6.23; III.7: €36bn - maturity 27.3.24; III.8: €9bn - maturity 26.6.24; III.9: €60m - maturity 25.9.24
(4) Loans to customers/Direct deposits from banking business
(1) Pro-forma fully loaded Basel 3 (31.3.23 financial statements considering the total absorption of DTA related to IFRS 9 FTA (€0.9bn as at 31.3.23), DTA convertible in tax credit related to goodwill realignment (€4.8bn as at 31.3.23) and adjustments to loans (€2.4bn as at 31.3.23), 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 (€0.04bn as at 31.3.23), 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 (€0.4bn as at 31.3.23) and DTA on losses carried forward (€2.3bn as at 31.3.23), and the expected distribution on 1Q23 Net income of insurance companies)
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 |
31.3.22 | 31.12.22 | 31.3.23 | € bn |
31.3.22 | 31.12.22 | 31.3.23 |
| Bad loans | 7.3 | 3.7 | 3.9 | Bad loans | 2.1 | 1.1 | 1.2 |
| - of which forborne |
1.5 | 0.8 | 0.9 | - of which forborne |
0.5 | 0.3 | 0.3 |
| Unlikely to pay | 6.5 | 6.4 | 6.4 | Unlikely to pay | 4.2 | 4.0 | 3.8 |
| - of which forborne |
3.1 | 2.6 | 2.6 | - of which forborne |
2.1 | 1.7 | 1.7 |
| Past due | 0.6 | 0.6 | 0.5 | Past due | 0.4 | 0.4 | 0.4 |
| - of which forborne |
0.1 | - | Of which 0.1 €0.5bn |
- of which forborne |
- | - | 0.1 Of which €0.2bn |
| Total | 14.4 | 10.6 | related to 10.8 Russia Ukraine |
Total | 6.8 | 5.5 | related to 5.4 Russia Ukraine |
| 3.0 | 2.3 | exposure 2.4 |
1.4 | 1.2 | exposure 1.2 |
||
| 2.3 | 1.9 | 2.0 | 1.1 | 1.0 | 1.0 |
Lowest-ever net NPL stock and ratios with the 30th quarter of continuous reduction in net NPL stock
Note: figures may not add up exactly due to rounding
(1) Bad loans (Sofferenze), Unlikely to pay (Inadempienze probabili) and Past due (Scaduti e sconfinanti)
MIL-BVA362-03032014-90141/VR
(1) Bad loans (Sofferenze), Unlikely to pay (Inadempienze probabili) and Past due (Scaduti e sconfinanti)
(2) 2012 figures recalculated to take into consideration the regulatory changes to Past due classification criteria introduced by the Bank of Italy (90 days since 2012 vs 180 days up until 31.12.11)
Note: figures may not add up exactly due to rounding
(1) Bad loans (Sofferenze), Unlikely to pay (Inadempienze probabili) and Past due (Scaduti e sconfinanti)
MIL-BVA362-03032014-90141/VR
Note: figures may not add up exactly due to rounding
(1) Bad loans (Sofferenze), Unlikely to pay (Inadempienze probabili) and Past due (Scaduti e sconfinanti)
| 31.3.23 | |
|---|---|
| Public Administration | 4.6% |
| Financial companies | 8.9% |
| Non-financial companies | 43.2% |
| of which: | |
| UTILITIES | 4.6% |
| SERVICES | 4.5% |
| DISTRIBUTION | 3.3% |
| REAL ESTATE | 3.2% |
| CONSTRUCTION AND MATERIALS FOR CONSTR. | 3.1% |
| FOOD AND DRINK | 2.6% |
| METALS AND METAL PRODUCTS | 2.3% |
| INFRASTRUCTURE | 2.3% |
| FASHION | 2.2% |
| TRANSPORTATION MEANS | 1.9% |
| ENERGY AND EXTRACTION | 1.8% |
| MECHANICAL | 1.7% |
| CHEMICALS, RUBBER AND PLASTICS | 1.7% |
| TOURISM | 1.7% |
| AGRICULTURE | 1.6% |
| TRANSPORT | 1.2% |
| ELECTRICAL COMPONENTS AND EQUIPMENT | 0.8% |
| PHARMACEUTICAL | 0.8% |
| FURNITURE AND WHITE GOODS | 0.8% |
| MEDIA | 0.5% |
| WOOD AND PAPER | 0.5% |
| OTHER CONSUMPTION GOODS | 0.2% |
| € bn, data as at 31.3.23 | ||||||
|---|---|---|---|---|---|---|
| -- | -- | -- | -- | -- | -- | -------------------------- |
| Local presence Russia | Cross-border exposure to Russia(1) | ||
|---|---|---|---|
| Loans to customers (net of ECA guarantees and provisions) |
0.2(2) | 0.9(3) | |
| ECA(4) guarantees |
- | 0.8(5) | |
| Due from banks (net of provisions) | 0.7 | 0.04(6) | |
| Bonds (net of writedowns) | 0.01 | n.m.(7) | |
| Derivatives | n.m. | - | |
| RWA | 2.0 | 2.8 | |
| Total assets | 1.7 | n.a. | |
| Intragroup funding | 0.3 | n.a. |
Detailed consolidated P&L results
Liquidity, Funding and capital base
Asset quality
Divisional results and other information
Data as at 31.3.23
| Divisions | ||||||||
|---|---|---|---|---|---|---|---|---|
| Banca dei Territori |
IMI Corporate & Investment Banking |
International Subsidiary Banks(1) |
Private Banking(2) |
Asset Management(3) |
Insurance (4) |
Corporate Centre / (5) Others |
Total | |
| Operating income (€ m) | 2,785 | 972 | 665 | 754 | 235 | 399 | 247 | 6,057 |
| Operating margin (€ m) | 1,282 | 638 | 397 | 525 | 183 | 316 | 180 | 3,521 |
| Net income (€ m) | 695 | 394 | 365 | 343 | 129 | 210 | (180) | 1,956 |
| Cost/Income (%) | 54.0 | 34.4 | 40.3 | 30.4 | 22.1 | 20.8 | n.m. | 41.9 |
| RWA (€ bn) | 80.1 | 109.0 | 35.4 | 12.2 | 1.9 | 0.0 | 56.5 | 295.1 |
| Direct deposits from banking business (€ bn) | 277.3 | 94.1 | 53.2 | 46.4 | 0.0 | 0.0 | 63.5 | 534.5 |
| Loans to customers (€ bn) | 244.4 | 132.9 | 40.5 | 14.8 | 0.2 | 0.0 | 17.1 | 449.9 |
Note: figures may not add up exactly due to rounding
(1) Excluding the Russian subsidiary Banca Intesa which is included in the IMI C&IB Division
(2) Fideuram, Intesa Sanpaolo Private Banking, Intesa Sanpaolo Wealth Management, IW Private Investments, REYL Group, and Siref Fiduciaria
(3) Eurizon
(4) Fideuram Vita, Intesa Sanpaolo Assicura, Intesa Sanpaolo Insurance Agency, Intesa Sanpaolo Life, Intesa Sanpaolo RBM Salute, and Intesa Sanpaolo Vita
(5) Treasury Department, Central Structures and consolidation adjustments
| 1Q22 | 1Q23 | % | |
|---|---|---|---|
| Net interest income | 960 | 1,573 | 63.9 |
| Net fee and commission income | 1,191 | 1,182 | (0.8) |
| Income from insurance business | 0 | 0 | n.m. |
| Profits on financial assets and liabilities at fair value | 30 | 32 | 6.7 |
| Other operating income (expenses) | 2 | (2) | n.m. |
| Operating income | 2,183 | 2,785 | 27.6 |
| Personnel expenses | (826) | (802) | (2.9) |
| Other administrative expenses | (706) | (701) | (0.7) |
| Adjustments to property, equipment and intangible assets | 0 | 0 | n.m. |
| Operating costs | (1,532) | (1,503) | (1.9) |
| Operating margin | 651 | 1,282 | 96.9 |
| Net adjustments to loans | 141 | (209) | n.m. |
| Net provisions and net impairment losses on other assets | (15) | (7) | (53.3) |
| Other income (expenses) | 0 | 0 | n.m. |
| Income (Loss) from discontinued operations | 0 | 0 | n.m. |
| Gross income (loss) | 777 | 1,066 | 37.2 |
| Taxes on income | (258) | (351) | 36.0 |
| Charges (net of tax) for integration and exit incentives | (2) | (13) | 550.0 |
| Effect of purchase price allocation (net of tax) | (8) | (7) | (12.5) |
| 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 | 7 | 0 | (100.0) |
| Net income | 516 | 695 | 34.7 |
| 4Q22 | 1Q23 | % | |
|---|---|---|---|
| Net interest income | 1,063 | 1,573 | 48.0 |
| Net fee and commission income | 1,214 | 1,182 | (2.6) |
| Income from insurance business | 0 | 0 | n.m. |
| Profits on financial assets and liabilities at fair value | 30 | 32 | 6.7 |
| Other operating income (expenses) | (6) | (2) | (66.7) |
| Operating income | 2,301 | 2,785 | 21.0 |
| Personnel expenses | (928) | (802) | (13.6) |
| Other administrative expenses | (828) | (701) | (15.3) |
| Adjustments to property, equipment and intangible assets | 0 | 0 | n.m. |
| Operating costs | (1,756) | (1,503) | (14.4) |
| Operating margin | 545 | 1,282 | 135.2 |
| Net adjustments to loans | (823) | (209) | (74.6) |
| Net provisions and net impairment losses on other assets | (25) | (7) | (72.0) |
| Other income (expenses) | 0 | 0 | n.m. |
| Income (Loss) from discontinued operations | 0 | 0 | n.m. |
| Gross income (loss) | (303) | 1,066 | n.m. |
| Taxes on income | 96 | (351) | n.m. |
| Charges (net of tax) for integration and exit incentives | (28) | (13) | (53.6) |
| Effect of purchase price allocation (net of tax) | (6) | (7) | 16.7 |
| Levies and other charges concerning the banking industry (net of tax) | (8) | 0 | (100.0) |
| Impairment (net of tax) of goodwill and other intangible assets | 0 | 0 | n.m. |
| Minority interests | 0 | 0 | n.m. |
| Net income | (249) | 695 | n.m. |
€ m
| 1Q22 | 1Q23 | % | |
|---|---|---|---|
| Net interest income | 469 | 611 | 30.3 |
| Net fee and commission income | 292 | 258 | (11.6) |
| Income from insurance business | 0 | 0 | n.m. |
| Profits on financial assets and liabilities at fair value | 624 | 103 | (83.5) |
| Other operating income (expenses) | 0 | 0 | n.m. |
| Operating income | 1,385 | 972 | (29.8) |
| Personnel expenses | (115) | (118) | 2.6 |
| Other administrative expenses | (199) | (211) | 6.0 |
| Adjustments to property, equipment and intangible assets | (5) | (5) | 0.0 |
| Operating costs | (319) | (334) | 4.7 |
| Operating margin | 1,066 | 638 | (40.2) |
| Net adjustments to loans | (723) | 10 | n.m. |
| Net provisions and net impairment losses on other assets | (25) | (58) | 132.0 |
| Other income (expenses) | 0 | 0 | n.m. |
| Income (Loss) from discontinued operations | 0 | 0 | n.m. |
| Gross income (loss) | 318 | 590 | 85.5 |
| Taxes on income | (151) | (190) | 25.8 |
| Charges (net of tax) for integration and exit incentives | (5) | (6) | 20.0 |
| 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 | 162 | 394 | 143.2 |
Including €679m provisions for Russia-Ukraine exposure in 1Q22
| 4Q22 | 1Q23 | % | |
|---|---|---|---|
| Net interest income | 599 | 611 | 2.0 |
| Net fee and commission income | 292 | 258 | (11.6) |
| Income from insurance business | 0 | 0 | n.m. |
| Profits on financial assets and liabilities at fair value | (17) | 103 | n.m. |
| Other operating income (expenses) | 0 | 0 | n.m. |
| Operating income | 874 | 972 | 11.2 |
| Personnel expenses | (157) | (118) | (24.8) |
| Other administrative expenses | (235) | (211) | (10.2) |
| Adjustments to property, equipment and intangible assets | (5) | (5) | 0.0 |
| Operating costs | (397) | (334) | (15.9) |
| Operating margin | 477 | 638 | 33.8 |
| Net adjustments to loans | (208) | 10 | n.m. |
| Net provisions and net impairment losses on other assets | (26) | (58) | 123.1 |
| Other income (expenses) | 0 | 0 | n.m. |
| Income (Loss) from discontinued operations | 0 | 0 | n.m. |
| Gross income (loss) | 243 | 590 | 142.8 |
| Taxes on income | (101) | (190) | 88.1 |
| Charges (net of tax) for integration and exit incentives | (6) | (6) | 0.0 |
| 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 | 136 | 394 | 189.7 |
€ m
| 1Q22 | 1Q23 | % | ||
|---|---|---|---|---|
| Net interest income | 345 | 519 | 50.4 | |
| Net fee and commission income | 140 | 138 | (1.4) | |
| Income from insurance business | 0 | 0 | n.m. | |
| Profits on financial assets and liabilities at fair value | 27 | 21 | (22.2) | |
| Other operating income (expenses) | (13) | (13) | 0.0 | |
| Operating income | 499 | 665 | 33.3 | |
| Personnel expenses | (133) | (138) | 3.8 | |
| Other administrative expenses | (95) | (102) | 7.4 | |
| Adjustments to property, equipment and intangible assets | (28) | (28) | 0.0 | |
| Operating costs | (256) | (268) | 4.7 | |
| Operating margin | 243 | 397 | 63.4 | |
| Net adjustments to loans | (136) | 0 | (100.0) | |
| Net provisions and net impairment losses on other assets | (5) | (4) | (20.0) | |
| Other income (expenses) | 1 | 120 | n.m. | |
| Income (Loss) from discontinued operations | 0 | 0 | n.m. | |
| Gross income (loss) | 103 | 513 | 398.1 | |
| Taxes on income | (49) | (130) | 165.3 | |
| Charges (net of tax) for integration and exit incentives | (9) | (10) | 11.1 | |
| Effect of purchase price allocation (net of tax) | 0 | 0 | n.m. | |
| Levies and other charges concerning the banking industry (net of tax) | (10) | (6) | (40.0) | |
| Impairment (net of tax) of goodwill and other intangible assets | 0 | (1) | n.m. | |
| Minority interests | 0 | (1) | n.m. | |
| Net income | 35 | 365 | 942.9 |
Including €122m provisions for Russia-Ukraine exposure in 1Q22
| 4Q22 | 1Q23 | % | |
|---|---|---|---|
| Net interest income | 460 | 519 | 12.8 |
| Net fee and commission income | 138 | 138 | 0.0 |
| Income from insurance business | 0 | 0 | n.m. |
| Profits on financial assets and liabilities at fair value | 30 | 21 | (30.0) |
| Other operating income (expenses) | (20) | (13) | (35.0) |
| Operating income | 608 | 665 | 9.4 |
| Personnel expenses | (163) | (138) | (15.3) |
| Other administrative expenses | (124) | (102) | (17.7) |
| Adjustments to property, equipment and intangible assets | (29) | (28) | (3.4) |
| Operating costs | (316) | (268) | (15.2) |
| Operating margin | 292 | 397 | 36.0 |
| Net adjustments to loans | (112) | 0 | (100.0) |
| Net provisions and net impairment losses on other assets | (8) | (4) | (50.0) |
| Other income (expenses) | 32 | 120 | 275.0 |
| Income (Loss) from discontinued operations | 0 | 0 | n.m. |
| Gross income (loss) | 204 | 513 | 151.5 |
| Taxes on income | (31) | (130) | 319.4 |
| Charges (net of tax) for integration and exit incentives | (13) | (10) | (23.1) |
| Effect of purchase price allocation (net of tax) | 0 | 0 | n.m. |
| Levies and other charges concerning the banking industry (net of tax) | (8) | (6) | (25.0) |
| Impairment (net of tax) of goodwill and other intangible assets | 0 | (1) | n.m. |
| Minority interests | 0 | (1) | n.m. |
| Net income | 152 | 365 | 140.1 |
| 1Q22 | 1Q23 | % | |
|---|---|---|---|
| Net interest income | 49 | 280 | 471.4 |
| Net fee and commission income | 512 | 455 | (11.1) |
| Income from insurance business | 0 | 0 | n.m. |
| Profits on financial assets and liabilities at fair value | 13 | 20 | 53.8 |
| Other operating income (expenses) | 3 | (1) | n.m. |
| Operating income | 577 | 754 | 30.7 |
| Personnel expenses | (110) | (117) | 6.4 |
| Other administrative expenses | (90) | (91) | 1.1 |
| Adjustments to property, equipment and intangible assets | (20) | (21) | 5.0 |
| Operating costs | (220) | (229) | 4.1 |
| Operating margin | 357 | 525 | 47.1 |
| Net adjustments to loans | 2 | (6) | n.m. |
| Net provisions and net impairment losses on other assets | 3 | (6) | n.m. |
| Other income (expenses) | 0 | 0 | n.m. |
| Income (Loss) from discontinued operations | 0 | 0 | n.m. |
| Gross income (loss) | 362 | 513 | 41.7 |
| Taxes on income | (104) | (158) | 51.9 |
| Charges (net of tax) for integration and exit incentives | (8) | (6) | (25.0) |
| Effect of purchase price allocation (net of tax) | (5) | (6) | 20.0 |
| 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 | 245 | 343 | 40.0 |
| 4Q22 | 1Q23 | % | |
|---|---|---|---|
| Net interest income | 216 | 280 | 29.6 |
| Net fee and commission income | 475 | 455 | (4.2) |
| Income from insurance business | 0 | 0 | n.m. |
| Profits on financial assets and liabilities at fair value | 31 | 20 | (35.5) |
| Other operating income (expenses) | 4 | (1) | n.m. |
| Operating income | 726 | 754 | 3.9 |
| Personnel expenses | (146) | (117) | (19.9) |
| Other administrative expenses | (89) | (91) | 2.2 |
| Adjustments to property, equipment and intangible assets | (20) | (21) | 5.0 |
| Operating costs | (255) | (229) | (10.2) |
| Operating margin | 471 | 525 | 11.5 |
| Net adjustments to loans | (5) | (6) | 20.0 |
| Net provisions and net impairment losses on other assets | (9) | (6) | (33.3) |
| Other income (expenses) | 0 | 0 | n.m. |
| Income (Loss) from discontinued operations | 0 | 0 | n.m. |
| Gross income (loss) | 457 | 513 | 12.3 |
| Taxes on income | (153) | (158) | 3.3 |
| Charges (net of tax) for integration and exit incentives | (15) | (6) | (60.0) |
| Effect of purchase price allocation (net of tax) | (6) | (6) | 0.0 |
| Levies and other charges concerning the banking industry (net of tax) | (2) | 0 | (100.0) |
| Impairment (net of tax) of goodwill and other intangible assets | 0 | 0 | n.m. |
| Minority interests | 3 | 0 | (100.0) |
| Net income | 284 | 343 | 20.8 |
| 1Q22 | 1Q23 | % | |
|---|---|---|---|
| Net interest income | 0 | 1 | n.m. |
| Net fee and commission income | 241 | 209 | (13.3) |
| Income from insurance business | 0 | 0 | n.m. |
| Profits on financial assets and liabilities at fair value | (5) | 8 | n.m. |
| Other operating income (expenses) | 17 | 17 | 0.0 |
| Operating income | 253 | 235 | (7.1) |
| Personnel expenses | (23) | (23) | 0.0 |
| Other administrative expenses | (25) | (27) | 8.0 |
| Adjustments to property, equipment and intangible assets | (1) | (2) | 100.0 |
| Operating costs | (49) | (52) | 6.1 |
| Operating margin | 204 | 183 | (10.3) |
| Net adjustments to loans | 0 | 0 | n.m. |
| Net provisions and net impairment losses on other assets | 0 | (2) | n.m. |
| Other income (expenses) | 0 | 0 | n.m. |
| Income (Loss) from discontinued operations | 0 | 0 | n.m. |
| Gross income (loss) | 204 | 181 | (11.3) |
| Taxes on income | (57) | (51) | (10.5) |
| Charges (net of tax) for integration and exit incentives | (1) | 0 | (100.0) |
| 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 | 145 | 129 | (11.0) |
| 4Q22 | 1Q23 | % | |
|---|---|---|---|
| Net interest income | 1 | 1 | 0.0 |
| Net fee and commission income | 222 | 209 | (5.9) |
| Income from insurance business | 0 | 0 | n.m. |
| Profits on financial assets and liabilities at fair value | 1 | 8 | 700.0 |
| Other operating income (expenses) | 14 | 17 | 21.4 |
| Operating income | 238 | 235 | (1.3) |
| Personnel expenses | (36) | (23) | (36.1) |
| Other administrative expenses | (32) | (27) | (15.6) |
| Adjustments to property, equipment and intangible assets | (2) | (2) | 0.0 |
| Operating costs | (70) | (52) | (25.7) |
| Operating margin | 168 | 183 | 8.9 |
| Net adjustments to loans | 0 | 0 | n.m. |
| Net provisions and net impairment losses on other assets | 0 | (2) | n.m. |
| Other income (expenses) | 0 | 0 | n.m. |
| Income (Loss) from discontinued operations | 0 | 0 | n.m. |
| Gross income (loss) | 168 | 181 | 7.7 |
| Taxes on income | (52) | (51) | (1.9) |
| Charges (net of tax) for integration and exit incentives | 0 | 0 | n.m. |
| 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 | 115 | 129 | 12.2 |
| 1Q22(1) | 1Q23 | % | |
|---|---|---|---|
| Net interest income | 0 | 0 | n.m. |
| Net fee and commission income | 1 | 1 | 0.0 |
| Income from insurance business | 367 | 399 | 8.7 |
| Profits on financial assets and liabilities at fair value | 0 | 0 | n.m. |
| Other operating income (expenses) | (3) | (1) | (66.7) |
| Operating income | 365 | 399 | 9.3 |
| Personnel expenses | (33) | (35) | 6.1 |
| Other administrative expenses | (44) | (40) | (9.1) |
| Adjustments to property, equipment and intangible assets | (7) | (8) | 14.3 |
| Operating costs | (84) | (83) | (1.2) |
| Operating margin | 281 | 316 | 12.5 |
| Net adjustments to loans | 0 | 0 | n.m. |
| Net provisions and net impairment losses on other assets | 0 | 2 | n.m. |
| Other income (expenses) | 0 | 0 | n.m. |
| Income (Loss) from discontinued operations | 0 | 0 | n.m. |
| Gross income (loss) | 281 | 318 | 13.2 |
| Taxes on income | (68) | (102) | 50.0 |
| Charges (net of tax) for integration and exit incentives | (2) | (2) | 0.0 |
| Effect of purchase price allocation (net of tax) | (2) | (2) | 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) | (2) | 100.0 |
| Net income | 208 | 210 | 1.0 |
| 4Q22(1) | 1Q23 | % | |
|---|---|---|---|
| Net interest income | 0 | 0 | n.m. |
| Net fee and commission income | 1 | 1 | 0.0 |
| Income from insurance business | 356 | 399 | 12.1 |
| Profits on financial assets and liabilities at fair value | 0 | 0 | n.m. |
| Other operating income (expenses) | (2) | (1) | (50.0) |
| Operating income | 355 | 399 | 12.4 |
| Personnel expenses | (48) | (35) | (27.1) |
| Other administrative expenses | (59) | (40) | (32.2) |
| Adjustments to property, equipment and intangible assets | (9) | (8) | (11.1) |
| Operating costs | (116) | (83) | (28.4) |
| Operating margin | 239 | 316 | 32.2 |
| Net adjustments to loans | 0 | 0 | n.m. |
| Net provisions and net impairment losses on other assets | 101 | 2 | (98.0) |
| Other income (expenses) | 8 | 0 | (100.0) |
| Income (Loss) from discontinued operations | 0 | 0 | n.m. |
| Gross income (loss) | 348 | 318 | (8.6) |
| Taxes on income | (88) | (102) | 15.9 |
| Charges (net of tax) for integration and exit incentives | (7) | (2) | (71.4) |
| Effect of purchase price allocation (net of tax) | (2) | (2) | 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 | (23) | (2) | (91.3) |
| Net income | 228 | 210 | (7.9) |
Note: figures may not add up exactly due to rounding
Data as at 31.3.23
| Total | Total | % of the | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Hungary | Slovakia | Slovenia | Croatia | Bosnia | Serbia | Albania | Romania | Moldova | (*) Ukraine |
CEE | Egypt | Group | |||
| Operating income (€ m) | 114 | 160 | 33 | 134 | 12 | 96 | 14 | 12 | 5 | 581 | 84 | 665 | 11.0% | ||
| Operating costs (€ m) | 31 | 57 | 12 | 51 | 6 | 30 | 7 | 9 | 3 | 205 | 29 | 235 | 9.3% | ||
| Net adjustments to loans (€ m) | (5) | 12 | (0) | (11) | 0 | 9 | (4) | 0 | 0 | 1 | (0) | 0 | 0.1% | ||
| Net income (€ m) | 38 | 55 | 15 | 166 | 5 | 45 | 9 | 2 | 1 | 336 | 38 | 374 | 19.1% | ||
| Customer deposits (€ bn) | 5.5 | 19.5 | 3.2 | 12.0 | 0.9 | 5.5 | 1.5 | 1.1 | 0.2 | 49.3 | 3.4 | 52.7 | 9.9% | ||
| Customer loans (€ bn) | 3.9 | 17.4 | 2.3 | 8.4 | 0.8 | 4.6 | 0.5 | 0.8 | 0.1 | 38.8 | 1.7 | 40.4 | 9.0% | ||
| Performing loans (€ bn) of which: |
3.8 | 17.3 | 2.3 | 8.3 | 0.8 | 4.6 | 0.4 | 0.8 | 0.1 | 38.3 | 1.6 | 40.0 | 9.0% | ||
| Retail local currency | 45% | 61% | 43% | 49% | 35% | 22% | 26% | 13% | 52% | 49% | 56% | 50% | |||
| Retail foreign currency | 0% | 0% | 0% | 0% | 13% | 29% | 16% | 13% | 0% | 4% | 0% | 4% | |||
| Corporate local currency | 24% | 32% | 57% | 51% | 24% | 6% | 10% | 40% | 18% | 33% | 27% | 33% | |||
| Corporate foreign currency | 30% | 7% | 0% | 0% | 28% | 42% | 49% | 34% | 29% | 13% | 17% | 13% | |||
| Non-performing loans (€ m) | 82 | 104 | 5 | 174 | 11 | 45 | 9 | 19 | 1 | 450 | 41 | 491 | 9.1% | ||
| Non-performing loans coverage | 43% | 68% | 81% | 54% | 62% | 67% | 44% | 59% | 75% | 59% | 65% | 60% | |||
| Annualised Cost of credit (1) (bps) | n.m. | 27 | n.m. | n.m. | 9 | 80 | n.m. | 19 | 83 | 1 | n.m. | 0 |
Note: figures may not add up exactly due to rounding
(*) Considering the limited operations of Pravex Bank in Q1 and, more in general, its not-material size, its income statement has not been consolidated. The subsidiary's balance sheet has been consolidated on the basis of the countervalue of 2022 year-end figures at the exchange rate as at 31.3.23
(1) Net adjustments to loans/Net customer loans
€ m
| DEBT SECURITIES | Banking Business | ||||
|---|---|---|---|---|---|
| AC | FVTOCI | FVTPL(2) | Total(3) | LOANS | |
| EU Countries | 45,639 | 37,198 | 4,023 | 86,860 | 410,827 |
| Austria | 759 | 657 | 3 | 1,419 | 469 |
| Belgium | 3,552 | 2,886 | 152 | 6,590 | 1,347 |
| Bulgaria | 0 | 0 | 1 | 1 | 11 |
| Croatia | 280 | 931 | 77 | 1,288 | 8,259 |
| Cyprus | 0 | 0 | 0 | 0 | 12 |
| Czech Republic | 144 | 37 | 0 | 181 | 959 |
| Denmark | 39 | 38 | 3 | 80 | 107 |
| Estonia | 0 | 0 | 0 | 0 | 4 |
| Finland | 270 | 31 | 4 | 305 | 203 |
| France | 7,192 | 4,449 | -377 | 11,264 | 7,144 |
| Germany | 525 | 1,792 | -78 | 2,239 | 4,711 |
| Greece | 37 | 0 | 23 | 60 | 21 |
| Hungary | 373 | 736 | 15 | 1,124 | 4,172 |
| Ireland | 903 | 1,167 | 406 | 2,476 | 486 |
| Italy | 23,466 | 14,384 | 3,218 | 41,068 | 348,795 |
| Latvia | 0 | 0 | 0 | 0 | 19 |
| Lithuania | 0 | 0 | 0 | 0 | 2 |
| Luxembourg | 446 | 803 | 48 | 1,297 | 7,450 |
| Malta | 0 | 0 | 0 | 0 | 34 |
| The Netherlands | 1,015 | 916 | 151 | 2,082 | 1,994 |
| Poland | 258 | 106 | 0 | 364 | 930 |
| Portugal | 554 | 617 | -17 | 1,154 | 126 |
| Romania | 65 | 376 | 7 | 448 | 943 |
| Slovakia | 0 | 1,065 | 11 | 1,076 | 14,920 |
| Slovenia | 1 | 170 | 3 | 174 | 2,250 |
| Spain | 5,737 | 5,747 | 376 | 11,860 | 4,966 |
| Sweden | 23 | 290 | -3 | 310 | 493 |
| Albania | 81 | 492 | 1 | 574 | 493 |
| Egypt | 75 | 1,070 | 0 | 1,145 | 2,323 |
| Japan | 46 | 1,408 | 8 | 1,462 | 241 |
| Russia | 4 | 12 | 0 | 16 | 2,033 |
| Serbia | 7 | 474 | 0 | 481 | 4,803 |
| United Kingdom | 548 | 694 | 62 | 1,304 | 14,224 |
| U.S.A. | 4,076 | 8,834 | 308 | 13,218 | 7,935 |
| Other Countries | 6,618 | 6,077 | -35 | 12,660 | 22,856 |
| Total | 57,094 | 56,259 | 4,367 | 117,720 | 0 465,735 |
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 31.3.23
(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 €74,526m (of which €50,787m in Italy)
| € m | DEBT SECURITIES | ||||||
|---|---|---|---|---|---|---|---|
| Banking Business | LOANS | ||||||
| AC | FVTOCI | FVTPL(2) Total(3) | |||||
| EU Countries | 35,049 | 28,900 | 1,402 | 65,351 | 10,600 | ||
| Austria | 615 | 505 | 0 | 1,120 | 0 | ||
| Belgium | 2,595 | 2,828 | 130 | 5,553 | 0 | ||
| Bulgaria | 0 | 0 | 1 | 1 | 0 | ||
| Croatia | 150 | 931 | 77 | 1,158 | 1,554 | ||
| Cyprus | 0 | 0 | 0 | 0 | 0 | ||
| Czech Republic | 0 | 0 | 0 | 0 | 0 | ||
| Denmark | 0 | 0 | 2 | 2 | 0 | ||
| Estonia | 0 | 0 | 0 | 0 | 0 | ||
| Finland | 255 | 0 | 0 | 255 | 0 | ||
| France | 6,670 | 2,733 | -588 | 8,815 | 3 | ||
| Germany | 138 | 893 | -162 | 869 | 0 | ||
| Greece | 0 | 0 | -6 | -6 | 0 | ||
| Hungary | 152 | 703 | 15 | 870 | 342 | ||
| Ireland | 336 | 58 | 3 | 397 | 0 | Banking business government bond | |
| duration: 6.4y | |||||||
| Italy | 17,135 | 12,449 | 1,856 | 31,440 | 8,325 | Adjusted duration due to hedging: 0.9y | |
| Latvia | 0 | 0 | 0 | 0 | 19 | ||
| Lithuania | 0 | 0 | 0 | 0 | 0 | ||
| Luxembourg | 266 | 432 | -20 | 678 | 0 | ||
| Malta | 0 | 0 | 0 | 0 | 0 | ||
| The Netherlands | 828 | 47 | 2 | 877 | 0 | ||
| Poland | 28 | 64 | 0 | 92 | 0 | ||
| Portugal | 389 | 617 | -27 | 979 | 0 | ||
| Romania | 65 | 376 | 4 | 445 | 4 | ||
| Slovakia | 0 | 944 | 11 | 955 | 142 | ||
| Slovenia | 1 | 163 | 3 | 167 | 162 | ||
| Spain | 5,426 | 5,157 | 101 | 10,684 | 49 | ||
| Sweden | 0 | 0 | 0 | 0 | 0 | ||
| Albania | 81 | 492 | 1 | 574 | 0 | ||
| Egypt | 75 | 1,070 | 0 | 1,145 | 523 | ||
| Japan | 0 | 847 | 0 | 847 | 0 | ||
| Russia | 0 | 12 | 0 | 12 | 0 | ||
| Serbia | 7 | 474 | 0 | 481 | 185 | ||
| United Kingdom | 0 | 232 | -2 | 230 | 0 | ||
| U.S.A. | 3,378 | 7,453 | 133 | 10,964 | 0 | ||
| Other Countries | 2,258 | 3,442 | -60 | 5,640 | 4,747 | ||
| Total | 40,848 | 42,922 | 1,474 | 85,244 | 0 16,055 |
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 31.3.23
(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 €57,519m (of which €48,064m in Italy). The total of FVTOCI reserves related to Banking business amounts to -€1,233m (of which -€214m in Italy)
€ m
| AC | FVTOCI | FVTPL(2) | Total(3) | LOANS | |
|---|---|---|---|---|---|
| EU Countries | 2,000 | 4,357 | 1,414 | 7,771 | 18,651 |
| Austria | 128 | 121 | 3 | 252 | 216 |
| Belgium | 11 | 48 | 20 | 79 | 305 |
| Bulgaria | 0 | 0 | 0 | 0 | 0 |
| Croatia | 0 | 0 | 0 | 0 | 42 |
| Cyprus | 0 | 0 | 0 | 0 | 0 |
| Czech Republic | 0 | 37 | 0 | 37 | 10 |
| Denmark | 26 | 8 | 1 | 35 | 50 |
| Estonia | 0 | 0 | 0 | 0 | 0 |
| Finland | 10 | 20 | 3 | 33 | 12 |
| France | 284 | 1,104 | 151 | 1,539 | 4,171 |
| Germany | 279 | 468 | 79 | 826 | 1,870 |
| Greece | 0 | 0 | 29 | 29 | 11 |
| Hungary | 157 | 33 | 0 | 190 | 518 |
| Ireland | 36 | 0 | -9 | 27 | 170 |
| Italy | 790 | 1,080 | 825 | 2,695 | 9,811 |
| Latvia | 0 | 0 | 0 | 0 | 0 |
| Lithuania | 0 | 0 | 0 | 0 | 0 |
| Luxembourg | 92 | 258 | 40 | 390 | 268 |
| Malta | 0 | 0 | 0 | 0 | 0 |
| The Netherlands | 59 | 369 | 27 | 455 | 286 |
| Poland | 0 | 34 | 0 | 34 | 1 |
| Portugal | 0 | 0 | 0 | 0 | 2 |
| Romania | 0 | 0 | 3 | 3 | 92 |
| Slovakia | 0 | 121 | 0 | 121 | 2 |
| Slovenia | 0 | 7 | 0 | 7 | 1 |
| Spain | 110 | 472 | 244 | 826 | 752 |
| Sweden | 18 | 177 | -2 | 193 | 61 |
| Albania | 0 | 0 | 0 | 0 | 31 |
| Egypt | 0 | 0 | 0 | 0 | 24 |
| Japan | 34 | 388 | 0 | 422 | 32 |
| Russia | 0 | 0 | 0 | 0 | 116 |
| Serbia | 0 | 0 | 0 | 0 | 26 |
| United Kingdom | 145 | 286 | 36 | 467 | 665 |
| U.S.A. | 159 | 511 | 131 | 801 | 68 |
| Other Countries | 64 | 1,911 | -13 | 1,962 | 2,749 |
| Total | 2,402 | 7,453 | 1,568 | 11,423 | 0 22,362 |
Note: management accounts. Figures may not add up exactly due to rounding
(1) Book Value of Debt Securities and Net Loans as at 31.3.23
(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 €9,046m (of which €1,407m in Italy)
| DEBT SECURITIES | |||||
|---|---|---|---|---|---|
| Banking Business | LOANS | ||||
| AC | FVTOCI | FVTPL(2) | Total(3) | ||
| EU Countries | 8,590 | 3,941 | 1,207 | 13,738 | 381,576 |
| Austria | 16 | 31 | 0 | 47 | 253 |
| Belgium | 946 | 10 | 2 | 958 | 1,042 |
| Bulgaria | 0 | 0 | 0 | 0 | 11 |
| Croatia | 130 | 0 | 0 | 130 | 6,663 |
| Cyprus | 0 | 0 | 0 | 0 | 12 |
| Czech Republic | 144 | 0 | 0 | 144 | 949 |
| Denmark | 13 | 30 | 0 | 43 | 57 |
| Estonia | 0 | 0 | 0 | 0 | |
| Finland | 5 | 11 | 1 | 17 | 191 |
| France | 238 | 612 | 60 | 910 | 2,970 |
| Germany | 108 | 431 | 5 | 544 | 2,841 |
| Greece | 37 | 0 | 0 | 37 | 10 |
| Hungary | 64 | 0 | 0 | 64 | 3,312 |
| Ireland | 531 | 1,109 | 412 | 2,052 | 316 |
| Italy | 5,541 | 855 | 537 | 6,933 | 330,659 |
| Latvia | 0 | 0 | 0 | 0 | |
| Lithuania | 0 | 0 | 0 | 0 | |
| Luxembourg | 88 | 113 | 28 | 229 | 7,182 |
| Malta | 0 | 0 | 0 | 0 | |
| The Netherlands | 128 | 500 | 122 | 750 | 1,708 |
| Poland | 230 | 8 | 0 | 238 | 929 |
| Portugal | 165 | 0 | 10 | 175 | 124 |
| Romania | 0 | 0 | 0 | 0 | 847 |
| Slovakia | 0 | 0 | 0 | 0 | 14,776 |
| Slovenia | 0 | 0 | 0 | 0 | 2,087 |
| Spain | 201 | 118 | 31 | 350 | 4,165 |
| Sweden | 5 | 113 | -1 | 117 | 432 |
| Albania | 0 | 0 | 0 | 0 | |
| Egypt | 0 | 0 | 0 | 0 | 462 1,776 |
| Japan | 12 | 173 | 8 | 193 | 209 |
| Russia | 4 | 0 | 0 | 4 | 1,917 |
| Serbia | 0 | 0 | 0 | 0 | 4,592 |
| United Kingdom | 403 | 176 | 28 | 607 | 13,559 |
| 870 | 44 | 1,453 | 7,867 | ||
| U.S.A. Other Countries |
539 4,296 |
724 | 38 | 5,058 | 15,360 |
Note: management accounts. Figures may not add up exactly due to rounding
(1) Book Value of Debt Securities and Net Loans as at 31.3.23
(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 €7,961m (of which €1,316m 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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