AI Terminal

MODULE: AI_ANALYST
Interactive Q&A, Risk Assessment, Summarization
MODULE: DATA_EXTRACT
Excel Export, XBRL Parsing, Table Digitization
MODULE: PEER_COMP
Sector Benchmarking, Sentiment Analysis
SYSTEM ACCESS LOCKED
Authenticate / Register Log In

Intesa Sanpaolo

Investor Presentation Feb 3, 2023

4465_ip_2023-02-03_f552aace-d73d-4c84-9606-850cad055d01.pdf

Investor Presentation

Open in Viewer

Opens in native device viewer

A strong bank for a sustainable world

2022 Results

Excellent performance and Balance sheet further strengthened

Delivering on Business Plan commitments and ready to further succeed in the future

February 3, 2023

Net income at €5.5bn when excluding Russia de-risking, driven by high-quality earnings, exceeding >€5bn 2022 Business Plan target

€5.5bn FY22 Net income (€1.1bn in Q4) when excluding Russia de-risking(1), 2022 Business Plan target of >€5bn exceeded

€4,354m FY22 stated Net income (€1,070m in Q4), the best year since 2007

Capital position significantly strengthened in Q4 (+110bps vs Q3) with fully phased-in Common Equity ratio up to 13.5%(2) (close to 13% at the end of 2023 taking into account regulatory headwinds)

€3bn cash dividends for 2022, equal to a 70% payout ratio(3) , second tranche of buyback (€1.7bn) to be launched in the next few days bringing total additional distribution to €3.4bn

Best-ever year for Operating income (+3.3% vs FY21(4)), Operating margin (+7.4% vs FY21(4)) and Gross income (+11.5% vs FY21(4)), with Q4 the best-ever quarter for Operating income (+13.2% vs 4Q21(5))

Significant growth in Net interest income (+20.2% vs FY21(4)) with strong acceleration in Q4 (+28.4% vs Q3)

Decrease in Operating costs (-0.4% vs FY21(4)) with Cost/Income ratio down to 50.9% (-1.9pp vs FY21(4)) while investing in technology

68% reduction of Russia exposure in H2 (-€2.5bn), down to below 0.3% of Group customer loans

€4.6bn gross NPL stock reduction in FY22 (-€0.7bn in Q4), lowest-ever NPL stock and ratio (at 1.0%(6)) and lowest-ever NPL inflow(7)

Rock-solid capital position, Zero-NPL Bank with Russia exposure approaching zero and execution of the 2022-2025 Business Plan proceeding at full speed

(1) €1.4bn provisions/writedowns for Russia-Ukraine exposure

(5) Data restated to reflect the consolidation of Compagnie de Banque Privée Quilvest (Fideuram Group) since July 2022 and the sale of Intesa Sanpaolo Formazione at end-June 2022

(6) Net NPL ratio according to EBA definition

(7) Excluding Russia-Ukraine exposure

(2) Already taking into account the impact of the second tranche of the buyback (€1.7bn)

(3) As envisaged in the 2022-2025 Business Plan. €1.4bn paid as an interim dividend on 23.11.22

(4) 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. In addition, 2021, 1Q22 and 2Q22 data restated to reflect the consolidation of Compagnie de Banque Privée Quilvest (Fideuram Group) since July 2022 and the sale of Intesa Sanpaolo Formazione at end-June 2022

The best Net income since 2007 even taking into account Russia de-risking…

(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 the accounting effect of the combination with UBI Banca and goodwill impairment

MIL-BVA362-03032014-90141/VR

MIL-BVA362-03032014-90141/VR … allocating €2.6bn out of 2022 Gross income for Russia de-risking and to succeed in the future…

MIL-BVA362-03032014-90141/VR … while reducing RWA in Q4 to significantly strengthen capital and contributing to value creation

Strong reduction of RWA in Q4…

Risk-weighted assets; € bn

RWA reduction mainly relates to positions EVA negative or no longer justified in relation to absorbed capital, with a particular focus on de-risking and credit portfolio steering, with no material impact on future Group profitability

(2) 31.12.22 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 Labour Unions signed on 16.11.21 and DTA on losses carried forward, and the expected distribution on FY22 Net income of insurance companies

… significantly strengthening capital position

ISP fully phased-in CET1 ratio; %

  • Fully phased-in CET1 ratio expected to be close to 13% at the end of 2023, >13% in 2024 and >13.5% in 2025 (>13% post Basel 4, ~14% including DTA absorption), taking into account 70% cash payout ratio and not considering any additional distribution to be evaluated year-by-year
  • Fully phased-in CET1 ratio target >12% (Basel 3/Basel 4) throughout 2022- 2025 Business Plan horizon confirmed

Note: figures may not add up exactly due to rounding

(1) Including €1.4bn paid as an interim dividend on 23.11.22

MIL-BVA362-03032014-90141/VR Confirmation of strong and sustainable value creation and distribution enabled by excellent 2022 performance and Balance sheet further strengthened

2022 results 2022-2025 Business Plan targets
2022 Net income €5.5bn
when excluding Russia de-risking
>€5bn
Business Plan target for 2022
Payout ratio 70%
€3bn
cash dividends(1)
for 2022
70%
2022-2025
Buyback €3.4bn
of which €1.7bn to be launched in the next few days
Any additional distribution to be evaluated year-by-year
€3.4bn
Basel 3/Basel 4 fully
phased-in CET1 ratio
13.5%
14.9%
taking into account
the
additional benefit from DTA absorption(2)
>12%
throughout the Business Plan horizon
Net NPL ratio(3) 1.0% ~1%
throughout the Business Plan horizon

Clear and strong upside to the €6.5bn Net income target for 2025 from interest rate increases

(1) Including €1.4bn paid as an interim dividend on 23.11.22

(2) And the expected distribution on FY22 Net income of insurance companies

(3) According to EBA definition

FY22: high-quality earnings

2022-2025 Business Plan proceeding at full speed

ISP is fully equipped for further success

MIL-BVA362-03032014-90141/VR 2022: €5.5bn Net income when excluding Russia de-risking, driven by high-quality operating performance, exceeding >€5bn 2022 Business Plan target

Note: figures may not add up exactly due to rounding. 2021, 1Q22 and 2Q22 data restated to reflect the consolidation of Compagnie de Banque Privée Quilvest (Fideuram Group) since July 2022 and the sale of Intesa Sanpaolo Formazione at end-June 2022 (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) 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 Q4: €1.1bn Net income driven by high-quality operating performance, coupled with conservative provisions and strengthened buffers to succeed in the coming years

Note: figures may not add up exactly due to rounding. 2021, 1Q22 and 2Q22 data restated to reflect the consolidation of Compagnie de Banque Privée Quilvest (Fideuram Group) since July 2022 and the sale of Intesa Sanpaolo Formazione at end-June 2022 (1) Net provisions and net impairment losses on other assets, Other income (expenses), Income (Loss) from discontinued operations

(2) 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

Net interest income increasing momentum with strong acceleration in Q4…

Note: 2021, 1Q22 and 2Q22 data restated to reflect the consolidation of Compagnie de Banque Privée Quilvest (Fideuram Group) since July 2022 and the sale of Intesa Sanpaolo Formazione at end-June 2022

(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

(3) Yearly average

MIL-BVA362-03032014-90141/VR

MIL-BVA362-03032014-90141/VR … thanks to the commercial component that will continue to fuel Net interest income growth

Note: figures may not add up exactly due to rounding. 2021, 1Q22 and 2Q22 data restated to reflect the consolidation of Compagnie de Banque Privée Quilvest (Fideuram Group) since July 2022 and the sale of Intesa Sanpaolo Formazione at end-June 2022

(1) Including hedging on core deposits

(2) Full-year/quarterly average

(3) 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

MIL-BVA362-03032014-90141/VR More than €1.2 trillion in Customer financial assets to fuel Wealth Management engine and drive Net interest income growth, with a €26bn increase in Q4

Customer financial assets(1)

A Wealth Management, Protection & Advisory leader, with 2022 as the best-ever year for Insurance income with growing P&C contribution

Note: figures may not add up exactly due to rounding. 2021, 1Q22 and 2Q22 data restated to reflect the consolidation of Compagnie de Banque Privée Quilvest (Fideuram Group) since July 2022 (1) Net of duplications between Direct Deposits and Indirect Customer Deposits

MIL-BVA362-03032014-90141/VR Continued reduction in Operating costs and improvement in Cost/Income ratio despite inflation, while investing in technology and growth

Operating costs

  • Cost/Income ratio down 1.9pp to 50.9% vs 58.3% European peer average(2)
  • ~2,100 headcount reduction in 2022 with further ~4,350 voluntary exits by 1Q25 (of which ~1,150 as of 1.1.23), already agreed with Labour Unions and fully provisioned
  • ~1,300 hires in 2021-2022, with an additional ~3,300 hires by 2025

Note: figures may not add up exactly due to rounding. 2021, 1Q22 and 2Q22 data restated to reflect the consolidation of Compagnie de Banque Privée Quilvest (Fideuram Group) since July 2022 and the sale of Intesa Sanpaolo Formazione at end-June 2022 (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) Sample: BBVA, Deutsche Bank, ING Group, Nordea, Santander, UBS and UniCredit (31.12.22 data); Barclays, BNP Paribas, Commerzbank, Crédit Agricole S.A., Credit Suisse, HSBC, Lloyds Banking Group, Société Générale and Standard Chartered (30.9.22 data)

Zero-NPL Bank status with NPL inflow at historical low…

(1) According to EBA definition

  • (2) Excluding €4.5bn gross NPL (€1.2bn net) booked in Discontinued operations
  • (3) Excluding €3.8bn gross NPL (€0.9bn net) booked in Discontinued operations
  • (4) Excluding €0.7bn gross NPL (€0.4bn net) booked in Discontinued operations
  • (5) Inflow to NPL (Bad loans, Unlikely to pay and Past due) from Performing loans

(6) Inflow to NPL (Bad loans, Unlikely to pay and Past due) from Performing loans minus outflow from NPL into Performing loans

(7) 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)

(8) Excluding Russia-Ukraine exposure (€0.5bn gross/net inflow)

MIL-BVA362-03032014-90141/VR

… positioning ISP among the best banks in Europe for NPL stock and ratios…

7.8 6.5 34.2 11.3 12.0 6.2 5.5 7.5 4.6 3.5 8.6 1.7 19.2 Net NPL stock for the main European banks(1) € bn x Net NPL ratio(2), % x Gross NPL ratio(2), % 1.6 0.8 1.9 1.0 31.12.25 30.9.15 2.8 1.7 2.1 1.0 0.8 0.5 1.0 0.5 1.4 1.0 2.0 1.0 3.2 1.6 1.3 0.9 1.6 0.8 31.12.22 2.1 1.0 Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10

(1) Including only banks in the EBA Transparency Exercise. Sample: BBVA, Deutsche Bank, ING Group, Nordea, Santander and UniCredit as at 31.12.22; Commerzbank, Crédit Agricole Group and Société Générale as at 30.9.22; BNP Paribas as at 30.6.22 (2) According to EBA definition. Data as at 30.6.22

Source: EBA Transparency Exercise, Investor presentations, press releases, conference calls and financial statements

… and driving low underlying Cost of risk…

(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

Coverage ratios

NPL coverage ratio up 1.5pp in Q4

Russia exposure reduced by 68%, below 0.3% of Group customer loans

  • No new financing/investment since the beginning of the conflict
  • Over two-thirds of cross-border exposure to Russia refers to top-notch industrial groups with:
  • Long-established commercial relationships with customers part of major international value chains
  • Significant portion of client income deriving from commodity exports
  • Historically limited local lending to Russian clients has been halved, with a small footprint in Russia (27 branches)

MIL-BVA362-03032014-90141/VR Rock-solid and strongly-increased capital base (up 110bps in Q4), well above regulatory requirements

  • ~125bps additional benefit from DTA absorption (of which >30bps in the 2023-2025 horizon) not included in the fully phased-in CET1 ratio
  • Fully phased-in CET1 ratio expected to be close to 13% at the end of 2023, >13% in 2024 and >13.5% in 2025 (>13% post Basel 4, ~14% including DTA absorption), taking into account a 70% cash payout ratio and not considering any additional distribution to be evaluated year-by-year
  • Fully phased-in CET1 ratio target >12% (Basel 3/Basel 4) throughout 2022-2025 Business Plan horizon confirmed

(1) Including €1.4bn paid as an interim dividend on 23.11.22

(2) 31.12.22 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 Labour Unions signed on 16.11.21 and DTA on losses carried forward, and the expected distribution on FY22 Net income of insurance companies

All stakeholders benefit from our solid performance

(5) Deriving from Non-performing loans outflow

MIL-BVA362-03032014-90141/VR

FY22: high-quality earnings

2022-2025 Business Plan proceeding at full speed

ISP is fully equipped for further success

2022-2025 Business Plan proceeding at full speed

Our People are our most important asset

100% of initiatives launched, of which ~70% progressing ahead of schedule

Massive upfront de-risking, slashing Cost of risk

▪ Massive deleveraging with €4.6bn gross NPL stock reduction in 2022, 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 ▪ 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 ▪ 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 ▪ Enhanced protection from cyber-attacks, in terms of detection and recovery ▪ 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 has further expanded the credit risk hedging schemes, completing in 4Q22 a new synthetic securitisation on a ~€7.5bn portfolio of loans to corporates, one of the largest transactions carried out in Europe during 2022, as well as the first synthetic securitisation transaction on a ~€2.3bn portfolio of corporate loans and project finance with the highest ESG score in the infrastructure sector. In 4Q22, the unit also finalised the sale of a ~€3.7bn portfolio of leasing receivables. During 2022, the unit carried out credit risk transfer transactions for a total of over €20bn on different asset classes ▪ The ACPS unit has further strengthened the capital efficiency initiatives and the credit strategy, shifting €20bn of new lending in 2022 to economic sectors with the best risk/return profile and broadening the perimeter of alternative financing solutions for "high risk" clients ▪ Scale up of the Originate-to-share business model, increasing the distribution capabilities to optimise the return on capital Key highlights Massive upfront de-risking, slashing Cost of risk

Structural Cost reduction, enabled by technology

Key highlights
Structural Cost
reduction, enabled by
technology

New Digital Bank (Isybank
) setup well underway: Delivery Unit "Domain Isy
Tech" already operational with ~340
dedicated specialists, contract with Thought Machine finalised
and technological masterplan defined

New head of Isybank
, new head of Domain Isy
Tech and new head of Sales & Marketing Digital Retail hired and
operational

Defined the Isybank
offering structure and functionalities

Insourcing of core capabilities in IT ongoing with ~500 people already hired

AI Lab in Turin already operating (setup of Centai Institute)

More than 550 branches closed in 4Q21/2022 in light of
Isybank
launch

Digital platform for analytical cost management up and running, with 27 efficiency initiatives already identified

Implemented the tools to support the negotiation and scouting activities of potential suppliers

Rationalisation
of real estate in Italy in progress, with a reduction of ~354k sqm in 4Q21/2022

~2,000 voluntary exits in 2022(1)

Implementation of digital functions and services in Serbia and Hungary completed. Implementation in Romania and
Slovakia ongoing

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, leveraging
both
on
Process
Intelligent
Automation (e.g.
with Artificial Intelligence and/or Robotic Process Automation) and traditional
reengineering methods (especially involving
procurement processes, customer onboarding, hereditary succession process
management, bank account closing process and control management processes)
The Intesa Sanpaolo Mobile app was recognised by Forrester as the "Global Mobile Banking Apps Leader"
ranking first worldwide among all banking apps evaluated

Growth in Commissions, driven by Wealth Management, Protection & Advisory (1/2)

Key highlights

New dedicated service model for Exclusive clients fully implemented

Enhancement of the product offering (new AM/Insurance products) and further growth of the advanced advisory service "Valore Insieme" for
Affluent and Exclusive clients: 43,000 new contracts and €14.5bn in Customer financial asset inflows in 2022

Introduction of new functionalities of Robo4Advisor by BlackRock to generate investment advice on selected products (funds, insurance
products and certificates) to support relationship managers
Growth in
Adoption of the BlackRock Aladdin Wealth and Aladdin Risk platforms for investment services: Aladdin Wealth module for BdT
and Fideuram
(first and second release), Aladdin Risk and Aladdin Enterprise module for FAM/FAMI(1)
and ECSA/ESLJ(2)
Commissions,
driven by Wealth

New features for UHNWI(3)
client advisory tools, strengthening of service model for family offices and planned the integration of ESG principles
in the new single advanced advisory model
Management,
Protection & Advisory

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

Released new features of Fideuram's
online investment and trading platform enabling clients to independently open accounts and subscribe to
asset management products and launch of the new Fideuram
Direct brand and logo to strengthen the multi-channel offering. Launched the first
offer of in-self products and the Remote Advisory Project. 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

Completed on 1.1.23 the merger of the two Private Banks in Luxembourg, creating "Intesa Sanpaolo Wealth Management", a second
Hub (in
addition to the Swiss Hub), with over 200 people and €11bn in assets that will contribute to the growth of commission income abroad

Enriched Eurizon
offering dedicated to Intesa Sanpaolo Private Banking and launched multiple new asset management and insurance
products (e.g.
dedicated offer for clients with excess liquidity, capital protection, inflation-linked funds)

Continued enhancement of ESG product offering for asset management and insurance, with a ~54%(4)
penetration on total AUM

Launched the new IMI C&IB organisational
set-up, with a focus on strengthening client advisory activities and Originate-to-Share business

Launched digital platform "IncentNow" for enterprises to provide information to Italian companies and institutions on the opportunities offered
by public tenders related to the "Piano Nazionale di Ripresa e Resilienza"
(5)

(1) Fideuram Asset Management/Fideuram Asset Management Ireland

(2) Eurizon Capital SA/Eurizon SLJ Capital

(3) Ultra High Net Worth Individuals

(4) Eurizon perimeter – funds pursuant to art. 8 and 9 SFDR 2019/2088

(5) National Recovery and Resilience Plan

Growth in Commissions, driven by Wealth Management, Protection & Advisory (2/2)

2022-2025 Business Plan proceeding at full speed

Significant ESG commitment, with a world-class position in Social Impact and strong focus on climate (1/4)

  • Expanding food and shelter program for people in need to counter poverty by providing concrete aid throughout the Italian territory and abroad supporting the humanitarian emergency in Ukraine. In 2022, more than 21.3 million interventions carried out, providing ~15.9 million meals, over 2.2 million dormitory spaces, ~3 million medicine prescriptions and 264,000 articles of clothing
  • Employability and inclusive education:
  • "Giovani e Lavoro" program aimed at training and introducing more than 3,000 young people to the Italian labour market in the 2022-2025 Business Plan horizon. Over 7,500 students (aged 18-29) applied for the program in 2022: more than 1,650 interviewed and more than 770 trained/in-training through 30 courses (~3,000 trained/in-training since 2019). About 2,300 companies involved since its inception in 2019. The second edition of the "Generation4Universities" program started in May and ended in December, involving ~100 students from 36 universities and 31 top-tier Italian corporations as potential employers
  • Inclusive education program: strengthened partnerships with main Italian universities and schools (more that 1,000 schools and about 4,200 students in 2022) to promote educational inclusion, supporting merit and social mobility. In 2022, the School4Life project was launched to combat early school abandonment, with companies and schools working together with students, teachers and families. Among the projects for the enhancement of talent and merit, the Tesi in Azienda initiative aims at orienting students towards the most recent issues in the work environment (~150 students in 2022)
  • ‒ The first and second editions of "Digital Re-start" a Private Banking Division program aimed at training and placing in the labour market unemployed people between the ages of 40 and 50 through the financing of 75 scholarships for the Master in Data Analysis - ended in 2022. It involved 50 participants, 29 of whom have been hired; the third edition is underway

  • Social housing: setup of the initiative finalised in 2022 and to be followed by the launch of the implementation phase to achieve Business Plan targets (promoting the development of 6-8K units for social housing and student bed places)

  • Granted €9.3bn in social lending and urban regeneration (€25bn cumulative flows announced in the Business Plan)
  • Lending to the third sector: in 2022, granted loans supporting non-profit organisations for a total of €339m

Strong focus on financial inclusion

Fund for Impact: in 2022, ~€53m 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 selfsufficient people) and other solutions (e.g. Obiettivo Pensione, per Esempio, XME Studio Station)

Lending for Urban Regeneration: in 2022, committed ~€616m in new loans to support investments in student housing, services and sustainable infrastructure, in addition to the most important urban regeneration initiatives underway in Italy. Promotion of academic initiatives to define ESG evaluation methodologies for the impact of urban regeneration

MIL-BVA362-03032014-90141/VR

Significant ESG commitment, with a world-class position in Social Impact and strong focus on climate (2/4)

  • Gallerie d'Italia:
  • ‒ Opened two new museums in 2022 thanks to two major transformations of historical buildings owned by the Bank in Turin and Naples, bringing the number of museum venues to four
  • 14 exhibitions, including: in Milan, the Torlonia collection and the exhibition on patronage; in Naples, Restituzioni (over 200 works of art from the public heritage restored with the Ministry of Culture) and Artemisia (with The National Gallery, London); the photographic exhibitions in Turin by Paolo Pellegrin and Gregory Crewdson commissioned by the Bank on ESG topics of interest; in Vicenza, the tribute to the Magellan voyage and the inclusive itinerary Argilla dedicated to the proprietary collection of Greek vases

~480,000 visitors (free admission for under-18s); 1,550 workshops for schools (~33,000 students); 260 itineraries for fragile audiences (~3,680 participants), held free of

Continuous commitment to culture

Promoting innovation

(1/2)

  • charge; 815 tours for adults and 300 cultural initiatives (~30,000 people) ▪ 277 artworks from the collections owned by the Bank on loan to 61 temporary exhibitions at national and international venues
  • Projects for young people: Gallerie d'Italia Academy: 2nd edition of the Executive Course for young cultural heritage managers (30 students, 8 scholarships, 60 lecturers, 162 hours of lessons). Project with Istituto Europeo di Design (involving 21 students from the Photography Course). Euploos Project for the digitalisation of the drawings of the Uffizi Galleries in Florence (1,754 scientific data sheets, 3,250 images in 2022)

  • Partnerships with national institutions and museums: Bergamo-Brescia Italian Capital of Culture 2023; projects with Banking Foundations; international trade fairs such as Miart in Milan, Artissima and Salone del Libro in Turin; collaboration with museums such as Castello di Rivoli, Palazzo Strozzi in Florence, Pinacoteca di Brera in Milan, and Museo Archeologico Nazionale in Naples

  • Innovation projects: 201 innovation projects released in 2022 by Intesa Sanpaolo Innovation Center (~800 innovation projects expected in the 2022-2025 Business Plan)
  • Initiatives for startup growth and the development of innovation ecosystems:
  • Turin: launched the fourth class of "Torino Cities of the Future Accelerator" program managed by Techstars. Since 2019, 35 accelerated startups (11 Italian teams), >30 proofs of concept with local stakeholders, ~€51m in capital raised and over 310 new resources hired after acceleration
  • Florence: launched applications for the second class of the three-year "Italian Lifestyle Accelerator Program" managed by Nana Bianca; since launch in 2021, 6 Italian startups accelerated (>210 candidates, 85% Italian), ~€2m in capital raised
  • Naples: continued 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". 8 accelerated startups (~130 candidates, 83% Italian)
  • Venice: launched in late December 2022 a new 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 and aimed at 10 startups per year
  • Up2Stars: concluded the first edition of the initiative developed by the Banca dei Territori Division with the support of Intesa Sanpaolo Innovation Center, on 4 vertical pillars (Digital/Industry 4.0; Bioeconomy, focused on Agritech and Foodtech; Medtech/Healthcare; Aerospace). 40 accelerated startups (~490 candidates)
  • In Action ESG Climate, an initiative developed by the Insurance Division with the support of Intesa Sanpaolo Innovation Center, to promote the development of new solutions to combat climate change and support the green transition through technological innovation and development of new business models, concluded with a total €500k amount awarded to the best three projects presented
  • 2 startup acceleration programs for clients ended in mid-October (>15 startups accelerated)

Significant ESG commitment, with a world-class position in Social Impact and strong focus on climate (3/4)


Development of multi-disciplinary applied research projects:

14 projects in progress (8 in the neuroscience field and 6 in the A.I. and robotics field), of which 7 launched in 2022

Renewed a three-year collaboration with Scuola
IMT Alti Studi
of Lucca and NS Lab

Business transformation: 25 corporates involved in open innovation programs. Support to Compagnia
di San Paolo
and Cariplo Foundations
for their "Bando
Evoluzioni" program related to digitalisation
of the non-profit sector completed. In 2022 launched 4 projects focused on Circular Economy transformation. Realised
a
Promoting
"Climate Innovation Tech Tour" in Tel Aviv to support clients and startups
innovation

Diffusion of innovation mindset/culture: launched a new collection of podcasts on innovation topics ("A prova
di futuro") for the spread of innovation culture, freely
(2/2)
available on the Intesa Sanpaolo website. 32 positioning and match making(1) events with ~2,200 participants and 15 innovation reports on technologies and trends
released (five in 4Q22, among which a report on "Decarbonisation")

Neva SGR has successfully completed the €250m fundraising for its "Fondo
Neva First" (launched in 2020) and "Fondo
Neva First Italia" (launched in 2021); in 2022
investments in startups of >€54m, of which ~€10m
in Q4. Launched "Fondo
Sviluppo
Ecosistemi
di Innovazione" aimed at supporting the development of innovation
ecosystems: €15m raised in 2022
(NZBA, NZAMI and NZAOA)(2):

Following the Group's adherence to Net-Zero alliances

In February 2022, 2030
targets set for 4 high-emitting sectors (Oil & Gas, Power Generation, Automotive and Coal Mining –
over 60% of financed emissions for
NFC in NZBA sectors) published in the 2022-2025 Business Plan; In April 2022, ISP's commitment to the SBTi validation was published on the SBTi website

In October 2022, Eurizon
Capital SGR, Fideuram
Asset Management SGR, Fideuram
Asset Management Ireland and the Intesa Sanpaolo Vita Insurance Group
published their first interim targets(3)

Ongoing active engagement (among others):
Accelerating
Participation in GFANZ(4), NZBA, NZAOA, IIGCC(5)

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, etc.)
commitment

In June 2022, ISP became
an investor
signatory
of CDP
to Net-Zero

In October 2022, Eurizon
joined the CDP Science-Based Targets Campaign, promoting the environmental transparency of companies

The Group's Guidelines for the governance of ESG risks were revised in April 2022 in line with regulatory developments and climate and environmental
initiatives
underway

In November 2022, ISP was the only Italian Bank to participate at the COP27 in Sharm El Sheik

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

MIL-BVA362-03032014-90141/VR

(3) 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

(4) Glasgow Financial Alliance for Net-Zero

2022-2025 Business Plan proceeding at full speed

MIL-BVA362-03032014-90141/VR

Significant ESG commitment, with a world-class position in Social Impact and strong focus on climate (4/4)~€32bn disbursed in 2021 and 2022 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) ▪ ~€2.6bn of Green Mortgages in 2022 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 2022, 420 projects assessed and validated for an amount of €9.1bn; granted €4.7bn in 230 transactions (of which €2.6bn related to green finance) and €3.1bn disbursed (of which €2.2bn related to green finance); renewed partnership with Ellen MacArthur Foundation and with Cariplo Factory on Circular Economy Lab

  • Activated the first 8 ESG Laboratories (in Venice, Padua, Brescia, Bergamo, Cuneo, Bari-Taranto, Rome and Naples-Palermo), 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)
  • 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). ~€2.2bn in 2022 (~€3.5bn granted since launch in July 2020). In March 2022, ISP won the Milano Finanza Banking Awards for its S-Loan product and for the dedicated ESG training platform for corporate clients (Skills4ESG)
  • In October 2021, launch of Digital Loans (D-Loans) aimed at improving the digitalisation of companies: €22m disbursed since launch
  • In December 2021, launch of Suite Loans aimed at incentivising investments in the redevelopment/improvement of hotel facilities and accommodation services: €10m disbursed since launch
  • Defined the ESG/Climate evolution of the Non-Financial Corporate credit framework, leveraging on sectorial heatmap, counterparties' ESG scoring and a new definition on sustainable products
  • 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
  • Defined an ESG value proposition initiative for the corporate and SME segments of Group banks in Slovakia, Hungary, Croatia, Serbia and Egypt
  • Enhancement of ESG investment products both for asset management and insurance with penetration increasing to 54% of total AuM(2)
  • 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 2022, Eurizon Capital SGR took part in 254 shareholders' meetings (of which 73% are issuers listed abroad) and 538 engagements (of which 50% 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 51,000 hours delivered to 3,057 participants in 2022) and for employed private bankers and agents (~13,900 hours delivered to 1,043 participants)

Supporting

ESG/climate transition

clients through the

▪ In 2022, the Private Banking Division carried out 47 Customer Events (28 in person and 19 digitally) for a total of 11,150 participants (5,000 in person and 6,150 digitally)

Reinforced ISP ESG governance, with the Risks Committee becoming the Risks and Sustainability Committee with enhanced ESG responsibilities from April 2022

Confirmed leading ESG position in the main sustainability indexes and rankings

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

73 A AAA 86 15.8
67 A AA 84 18.3
63 A AA 83 19.4
62 A AA 83 19.5
62 A AA 79 19.9
61 A AA 79 20.4
60 B AA 75 20.9
60 B AA 70 21.7
58 B AA 65 22.4
58 B AA 62 22.5
58 B AA 59 22.5
56 B AA 52 23.8
54 B AA 47 25.1
54 C AA 46 25.5
52 C A 46 25.7
51 F A 40 27.9
44 N.A. A N.A. 30.0

(1) ISP peer group

Source: Bloomberg ESG Disclosure Score (Bloomberg as at 27.1.23), 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 27.1.23; S&P Global (website:https://www.spglobal.com/esg/solutions/data-intelligence-esg-scores as at 3.2.23); Sustainalytics score (https://www.sustainalytics.com/esg-ratings; as at 27.1.23)

Our People are our most important asset

Key highlights

Our People are our most

important asset

  • ~1,300 professionals hired throughout 2021 and 2022
  • ~2,000 people reskilled in 2022
  • ~12.6m training hours delivered in 2022, of which more than 640k on ESG issues
  • More than 140 talents have already completed their development path as part of the International Talent Program, still ongoing for other ~180 resources: ~170 new talents have been selected and will start the Program by 1Q23 (~150 internal colleagues and 20 hired from the external market)
  • ~430 key people have been selected mostly among Middle Management for dedicated development and training initiatives
  • Live webinars, podcasts, video content, articles and other initiatives (also on site), and Employee Assistance Program (psychological support) to foster employee wellbeing
  • Implemented the new Long-Term Incentive Plan to support the 2022-2025 Business Plan goals and foster individual entrepreneurship
  • Completed the creation of the new leading education player in Italy through the combination between ISP Formazione and Digit'Ed, a Nextalia Fund company
  • New organisational framework closer to the needs of our People with greater flexibility in terms of daily work schedule, smart working and the introduction of a 4-day working week on a voluntary basis with no change in remuneration
  • Defined and shared 2022 Diversity & Inclusion goals for every organisational unit, including the implementation of the new commitment related to equal gender access to senior leadership roles; monitoring of the 2022 goals for each Division and Governance Area launched; started collaboration with ISPROUD, the first employee-based community within the Group, currently welcoming more than 400 LGBTQ+ People and allies
  • ISP recognised in Refinitiv's Global Diversity and Inclusion Index, as first European Bank, second worldwide, and the only one in Italy among the 100 most inclusive and diversity-focused workplaces. Intesa Sanpaolo is also the first major Italian banking group to obtain the certification for gender parity "Prassi di Riferimento (PDR) 125:2022" envisaged by the National Recovery and Resilience Plan (NRRP), thanks to its commitment to diversity and inclusion
  • ISP recognised as Top Employer 2023(1) for the second consecutive year and ranked at the top of LinkedIn's Top Companies 2022 list

€77m one-off contribution to ISP People to mitigate the impact from inflation

ISP has implemented multiple humanitarian projects to support the Ukrainian population and Pravex Bank colleagues

  • The Extraordinary Fund for the donation of €10m in support of the humanitarian emergency in Ukraine has been fully utilised: 60% for initiatives abroad (in Ukraine and at its borders) and 40% in Italy (for arriving refugees) thanks to collaboration agreements signed with important humanitarian organizations:
  • ‒ Agreements have been signed with UNHCR(1) , Caritas, CESVI(2) , Banco Farmaceutico, Consiglio Italiano per i Rifugiati, Vicariato di Roma, Confederazione Nazionale delle Misericordie d'Italia, European Food Banks Federation, AVSI(3) , Azione Contro la Fame, Robert F. Kennedy Human Rights Italia and Bambini nel Deserto Onlus to support projects for humanitarian protection, housing, direct economic support, health and psychological assistance, distribution of basic necessities and the integration of Ukrainian refugees in Italy
  • − Completed the fundraising in favour of UNHCR(1) , through ISP ForFunding crowdfunding platform, collecting €1.1m; the Bank has doubled the amount collected
  • Fundraising:
  • through ForFunding, to support Fondazione RAVA for children's hospitals in Ukraine (total amount collected: €354k) with a direct donation from ISP
  • through the Group International Subsidiaries in 5 Eastern European countries, to support different local ONGs (total amount collected: €255k)
  • The ISP Charity Fund has guaranteed support to two organisations directly operating in Ukraine: Doctors Without Borders and Fondazione Soleterre for the distribution of emergency medical supplies to hospitals, training for health facility staff, the reception and continuity care of children with oncological pathologies
  • Donated(4) 6,400 hours of paid leave to employees willing to volunteer to host refugees or to cooperate outside Italy with NGOs and non-profit organisations for humanitarian and social purposes. ISP people can contribute by donating their time, increasing the hours already provided by ISP
  • Agreed concession, with free loan for use, of IMMIT building in Bergamo to the Ukrainian Zlaghoda Association to collect donated goods
  • >260 people (95 families) have been welcomed by the International Subsidiary Banks Division outside Ukraine
  • Arrangements to host ~210 Pravex Bank colleagues and their family members in Italy in apartments, residences and other accommodations. Use of a Bank building to host ~35 workstations for Pravex Bank colleagues
  • initiatives for Pravex Bank

Key support

colleagues

Donations and other support initiatives for

Ukraine

  • Contribution by ISP Onlus of €3,000 to each Pravex Bank colleague fleeing with children <18 years old (total of €250k)
  • To facilitate the integration of Pravex Bank colleagues' families housed in approximately 40 apartments owned by the Group and residential facilities in Bergamo, other initiatives have been activated such as sports activities, support for administrative activities, ensure school access by providing devices for distance learning with Ukrainian schools
  • Partnership with Caritas to provide services (e.g. healthcare), linguistic and cultural assistance

(1) United Nations High Commissioner for Refugees (2) «Cooperazione e Sviluppo» (3) Associazione Volontari per il Servizio Internazionale (4) Agreed with Labour Unions

The 2022-2025 Business Plan formula

Our People are our most important asset
Massive upfront
Structural Cost reduction,
de-risking, slashing
enabled by technology
Cost of risk
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

FY22: high-quality earnings

2022-2025 Business Plan proceeding at full speed

ISP is fully equipped for further success

MIL-BVA362-03032014-90141/VR The Italian economy is stronger than in the past and Italy's solid fundamentals support the resilience of the economy…

%
Italian GDP YoY evolution
The Italian economy is resilient thanks to solid fundamentals
% Households
Strong Italian household gross wealth at more than €11,400bn, of which €5,200bn
in financial assets, coupled with low household debt and debt-service ratios

Very resilient Italian SMEs, quickly recovering after the COVID-19 emergency
with historically-low default rates, high liquidity and improved financial leverage
3.9 Corporates
Export-oriented companies highly diversified in terms of industry and size, Italian
exports have outperformed Germany's by around 15% over the past 5 years(3)

High manufacturing trade surplus: €106bn in 2021, €92bn in Jan-Nov 2022
1.2
0.6
Banking
system

Banking system played an important role in mitigating the economic impact of
COVID-19 and is now supporting households and companies to overcome the
energy crisis
2022(1)
2023
2024
forecast(2)
forecast(2)
Italian
Extensive support to the economy from the Italian Government, with measures
worth ~€93bn approved since September 2021 (~5% of GDP)
Government
and EU
support

EU financial support (Next Generation EU) to fund the National Recovery and
Resilience Plan, providing Italy with more than €200bn in grants and loans, of which
€25bn received in 2021, €42bn in 2022 and €35bn expected in 2023


The labour
Lower than expected energy and commodity prices will contribute to easing inflationary pressures
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, preliminary estimate, 31.1.23

(2) Source: Bank of Italy, January 2023

(3) At current prices (November 2022 vs November 2017)

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

  • (1) Calculated as the difference between the Fully phased in CET1 ratio, taking into account the share buyback approved by the ECB, vs requirements SREP + combined buffer
  • (2) Fully phased-in CET1. Sample: BBVA, Deutsche Bank, ING Group, Nordea, Santander, UBS and UniCredit (31.12.22 data); Barclays, BNP Paribas, Commerzbank, Crédit Agricole S.A., Credit Suisse, HSBC, Lloyds Banking Group, Société Générale and Standard Chartered (30.9.22 data)
  • (3) Total illiquid assets include net NPL stock, Level 2 assets and Level 3 assets. Sample: BBVA, Deutsche Bank, ING Group, Nordea, Santander, UBS and UniCredit (net NPL 31.12.22 data); Barclays, Commerzbank, Crédit Agricole S.A., Credit Suisse, HSBC, Lloyds Banking Group, Société Générale and Standard Chartered (net NPL 30.9.22 data); BNP Paribas (net NPL 30.6.22 data). Level 2 and Level 3 assets 30.6.22 data; (Nordea 31.12.22 data)
  • (4) Sample: BBVA, Deutsche Bank, ING Group, Nordea, Santander and UniCredit (31.12.22 data); BNP Paribas, Commerzbank, Crédit Agricole S.A and Société Générale (30.9.22 data)
  • (5) Sample: BBVA, Deutsche Bank, ING Group, Nordea, Santander, UBS and UniCredit (31.12.22 data); BNP Paribas, Commerzbank, Credit Suisse, HSBC and Standard Chartered (30.9.22 data); Barclays, Lloyds Banking Group and Société Générale (30.6.22 data)
  • (6) Sample: BBVA, Deutsche Bank, ING Group, Nordea, Santander, UBS and UniCredit (31.12.22 data); Barclays, BNP Paribas, Commerzbank, Crédit Agricole S.A., Credit Suisse, HSBC, Lloyds Banking Group, Société Générale and Standard Chartered (30.9.22 data)

Excellent 2022 performance driven by high-quality earnings

  • €5.5bn Net income when excluding Russia de-risking (>€5bn 2022 Business Plan Net income target exceeded)
  • €4.4bn stated Net income, the best since 2007
  • Strong increase in fully phased-in CET1 in Q4 (+110bps vs Q3)
  • 68% reduction of Russia exposure(1), down to below 0.3% of Group customer loans
  • Strong acceleration of Net interest income (+20.2% vs FY21(2))
  • Best-ever Operating income, Operating margin and Gross income
  • Decrease in Operating costs (-0.4% vs FY21(2)) and improvement in Cost/Income ratio (-1.9pp vs FY21(2))
  • Further NPL stock reduction and lowest-ever NPL stock and ratio

Fully equipped for further success thanks to a well-diversified and resilient business model

  • Resilient profitability, rock-solid capital position, low leverage and strong liquidity
  • Zero-NPL Bank with net NPL ratio at 1.0%(3) and low underlying Cost of risk
  • Well-diversified and resilient business model: a Wealth Management, Protection & Advisory Leader with fully-owned product factories and more than €1.2 trillion in Customer financial assets
  • Net interest income gaining strong momentum
  • High strategic flexibility in managing Costs, with Cost/Income ratio at 50.9%
  • €0.9bn as overlays still available
  • Low and adequately provisioned Russia-Ukraine exposure

Execution of the 2022-2025 Business Plan proceeding at full speed, with key industrial initiatives well underway

(1) Vs 30.6.22

MIL-BVA362-03032014-90141/VR

(2) 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. In addition, 2021, 1Q22 and 2Q22 data restated to reflect the consolidation of Compagnie de Banque Privée Quilvest (Fideuram Group) since July 2022 and the sale of Intesa Sanpaolo Formazione at end-June 2022

(3) According to EBA definition

Solid growth in Revenues driven by Net interest income, coupled with a continuous focus on Cost management…

… leading to significant Operating margin growth

Strong decline in Loan loss provisions… … triggering Net income growth well above the €5.5bn 2022 pre Russia de-risking Net income

  • Strong and sustainable value creation and distribution: 70% cash payout ratio and €1.7bn second tranche of buyback to be launched in the next few days
  • Fully phased-in CET1 ratio expected to be close to 13% at the end of 2023, >13% in 2024 and >13.5% in 2025 (>13% post Basel 4, ~14% including DTA absorption), taking into account a 70% cash payout ratio and not considering any additional distribution to be evaluated year-by-year
  • Fully phased-in CET1 ratio target >12% (Basel 3/Basel 4) throughout 2022-2025 Business Plan horizon confirmed

2022 Results

Detailed information

Key P&L and Balance sheet figures

€ m 2022 31.12.22
Operating
income
21,470 Loans to customers 446,854
Operating
costs
(10,934) Customer financial assets(1) 1,222,006
Cost/Income ratio 50.9% of which Direct deposits from banking business 545,386
Operating margin 10,536 of which Direct deposits from insurance
business and technical reserves
173,597
Gross income (loss) 7,344 of which Indirect customer deposits 674,705
Net income 4,354 -
Assets under management
430,165
-
Assets under administration
244,540
RWA 295,443
Total assets 975,683

Detailed consolidated P&L results

Liquidity, Funding and Capital base

Asset quality

Divisional results and other information

MIL-BVA362-03032014-90141/VR FY22 % 2022 vs 2021: €5.5bn Net income when excluding Russia de-risking, driven by high-quality operating performance

€ m

FY21
stated(1)
[ A ]
redetermined(2)
[ B ]
[ C ] [ C ] / [ B ]
Net interest income 7,971 7,905 9,500 20.2
Net fee and commission income 9,621 9,527 8,919 (6.4)
Income from insurance business 1,586 1,629 1,705 4.7
Profits on financial assets and liabilities at fair value 1,636 1,635 1,378 (15.7)
Other operating income (expenses) 111 97 (32) n.m.
Operating income 20,925 20,793 21,470 3.3
Personnel expenses (6,794) (6,743) (6,742) (0.0)
Other administrative expenses (2,987) (2,994) (2,912) (2.7)
Adjustments to property, equipment and intangible assets (1,241) (1,243) (1,280) 3.0
Operating costs (11,022) (10,980) (10,934) (0.4)
Operating margin 9,903 9,813 10,536 7.4
Net adjustments to loans (2,772) (2,766) (3,113) 12.5
Net provisions and net impairment losses on other assets (848) (851) (281) (67.0)
Other income (expenses) 332 332 202 (39.2)
Income (Loss) from discontinued operations 0 58 0 (100.0)
Gross income (loss) 6,615 6,586 7,344 11.5
Taxes on income (1,604) (1,605) (2,059) 28.3
Charges (net of tax) for integration and exit incentives (439) (439) (140) (68.1)
Effect of purchase price allocation (net of tax) (39) (39) (211) 441.0
Levies and other charges concerning the banking industry (net of tax) (525) (512) (3)
(576)
12.5
Impairment (net of tax) of goodwill and other intangible assets 0 0 0 n.m.
Minority interests 177 194 (4) n.m.
Net income 4,185 4,185 4,354 4.0

Including €1.3bn provisions for Russia-Ukraine exposure and €1.2bn as overlays and to favour de-risking

€5,499m, +31.4% excluding provisions/writedowns for Russia-Ukraine exposure

Note: figures may not add up exactly due to rounding. 2021, 1Q22 and 2Q22 data restated to reflect the consolidation of Compagnie de Banque Privée Quilvest (Fideuram Group) since July 2022 and the sale of Intesa Sanpaolo Formazione at end-June 2022

(1) Including the contribution of branches sold in 1H21 and the full line-by-line consolidation of Assicurazioni Vita (former Aviva Vita), Lombarda Vita and Cargeas Assicurazioni from the effective date of their acquisition and REYL Group from 1.1.21

(2) 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

(3) €836m pre-tax of which charges for the Resolution Fund: €369m pre-tax (€254m net of tax) and charges for the Deposit Guarantee Scheme: €424m pre-tax (€289m net of tax)

3Q22 % Q4 vs Q3: €1.1bn Net income driven by high-quality operating performance, coupled with conservative provisions and strengthened buffers

€ m 4Q22
Net interest income 2,387 3,064 28.4
Net fee and commission income 2,153 2,222 3.2
Income from insurance business 436 402 (7.8)
Profits on financial assets and liabilities at fair value 51 (2) n.m.
Other operating income (expenses) (12) (12) 0.0
Operating income 5,015 5,674 13.1
Personnel expenses (1,632) (1,921) 17.7
Other administrative expenses (695) (865) 24.5
Adjustments to property, equipment and intangible assets (313) (344) 9.9
Operating costs (2,640) (3,130) 18.6
Operating margin 2,375 2,544 7.1
Net adjustments to loans (496) (1,185) 138.9
Net provisions and net impairment losses on other assets (45) (113) 151.1
Other income (expenses) 4 55 n.m.
Income (Loss) from discontinued operations 0 0 n.m.
Gross income (loss) 1,838 1,301 (29.2)
Taxes on income (562) (50) (91.1)
Charges (net of tax) for integration and exit incentives (23) (78) 239.1
Effect of purchase price allocation (net of tax) (51) (59) 15.7
Levies and other charges concerning the banking industry (net of tax) (266) (32) (88.0)
Impairment (net of tax) of goodwill and other intangible assets 0 0 n.m.
Minority interests (6) (12) 100.0
Net income 930 1,070 15.1

Including €1.0bn provisions as overlays and to favour de-risking in Q4

Quarterly P&L

€ m

1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22
redetermined(1)
Net interest income 1,953 1,997 2,000 1,955 1,957 2,092 2,387 3,064
Net fee and commission income 2,317 2,369 2,323 2,518 2,289 2,255 2,153 2,222
Income from insurance business 398 456 365 410 402 465 436 402
Profits on financial assets and liabilities at fair value 798 346 380 111 769 560 51 (2)
Other operating income (expenses) 32 21 26 18 4 (12) (12) (12)
Operating income 5,498 5,189 5,094 5,012 5,421 5,360 5,015 5,674
Personnel expenses (1,629) (1,652) (1,636) (1,826) (1,576) (1,613) (1,632) (1,921)
Other administrative expenses (675) (734) (716) (869) (634) (718) (695) (865)
Adjustments to property, equipment and intangible assets (306) (299) (301) (337) (314) (309) (313) (344)
Operating costs (2,610) (2,685) (2,653) (3,032) (2,524) (2,640) (2,640) (3,130)
Operating margin 2,888 2,504 2,441 1,980 2,897 2,720 2,375 2,544
Net adjustments to loans (402) (599) (543) (1,222) (702) (730) (496) (1,185)
Net provisions and net impairment losses on other assets (134) (220) (82) (415) (60) (63) (45) (113)
Other income (expenses) 198 (7) 63 78 (4) 147 4 55
Income (Loss) from discontinued operations 48 10 0 0 0 0 0 0
Gross income (loss) 2,598 1,688 1,879 421 2,131 2,074 1,838 1,301
Taxes on income (832) (81) (614) (78) (777) (670) (562) (50)
Charges (net of tax) for integration and exit incentives (52) (55) (41) (291) (16) (23) (23) (78)
Effect of purchase price allocation (net of tax) (16) (18) (51) 46 (54) (47) (51) (59)
Levies and other charges concerning the banking industry (net of tax) (196) (83) (210) (23) (266) (12) (266) (32)
Impairment (net of tax) of goodwill and other intangible assets 0 0 0 0 0 0 0 0
Minority interests 14 56 20 104 6 8 (6) (12)
Net income 1,516 1,507 983 179 1,024 1,330 930 1,070

Note: figures may not add up exactly due to rounding. 2021, 1Q22 and 2Q22 data restated to reflect the consolidation of Compagnie de Banque Privée Quilvest (Fideuram Group) since July 2022 and the sale of Intesa Sanpaolo Formazione at end-June 2022

(1) 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

MIL-BVA362-03032014-90141/VR Net interest income: significant yearly growth, with strong acceleration in Q4, thanks to the commercial component

Note: figures may not add up exactly due to rounding. 2021, 1Q22 and 2Q22 data restated to reflect the consolidation of Compagnie de Banque Privée Quilvest (Fideuram Group) since July 2022 and the sale of Intesa Sanpaolo Formazione at end-June 2022

(1) Including hedging on core deposits

(2) 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

Net fee and commission income: impacted by negative market performance

  • Commissions from Commercial banking activities up 5.0% (+€32m) vs 4Q21
  • Strong increase in Management, dealing and consultancy activities (+6.7%, +€81m) vs Q3
  • +€2.8bn in AuM net inflow in Q4
  • -5.5% vs 4Q21 excluding performance fees

  • Commissions from Commercial banking activities up 5.4% (+€137m)

  • +€4.1bn in AuM net inflow on a yearly basis
  • -3.1% excluding performance fees

Note: figures may not add up exactly due to rounding. 2021, 1Q22 and 2Q22 data restated to reflect the consolidation of Compagnie de Banque Privée Quilvest (Fideuram Group) since July 2022 and the sale of Intesa Sanpaolo Formazione at end-June 2022

(1) 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

Net fee and commission income: quarterly development breakdown

€ m

Net fee and commission income
1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22
redetermined(1)
Guarantees given / received 42 51 57 52 47 54 86 59
Collection and payment services 137 139 138 138 139 164 156 164
Current accounts 344 353 352 365 346 348 348 344
Credit and debit cards 61 106 108 89 83 108 114 109
Commercial banking activities 584 649 655 644 615 674 704 676
Dealing and placement of securities 293 284 209 229 228 153 134 167
Currency dealing 3 3 3 4 2 3 4 0
Portfolio management 732 775 758 877 704 676 660 670
Distribution of insurance products 406 383 401 417 403 421 357 406
Other 61 53 61 112 75 56 59 52
Management, dealing and consultancy activities 1,495 1,498 1,432 1,639 1,412 1,309 1,214 1,295
Other net fee and commission income 238 222 236 235 262 272 235 251
Net fee and commission income 2,317 2,369 2,323 2,518 2,289 2,255 2,153 2,222

Note: figures may not add up exactly due to rounding. 2021, 1Q22 and 2Q22 data restated to reflect the consolidation of Compagnie de Banque Privée Quilvest (Fideuram Group) since July 2022 and the sale of Intesa Sanpaolo Formazione at end-June 2022

(1) 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

Profits on financial assets and liabilities at fair value: €1.4bn in 2022

4Q21 3Q22 4Q22 2021
redetermined(1)
2022
Customers 83 105 91 321 374
Capital markets 118 (173) (74) 691 (336)
Trading and Treasury (89) 129 (2) 614 1,389
Structured credit products (1) (10) (17) 9 (49)

Note: figures may not add up exactly due to rounding. 2021, 1Q22 and 2Q22 data restated to reflect the consolidation of Compagnie de Banque Privée Quilvest (Fideuram Group) since July 2022 and the sale of Intesa Sanpaolo Formazione at end-June 2022 (1) 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

MIL-BVA362-03032014-90141/VR

Operating costs: yearly reduction and improvement in Cost/Income ratio despite inflation, while investing in technology and growth

  • Operating costs up vs Q3 due to investments, incentives to trigger growth, and to seasonal effects at year-end
  • Decrease in Other administrative expenses vs 4Q21 (-0.5%)

~2,100 headcount reduction, of which ~1,150 in H2 Note: figures may not add up exactly due to rounding. 2021, 1Q22 and 2Q22 data restated to reflect the consolidation of Compagnie de Banque Privée Quilvest (Fideuram Group) since July 2022 and the sale of Intesa Sanpaolo Formazione at end-June 2022 (1) 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

2022

Strong decrease in Other administrative expenses (-2.7%)

while rationalising real estate and other (-4.8%)

Adjustments up due to investments for growth (technology +7.3%),

Net adjustments to loans: low underlying Cost of risk

  • Twenty-ninth quarter of continuous reduction in net NPL stock
  • Increased NPL coverage in Q4 (+1.5pp vs Q3)
  • €0.7bn gross NPL reduction in 4Q22

  • Cost of credit at 30bps when excluding €1.8bn provisions for Russia-Ukraine exposure, provisions as overlays and additional provisions to favour de-risking (net of release of generic provisions conservatively booked in 2020 for COVID-19 impacts)

  • €0.9bn as overlays still available
  • Lowest-ever NPL inflow(2)
  • €4.6bn gross NPL reduction on a yearly basis

(1) 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

Detailed consolidated P&L results

Liquidity, Funding and Capital base

Asset quality

Divisional results and other information

MIL-BVA362-03032014-90141/VR More than €1.2 trillion in Customer financial assets to fuel Wealth Management engine and drive Net interest income growth, with a €26bn increase in Q4

Note: figures may not add up exactly due to rounding. 2021, 1Q22 and 2Q22 data restated to reflect the consolidation of Compagnie de Banque Privée Quilvest (Fideuram Group) since July 2022 (1) Net of duplications between Direct deposits and Indirect customer deposits

Funding mix

Retail funding represents 85% of Direct deposits from banking business

Note: figures may not add up exactly due to rounding

(1) Including Senior non-preferred

(2) Certificates of deposit + Commercial papers

(3) Including Certificates

4

Strong funding capability: broad access to international markets

2023 wholesale funding plan(1)

Main wholesale issues

2021(2)

  • €1.75bn senior non-preferred, €1.25bn green bond and \$1.5bn Tier 2 placed. On average 92% demand from foreign investors; orderbooks average oversubscription ~3.9x
  • February: inaugural €1.75bn dual-tranche 5/10y senior non-preferred, the coupons represent the lowest-ever of any Italian SNP in their respective maturity buckets
  • March: €1.25bn 7y senior unsecured green bond, confirming ISP's aim of fostering its ESG profile and its role as a regular player in the green and sustainable bond market
  • May: \$750m 11NC10 and \$750m 21NC20 Tier 2 issue, first ever dual-tranche \$ structure with 1y MREL-style call

2022

  • €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
  • March: €1bn AT1 placed. The deal was the first AT1 from ISP since the dual tranche priced in August 2020 and marked the re-opening of the EUR AT1 primary market for 2022
  • August: €1bn 5y green senior non-preferred bond placed, under the updated ISP Green, Social and Sustainability Bond Framework(3), the first-ever green SNP by an Italian bank
  • September: £400m 10y Tier 2 issue
  • October: inaugural €750m 7y social senior preferred bond placed, with the net proceeds to be allocated to finance or refinance Social Categories as defined within the Green, Social and Sustainability Bond Framework
  • November: \$2bn dual-tranche: \$750m 3y senior preferred and \$1,250m 11NC10 senior nonpreferred, ISP's first SNP issue in the US, and ISP's first issue in 144a/RegS format

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) ISP stand-alone

(3) 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)

High liquidity: LCR and NSFR well above regulatory requirements

Refinancing operations with the ECB: ~€96bn(3) consisting entirely of TLTRO III as at 31.12.22 (~€76bn(3) as at 31.1.23)

  • Loan to Deposit ratio(4) at 82%
  • (1) Stock of own-account eligible assets (including assets used as collateral and excluding eligible assets received as collateral) and cash & deposits with Central Banks
  • (2) Eligible assets freely available (excluding assets used as collateral and including eligible assets received as collateral) and cash & deposits with Central Banks

(4) Loans to customers/Direct deposits from banking business

MIL-BVA362-03032014-90141/VR

(3) TLTRO tranches: III.3: €4bn - maturity 29.3.23; III.4: €47bn - 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. In January 2023, partial early repayment of €20bn (€4bn in the III.3 and €16bn in the III.4) with a reduction to ~€76bn

Rock-solid and strongly-increased Capital base

  • 13.5% fully phased-in CET1 ratio(2) (+110bps vs Q3), not including ~125bps additional benefit from DTA absorption (of which >30bps in the 2023-2025 horizon) and including ~60bps impact from the second tranche of buyback (€1.7bn)
  • 5.6%(3) leverage ratio

(1) 70% cash dividend payout ratio as envisaged in the 2022-2025 Business Plan, including €1.4bn paid as an interim dividend on 23.11.22

(2) 14.9% pro-forma fully loaded Basel 3 (31.12.22 financial statements considering the total absorption of DTA related to IFRS9 FTA (€1.0bn as at 31.12.22), DTA convertible in tax credit related to goodwill realignment (€4.9bn as at 31.12.22) and adjustments to loans (€2.6bn as at 31.12.22), 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 (€0.05bn as at 31.12.22), 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 31.12.22) and DTA on losses carried forward (€2.3bn as at 31.12.22), and the expected distribution on FY22 Net income of insurance companies)

Detailed consolidated P&L results

Liquidity, Funding and Capital base

Asset quality

Divisional results and other information

Non-performing loans: massive deleveraging

x
Gross NPL ratio, %
x
Net NPL ratio, %
x Gross and net NPL ratio based on EBA definition, %
Gross NPL Net NPL

bn
31.12.21(1) 30.9.22(2) 31.12.22(3)
bn
31.12.21(1) 30.9.22(2) 31.12.22(3)
Bad loans 7.2 3.8 3.7 Bad loans 2.1 1.3 1.1
-
of which forborne
1.5 0.8 0.8 -
of which forborne
0.5 0.3 0.3
Unlikely to pay 7.3 7.0 6.4 Unlikely to pay 4.3 4.2 4.0
-
of which forborne
2.9 2.9 2.6 -
of which forborne
2.1 1.9 1.7
Past due 0.8 0.6 0.6 Past due 0.6 0.5 0.4
-
of which forborne
0.2 0.1 -
Of which
€0.5bn
-
of which forborne
0.1 0.1 -
Of which
€0.2bn
Total 15.2 11.4 related to
10.6
Russia
Ukraine
Total 7.1 6.0 related to
5.5
Russia
Ukraine
3.2 2.4 exposure
2.3
1.5 1.3 exposure
1.2
2.4 1.9 1.9 1.2 1.0 1.0

Lowest-ever NPL stock and ratios with the twenty-ninth quarter of continuous reduction in net NPL stock

Note: figures may not add up exactly due to rounding

(1) Not including €4.5bn gross (€1.2bn net) NPL booked in Discontinued operations

(2) Not including €3.8bn gross (€0.9bn net) NPL booked in Discontinued operations

(3) Not including €0.7bn gross (€0.4bn net) NPL booked in Discontinued operations

Non-performing loans: sizeable and increased coverage in Q4

MIL-BVA362-03032014-90141/VR

Cash coverage; %

(1) Bad loans (Sofferenze), Unlikely to pay (Inadempienze probabili) and Past due (Scaduti e sconfinanti)

(1) Bad loans (Sofferenze), Unlikely to pay (Inadempienze probabili) and Past due (Scaduti e sconfinanti)

(2) Excluding Russia-Ukraine exposure (€0.5bn gross/net inflow)

(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)

Non-performing loans gross inflow

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

MIL-BVA362-03032014-90141/VR

Non-performing loans net inflow

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)

Loans to customers: a well-diversified portfolio

    • Instalment/available income ratio at 31%
  • Average Loan-to-Value equal to ~59%
  • Original average maturity equal to ~24 years
  • Residual average life equal to ~19 years

Non-retail loans of the Italian banks and companies of the Group

31.12.22
Public Administration 4.9%
Financial companies 7.2%
Non-financial companies 44.3%
of which:
UTILITIES 4.6%
SERVICES 4.5%
REAL ESTATE 3.3%
DISTRIBUTION 3.3%
CONSTRUCTION AND MATERIALS FOR CONSTR. 3.2%
FOOD AND DRINK 2.6%
INFRASTRUCTURE 2.5%
METALS AND METAL PRODUCTS 2.4%
FASHION 2.2%
TRANSPORTATION MEANS 1.9%
ENERGY AND EXTRACTION 1.9%
MECHANICAL 1.8%
CHEMICALS, RUBBER AND PLASTICS 1.8%
TOURISM 1.7%
AGRICULTURE 1.6%
TRANSPORT 1.3%
ELECTRICAL COMPONENTS AND EQUIPMENT 0.9%
FURNITURE AND WHITE GOODS 0.8%
PHARMACEUTICAL 0.8%
MEDIA 0.5%
WOOD AND PAPER 0.5%
OTHER CONSUMPTION GOODS 0.2%

Exposure to Russia reduced to below 0.3% of Group customer loans

€ bn, data as at 31.12.22 Local presence
Russia
(Banca Intesa)
Ukraine
Bank)(1)
(Pravex
Loans to customers
(net of ECA guarantees and provisions)
0.2(3) (3)
-
0.96(4)
ECA(5)
guarantees
- - 0.8(6)
Due from banks (net of provisions) 0.7 0.06 0.04(7)
Bonds (net of writedowns) 0.01 - 0.03(8)
Derivatives n.m. - n.m.
RWA 2.0 0.1 2.7
Total assets 1.6 0.1 n.a.
Intragroup funding 0.2 - n.a.
Cross-border exposure to Russia largely performing and classified as Stage 2

(1) Data as at 30.9.22 updated using exchange rate as at 31.12.22

(2) Exposure to Russian counterparties included in the SDN lists of names to which sanctions apply is equal to only €0.4bn. Cross-border exposure to Ukraine not meaningful

  • (3) There is also an off-balance for Russia of €0.1bn (of which €0.05bn undrawn committed lines) and €0.07bn for Ukraine
  • (4) There is also an off-balance of €0.2bn (of which €0.03bn undrawn committed lines)
  • (5) Export Credit Agencies

(6) There are also Export Credit Agencies guarantees against an off-balance of €0.5bn (entirely against undrawn committed lines)

(7) There is also an off-balance of €0.15bn (no undrawn committed lines)

(8) Including insurance business (concerning policies where the total risk is not retained by the insured)

MIL-BVA362-03032014-90141/VR

Detailed consolidated P&L results

Liquidity, Funding and Capital base

Asset quality

Divisional results and other information

Divisional financial highlights

Data as at 31.12.22

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) 8,813 4,333 2,227 2,475 962 1,607 1,053 21,470
Operating margin (€ m) 2,416 2,915 1,109 1,554 740 1,222 580 10,536
Net income (€ m) 471 681 504 1,034 550 870 244 4,354
Cost/Income (%) 72.6 32.7 50.2 37.2 23.1 24.0 n.m. 50.9
RWA (€ bn) 81.7 101.8 35.1 12.8 1.8 0.0 62.3 295.4
Direct deposits from banking business (€ bn) 291.1 94.8 54.4 50.4 0.0 0.0 54.7 545.4
Loans to customers (€ bn) 247.5 132.9 40.2 15.1 0.3 0.0 10.8 446.9

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) Compagnie de Banque Privée Quilvest (merged with Fideuram Bank Luxembourg on 1.1.23, setting up Intesa Sanpaolo Wealth Management), Fideuram, Intesa Sanpaolo Private Banking, 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

Banca dei Territori: 2022 vs 2021

FY21 FY22 %
redetermined
Net interest income 3,932 3,957 0.6
Net fee and commission income 4,809 4,744 (1.4)
Income from insurance business 0 0 n.m.
Profits on financial assets and liabilities at fair value 105 120 14.3
Other operating income (expenses) 7 (8) n.m.
Operating income 8,853 8,813 (0.5)
Personnel expenses (3,506) (3,430) (2.2)
Other administrative expenses (2,988) (2,964) (0.8)
Adjustments to property, equipment and intangible assets (5) (3) (40.0)
Operating costs (6,499) (6,397) (1.6)
Operating margin 2,354 2,416 2.6
Net adjustments to loans (1,234) (1,238) 0.3
Net provisions and net impairment losses on other assets (118) (68) (42.4)
Other income (expenses) 11 11 0.0
Income (Loss) from discontinued operations 0 0 n.m.
Gross income (loss) 1,013 1,121 10.7
Taxes on income (320) (375) 17.2
Charges (net of tax) for integration and exit incentives (180) (42) (76.7)
Effect of purchase price allocation (net of tax) (38) (32) (15.8)
Levies and other charges concerning the banking industry (net of tax) (190) (214) 12.6
Impairment (net of tax) of goodwill and other intangible assets 0 0 n.m.
Minority interests 31 13 (58.1)
Net income 316 471 49.1

Banca dei Territori: Q4 vs Q3

3Q22 4Q22 %
Net interest income 970 1,050 8.3
Net fee and commission income 1,152 1,215 5.5
Income from insurance business (0) (0) (34.1)
Profits on financial assets and liabilities at fair value 31 30 (2.3)
Other operating income (expenses) (6) (7) 11.4
Operating income 2,146 2,288 6.6
Personnel expenses (831) (928) 11.7
Other administrative expenses (709) (828) 16.8
Adjustments to property, equipment and intangible assets (1) (0) (35.3)
Operating costs (1,540) (1,756) 14.0
Operating margin 606 532 (12.2)
Net adjustments to loans (157) (823) 424.9
Net provisions and net impairment losses on other assets (5) (25) 376.2
Other income (expenses) (0) (0) (91.9)
Income (Loss) from discontinued operations 0 0 n.m.
Gross income (loss) 443 (316) n.m.
Taxes on income (150) 101 n.m.
Charges (net of tax) for integration and exit incentives (7) (27) 301.1
Effect of purchase price allocation (net of tax) (8) (6) (20.2)
Levies and other charges concerning the banking industry (net of tax) (206) (8) (96.0)
Impairment (net of tax) of goodwill and other intangible assets 0 0 n.m.
Minority interests 0 0 (100.0)
Net income 73 (258) n.m.

IMI Corporate & Investment Banking: 2022 vs 2021

€ m

FY21 FY22 %
redetermined
Net interest income 2,182 2,132 (2.3)
Net fee and commission income 1,135 1,156 1.9
Income from insurance business 0 0 n.m.
Profits on financial assets and liabilities at fair value 1,317 1,047 (20.5)
Other operating income (expenses) 2 (2) n.m.
Operating income 4,636 4,333 (6.5)
Personnel expenses (506) (528) 4.3
Other administrative expenses (845) (870) 3.0
Adjustments to property, equipment and intangible assets (21) (20) (4.8)
Operating costs (1,372) (1,418) 3.4
Operating margin 3,264 2,915 (10.7)
Net adjustments to loans 20 (1,564) n.m.
Net provisions and net impairment losses on other assets (45) (131) 191.1
Other income (expenses) 0 0 n.m.
Income (Loss) from discontinued operations 0 0 n.m.
Gross income (loss) 3,239 1,220 (62.3)
Taxes on income (991) (519) (47.6)
Charges (net of tax) for integration and exit incentives (24) (21) (12.5)
Effect of purchase price allocation (net of tax) 20 0 (100.0)
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 3 1 (66.7)
Net income 2,247 681 (69.7)

Including €1,079m provisions for Russia-Ukraine exposure in 2022

€1,617m, (28.0)% excluding provisions/writedowns for Russia-Ukraine exposure

Note: figures may not add up exactly due to rounding

IMI Corporate & Investment Banking: Q4 vs Q3

€ m

3Q22 4Q22 %
Net interest income 560 605 8.0
Net fee and commission income 291 295 1.2
Income from insurance business 0 0 n.m.
Profits on financial assets and liabilities at fair value 38 (17) n.m.
Other operating income (expenses) (1) (0) 67.9
Operating income 888 883 (0.6)
Personnel expenses (136) (157) 15.7
Other administrative expenses (214) (234) 9.6
Adjustments to property, equipment and intangible assets (7) (5) (22.8)
Operating costs (356) (397) 11.4
Operating margin 532 486 (8.6)
Net adjustments to loans (284) (208) (26.8)
Net provisions and net impairment losses on other assets (45) (26) (41.6)
Other income (expenses) (0) 0 n.m.
Income (Loss) from discontinued operations 0 0 n.m.
Gross income (loss) 202 252 24.4
Taxes on income (63) (104) 63.6
Charges (net of tax) for integration and exit incentives (5) (6) 26.8
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 (0) 0 n.m.
Net income 134 142 5.9

€283m and €155m respectively when excluding provisions/writedowns for Russia-Ukraine exposure

Note: figures may not add up exactly due to rounding

International Subsidiary Banks: 2022 vs 2021

€ m

FY21 FY22 %
redetermined
Net interest income 1,337 1,592 19.1
Net fee and commission income 546 574 5.1
Income from insurance business 0 0 n.m.
Profits on financial assets and liabilities at fair value 127 129 1.6
Other operating income (expenses) (38) (68) 78.9
Operating income 1,972 2,227 12.9
Personnel expenses (549) (573) 4.4
Other administrative expenses (410) (431) 5.1
Adjustments to property, equipment and intangible assets (113) (114) 0.9
Operating costs (1,072) (1,118) 4.3
Operating margin 900 1,109 23.2
Net adjustments to loans (157) (345) 119.7
Net provisions and net impairment losses on other assets (74) (20) (73.0)
Other income (expenses) 7 35 400.0
Income (Loss) from discontinued operations 0 0 n.m.
Gross income (loss) 676 779 15.2
Taxes on income (144) (191) 32.6
Charges (net of tax) for integration and exit incentives (43) (44) 2.3
Effect of purchase price allocation (net of tax) 0 0 n.m.
Levies and other charges concerning the banking industry (net of tax) (26) (40) 53.8
Impairment (net of tax) of goodwill and other intangible assets 0 0 n.m.
Minority interests 0 0 n.m.
Net income 463 504 8.9

Including €161m provisions for Russia-Ukraine exposure in 2022

Note: figures may not add up exactly due to rounding. Excluding the Russian subsidiary Banca Intesa which is included in the IMI C&IB Division

€660m, +42.6% excluding provisions/writedowns for Russia-Ukraine exposure

International Subsidiary Banks: Q4 vs Q3

€ m

3Q22 4Q22 %
Net interest income 423 460 8.7
Net fee and commission income 146 138 (4.9)
Income from insurance business 0 0 n.m.
Profits on financial assets and liabilities at fair value 20 30 46.7
Other operating income (expenses) (16) (20) 27.8
Operating income 573 608 6.0
Personnel expenses (145) (163) 12.1
Other administrative expenses (109) (124) 14.2
Adjustments to property, equipment and intangible assets (29) (29) (1.8)
Operating costs (284) (316) 11.4
Operating margin 290 292 0.8
Net adjustments to loans (45) (112) 146.7
Net provisions and net impairment losses on other assets 2 (8) n.m.
Other income (expenses) 2 32 n.m.
Income (Loss) from discontinued operations 0 0 n.m.
Gross income (loss) 248 204 (17.9)
Taxes on income (43) (30) (29.4)
Charges (net of tax) for integration and exit incentives (12) (13) 8.8
Effect of purchase price allocation (net of tax) 0 0 n.m.
Levies and other charges concerning the banking industry (net of tax) (7) (8) 20.0
Impairment (net of tax) of goodwill and other intangible assets 0 0 n.m.
Minority interests 0 (0) n.m.
Net income 186 152 (18.6)

Note: figures may not add up exactly due to rounding. Excluding the Russian subsidiary Banca Intesa which is included in the IMI C&IB Division

Private Banking: 2022 vs 2021

FY21 FY22 %
redetermined
Net interest income 217 419 93.1
Net fee and commission income 2,096 1,980 (5.5)
Income from insurance business 0 0 n.m.
Profits on financial assets and liabilities at fair value 56 60 7.1
Other operating income (expenses) 26 16 (38.5)
Operating income 2,395 2,475 3.3
Personnel expenses (473) (486) 2.7
Other administrative expenses (365) (354) (3.0)
Adjustments to property, equipment and intangible assets (76) (81) 6.6
Operating costs (914) (921) 0.8
Operating margin 1,481 1,554 4.9
Net adjustments to loans 3 (12) n.m.
Net provisions and net impairment losses on other assets (37) 13 n.m.
Other income (expenses) 194 0 (100.0)
Income (Loss) from discontinued operations 0 0 n.m.
Gross income (loss) 1,641 1,555 (5.2)
Taxes on income (483) (444) (8.1)
Charges (net of tax) for integration and exit incentives (40) (37) (7.5)
Effect of purchase price allocation (net of tax) (22) (21) (4.5)
Levies and other charges concerning the banking industry (net of tax) (15) (21) 40.0
Impairment (net of tax) of goodwill and other intangible assets 0 0 n.m.
Minority interests (5) 2 n.m.
Net income 1,076 1,034 (3.9)

Private Banking: Q4 vs Q3

3Q22 4Q22 %
Net interest income 102 216 112.5
Net fee and commission income 482 475 (1.4)
Income from insurance business 0 0 n.m.
Profits on financial assets and liabilities at fair value 4 31 768.6
Other operating income (expenses) 2 4 74.7
Operating income 589 726 23.2
Personnel expenses (116) (145) 25.3
Other administrative expenses (80) (89) 11.3
Adjustments to property, equipment and intangible assets (21) (20) (3.7)
Operating costs (217) (255) 17.3
Operating margin 372 471 26.7
Net adjustments to loans (4) (5) 7.3
Net provisions and net impairment losses on other assets 9 (10) n.m.
Other income (expenses) (0) 0 n.m.
Income (Loss) from discontinued operations 0 0 n.m.
Gross income (loss) 376 457 21.6
Taxes on income (111) (153) 37.9
Charges (net of tax) for integration and exit incentives (6) (15) 127.8
Effect of purchase price allocation (net of tax) (5) (6) 34.9
Levies and other charges concerning the banking industry (net of tax) (19) (2) (87.9)
Impairment (net of tax) of goodwill and other intangible assets 0 0 n.m.
Minority interests 0 3 799.1
Net income 235 284 20.8

Asset Management: 2022 vs 2021

FY21 FY22 %
redetermined
Net interest income (1) 0 (100.0)
Net fee and commission income 1,282 913 (28.8)
Income from insurance business 0 0 n.m.
Profits on financial assets and liabilities at fair value (4) (21) n.m.
Other operating income (expenses) 67 70 4.5
Operating income 1,344 962 (28.4)
Personnel expenses (120) (110) (8.3)
Other administrative expenses (112) (106) (5.4)
Adjustments to property, equipment and intangible assets (7) (6) (14.3)
Operating costs (239) (222) (7.1)
Operating margin 1,105 740 (33.0)
Net adjustments to loans 0 0 n.m.
Net provisions and net impairment losses on other assets 1 0 (100.0)
Other income (expenses) 0 0 n.m.
Income (Loss) from discontinued operations 0 0 n.m.
Gross income (loss) 1,106 740 (33.1)
Taxes on income (297) (184) (38.0)
Charges (net of tax) for integration and exit incentives (8) (1) (87.5)
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 (10) (1) (90.0)
Net income 787 550 (30.1)
3Q22 4Q22 %
Net interest income 0 1 n.m.
Net fee and commission income 218 223 2.0
Income from insurance business 0 0 n.m.
Profits on financial assets and liabilities at fair value (7) 1 n.m.
Other operating income (expenses) 18 14 (21.3)
Operating income 229 238 4.0
Personnel expenses (25) (36) 41.7
Other administrative expenses (25) (32) 29.1
Adjustments to property, equipment and intangible assets (2) (2) 9.7
Operating costs (52) (70) 34.7
Operating margin 177 168 (5.0)
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) 177 168 (5.0)
Taxes on income (43) (52) 21.3
Charges (net of tax) for integration and exit incentives (0) (0) (64.3)
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 132 115 (13.0)
FY21 FY22 %
redetermined
Net interest income 0 0 n.m.
Net fee and commission income 2 3 50.0
Income from insurance business 1,586 1,616 1.9
Profits on financial assets and liabilities at fair value 0 0 n.m.
Other operating income (expenses) (16) (12) (25.0)
Operating income 1,572 1,607 2.2
Personnel expenses (142) (148) 4.2
Other administrative expenses (240) (217) (9.6)
Adjustments to property, equipment and intangible assets (20) (20) 0.0
Operating costs (402) (385) (4.2)
Operating margin 1,170 1,222 4.4
Net adjustments to loans 0 0 n.m.
Net provisions and net impairment losses on other assets (335) 90 n.m.
Other income (expenses) 0 8 n.m.
Income (Loss) from discontinued operations 0 0 n.m.
Gross income (loss) 835 1,320 58.1
Taxes on income (210) (347) 65.2
Charges (net of tax) for integration and exit incentives (42) (14) (66.7)
Effect of purchase price allocation (net of tax) (52) (65) 25.0
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 181 (24) n.m.
Net income 712 870 22.2

Insurance: Q4 vs Q3

3Q22 4Q22 %
Net interest income (0) 0 n.m.
Net fee and commission income 1 1 5.4
Income from insurance business 415 371 (10.5)
Profits on financial assets and liabilities at fair value (0) 0 n.m.
Other operating income (expenses) (3) (2) (12.8)
Operating income 413 370 (10.5)
Personnel expenses (32) (48) 48.5
Other administrative expenses (55) (63) 13.5
Adjustments to property, equipment and intangible assets (5) (5) 11.3
Operating costs (92) (116) 25.6
Operating margin 321 254 (20.8)
Net adjustments to loans 0 0 n.m.
Net provisions and net impairment losses on other assets (3) 102 n.m.
Other income (expenses) (0) 8 n.m.
Income (Loss) from discontinued operations 0 0 n.m.
Gross income (loss) 318 364 14.7
Taxes on income (87) (94) 7.8
Charges (net of tax) for integration and exit incentives (3) (7) 112.7
Effect of purchase price allocation (net of tax) (17) (16) (7.3)
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) (23) n.m.
Net income 209 225 7.4

Market leadership in Italy

Note: figures may not add up exactly due to rounding

  • (1) Excluding Corporate centre
  • (2) Data as at 31.12.22
  • (3) Including bonds
  • (4) Mutual funds; data as at 30.9.22
  • (5) Data as at 30.9.22

International Subsidiary Banks by country

Data as at 31.12.22

Serbia Albania Total Egypt Total % of the
Group
Hungary Slovakia Slovenia Croatia Bosnia Romania Moldova Ukraine
(*)
CEE
Operating income (€ m) 329 504 83 448 46 330 45 44 18 14 1,860 384 2,244 10.5%
Operating costs (€ m) 114 225 46 196 23 125 25 32 11 16 812 154 966 8.8%
Net adjustments to loans (€ m) 61 53 8 (3) 4 43 2 4 3 126 302 44 345 11.1%
Net income (€ m) 92 169 16 188 14 110 11 5 3 (128) 481 129 610 14.0%
Customer deposits (€ bn) 5.3 19.4 3.2 12.7 0.9 5.3 1.5 1.1 0.2 0.2 49.8 4.2 54.0 9.9%
Customer loans (€ bn) 3.6 17.2 2.3 8.1 0.8 4.6 0.5 0.8 0.1 0.0 38.1 2.1 40.2 9.0%
Performing loans (€ bn) 3.5 17.1 2.3 7.9 0.8 4.6 0.5 0.8 0.1 0.0 37.6 2.1 39.7 9.0%
of which:
Retail local currency 43% 59% 43% 25% 33% 22% 23% 13% 54% n.m. 43% 59% 44%
Retail foreign currency 0% 0% 0% 25% 13% 29% 15% 13% 0% n.m. 10% 0% 9%
Corporate local currency 25% 33% 57% 23% 24% 6% 11% 44% 17% n.m. 28% 27% 28%
Corporate foreign currency 32% 7% 0% 27% 30% 42% 52% 31% 30% n.m. 19% 14% 19%
Non-performing loans (€ m) 73 107 6 184 13 48 10 21 3 0 465 46 511 9.3%
Non-performing loans coverage 44% 67% 78% 53% 58% 64% 41% 54% 25% 100% 62% 65% 62%
Cost of credit (1) (bps) 170 31 34 n.m. 55 93 41 47 n.m. n.m. 79 n.m. 86

Note: figures may not add up exactly due to rounding. Excluding the Russian subsidiary Banca Intesa which is included in the IMI C&IB Division

(*) Consolidated on the basis of the countervalue of 30.9.22 figures at the exchange rate as at 31.12.22

(1) Net adjustments to loans/Net customer loans

46bps and 54bps respectively when excluding

provisions in Ukraine

Total exposure(1) by main countries

€ m

DEBT SECURITIES Banking Business LOANS
AC FVTOCI FVTPL(2) Total(3)
EU Countries 41,931 31,921 2,858 76,710 409,531
Austria 729 269 12 1,010 547
Belgium 3,381 2,029 115 5,525 954
Bulgaria 0 0 3 3 10
Croatia 281 1,100 72 1,453 8,020
Cyprus 0 0 0 0 15
Czech Republic 142 0 0 142 925
Denmark 41 46 2 89 65
Estonia 0 0 0 0 4
Finland 270 53 4 327 219
France 6,966 3,755 -201 10,520 6,994
Germany 756 1,402 -97 2,061 4,508
Greece 37 0 -1 36 22
Hungary 368 824 39 1,231 3,582
Ireland 827 1,024 480 2,331 386
Italy 21,688 13,106 1,850 36,644 349,255
Latvia 0 0 0 0 20
Lithuania 0 0 0 0 1
Luxembourg 444 714 201 1,359 7,998
Malta 0 0 0 0 56
The Netherlands 1,015 787 108 1,910 1,749
Poland 334 111 0 445 980
Portugal 544 621 -24 1,141 129
Romania 66 370 6 442 1,005
Slovakia 0 917 2 919 14,764
Slovenia 1 155 2 158 2,252
Spain 4,018 4,372 283 8,673 4,561
Sweden 23 266 2 291 510
Albania 93 489 1 583 495
Egypt 96 1,145 0 1,241 2,783
Japan 71 2,907 60 3,038 267
Russia 4 31 0 35 2,108
Serbia 7 536 0 543 5,163
United Kingdom 525 630 65 1,220 12,489
U.S.A. 2,071 8,282 334 10,687 5,910
Other Countries 6,741 5,925 127 12,793 24,385
Total 51,539 51,866 3,445 106,850 0
463,131

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 31.12.22

(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 €71,541m (of which €48,072 in Italy)

MIL-BVA362-03032014-90141/VR

Exposure to sovereign risks(1) by main countries

DEBT SECURITIES
Banking Business LOANS
AC FVTOCI FVTPL(2) Total(3)
EU Countries 30,875 24,708 616 56,199 10,128
Austria 615 160 1 776 0
Belgium 2,405 1,962 101 4,468 0
Bulgaria 0 0 3 3 0
Croatia 151 1,100 72 1,323 1,378
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 255 13 0 268 0
France 6,457 2,370 -309 8,518 3
Germany 262 538 -151 649 0
Greece 0 0 -8 -8 0
Hungary 141 787 39 967 313
Ireland 336 45 26 407 0 Banking business government bond
duration: 6.1y
Italy 14,994 11,255 622 26,871 8,019 Adjusted duration due to hedging: 0.4y
Latvia 0 0 0 0 20
Lithuania 0 0 0 0 0
Luxembourg 265 392 88 745 0
Malta 0 0 0 0 0
The Netherlands 828 19 25 872 0
Poland 28 65 0 93 0
Portugal 388 621 -41 968 0
Romania 66 370 -1 435 4
Slovakia 0 892 2 894 149
Slovenia 1 148 2 151 178
Spain 3,683 3,971 145 7,799 64
Sweden 0 0 0 0 0
Albania 93 489 1 583 1
Egypt 96 1,145 0 1,241 515
Japan 0 2,404 0 2,404 0
Russia 0 31 0 31 0
Serbia 7 536 0 543 165
United Kingdom 0 173 19 192 0
U.S.A. 1,398 6,944 126 8,468 0
Other Countries 2,232 3,443 50 5,725 4,763
Total 34,701 39,873 812 75,386 0
15,572

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 31.12.22

(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 €55,264m (of which €45,491m in Italy). The total of FVTOCI and AFS reserves (net of tax and allocation to insurance products under separate management) amounts to -€2,149m (of which -€889m in Italy)

Exposure to banks by main countries(1)

€ m

DEBT SECURITIES
Banking Business
AC FVTOCI FVTPL(2) Total(3) LOANS
EU Countries 2,008 3,616 936 6,560 16,921
Austria 98 66 10 174 79
Belgium 12 48 10 70 13
Bulgaria 0 0 0 0 0
Croatia 42 0 0 42 110
Cyprus 0 0 0 0 0
Czech Republic 0 0 0 0 0
Denmark 27 7 2 36 14
Estonia 0 0 0 0 0
Finland 9 9 3 21 16
France 238 906 34 1,178 3,736
Germany 284 444 30 758 1,701
Greece 0 0 7 7 14
Hungary 150 37 0 187 170
Ireland 16 27 0 43 153
Italy 847 1,022 623 2,492 9,724
Latvia 0 0 0 0 0
Lithuania 0 0 0 0 0
Luxembourg 92 232 98 422 566
Malta 0 0 0 0 20
The Netherlands 58 320 -11 367 91
Poland 0 39 0 39 7
Portugal 0 0 2 2 2
Romania 0 0 7 7 96
Slovakia 0 25 0 25 0
Slovenia 0 7 0 7 0
Spain 117 274 123 514 361
Sweden 18 153 -2 169 48
Albania 0 0 0 0 8
Egypt 0 0 0 0 49
Japan 34 338 0 372 28
Russia 0 0 0 0 137
Serbia 0 0 0 0 353
United Kingdom 128 265 33 426 810
U.S.A. 143 528 174 845 83
Other Countries 87 1,765 47 1,899 4,079
Total 2,400 6,512 1,190 10,102 0
22,468

Note: management accounts. Figures may not add up exactly due to rounding

(1) Book Value of Debt Securities and Net Loans as at 31.12.22

(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 €8,141m (of which €1,208m in Italy)

Exposure to other customers by main countries(1)

DEBT SECURITIES
Banking Business LOANS
FVTPL(2)
AC
FVTOCI
Total(3)
EU Countries
9,048
3,597
1,306
13,951
382,482
Austria
16
43
1
60
468
Belgium
964
19
4
987
941
Bulgaria
0
0
0
0
10
Croatia
88
0
0
88
6,532
Cyprus
0
0
0
0
15
Czech Republic
142
0
0
142
925
Denmark
14
39
0
53
51
Estonia
0
0
0
0
Finland
6
31
1
38
203
France
271
479
74
824
3,255
Germany
210
420
24
654
2,807
Greece
37
0
0
37
Hungary
77
0
0
77
3,099
Ireland
475
952
454
1,881
233
Italy
5,847
829
605
7,281
331,512
Latvia
0
0
0
0
Lithuania
0
0
0
0
Luxembourg
87
90
15
192
7,432
Malta
0
0
0
0
The Netherlands
129
448
94
671
1,658
Poland
306
7
0
313
973
Portugal
156
0
15
171
127
Romania
0
0
0
0
905
Slovakia
0
0
0
0
14,615
Slovenia
0
0
0
0
2,074
Spain
218
127
15
360
4,136
Sweden
5
113
4
122
462
Albania
0
0
0
0
Egypt
0
0
0
486
0
2,219
Japan
37
165
60
262
239
Russia
4
0
0
4
1,971
Serbia
0
0
0
0
4,645
United Kingdom
397
192
13
602
11,679
U.S.A.
530
810
34
1,374
5,827
Other Countries
4,422
717
30
5,169
15,543

Note: management accounts. Figures may not add up exactly due to rounding

(1) Book Value of Debt Securities and Net Loans as at 31.12.22

(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 €8,136m (of which €1,373m 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.

Talk to a Data Expert

Have a question? We'll get back to you promptly.