Investor Presentation • Feb 3, 2023
Investor Presentation
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A strong bank for a sustainable world
Delivering on Business Plan commitments and ready to further succeed in the future
February 3, 2023
€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
(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
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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
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 |
(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
ISP is fully equipped for further success
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
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
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
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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
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
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)
(1) According to EBA definition
(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)
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(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
(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
NPL coverage ratio up 1.5pp in Q4
(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
(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
Our People are our most important asset
100% of initiatives launched, of which ~70% progressing ahead of schedule
| 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 |
| 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
‒ 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)
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
‒ ~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
Promoting innovation
(1/2)
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
| ▪ 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 |
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|---|---|---|
MIL-BVA362-03032014-90141/VR
(4) Glasgow Financial Alliance for Net-Zero
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
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 support
colleagues
Donations and other support initiatives for
Ukraine
(1) United Nations High Commissioner for Refugees (2) «Cooperazione e Sviluppo» (3) Associazione Volontari per il Servizio Internazionale (4) Agreed with Labour Unions
| 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 |
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| ~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
| % 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) |
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| ▪ 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)
Note: figures may not add up exactly due to rounding
(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
| € 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 |
Liquidity, Funding and Capital base
Asset quality
Divisional results and other information
€ 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)
| € 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
€ 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
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
-5.5% vs 4Q21 excluding performance fees
Commissions from Commercial banking activities up 5.4% (+€137m)
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
€ 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
| 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
▪ ~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%),
€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)
(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
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
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
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)
▪ Refinancing operations with the ECB: ~€96bn(3) consisting entirely of TLTRO III as at 31.12.22 (~€76bn(3) as at 31.1.23)
(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
(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
| 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
MIL-BVA362-03032014-90141/VR
(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)
Note: figures may not add up exactly due to rounding
(1) Bad loans (Sofferenze), Unlikely to pay (Inadempienze probabili) and Past due (Scaduti e sconfinanti)
MIL-BVA362-03032014-90141/VR
Note: figures may not add up exactly due to rounding
(1) Bad loans (Sofferenze), Unlikely to pay (Inadempienze probabili) and Past due (Scaduti e sconfinanti)
| 31.12.22 | |
|---|---|
| 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% |
| € 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
(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
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
| 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 |
| 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. |
€ 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
€ 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
€ 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
€ 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
| 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) |
| 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 |
| 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 |
| 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 |
Note: figures may not add up exactly due to rounding
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
€ 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)
| 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)
€ 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)
| 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.
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