Quarterly Report • Jul 29, 2022
Quarterly Report
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Fully focused on executing the 2022-2025 Business Plan
July 29, 2022
€3.3bn H1 Net income excluding €1.1bn provisions/writedowns for Russia-Ukraine exposure, the best first half since 2008
€2,354m H1 stated Net income (€1,330m in Q2), thanks to the highest-ever Operating income and Operating margin
Strong acceleration of Net interest income in Q2 (+6.9% vs Q1)
Q2 the best quarter ever for Insurance income, coupled with resilient Commissions despite negative market performance
Solid performance in financial market activities, once again a natural hedge to the impact from volatility on our fee-based business
Strong decrease in Operating costs (-2.5% vs 1H21(1)) with Cost/Income ratio down to 47.5%
€4.1bn gross NPL stock reduction in H1 (€3.2bn in Q2)
Lowest-ever NPL stock and ratios, with gross NPL ratio at 1.8% and net NPL ratio at 1.0%(2)
Zero-NPL Bank status driving low underlying Cost of risk (27bps(3))
Execution of the 2022-2025 Business Plan proceeding at full speed, with key industrial initiatives well underway: fully equipped to continue succeeding in the future
(2) According to EBA definition
(3) Annualised excluding €1.1bn provisions for Russia-Ukraine exposure and €0.3bn release of part of generic provisions conservatively booked in 2020 for COVID-19 impacts (€0.4bn still available)
(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
2022-2025 Business Plan proceeding at full speed
ISP is well equipped for a challenging environment
Final remarks
1H22 P&L € m
Note: figures may not add up exactly due to rounding
(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) Excluding managers/manager equivalents
(4) Charges (net of tax) for integration and exit incentives, Effect of purchase price allocation (net of tax), Levies and other charges concerning the banking industry (net of tax), Impairment (net of tax) of goodwill and other intangible assets, Minority interests
(5) Including charges for the Resolution Fund: €362m pre-tax (€248m net of tax), our estimated commitment for the year
Note: figures may not add up exactly due to rounding
(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) Excluding managers/manager equivalents
(4) Charges (net of tax) for integration and exit incentives, Effect of purchase price allocation (net of tax), Levies and other charges concerning the banking industry (net of tax), Impairment (net of tax) of goodwill and other intangible assets, Minority interests
(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
Customer financial assets(1)
▪ Decline due to negative market performance
▪ Valore Insieme(2): €8.2bn Customer financial assets inflow in H1
Note: figures may not add up exactly due to rounding
(1) Net of duplications between Direct Deposits and Indirect Customer Deposits
(2) Advanced advisory service for Affluent and Exclusive clients
(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
(1) Sample: Barclays, Credit Suisse, Deutsche Bank, Lloyds Banking Group, Nordea, Santander, UBS and UniCredit (30.6.22 data); BBVA, BNP Paribas, Commerzbank, Crédit Agricole S.A., HSBC, ING Group, Société Générale and Standard Chartered (31.3.22 data)
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| NPL stock | Loan loss provisions (LLP) | Cost of risk | |||||
|---|---|---|---|---|---|---|---|
| € bn | Net NPL | x Gross NPL ratio(1) , % x Net NPL ratio(1) , % |
€ m | Provisions for Russia-Ukraine exposure (net of release of part of generic provisions booked in 2020 for COVID-19 impacts) |
bps; annualised | Additional provisions on NPL portfolios to accelerate NPL deleveraging |
|
| 3.1 1.6 |
1.8 1.0 |
Provisions for Russia-Ukraine exposure (net of release of part of generic provisions booked in 2020 for COVID-19 impacts) |
|||||
| 19.3 | 11.1 | 1,001 | 1,432 | 59 | 61 | ||
| 9.7 | 6.2 | 646 | 25 | 27 | |||
| 30.6.21(2) | 30.6.22(3) | 1H21(5) | 1H22 | FY21(5) | 1H22 | ||
| ▪ ▪ historical low(4) |
€8.2bn gross NPL stock reduction on a yearly basis, of which €3.2bn in Q2 €1.6bn NPL inflow in H1 (€0.9bn in Q2) at |
▪ for Russia-Ukraine exposure ▪ ― |
Strong decrease in LLP excluding provisions Out of the residual €0.7bn generic provisions overlay booked in 2020 for COVID-19: €0.3bn released in Q1 |
▪ Zero-NPL Bank status ▪ outstanding(6) |
Low underlying Cost of risk in line with €44.7bn expired moratoria, only €0.3bn still |
― €0.4bn still available
(6) As at 30.6.22
(5) 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
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(1) Including only banks in the EBA Transparency Exercise. Sample: Deutsche Bank, Nordea, Santander and UniCredit as at 30.6.22; BBVA, Commerzbank, Crédit Agricole Group, ING Group and Société Générale as at 31.3.22; BNP Paribas as at 31.12.21
(2) According to EBA definition. Data as at 30.6.21
Source: EBA Transparency Exercise, Investor presentations, press releases, conference calls and financial statements
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| Not considering H1 provisioning, € bn | Local presence(1) | ||
|---|---|---|---|
| Russia (Banca Intesa) |
Ukraine (Pravex Bank) |
Cross-border exposure to Russia(2) |
|
| Loans to customers | 0.7(3) | ~-0.3bn vs 0.16(3) 31.3.22 at |
3.85(4) |
| ECA(5) guarantees |
constant - |
- exchange |
0.9(6) |
| Due from banks | rate 0.4 |
0.06 | n.m.(7) |
| Bonds | 0.05 | 0.05 | 0.10(8) |
| Derivatives | - | - | 0.01 |
| RWA | 2.25(9) | 0.2 | 6.1 |
| Total assets | 1.5 | 0.3 | n.a. |
| Intragroup funding | 0.4 ▪ ▪ |
- Exposure before €1.1bn H1 provisions/writedowns Decreasing exposure vs 31.3.22 at constant exchange rate |
n.a. |
(1) Data as at 31.12.21 for Ukraine updated using exchange rate as at 30.6.22 and management data as at 30.6.22 for Russia (exchange rate as at 30.6.22 +7% and +60%, respectively vs 31.3.22)
(2) Management accounts as at 30.6.22, Cross-border exposure to Ukraine not meaningful
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13
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LLP on local presence Russia-Ukraine
154
Conservative provisioning in H1 notwithstanding cross-border Russia exposure is almost entirely performing and classified as Stage 2
Total LLP
Russia-Ukraine securities/real estate writedowns
Total LLP/ writedowns
Q2 Q1
LLP on crossborder exposure Russia
(2) 30.6.22 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 trade unions signed on 16.11.21 and DTA on losses carried forward, and the expected distribution on 1H22 Net income of insurance companies
(3) Including exposures with the ECB
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15
(1) Direct and indirect (2) Booked in Q2 in Other income (expenses). Excluding managers/manager equivalents
(3) Deriving from Non-performing loans outflow 16
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1H22: excellent operating performance
2022-2025 Business Plan proceeding at full speed
ISP is well equipped for a challenging environment
Final remarks
Our People are our most important asset
| Key highlights | |
|---|---|
| ▪ Massive deleveraging with €4.1bn gross NPL stock reduction in H1, 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 |
|
| Massive upfront | ▪ 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 |
| de-risking, slashing | ▪ Cybersecurity anti-fraud protection extended to new products and services for retail customers, including the use of Artificial Intelligence; adoption of Open Source Intelligence solutions to empower Cyber Threat Intelligence capability |
| Cost of risk | ▪ Set up of the Anti Financial Crime (AFC) Digital Hub, aimed at becoming a national and international centre open to other financial institutions and intermediaries in the system, with the goal of combating money laundering and terrorism through new technologies and Artificial Intelligence, based on a public-private collaboration model which enables the introduction of innovation (applied research) in business processes |
| ▪ Set up of the new AFC model based on an international platform and competence centres specialised in Transaction Monitoring and Know Your Customers |
|
| ▪ The Active Credit Portfolio Steering (ACPS) unit continued to broaden the scope of synthetic credit risk protection schemes, completing three new transactions for a total of €4bn in Q2, including residential mortgages and leasing contracts, in addition to the first Italian credit-risk-transfer transaction on a portfolio of commercial real estate loans (€1.9bn) finalised in Q1 |
|
| ▪ The ACPS unit has further strengthened capital efficiency initiatives and in H1 enhanced the credit strategy framework, shifting €11bn in new lending towards economic sectors with the best risk/return profiles |
|
| ▪ Scale up of the Originate to share business model, increasing the distribution capabilities to optimise the return on capital |
| Key highlights | |
|---|---|
| Structural Cost reduction, enabled by technology |
▪ New Digital Bank (Isybank ) setup well underway: Delivery Unit "Domain Isy Tech" already operational with ~230 dedicated specialists, contract with Thought Machine finalised and overall 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 the first ~270 people already hired ▪ AI Lab in Turin already operating (setup of Centai Institute) ▪ ~500 branches closed in 4Q21/1H22 in light of Isybank launch ▪ Digital platform for analytical cost management up and running, with more than 20 efficiency initiatives already identified ▪ Carried out the selection of tools to support the negotiation and scouting activities of potential suppliers ▪ Rationalisation of real estate in Italy in progress, with a reduction of ~260k sqm in 4Q21/1H22 ▪ ~1,000 voluntary exits in H1(1) ▪ Implementation of digital functions and services in Serbia and Hungary ongoing ▪ Alignment of digital channels to the new core banking system in Egypt ▪ Started functional and technical analysis activities in Slovakia and Albania for the adoption of the new core banking system target platform The Intesa Sanpaolo Mobile App was again recognised by Forrester as "Overall Digital Experience Leader" and this year |
| ranked first among all EMEA banking Apps and cited as best practice in several European Banking App categories |
| Key highlights | |
|---|---|
| Growth in Commissions, driven by Wealth Management, Protection & Advisory |
▪ 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: 26,000 new contracts and €8.2bn in Customer financial asset inflows in H1 ▪ Introduction of new functionalities of Robo4Advisor by BlackRock to generate investment advice on selected products (funds, insurance products and certificates) to support relationship managers ▪ Adoption of the BlackRock Aladdin Wealth and Aladdin Risk platforms for investment services: Aladdin Wealth module for BdT and Fideuram (first release), Aladdin Risk and Aladdin Enterprise module for FAM/FAMI(1) for investment services ▪ New features for UHNWI(2) client advisory tools; strengthening of service model for family offices and an ongoing project to embed ESG principles in the advisory model and reporting ▪ Released new features of Fideuram's online investment and trading platform enabling clients to independently open accounts and subscribe to asset management products ▪ Launched multiple new asset management and insurance products (e.g. dedicated offer for clients with excess liquidity and capital protection funds) ▪ Continued enhancement of ESG product offering for asset management and insurance ▪ Launched digital platform "IncentNow" for enterprises to provide information to Italian companies and institutions on the opportunities offered by public (3) tenders related to the "Piano Nazionale di Ripresa e Resilienza" ▪ Launched webinars and workshops with clients aimed at educating and sharing views on key topics (e.g. digital transition) ▪ Developed commercial initiatives to support clients in different sectors (e.g. Energy, TMT, Infrastructure) to optimise the incorporation of European and Italian post-pandemic recovery plans ▪ Go live of Cardea, an innovative and digital platform for financial institutions ▪ Strengthening the corporate digital platform (Inbiz) in the EU with focus on Cash & Trade, leveraging the partnership approach with Fintechs ▪ Ongoing upgrade of Global Markets IT platforms (e.g. Equity) ▪ Launched an ESG value proposition initiative for the corporate and SME segments of Group banks in Slovakia, Hungary, Croatia, Serbia and Egypt ▪ Development of synergies between IMI C&IB and Group banks in Slovakia, Czech Republic, Hungary and Croatia underway ▪ Expansion of digital services in Serbia and Hungary underway ▪ 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 ▪ Finalised agreement with a leading insurance group to distribute bancassurance products in Slovakia, Croatia, Hungary, Serbia and Slovenia ▪ Further development in the protection and health insurance business through the establishment of "InSalute Servizi," a new third-party administrator in |
| partnership with Reale Group, for the specialised management of health and welfare benefits, with a push towards digital services |
(1) Fideuram Asset Management / Fideuram Asset Management Ireland
(2) Ultra High Net Worth Individuals
(3) National Recovery and Resilience Plan
Strong focus on financial inclusion
▪ Lending for Urban Regeneration: in H1, committed €500m 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
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| Continuous commitment |
▪ 2 new museums opened in May, doubling the number of the Gallerie d'Italia venues to 4 (Turin and Naples in addition to Milan and Vicenza). Important projects for the transformation of owned buildings: in Turin, a museum dedicated to photography, the digital world and ESG topics (currently, among others, 2 exhibition projects dedicated to climate change); the Naples museum houses 680 artworks from the Bank's collections, from archaeology to a Caravaggio masterpiece, up to 19th modern and contemporary art (currently open to the public is the Restituzioni exhibition and 231 works of public heritage restored in the edition of the program, curated by the Bank with the Ministry of Culture) |
|---|---|
| ▪ Almost 185,000 visitors to the Gallerie d'Italia in H1. 587 workshops for school groups with 12,600 participating students, 129 tours for visitors with special needs with 1,800 participants, free of charge |
|
| to culture | ▪ In the Sanctuary of Monte Berico in Vicenza, the official launch of the restoration of the important painting by Paolo Veronese, Dinner of San Gregorio Magno (40 sqm), a masterpiece of the Venetian Renaissance, as part of the Restituzioni programme |
| ▪ 155 artworks from the owned collections on loan to 34 temporary exhibitions hosted in Italian and foreign locations |
|
| ▪ Important partnerships with public and private, national and international players, including Miart of Milan, the Turin Book Fair, Archivissima of Turin and the National Archaeological Museum of Naples |
|
| ▪ Innovation projects: 139 innovation projects launched in H1 |
|
| ▪ Development of multi-disciplinary applied research projects, of which 12 in progress in the fields of AI, robotics, neuroscience |
|
| ▪ Initiatives for startup growth and the development of innovation ecosystems: |
|
| ‒ Turin: completed 3rd class of "Torino Cities of the Future" program managed by Techstars; the 4th class is underway. Since 2019, 35 accelerated startups (11 Italian teams), >30 proofs of concept with local stakeholders, €48m in capital raised and over 180 new resources hired after acceleration |
|
| Florence: completed 1st ‒ class of the three-year "Italian Lifestyle Accelerator Program" managed by Nana Bianca; 6 Italian startups accelerated (>210 candidates, 85% Italian); >€2m in capital raised |
|
| Promoting innovation |
‒ Naples: launched 1st acceleration program "Terra Next" (Bioeconomy), for 8 startups (~130 candidates, 83% Italian), with Cassa Depositi e Prestiti, Cariplo Factory and local scientific partners; obtained the patronage of the Ministry of Ecological Transition |
| ‒ UP2Stars initiative aimed at 40 startups on four vertical pillars (Digital/Industry 4.0; Bioeconomy, focus on Agritech and Foodtech; Medtech/Healthcare; Aerospace). 1st program completed in May (>230 candidates); 2nd program finishing in July (>150 candidates), the application phase for the 3rd has begun |
|
| ‒ 2 startup acceleration programs for clients in progress, with coaching and mentoring activities |
|
| ▪ Business transformation: >20 corporates involved in open innovation programs and ongoing support to Compagnia di San Paolo and Cariplo Foundations on their "Bando Evoluzioni" related to the digitisation of the non-profit sector |
|
| ▪ Diffusion of innovation mindset/culture: Launched podcast series on innovation ("A prova di futuro") for the spread of the culture of innovation; 25 match-making(1) positioning and events held (with more than 1,700 participants) and 6 innovation reports on technologies and trends released |
|
| ▪ Neva SGR investments in startups: invested >€20m in Israel in IT, Quantum Computing, Agri-Foodtech and Cybersecurity |
(1) Positioning event: event in which a leading player illustrates innovation topics; match-making event: event which fosters a match between supply and demand of innovation
| Following the Group's adherence to Net-Zero alliances(1), in April 2022 ISP's commitment to the SBTi validation was published on the SBTi website ▪ |
|
|---|---|
| -------------------------------------------------------------------------------------------------------------------------------------------------------- | -- |
▪ Already active in derivatives linked to CO2 emission allowances under the European Emission Trading Scheme (ETS). Regarding the voluntary market, a new service model focused on forest management activities is under development, with an initial proposition focused on SME lending and advisory
▪ In June 2022, ISP became an investor signatory of CDP, further fostering corporate environmental transparency
▪ Revised the Fideuram Advisory model to embed ESG principles in need-based financial planning and launched a comprehensive training program for the ESG certification of bankers with more than 25,000 hours already provided in H1
(1) Net-Zero Banking Alliance, Net-Zero Asset Managers Initiative, Net-Zero Asset Owner Alliance and Net-Zero Insurance Alliance (2) Glasgow Financial Alliance for Net-Zero (3) 2021-2026 National Recovery and Resilience Plan (4) Eurizon perimeter – Funds pursuant to art. 8 and 9 SFDR 2088
Ranked first among peer group by Bloomberg (ESG Disclosure Score), Sustainalytics and MSCI
In January 2022, ISP was confirmed in the Bloomberg Gender-Equality Index
In February 2022, ISP received the S&P Global Sustainability Award – Bronze Class
In 2021 ranking by Institutional Investor, ISP was Europe's Best Bank and Italy's Best Company for ESG aspects and in 2022 has been confirmed as Italy's Best Company in ESG (Large Cap)(1)
| 74 | A | AAA | 99 | 17.1 | |
|---|---|---|---|---|---|
| 64 | A | AAA | 99 | 19.3 | |
| 62 | A | AAA | 97 | 20.1 | |
| 62 | A | AA | 94 | 20.6 | |
| 62 | A | AA | 94 | 21.3 | |
| 60 | A | AA | 94 | 22.0 | |
| 60 | A | AA | 93 | 22.5 | |
| 59 | B | AA | 92 | 22.5 | |
| 59 | B | AA | 92 | 22.5 | |
| 56 | B | AA | 81 | 22.7 | |
| 56 | B | AA | 79 | 23.9 | |
| 54 | B | AA | 78 | 24.3 | |
| 54 | B | AA | 71 | 24.9 | |
| 53 | B | AA | 70 | 25.0 | |
| 52 | B | A | 70 | 25.9 | |
| 51 | B | A | 69 | 29.0 | |
| 45 | F | A | 65 | 30.5 |
Top ranking(2) for Sustainability
(1) European ranking results expected in September
(2) ISP peer group
Source: Bloomberg ESG Disclosure Score (Bloomberg as at 30.6.22), CDP Climate Change Score 2021 (https://www.cdp.net/en/companies/companies-scores); MSCI ESG Score (https://www.msci.com/esg-ratings) data as at 30.6.22; S&P Global (Bloomberg as at 30.6.22); Sustainalytics score (https://www.sustainalytics.com/esg-ratings; as at 30.6.22)
Our People are our most
important asset
▪ ISP recognised as Top Employer 2022(1) and ranked at the top of LinkedIn's Top Companies 2022 list
€48m one-off contribution to ISP People(2) to mitigate the impact from inflation
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Donations and other support initiatives for
Key support initiatives for Pravex Bank colleagues
Ukraine
27
(1) United Nations High Commissioner for Refugees (2) Cooperazione e Sviluppo (3) Associazione Volontari per il Servizio Internazionale (4) Agreed with Labour Unions
| Massive upfront de-risking, slashing Cost of risk |
Structural Cost reduction, enabled by technology |
Our People are our most important asset 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 |
| €6.5bn Net income target for 2025 confirmed, with potential upside from an interest rate increase, high flexibility in | managing Costs and Zero-NPL Bank status already achieved |
Our People are our most important asset
(1) Throughout the entire Business Plan horizon
(2) Commissions and Insurance income
1H22: excellent operating performance
2022-2025 Business Plan proceeding at full speed
ISP is well equipped for a challenging environment
Final remarks
(1) €1.7bn to be executed subject to the approval of the Board of Directors by the time the FY22 results are approved
Note: figures may not add up exactly due to rounding
| Italian GDP YoY evolution | The Italian economy is resilient thanks to solid fundamentals | |
|---|---|---|
| % | Households | ▪ Strong Italian household wealth at €11,000bn, of which €5,000bn in financial assets, coupled with low household debt ▪ Significant growth in household savings (in terms of currency and deposit stock) since the start of the COVID-19 pandemic, with 8% deposit growth on average in 2020-21 vs 4% in the previous eight years |
| 6.6 ~3 |
Corporates | ▪ Very resilient Italian SMEs, quickly recovering after the COVID-19 emergency with historically low default rates maintained after the end of moratoria ▪ Export-oriented companies highly diversified in terms of industry and size, Italian exports have outperformed Germany's by almost 20% over the past 5 years(3) ▪ High trade balance surplus (€89.5bn net of energy in 2021) |
| 2021(1) 2022 forecast(2) |
Banking system |
▪ Banking system played an important role in mitigating the economic impact of the COVID-19 emergency on households and companies |
| Italian Government and EU support |
▪ Extensive support to the economy from the Italian Government, with measures worth ~€33bn already approved since September 2021 (~2% of GDP) ▪ 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 in 2021 and €42bn expected in 2022 |
(1) Source: ISTAT (2) Source: ISP estimates
(3) At current prices (May 2022 vs May 2017)
1H22: excellent operating performance
2022-2025 Business Plan proceeding at full speed
ISP is well equipped for a challenging environment
Final remarks
Execution of the 2022-2025 Business Plan proceeding at full speed, with key industrial initiatives well underway: fully equipped to continue succeeding in the future
(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) According to EBA definition
2022 outlook to be fine-tuned in the coming months based on the evolution of the Russia-Ukraine conflict
| € m | |||
|---|---|---|---|
| 1H22 | 30.6.22 | ||
| Operating income |
10,756 | Loans to customers | 471,649 |
| Operating costs |
(5,111) | Customer financial assets(1) | 1,213,795 |
| Cost/Income ratio | 47.5% | of which Direct deposits from banking business | 549,360 |
| Operating margin | 5,645 | of which Direct deposits from insurance business and technical reserves |
180,788 |
| Gross income (loss) | 4,233 | of which Indirect customer deposits | 662,784 |
| Net income | 2,354 | - Assets under management |
436,493 |
| - Assets under administration |
226,291 | ||
| RWA | 325,341 |
Total assets 1,032,315
Liquidity, Funding and Capital base
Asset quality
Divisional results and other information
| 1H21 | |||||
|---|---|---|---|---|---|
| stated(1) [ A ] |
redetermined(2) [ B ] |
[ C ] | [ C ] / [ B ] | ||
| Net interest income | 4,013 | 3,947 | 4,047 | 2.5 | |
| Net fee and commission income | 4,764 | 4,670 | 4,529 | (3.0) | |
| Income from insurance business | 811 | 854 | 867 | 1.5 | |
| Profits on financial assets and liabilities at fair value | 1,140 | 1,139 | 1,323 | 16.2 | |
| Other operating income (expenses) | 65 | 51 | (10) | n.m. | |
| Operating income | 10,793 | 10,661 | 10,756 | 0.9 | |
| Personnel expenses | (3,324) | (3,273) | (3,181) | (2.8) | |
| Other administrative expenses | (1,354) | (1,361) | (1,307) | (4.0) | |
| Adjustments to property, equipment and intangible assets | (606) | (608) | (623) | 2.5 | |
| Operating costs | (5,284) | (5,242) | (5,111) | (2.5) | |
| Operating margin | 5,509 | 5,419 | 5,645 | 4.2 | |
| Net adjustments to loans | (1,007) | (1,001) | (1,432) | 43.1 | |
| Net provisions and net impairment losses on other assets | (351) | (354) | (123) | (65.3) | |
| Other income (expenses) | 191 | 191 | 143 | (25.1) | |
| Income (Loss) from discontinued operations | 0 | 58 | 0 | (100.0) | |
| Gross income (loss) | 4,342 | 4,313 | 4,233 | (1.9) | |
| Taxes on income | (921) | (922) | (1,456) | 57.9 | |
| Charges (net of tax) for integration and exit incentives | (107) | (107) | (39) | (63.6) | |
| Effect of purchase price allocation (net of tax) | (34) | (34) | (101) | 197.1 | |
| Levies and other charges concerning the banking industry (net of tax) | (292) | (279) | (3) (278) |
(0.4) | |
| Impairment (net of tax) of goodwill and other intangible assets | 0 | 0 | 0 | n.m. | |
| Minority interests | 35 | 52 | (5) | n.m. | |
| Net income | 3,023 | 3,023 | 2,354 | (22.1) |
Including €1.1bn provisions for Russia-Ukraine exposure in 1H22
€3,276m, +8.4% excluding provisions/writedowns for Russia-Ukraine exposure in 1H22
Note: figures may not add up exactly due to rounding
(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) €400m pre-tax of which Charges for the Resolution Fund: €362m pre-tax (€248m net of tax), our estimated commitment for the year
€ m
| 2Q22 | ||||
|---|---|---|---|---|
| Net interest income | 1,956 | 2,091 | 6.9 | |
| Net fee and commission income | 2,281 | 2,248 | (1.4) | |
| Income from insurance business | 402 | 465 | 15.7 | |
| Profits on financial assets and liabilities at fair value | 767 | 556 | (27.5) | |
| Other operating income (expenses) | 3 | (13) | n.m. | |
| Operating income | 5,409 | 5,347 | (1.1) | |
| Personnel expenses | (1,572) | (1,609) | 2.4 | |
| Other administrative expenses | (612) | (695) | 13.6 | |
| Adjustments to property, equipment and intangible assets | (315) | (308) | (2.2) | |
| Operating costs | (2,499) | (2,612) | 4.5 | |
| Operating margin | 2,910 | 2,735 | (6.0) | |
| Net adjustments to loans | (702) | (730) | 4.0 | Including €0.8bn in Q1 and €0.3bn in Q2 provisions for Russia-Ukraine exposure |
| Net provisions and net impairment losses on other assets | (60) | (63) | 5.0 | |
| Other income (expenses) | (4) | 147 | n.m. | |
| Income (Loss) from discontinued operations | 0 | 0 | n.m. | |
| Gross income (loss) | 2,144 | 2,089 | (2.6) | |
| Taxes on income | (781) | (675) | (13.6) | |
| Charges (net of tax) for integration and exit incentives | (16) | (23) | 43.8 | |
| Effect of purchase price allocation (net of tax) | (54) | (47) | (13.0) | |
| Levies and other charges concerning the banking industry (net of tax) | (266) | (12) | (95.5) | |
| Impairment (net of tax) of goodwill and other intangible assets | 0 | 0 | n.m. | |
| Minority interests | (3) | (2) | (33.3) | |
| Net income | 1,024 | 1,330 | 29.9 |
€1,670m and €1,606m respectively when excluding provisions/writedowns for Russia-Ukraine exposure
Note: figures may not add up exactly due to rounding
(1) €312m benefit from hedging on core deposits in 1H22, of which €181m in 2Q22
(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
-2.3% vs 2Q21 excluding performance fees
Commissions from Commercial banking activities up 4.5% (+€56m)
(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
| 2Q21 redetermined(1) |
1Q22 | 2Q22 | 1H21 redetermined(1) |
1H22 | |
|---|---|---|---|---|---|
| Customers | 72 | 88 | 84 | 157 | 172 |
| Capital markets | 97 | (11) | (78) | 415 | (89) |
| Trading and Treasury | 173 | 694 | 568 | 560 | 1,262 |
| Structured credit products | 2 | (4) | (18) | 7 | (22) |
Note: figures may not add up exactly due to rounding
(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
▪ Other administrative expenses increase vs Q1 mainly due to seasonal effects
(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
€3.2bn gross NPL reduction in Q2
Annualised Cost of credit at 27bps when excluding €1.1bn provisions for Russia-Ukraine exposure and €0.3bn release of part 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
(2) Taking into account 2022 NPL disposals already funded in 4Q21 and still booked in NPL as at 30.6.22 (€0.8bn gross, €0.4bn net)
Detailed consolidated P&L results
Liquidity, Funding and Capital base
Asset quality
Divisional results and other information
Note: figures may not add up exactly due to rounding
(1) Net of duplications between Direct deposits and Indirect customer deposits
Note: figures may not add up exactly due to rounding
(1) Including Senior non-preferred
(2) Certificates of deposit + Commercial papers
(3) Including Certificates
▪ Refinancing operations with the ECB: ~€115bn(3) consisting entirely of TLTRO III, out of a maximum allowance of ~€133bn
▪ Loan to Deposit ratio(4) at 86%
MIL-BVA362-03032014-90141/VR
(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
(3) June 2022: early repayment of €17bn, the amount taken under the TLTRO III on 18.12.19 (maturity 21.12.22)
(4) Loans to customers/Direct deposits from banking business
(1) 13.6% pro-forma fully loaded Basel 3 (30.6.22 financial statements considering the total absorption of DTA related to IFRS9 FTA (€1.0bn as at 30.6.22), DTA convertible in tax credit related to goodwill realignment (€5.6bn as at 30.6.22) and adjustments to loans (€2.8bn as at 30.6.22), 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 (€0.1bn as at 30.6.22), 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 30.6.22) and DTA on losses carried forward (€2.1bn as at 30.6.22), and the expected distribution on 1H22 Net income of insurance companies) (2) Including exposures with the ECB
Detailed consolidated P&L results
Liquidity, Funding and Capital base
Asset quality
Divisional results and other information
| x Gross NPL ratio, % |
x Net NPL ratio, % |
x Gross and net NPL ratio based on EBA definition, % |
|||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross NPL | |||||||||||
| € bn |
30.6.21(1) | 31.12.21(2) | 31.3.22(3) | 30.6.22(4) | € bn |
30.6.21(1) | 31.12.21(2) | 31.3.22(3) | 30.6.22(4) | ||
| Bad loans | 9.3 | 7.2 | 7.3 | 3.4 | Bad loans | 3.7 | 2.1 | 2.1 | 1.2 | ||
| - of which forborne |
1.9 | 1.5 | 1.5 | 0.7 | - of which forborne |
0.8 | 0.5 | 0.5 | 0.3 | ||
| Unlikely to pay | 9.4 | 7.3 | 6.5 | 7.0 | Unlikely to pay | 5.5 | 4.3 | 4.2 | 4.4 | ||
| - of which forborne |
3.9 | 2.9 | 3.1 | 3.1 | Of which | - of which forborne |
2.7 | 2.1 | 2.1 | 2.1 | Of which |
| Past due | 0.6 | 0.8 | 0.6 | 0.7 | €0.4bn related to Russia |
Past due | 0.5 | 0.6 | 0.4 | 0.5 | €0.2bn related to Russia |
| - of which forborne |
- | 0.2 | 0.1 | 0.1 | Ukraine exposure |
- of which forborne |
- | 0.1 | - | 0.1 | Ukraine exposure |
| Total | 19.3 | 15.2 | 14.4 | 11.1 | €10.3bn pro-forma(5) |
Total | 9.7 | 7.1 | 6.8 | 6.2 | €5.7bn pro-forma(5) |
| 4.1 | 3.2 | 3.0 | 2.3 | 2.2% (5) pro-forma |
2.1 | 1.5 | 1.4 | 1.3 | 1.2% pro-forma(5) |
||
| 3.1 | 2.4 | 2.3 | 1.8 | 1.7% pro-forma(5) |
1.6 | 1.2 | 1.1 | 1.0 | 1.0% pro-forma(5) |
Lowest-ever NPL stock and ratios with twenty-seventh consecutive quarterly reduction in NPL stock
Note: figures may not add up exactly due to rounding
(4) Not including €4.1bn gross (€1.0bn net) NPL booked in Discontinued operations
(5) Taking into account 2022 NPL disposals already funded in 4Q21 and still booked in NPL as at 30.6.22 (€0.8bn gross, €0.4bn net)
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) 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)
€ m
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)
€ m
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
| 30.6.22 | |
|---|---|
| Public Administration | 5.0% |
| Financial companies | 7.7% |
| Non-financial companies | 45.4% |
| of which: | |
| UTILITIES | 4.8% |
| SERVICES | 4.3% |
| REAL ESTATE | 3.6% |
| DISTRIBUTION | 3.4% |
| CONSTRUCTION AND MATERIALS FOR CONSTR. | 3.3% |
| METALS AND METAL PRODUCTS | 2.6% |
| FOOD AND DRINK | 2.6% |
| ENERGY AND EXTRACTION | 2.4% |
| FASHION | 2.2% |
| INFRASTRUCTURE | 2.2% |
| TRANSPORTATION MEANS | 2.0% |
| MECHANICAL | 1.8% |
| CHEMICALS, RUBBER AND PLASTICS | 1.8% |
| TOURISM | 1.7% |
| AGRICULTURE | 1.6% |
| TRANSPORT | 1.5% |
| PHARMACEUTICAL | 0.9% |
| ELECTRICAL COMPONENTS AND EQUIPMENT | 0.9% |
| FURNITURE AND WHITE GOODS | 0.8% |
| MEDIA | 0.6% |
| WOOD AND PAPER | 0.5% |
| OTHER CONSUMPTION GOODS | 0.2% |
| Moratoria stock as at 30.6.22 | |||||||
|---|---|---|---|---|---|---|---|
| Segments | # Clients (k) | Volumes (€ bn) | % of total net loan portfolio |
||||
| Households | 1.5 | 0.2 | 0.03% | ||||
| Enterprises | 0.5 | 0.1 | 0.03% | ||||
| Total | 2.0 | 0.3(1) | 0.06% |
€44.7bn expired moratoria with ~3%(2) default rate
Detailed consolidated P&L results
Liquidity, Funding and Capital base
Asset quality
Divisional results and other information
Data as at 30.6.22
| 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) | 4,380 | 2,563 | 1,045 | 1,135 | 495 | 824 | 314 | 10,756 |
| Operating margin (€ m) | 1,302 | 1,898 | 527 | 708 | 395 | 648 | 167 | 5,645 |
| Net income (€ m) | 656 | 404 | 166 | 514 | 302 | 437 | (125) | 2,354 |
| Cost/Income (%) | 70.3 | 25.9 | 49.6 | 37.6 | 20.2 | 21.4 | n.m. | 47.5 |
| RWA (€ bn) | 88.7 | 118.5 | 34.6 | 13.1 | 1.9 | 0.0 | 68.6 | 325.3 |
| Direct deposits from banking business (€ bn) | 290.5 | 92.5 | 52.5 | 55.9 | 0.0 | 0.0 | 57.9 | 549.4 |
| Loans to customers (€ bn) | 254.9 | 153.2 | 39.8 | 14.6 | 0.3 | 0.0 | 8.8 | 471.6 |
Note: figures may not add up exactly due to rounding
(1) Excluding the Russian subsidiary Banca Intesa which is included in the IMI C&IB Division
(2) Fideuram, Intesa Sanpaolo Private Banking, Intesa Sanpaolo Private Bank (Suisse) Morval, REYL Group, and Siref Fiduciaria
(3) Eurizon
(4) Cargeas Assicurazioni, 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
| 1H21 | 1H22 | % | |
|---|---|---|---|
| redetermined | |||
| Net interest income | 1,964 | 1,938 | (1.3) |
| Net fee and commission income | 2,388 | 2,377 | (0.5) |
| Income from insurance business | 0 | 0 | n.m. |
| Profits on financial assets and liabilities at fair value | 51 | 59 | 15.7 |
| Other operating income (expenses) | 5 | 6 | 20.0 |
| Operating income | 4,408 | 4,380 | (0.6) |
| Personnel expenses | (1,736) | (1,672) | (3.7) |
| Other administrative expenses | (1,443) | (1,405) | (2.6) |
| Adjustments to property, equipment and intangible assets | (3) | (1) | (66.7) |
| Operating costs | (3,182) | (3,078) | (3.3) |
| Operating margin | 1,226 | 1,302 | 6.2 |
| Net adjustments to loans | (666) | (259) | (61.1) |
| Net provisions and net impairment losses on other assets | (24) | (38) | 58.3 |
| Other income (expenses) | 0 | 11 | n.m. |
| Income (Loss) from discontinued operations | 0 | 0 | n.m. |
| Gross income (loss) | 536 | 1,016 | 89.6 |
| Taxes on income | (178) | (333) | 87.1 |
| Charges (net of tax) for integration and exit incentives | (16) | (7) | (56.3) |
| Effect of purchase price allocation (net of tax) | (15) | (18) | 20.0 |
| Levies and other charges concerning the banking industry (net of tax) | 0 | 0 | n.m. |
| Impairment (net of tax) of goodwill and other intangible assets | 0 | 0 | n.m. |
| Minority interests | (1) | (2) | 100.0 |
| Net income | 326 | 656 | 101.2 |
| 1Q22 | 2Q22 | % | |
|---|---|---|---|
| Net interest income | 958 | 979 | 2.2 |
| Net fee and commission income | 1,192 | 1,185 | (0.6) |
| Income from insurance business | 0 | 0 | 71.0 |
| Profits on financial assets and liabilities at fair value | 30 | 29 | (2.3) |
| Other operating income (expenses) | 2 | 4 | 172.6 |
| Operating income | 2,182 | 2,198 | 0.8 |
| Personnel expenses | (826) | (846) | 2.4 |
| Other administrative expenses | (695) | (710) | 2.2 |
| Adjustments to property, equipment and intangible assets | (1) | (1) | 13.6 |
| Operating costs | (1,521) | (1,557) | 2.3 |
| Operating margin | 660 | 641 | (2.9) |
| Net adjustments to loans | 141 | (400) | n.m. |
| Net provisions and net impairment losses on other assets | (15) | (24) | 61.9 |
| Other income (expenses) | 0 | 11 | n.m. |
| Income (Loss) from discontinued operations | 0 | 0 | n.m. |
| Gross income (loss) | 787 | 229 | (70.9) |
| Taxes on income | (261) | (72) | (72.3) |
| Charges (net of tax) for integration and exit incentives | (2) | (5) | 130.1 |
| Effect of purchase price allocation (net of tax) | (8) | (10) | 23.6 |
| 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) | (1) | 3.5 |
| Net income | 515 | 141 | (72.6) |
€ m
| 1H21 | 1H22 | % | ||
|---|---|---|---|---|
| redetermined | ||||
| Net interest income | 1,104 | 968 | (12.3) | |
| Net fee and commission income | 556 | 569 | 2.3 | |
| Income from insurance business | 0 | 0 | n.m. | |
| Profits on financial assets and liabilities at fair value | 840 | 1,027 | 22.3 | |
| Other operating income (expenses) | 1 | (1) | n.m. | |
| Operating income | 2,501 | 2,563 | 2.5 | |
| Personnel expenses | (234) | (235) | 0.4 | |
| Other administrative expenses | (403) | (421) | 4.5 | |
| Adjustments to property, equipment and intangible assets | (11) | (9) | (18.2) | |
| Operating costs | (648) | (665) | 2.6 | |
| Operating margin | 1,853 | 1,898 | 2.4 | |
| Net adjustments to loans | (55) | (1,072) | n.m. | Including €947m provisions for Russia-Ukraine exposure in 1H22 |
| Net provisions and net impairment losses on other assets | 2 | (59) | n.m. | |
| Other income (expenses) | 0 | 0 | n.m. | |
| Income (Loss) from discontinued operations | 0 | 0 | n.m. | |
| Gross income (loss) | 1,800 | 767 | (57.4) | |
| Taxes on income | (563) | (353) | (37.3) | |
| Charges (net of tax) for integration and exit incentives | (10) | (10) | 0.0 | |
| 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 | 0 | 0 | n.m. | €1,179m, (5.5)% excluding |
| Net income | 1,247 | 404 | (67.6) | provisions/writedowns for Russia Ukraine exposure in 1H22 |
Note: figures may not add up exactly due to rounding
€ m
| 1Q22 | 2Q22 | % | |
|---|---|---|---|
| Net interest income | 475 | 494 | 4.0 |
| Net fee and commission income | 296 | 273 | (7.9) |
| Income from insurance business | 0 | 0 | n.m. |
| Profits on financial assets and liabilities at fair value | 624 | 402 | (35.5) |
| Other operating income (expenses) | (0) | (0) | 53.0 |
| Operating income | 1,395 | 1,169 | (16.2) |
| Personnel expenses | (115) | (120) | 4.2 |
| Other administrative expenses | (198) | (222) | 12.2 |
| Adjustments to property, equipment and intangible assets | (5) | (4) | (16.5) |
| Operating costs | (318) | (346) | 8.9 |
| Operating margin | 1,076 | 822 | (23.6) |
| Net adjustments to loans | (723) | (349) | (51.8) |
| Net provisions and net impairment losses on other assets | (25) | (35) | 41.0 |
| Other income (expenses) | 0 | (0) | n.m. |
| Income (Loss) from discontinued operations | 0 | 0 | n.m. |
| Gross income (loss) | 328 | 438 | 33.5 |
| Taxes on income | (153) | (199) | 29.8 |
| Charges (net of tax) for integration and exit incentives | (5) | (5) | (0.9) |
| 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 | 170 | 234 | 37.7 |
Including €679m in Q1 and €268m in Q2 provisions for Russia-Ukraine exposure
€689m and €488m respectively when excluding provisions/writedowns for Russia-Ukraine exposure
Note: figures may not add up exactly due to rounding
€ m
| 1H21 | 1H22 | % | ||
|---|---|---|---|---|
| redetermined | ||||
| Net interest income | 649 | 708 | 9.1 | |
| Net fee and commission income | 263 | 290 | 10.3 | |
| Income from insurance business | 0 | 0 | n.m. | |
| Profits on financial assets and liabilities at fair value | 73 | 79 | 8.2 | |
| Other operating income (expenses) | (18) | (32) | 77.8 | |
| Operating income | 967 | 1,045 | 8.1 | |
| Personnel expenses | (264) | (268) | 1.5 | |
| Other administrative expenses | (183) | (190) | 3.8 | |
| Adjustments to property, equipment and intangible assets | (59) | (60) | 1.7 | |
| Operating costs | (506) | (518) | 2.4 | |
| Operating margin | 461 | 527 | 14.3 | |
| Net adjustments to loans | (78) | (188) | 141.0 | Including €146m provisions for Russia-Ukraine exposure in 1H22 |
| Net provisions and net impairment losses on other assets | (16) | (14) | (12.5) | |
| Other income (expenses) | 4 | 2 | (50.0) | |
| Income (Loss) from discontinued operations | 0 | 0 | n.m. | |
| Gross income (loss) | 371 | 327 | (11.9) | |
| Taxes on income | (84) | (118) | 40.5 | |
| Charges (net of tax) for integration and exit incentives | (19) | (19) | 0.0 | |
| Effect of purchase price allocation (net of tax) | 0 | 0 | n.m. | |
| Levies and other charges concerning the banking industry (net of tax) | (17) | (24) | 41.2 | |
| Impairment (net of tax) of goodwill and other intangible assets | 0 | 0 | n.m. | |
| Minority interests | 0 | 0 | n.m. | €311m, +23.7% excluding |
| Net income | 251 | 166 | (33.9) | provisions/writedowns for Russia Ukraine exposure in 1H22 |
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
€ m
| 1Q22 | 2Q22 | % | ||
|---|---|---|---|---|
| Net interest income | 343 | 366 | 6.9 | |
| Net fee and commission income | 140 | 150 | 7.4 | |
| Income from insurance business | 0 | 0 | n.m. | |
| Profits on financial assets and liabilities at fair value | 30 | 49 | 62.1 | |
| Other operating income (expenses) | (13) | (19) | 47.7 | |
| Operating income | 500 | 546 | 9.3 | |
| Personnel expenses | (134) | (134) | (0.4) | |
| Other administrative expenses | (92) | (99) | 7.5 | |
| Adjustments to property, equipment and intangible assets | (30) | (30) | (2.5) | |
| Operating costs | (256) | (262) | 2.2 | |
| Operating margin | 243 | 284 | 16.9 | |
| Net adjustments to loans | (136) | (52) | (62.1) | |
| Net provisions and net impairment losses on other assets | (5) | (9) | 93.1 | exposure |
| Other income (expenses) | 1 | 1 | (33.0) | |
| Income (Loss) from discontinued operations | 0 | 0 | n.m. | |
| Gross income (loss) | 103 | 224 | 116.9 | |
| Taxes on income | (50) | (68) | 37.3 | |
| Charges (net of tax) for integration and exit incentives | (9) | (10) | 18.4 | |
| Effect of purchase price allocation (net of tax) | 0 | 0 | n.m. | |
| Levies and other charges concerning the banking industry (net of tax) | (10) | (14) | 43.6 | |
| Impairment (net of tax) of goodwill and other intangible assets | 0 | 0 | n.m. | |
| Minority interests | 0 | 0 | n.m. | |
| Net income | 35 | 131 | 274.4 | |
Including €122m in Q1 and €24m in Q2 provisions for Russia-Ukraine
€155m and €155m respectively when excluding provisions/writedowns for Russia-Ukraine exposure
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
| 1H21 | 1H22 | % | |
|---|---|---|---|
| redetermined | |||
| Net interest income | 106 | 99 | (6.6) |
| Net fee and commission income | 1,030 | 1,009 | (2.0) |
| Income from insurance business | 0 | 0 | n.m. |
| Profits on financial assets and liabilities at fair value | 32 | 19 | (40.6) |
| Other operating income (expenses) | 14 | 8 | (42.9) |
| Operating income | 1,182 | 1,135 | (4.0) |
| Personnel expenses | (215) | (212) | (1.4) |
| Other administrative expenses | (170) | (177) | 4.1 |
| Adjustments to property, equipment and intangible assets | (36) | (38) | 5.6 |
| Operating costs | (421) | (427) | 1.4 |
| Operating margin | 761 | 708 | (7.0) |
| Net adjustments to loans | 1 | (3) | n.m. |
| Net provisions and net impairment losses on other assets | (17) | 14 | n.m. |
| Other income (expenses) | 194 | 0 | (100.0) |
| Income (Loss) from discontinued operations | 0 | 0 | n.m. |
| Gross income (loss) | 939 | 719 | (23.4) |
| Taxes on income | (287) | (179) | (37.6) |
| Charges (net of tax) for integration and exit incentives | (10) | (16) | 60.0 |
| Effect of purchase price allocation (net of tax) | (11) | (10) | (9.1) |
| 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 | 631 | 514 | (18.5) |
| 1Q22 | 2Q22 | % | |
|---|---|---|---|
| Net interest income | 47 | 52 | 9.1 |
| Net fee and commission income | 503 | 505 | 0.4 |
| Income from insurance business | 0 | 0 | n.m. |
| Profits on financial assets and liabilities at fair value | 11 | 8 | (29.5) |
| Other operating income (expenses) | 3 | 6 | 127.8 |
| Operating income | 565 | 571 | 1.1 |
| Personnel expenses | (103) | (108) | 5.1 |
| Other administrative expenses | (87) | (90) | 3.3 |
| Adjustments to property, equipment and intangible assets | (19) | (19) | (1.0) |
| Operating costs | (209) | (217) | 3.8 |
| Operating margin | 355 | 353 | (0.5) |
| Net adjustments to loans | 2 | (5) | n.m. |
| Net provisions and net impairment losses on other assets | 4 | 10 | 162.2 |
| Other income (expenses) | 0 | 0 | n.m. |
| Income (Loss) from discontinued operations | 0 | 0 | n.m. |
| Gross income (loss) | 361 | 358 | (0.6) |
| Taxes on income | (103) | (75) | (26.9) |
| Charges (net of tax) for integration and exit incentives | (8) | (8) | 8.8 |
| Effect of purchase price allocation (net of tax) | (5) | (5) | (7.7) |
| 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 | (1) | n.m. |
| Net income | 245 | 269 | 9.8 |
| 1H21 | 1H22 | % | |
|---|---|---|---|
| redetermined | |||
| Net interest income | 0 | 0 | n.m. |
| Net fee and commission income | 595 | 472 | (20.7) |
| Income from insurance business | 0 | 0 | n.m. |
| Profits on financial assets and liabilities at fair value | (2) | (15) | 650.0 |
| Other operating income (expenses) | 40 | 38 | (5.0) |
| Operating income | 633 | 495 | (21.8) |
| Personnel expenses | (50) | (48) | (4.0) |
| Other administrative expenses | (51) | (49) | (3.9) |
| Adjustments to property, equipment and intangible assets | (4) | (3) | (25.0) |
| Operating costs | (105) | (100) | (4.8) |
| Operating margin | 528 | 395 | (25.2) |
| 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) | 528 | 395 | (25.2) |
| Taxes on income | (141) | (89) | (36.9) |
| Charges (net of tax) for integration and exit incentives | (1) | (1) | 0.0 |
| Effect of purchase price allocation (net of tax) | 0 | (2) | 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 | (10) | (1) | (90.0) |
| Net income | 376 | 302 | (19.7) |
| 1Q22 | 2Q22 | % | |
|---|---|---|---|
| Net interest income | (0) | (0) | (49.4) |
| Net fee and commission income | 241 | 231 | (4.2) |
| Income from insurance business | 0 | 0 | n.m. |
| Profits on financial assets and liabilities at fair value | (5) | (10) | (86.6) |
| Other operating income (expenses) | 17 | 21 | 20.2 |
| Operating income | 253 | 242 | (4.4) |
| Personnel expenses | (23) | (25) | 8.1 |
| Other administrative expenses | (25) | (24) | (1.9) |
| Adjustments to property, equipment and intangible assets | (2) | (1) | (8.1) |
| Operating costs | (49) | (51) | 2.5 |
| Operating margin | 204 | 191 | (6.1) |
| Net adjustments to loans | 0 | (0) | n.m. |
| Net provisions and net impairment losses on other assets | 0 | 0 | (456.5) |
| Other income (expenses) | 0 | 0 | n.m. |
| Income (Loss) from discontinued operations | 0 | 0 | n.m. |
| Gross income (loss) | 204 | 191 | (6.1) |
| Taxes on income | (57) | (33) | (42.4) |
| Charges (net of tax) for integration and exit incentives | (1) | (0) | (48.3) |
| 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) | (3.9) |
| Net income | 145 | 157 | 8.3 |
| 1H21 | 1H22 | % | |
|---|---|---|---|
| redetermined | |||
| Net interest income | 0 | 0 | n.m. |
| Net fee and commission income | 1 | 1 | 0.0 |
| Income from insurance business | 825 | 830 | 0.6 |
| Profits on financial assets and liabilities at fair value | 0 | 0 | n.m. |
| Other operating income (expenses) | (5) | (7) | 40.0 |
| Operating income | 821 | 824 | 0.4 |
| Personnel expenses | (72) | (68) | (5.6) |
| Other administrative expenses | (108) | (99) | (8.3) |
| Adjustments to property, equipment and intangible assets | (10) | (9) | (10.0) |
| Operating costs | (190) | (176) | (7.4) |
| Operating margin | 631 | 648 | 2.7 |
| Net adjustments to loans | 0 | 0 | n.m. |
| Net provisions and net impairment losses on other assets | (132) | (9) | (93.2) |
| Other income (expenses) | 0 | 0 | n.m. |
| Income (Loss) from discontinued operations | 0 | 0 | n.m. |
| Gross income (loss) | 499 | 639 | 28.1 |
| Taxes on income | (110) | (166) | 50.9 |
| Charges (net of tax) for integration and exit incentives | (7) | (4) | (42.9) |
| Effect of purchase price allocation (net of tax) | (12) | (32) | 166.7 |
| 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 | 69 | 0 | (100.0) |
| Net income | 439 | 437 | (0.5) |
| 1Q22 | 2Q22 | % | |
|---|---|---|---|
| Net interest income | (0) | (0) | 4.0 |
| Net fee and commission income | 1 | 1 | 21.2 |
| Income from insurance business | 388 | 442 | 14.0 |
| Profits on financial assets and liabilities at fair value | (0) | (0) | (631.8) |
| Other operating income (expenses) | (3) | (4) | (12.9) |
| Operating income | 385 | 439 | 14.0 |
| Personnel expenses | (33) | (34) | 2.6 |
| Other administrative expenses | (46) | (53) | 15.3 |
| Adjustments to property, equipment and intangible assets | (5) | (5) | 5.8 |
| Operating costs | (84) | (92) | 9.7 |
| Operating margin | 301 | 347 | 15.2 |
| Net adjustments to loans | 0 | 0 | n.m. |
| Net provisions and net impairment losses on other assets | (8) | (2) | (77.7) |
| Other income (expenses) | 0 | 0 | n.m. |
| Income (Loss) from discontinued operations | 0 | 0 | n.m. |
| Gross income (loss) | 294 | 345 | 17.5 |
| Taxes on income | (73) | (93) | 27.6 |
| Charges (net of tax) for integration and exit incentives | (2) | (3) | 53.6 |
| Effect of purchase price allocation (net of tax) | (17) | (15) | (10.8) |
| 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) | 1 | n.m. |
| Net income | 201 | 236 | 17.0 |
| € m | 1Q21 | 2Q21 | 3Q21 | 4Q21 | 1Q22 | 2Q22 | |
|---|---|---|---|---|---|---|---|
| redetermined(1) | |||||||
| Net interest income | 1,952 | 1,995 | 1,999 | 1,954 | 1,956 | 2,091 | |
| Net fee and commission income | 2,309 | 2,361 | 2,315 | 2,508 | 2,281 | 2,248 | |
| Income from insurance business | 398 | 456 | 365 | 410 | 402 | 465 | |
| Profits on financial assets and liabilities at fair value | 795 | 344 | 378 | 108 | 767 | 556 | |
| Other operating income (expenses) | 32 | 19 | 25 | 16 | 3 | (13) | |
| Operating income | 5,486 | 5,175 | 5,082 | 4,996 | 5,409 | 5,347 | |
| Personnel expenses | (1,625) | (1,648) | (1,633) | (1,820) | (1,572) | (1,609) | |
| Other administrative expenses | (651) | (710) | (693) | (845) | (612) | (695) | |
| Adjustments to property, equipment and intangible assets | (307) | (301) | (302) | (338) | (315) | (308) | |
| Operating costs | (2,583) | (2,659) | (2,628) | (3,003) | (2,499) | (2,612) | |
| Operating margin | 2,903 | 2,516 | 2,454 | 1,993 | 2,910 | 2,735 | |
| Net adjustments to loans | (402) | (599) | (543) | (1,222) | (702) | (730) | |
| Net provisions and net impairment losses on other assets | (134) | (220) | (82) | (415) | (60) | (63) | |
| Other income (expenses) | 198 | (7) | 63 | 78 | (4) | 147 | |
| Income (Loss) from discontinued operations | 48 | 10 | (0) | (0) | 0 | 0 | |
| Gross income (loss) | 2,613 | 1,700 | 1,892 | 434 | 2,144 | 2,089 | |
| Taxes on income | (837) | (85) | (619) | (82) | (781) | (675) | |
| Charges (net of tax) for integration and exit incentives | (52) | (55) | (41) | (291) | (16) | (23) | |
| Effect of purchase price allocation (net of tax) | (16) | (18) | (51) | 46 | (54) | (47) | |
| Levies and other charges concerning the banking industry (net of tax) | (196) | (83) | (210) | (22) | (266) | (12) | |
| Impairment (net of tax) of goodwill and other intangible assets | 0 | 0 | 0 | 0 | 0 | 0 | |
| Minority interests | 4 | 48 | 12 | 94 | (3) | (2) | |
| Net income | 1,516 | 1,507 | 983 | 179 | 1,024 | 1,330 |
Note: figures may not add up exactly due to rounding
(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 | ||||||
| redetermined(1) | |||||||||||
| Guarantees given / received | 42 | 51 | 57 | 52 | 47 | 54 | |||||
| Collection and payment services | 137 | 139 | 138 | 138 | 139 | 164 | |||||
| Current accounts | 344 | 352 | 352 | 364 | 345 | 348 | |||||
| Credit and debit cards | 61 | 106 | 108 | 89 | 83 | 108 | |||||
| Commercial banking activities | 584 | 648 | 655 | 643 | 614 | 674 | |||||
| Dealing and placement of securities | 290 | 283 | 207 | 227 | 225 | 152 | |||||
| Currency dealing | 3 | 3 | 3 | 4 | 2 | 3 | |||||
| Portfolio management | 729 | 772 | 754 | 872 | 701 | 673 | |||||
| Distribution of insurance products | 406 | 383 | 401 | 417 | 403 | 421 | |||||
| Other | 58 | 50 | 58 | 109 | 73 | 53 | |||||
| Management, dealing and consultancy activities | 1,486 | 1,491 | 1,423 | 1,629 | 1,404 | 1,302 | |||||
| Other net fee and commission income | 239 | 222 | 237 | 236 | 263 | 272 | |||||
| Net fee and commission income | 2,309 | 2,361 | 2,315 | 2,508 | 2,281 | 2,248 |
Note: figures may not add up exactly due to rounding
(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
Data as at 30.6.22
| Total CEE |
Total | % of the Group |
||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Hungary | Slovakia | Slovenia | Croatia | Bosnia | Serbia | Albania | Romania | Moldova | Ukraine (*) |
Egypt | ||||
| Operating income (€ m) | 147 | 236 | 37 | 211 | 22 | 152 | 21 | 22 | 8 | 856 | 181 | 1,037 | 9.6% | |
| Operating costs (€ m) | 53 | 107 | 22 | 92 | 11 | 57 | 11 | 16 | 5 | 374 | 78 | 452 | 8.8% | |
| Net adjustments to loans (€ m) | 12 | 22 | 5 | 10 | 2 | 20 | (1) | 0 | 1 | 70 | 8 | 78 | 5.4% | |
| Net income (€ m) | 25 | 64 | 5 | 82 | 8 | 54 | 5 | 3 | 3 | 248 | 61 | 309 | 13.1% | |
| Customer deposits (€ bn) | 5.1 | 18.5 | 3.1 | 11.9 | 0.9 | 4.8 | 1.4 | 1.0 | 0.2 | 46.8 | 5.1 | 51.9 | 9.5% | |
| Customer loans (€ bn) | 3.3 | 16.7 | 2.2 | 8.0 | 0.8 | 4.4 | 0.4 | 0.9 | 0.1 | 36.8 | 2.8 | 39.6 | 8.4% | |
| Performing loans (€ bn) of which: |
3.3 | 16.7 | 2.2 | 7.8 | 0.8 | 4.4 | 0.4 | 0.8 | 0.1 | 36.4 | 2.7 | 39.1 | 8.4% | |
| Retail local currency | 50% | 60% | 42% | 28% | 33% | 23% | 21% | 14% | 56% | 45% | 53% | 45% | ||
| Retail foreign currency | 0% | 0% | 0% | 22% | 13% | 29% | 14% | 13% | 0% | 9% | 0% | 8% | ||
| Corporate local currency | 18% | 34% | 57% | 25% | 19% | 7% | 16% | 49% | 19% | 29% | 37% | 29% | ||
| Corporate foreign currency | 31% | 7% | 0% | 25% | 35% | 42% | 49% | 23% | 25% | 18% | 10% | 17% | ||
| Non-performing loans (€ m) | 60 | 94 | 6 | 208 | 15 | 45 | 7 | 21 | 3 | 459 | 65 | 524 | 8.5% | |
| Non-performing loans coverage | 43% | 72% | 79% | 50% | 55% | 64% | 53% | 56% | 25% | 59% | 60% | 59% | ||
| Annualised Cost of credit (1) (bps) | 74 | 27 | 42 | 24 | 47 | 89 | n.m. | 6 | 100 | 38 | 54 | 39 |
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
(*) Considering the limited operations of Pravex Bank in H1 and, more in general, its not-material size, its income statement has not been consolidated; the consolidated financial statements recognised the effect on the income statement of the valuations regarding this subsidiary carried out by central functions. The subsidiary's balance sheet has been consolidated on the basis of the countervalue of 2021 year-end figures at the exchange rate as at 30.6.22
(1) Net adjustments to loans/Net customer loans
€ m
| DEBT SECURITIES Banking Business |
LOANS | ||||
|---|---|---|---|---|---|
| AC | FVTOCI | FVTPL(2) | Total(3) | ||
| EU Countries | 43,924 | 42,206 | 518 | 86,648 | 429,773 |
| Austria | 795 | 453 | 41 | 1,289 | 1,342 |
| Belgium | 2,932 | 1,641 | 224 | 4,797 | 993 |
| Bulgaria | 5 | 0 | -6 | -1 | 19 |
| Croatia | 294 | 1,180 | 89 | 1,563 | 7,979 |
| Cyprus | 0 | 0 | 0 | 0 | 14 |
| Czech Republic | 138 | 0 | 1 | 139 | 950 |
| Denmark | 73 | 56 | -4 | 125 | 32 |
| Estonia | 0 | 0 | 0 | 0 | 5 |
| Finland | 288 | 66 | 9 | 363 | 281 |
| France | 7,166 | 3,811 | -179 | 10,798 | 7,667 |
| Germany | 920 | 1,718 | 190 | 2,828 | 6,490 |
| Greece | 0 | 314 | 56 | 370 | 16 |
| Hungary | 365 | 1,125 | 36 | 1,526 | 3,219 |
| Ireland | 983 | 831 | 170 | 1,984 | 523 |
| Italy | 22,920 | 21,492 | -718 | 43,694 | 363,873 |
| Latvia | 0 | 0 | 0 | 0 | 27 |
| Lithuania | 0 | 0 | 18 | 18 | 1 |
| Luxembourg | 549 | 1,018 | 310 | 1,877 | 7,987 |
| Malta | 0 | 0 | 0 | 0 | 125 |
| The Netherlands | 1,136 | 707 | 152 | 1,995 | 2,477 |
| Poland | 295 | 110 | 2 | 407 | 1,108 |
| Portugal | 535 | 986 | -64 | 1,457 | 141 |
| Romania | 128 | 358 | 42 | 528 | 942 |
| Slovakia | 0 | 568 | 2 | 570 | 14,312 |
| Slovenia | 37 | 287 | 0 | 324 | 2,135 |
| Spain | 4,328 | 5,249 | 136 | 9,713 | 6,593 |
| Sweden | 37 | 236 | 11 | 284 | 522 |
| Albania | 115 | 474 | 3 | 592 | 451 |
| Egypt | 229 | 1,528 | 1 | 1,758 | 3,515 |
| Japan | 97 | 2,913 | -1 | 3,009 | 464 |
| Russia | 0 | 55 | 15 | 70 | 4,991 |
| Serbia | 7 | 571 | -8 | 570 | 4,645 |
| United Kingdom | 945 | 656 | 105 | 1,706 | 13,023 |
| U.S.A. | 2,103 | 6,827 | 263 | 9,193 | 7,815 |
| Other Countries | 2,481 | 6,272 | 431 | 9,184 | 28,947 |
| Total | 49,901 | 61,502 | 1,327 112,730 # | 493,624 |
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 30.6.22
(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 €76,724m (of which €52,228m in Italy)
| € m | DEBT SECURITIES | ||||||
|---|---|---|---|---|---|---|---|
| Banking Business | LOANS | ||||||
| AC | FVTOCI | FVTPL(2) Total(3) | |||||
| EU Countries | 30,639 | 33,928 | -2,145 | 62,422 | 11,164 | ||
| Austria | 685 | 321 | 40 | 1,046 | 0 | ||
| Belgium | 1,907 | 1,573 | 198 | 3,678 | 0 | ||
| Bulgaria | 0 | 0 | -1 | -1 | 0 | ||
| Croatia | 152 | 1,180 | 84 | 1,416 | 1,436 | ||
| Cyprus | 0 | 0 | 0 | 0 | 0 | ||
| Czech Republic | 0 | 0 | 0 | 0 | 0 | ||
| Denmark | 0 | 0 | -4 | -4 | 0 | ||
| Estonia | 0 | 0 | 0 | 0 | 0 | ||
| Finland | 279 | 0 | -9 | 270 | 0 | ||
| France | 6,265 | 2,242 | -375 | 8,132 | 33 | ||
| Germany | 367 | 824 | 50 | 1,241 | 0 | ||
| Greece | 0 | 180 | 54 | 234 | 0 | ||
| Hungary | 162 | 1,078 | 33 | 1,273 | 117 | ||
| Ireland | 586 | 373 | -19 | 940 | 0 | Banking business government bond | |
| duration: 6.7y | |||||||
| Italy | 14,680 | 18,631 | -2,450 | 30,861 | 9,140 | Adjusted duration due to hedging: 0.6y | |
| Latvia | 0 | 0 | 0 | 0 | 23 | ||
| Lithuania | 0 | 0 | 0 | 0 | 0 | ||
| Luxembourg | 462 | 704 | 247 | 1,413 | 0 | ||
| Malta | 0 | 0 | 0 | 0 | 0 | ||
| The Netherlands | 861 | 60 | 86 | 1,007 | 0 | ||
| Poland | 25 | 64 | 0 | 89 | 0 | ||
| Portugal | 389 | 977 | -76 | 1,290 | 0 | ||
| Romania | 53 | 329 | 7 | 389 | 4 | ||
| Slovakia | 0 | 542 | 2 | 544 | 170 | ||
| Slovenia | 0 | 280 | 2 | 282 | 195 | ||
| Spain | 3,766 | 4,564 | -14 | 8,316 | 46 | ||
| Sweden | 0 | 6 | 0 | 6 | 0 | ||
| Albania | 115 | 474 | 1 | 590 | 1 | ||
| Egypt | 228 | 1,528 | 0 | 1,756 | 467 | ||
| Japan | 0 | 2,346 | 0 | 2,346 | 0 | ||
| Russia | 0 | 55 | 0 | 55 | 0 | ||
| Serbia | 7 | 545 | 0 | 552 | 97 | ||
| United Kingdom | 0 | 126 | 10 | 136 | 0 | ||
| U.S.A. | 1,079 | 5,475 | 175 | 6,729 | 0 | ||
| Other Countries | 1,742 | 3,687 | -62 | 5,367 | 5,243 | ||
| Total | 33,810 | 48,164 | -2,021 | 79,953 # | 16,972 | ||
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 30.6.22
(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 €59,904m (of which €49,387m in Italy). The total of FVTOCI and AFS reserves (net of tax and allocation to insurance products under separate management) amounts to -€1,616m (of which -€595m in Italy)
€ m
| DEBT SECURITIES Banking Business |
|||||
|---|---|---|---|---|---|
| AC | FVTOCI | FVTPL(2) | Total(3) | LOANS | |
| EU Countries | 2,400 | 4,434 | 1,243 | 8,077 | 19,291 |
| Austria | 108 | 56 | 1 | 165 | 84 |
| Belgium | 12 | 58 | 18 | 88 | 98 |
| Bulgaria | 3 | 0 | -6 | -3 | 0 |
| Croatia | 58 | 0 | 5 | 63 | 46 |
| Cyprus | 0 | 0 | 0 | 0 | 0 |
| Czech Republic | 0 | 0 | 0 | 0 | 0 |
| Denmark | 32 | 15 | 0 | 47 | 15 |
| Estonia | 0 | 0 | 0 | 0 | 0 |
| Finland | 9 | 25 | 12 | 46 | 29 |
| France | 355 | 909 | 46 | 1,310 | 4,588 |
| Germany | 358 | 490 | 94 | 942 | 2,904 |
| Greece | 0 | 87 | 0 | 87 | 3 |
| Hungary | 134 | 47 | -1 | 180 | 163 |
| Ireland | 143 | 31 | 47 | 221 | 212 |
| Italy | 793 | 1,568 | 891 | 3,252 | 7,656 |
| Latvia | 0 | 0 | 0 | 0 | 0 |
| Lithuania | 0 | 0 | 0 | 0 | 0 |
| Luxembourg | 63 | 252 | 39 | 354 | 940 |
| Malta | 0 | 0 | 0 | 0 | 91 |
| The Netherlands | 149 | 346 | 26 | 521 | 204 |
| Poland | 0 | 40 | 2 | 42 | 2 |
| Portugal | 0 | 0 | 1 | 1 | 0 |
| Romania | 19 | 0 | -4 | 15 | 15 |
| Slovakia | 0 | 26 | 0 | 26 | 0 |
| Slovenia | 0 | 7 | -4 | 3 | 2 |
| Spain | 164 | 337 | 77 | 578 | 2,203 |
| Sweden | 0 | 140 | -1 | 139 | 36 |
| Albania | 0 | 0 | 2 | 2 | 1 |
| Egypt | 1 | 0 | 0 | 1 | 140 |
| Japan | 62 | 242 | -1 | 303 | 23 |
| Russia | 0 | 0 | 2 | 2 | 129 |
| Serbia | 0 | 0 | -8 | -8 | 26 |
| United Kingdom | 169 | 271 | 37 | 477 | 2,383 |
| U.S.A. | 306 | 741 | 26 | 1,073 | 247 |
| Other Countries | 129 | 1,575 | 257 | 1,961 | 5,620 |
| Total | 3,067 | 7,263 | 1,558 | 11,888 # | 27,860 |
Note: management accounts. Figures may not add up exactly due to rounding
(1) Book Value of Debt Securities and Net Loans as at 30.6.22
(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 €8,020m (of which €1,298m in Italy)
| DEBT SECURITIES | |||||
|---|---|---|---|---|---|
| Banking Business | LOANS | ||||
| AC | FVTOCI | FVTPL(2) | Total(3) | ||
| EU Countries | 10,885 | 3,844 | 1,420 | 16,149 | 399,318 |
| Austria | 2 | 76 | 0 | 78 | 1,258 |
| Belgium | 1,013 | 10 | 8 | 1,031 | 895 |
| Bulgaria | 2 | 0 | 1 | 3 | 19 |
| Croatia | 84 | 0 | 0 | 84 | 6,497 |
| Cyprus | 0 | 0 | 0 | 0 | 14 |
| Czech Republic | 138 | 0 | 1 | 139 | 950 |
| Denmark | 41 | 41 | 0 | 82 | 17 |
| Estonia | 0 | 0 | 0 | 0 | 5 |
| Finland | 0 | 41 | 6 | 47 | 252 |
| France | 546 | 660 | 150 | 1,356 | 3,046 |
| Germany | 195 | 404 | 46 | 645 | 3,586 |
| Greece | 0 | 47 | 2 | 49 | 13 |
| Hungary | 69 | 0 | 4 | 73 | 2,939 |
| Ireland | 254 | 427 | 142 | 823 | 311 |
| Italy | 7,447 | 1,293 | 841 | 9,581 | 347,077 |
| Latvia | 0 | 0 | 0 | 0 | 4 |
| Lithuania | 0 | 0 | 18 | 18 | 1 |
| Luxembourg | 24 | 62 | 24 | 110 | 7,047 |
| Malta | 0 | 0 | 0 | 0 | 34 |
| The Netherlands | 126 | 301 | 40 | 467 | 2,273 |
| Poland | 270 | 6 | 0 | 276 | 1,106 |
| Portugal | 146 | 9 | 11 | 166 | 141 |
| Romania | 56 | 29 | 39 | 124 | 923 |
| Slovakia | 0 | 0 | 0 | 0 | 14,142 |
| Slovenia | 37 | 0 | 2 | 39 | 1,938 |
| Spain | 398 | 348 | 73 | 819 | 4,344 |
| Sweden | 37 | 90 | 12 | 139 | 486 |
| Albania | 0 | 0 | 0 | 0 | 449 |
| Egypt | 0 | 0 | 1 | 1 | 2,908 |
| Japan | 35 | 325 | 0 | 360 | 441 |
| 0 | 0 | 13 | 13 | 4,862 | |
| Russia | |||||
| Serbia | 0 | 26 | 0 | 26 | |
| United Kingdom | 776 | 259 | 58 | 1,093 | 4,522 10,640 |
| U.S.A. Other Countries |
718 610 |
611 1,010 |
62 236 |
1,391 1,856 |
7,568 18,084 |
Note: management accounts. Figures may not add up exactly due to rounding
(1) Book Value of Debt Securities and Net Loans as at 30.6.22
(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 €8,800m (of which €1,543m 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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