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Intesa Sanpaolo

Investor Presentation Feb 4, 2022

4465_ip_2022-02-04_54f8b9fb-0d72-40f4-b648-b30ebddb9c41.pdf

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2021 Results

Ready for the new Business Plan

Excellent performance with Balance sheet further strengthened

A strong Bank for a sustainable world

February 4, 2022

MIL-BVA362-03032014-90141/VR

Best year since 2007 for Net income at €4.2bn (+19% vs FY20(1)), €5.3bn excluding additional provisions on NPL portfolios to accelerate NPL deleveraging

€2.9bn cash dividends for 2021, equal to a 70% payout ratio

Best-ever year for Operating income (+1.9% vs FY20(2)) and Operating margin (+5.4% vs FY20(2))

Best-ever year for Commissions (+9.3% vs FY20(2)), with €90bn growth in Customer financial assets

Decrease in Operating costs (-1.1% vs FY20(2)), with Cost/Income down to 52.5% (-1.6pp vs FY20(2))

€5.7bn gross NPL reduction on a yearly basis (€10.5bn on a pro-forma basis(3), of which €7.8bn in Q4(3))

Lowest-ever gross NPL inflow coupled with a strong increase in NPL coverage (53.6%, +5pp vs FY20)

Lowest-ever NPL stock and ratios, with gross NPL ratio at 2.4%(4) and net NPL ratio at 1.2%(4) (<2% and <1% on a pro-forma basis(3)(4))

Excellent performance despite COVID-19 impact while successfully merging UBI Banca and paving the way for the new Business Plan

(3) Taking into account ~€4.8bn gross (~€1.5bn net) 2022 NPL disposals already funded in 4Q21 and still booked in NPL as at 31.12.21

(4) According to EBA definition

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

(2) Data redetermined - where necessary and material - considering the changes in the scope of consolidation following the inclusion of UBI Banca and, 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

… allocating €2.2bn out of 2021 Pre-tax profit to succeed in the coming years

Pre-tax, € m

Note: figures may not add up exactly due to rounding

(1) Q2 and Q3 additional provisions enabling a total of ~€1.5bn gross NPL disposals

(2) Booked in Net provisions and Net impairment losses on other assets

(3) Still booked in NPL as at 31.12.21

MIL-BVA362-03032014-90141/VR

MIL-BVA362-03032014-90141/VR ISP is a proven delivery machine, with Net income structurally growing since 2013 and already at a €5bn run rate

(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

(4) Including €1.5bn to be paid in May 2022, related to 2021

All stakeholders benefit from our excellent performance

(1) Including €1.4bn paid as an interim dividend on 24.11.21

(2) Direct and indirect

(3) Deriving from Non-performing loans outflow

MIL-BVA362-03032014-90141/VR

ISP successfully mitigating the COVID-19 impact…

Care for ISP People and clients Strong value proposition on digital channels enabled

  • Remote working enabled for ~78,000 people, with digital coach to support the switch to smart working and share best practices
  • Agreements with trade unions for extraordinary measures to support families and childcare and to compensate for COVID-19 work absences in the variable performance bonus(1) calculation
  • Digital learning enabled for all ISP People in Italy
  • 6 additional days of paid leave in 2020 for ISP People who worked in the branch network or were unable to work remotely
  • ~2,400 people hired(2) since January 2020
  • "Ascolto e Supporto" project offering mental wellness support to all ISP People
  • Free insurance policy for adverse vaccination reactions offered to all employees in Italy
  • ~100% of branches open and fully operational: advisory only by appointment and cash desk service by appointment only in the Italian areas with a higher level of COVID restrictions
  • ISP ClientsBusiness continuity ensured by the online branch, Internet Banking, App and ATM/Cash machines (98% active)
  • Activated remote advisory service, with ~30,800 Relationship Managers
  • Free extension of ISP health insurance policy coverage to include COVID-19
Continuous support to the real economy and society immediate business reaction
Voluntary
donations
to the National Health System through the Civil
€100m
Protection Department
to support families in financial and
social difficulty
€10m
€6m
from CEO (€1m) and top management for
healthcare initiatives, with additional voluntary
donations from ISP People and Board of Directors
through ForFunding
to Civil Protection
Department
€3.5m
from ISP Charity Fund for COVID-19 scientific
€1m
research
from Fondazione Intesa Sanpaolo Onlus
for
€600k
vulnerable individuals
to Associazione
Nazionale Alpini
for a field
€350k
hospital in Bergamo
€200k
to NGO WellGiving
in Slovakia, to support
hospitals during the COVID-19 emergency
FY21(5)
vs FY20
Enhanced
digital service(6)
Multichannel clients
App users
(4.6/5.0 rating on iOS(8) and
4.5/5.0 on Android(8))
# of digital operations
# of digital sales(9)
~12.9m, ~+1.3m
~8.1m, ~+1.1m
~163.6m, +13%
~3.6m, +76%
(3)
suspension of existing mortgage and loan
€115bn
installments for families and companies
in credit made available to support companies
€50bn
(4)
# of digital payments(10) ~47.4m, +122%
Lending
support
and professionals during the emergency
€32bn
in loans with a State guarantee
(4)
€10bn
in new credit facilities to boost ~2,500 Italian
industrial supplier chains
Flexible and Conference call/
video conference
(average
usage per
~328k
€11bn
in loans with a SACE guarantee
€80m
Programma
Rinascimento, including impact
loans to micro-enterprises and start-ups for the
recovery and re-shaping of their business models
secure remote
work infrastru
cture(7)
day in 2021)
Instant messaging
(average
usage per
~410k

€150m (equal to 50%) of the ISP Fund for Impact will be used to reduce the socio-economic distress caused by COVID-19

ISP ranked first, for the second consecutive year, among Italian corporates in
the "Cyber Resilience amid a Global Pandemic" by AIPSA(11)

day in 2021)

  • Our mobile app recognised as "Digital Leader" and cited as Best Practice in several categories among the European Mobile Banking Apps by Forrester
  • ISP "AI Sales" awarded as best digital sales innovation program

  • (1) Premio Variabile di Risultato

  • (2) Italian perimeter including UBI Banca
  • (3) Suspensions granted until 31.12.21 (flows), including renewals, including UBI Banca and considering the disposal of branches sold in 1H
  • (4) As of 31.12.21, including UBI Banca and considering the disposal of branches sold in 1H
  • (5) Including UBI Banca and considering the disposal of branches sold in 1H
  • (6) Banca dei Territori perimeter
  • (7) Italian perimeter

ISP People

  • (8) As of 31.12.21
  • (9) Commercial offer sent to the client (website or App) by Relationship manager or online branch, signed electronically by the clients, or self-service purchases
  • (10) Number of payments with digital wallet (e.g. Apple Pay, Samsung Pay, Google Pay)
  • (11) Italian Association of Corporate Security Professionals

… while being the engine of sustainable and inclusive growth with a dedicated ESG/Climate program (ISP4ESG)…

Objectives
Consolidating Group leadership around ESG/Climate topics

Identification and prioritising
of ESG/Climate initiatives most relevant for the Group
Governance
Specific sessions of the Executive Committee that meets at least every 3 months to discuss ESG/Climate topics

Dedicated ESG Control Room,
including 17 Sustainability Managers from all Divisions and Governance areas, coordinated
through a central ISP4ESG team, to support the Executive Committee in defining priorities and new initiatives
Initiatives
(selected
highlights)

Dedicated ESG advisory service and ESG-linked loans to SMEs

ESG specialist coverage and product team supporting IMI C&IB Division Relationship Managers and clients

Strong focus on ESG funds (~€110bn(1) managed by Eurizon)

Strategic framework and product working group aimed at defining the guidelines for sustainable products for the Group
and a credit framework that integrates ESG/Climate metrics
in accordance with relevant regulations

In July 2021, ISP reviewed its Coal Policy including a phase out of coal mining by 2025, and introduced a new policy on
Unconventional Oil & Gas
resources
with immediate termination of new loans
and phase out by 2030

ISP has developed a proprietary ESG Scoring methodology at counterparty level for non-financial corporates and is integrating it
into the credit risk appetite framework

Dedicated ESG training within the ISP4ESG Program for ISP People
(>38,000 trained) and corporate clients (Skills4capital)

ISP's green fleet of hybrid vehicles
strengthened

In September 2021, ISP committed to adopt and implement the Stakeholder Capitalism Metrics developed by the World
Economic Forum

In Q4, ISP committed to Net-Zero emissions(2) by 2050, adhering to all Net-Zero alliances(3)

(1) As of 31.12.21 classified under Articles 8 and 9 of the SFDR Regulation

(2) Own emissions, lending and asset management

(3) Net-Zero Banking Alliance, Net-Zero Asset Managers Initiative, Net-Zero Asset Owner Alliance and Net-Zero Insurance Alliance

… and delivering tangible results for society COVID-19 related initiatives

Ecobonus:
ISP
ready
to
buy
tax
credits
to
support
families,
condominiums
and
businesses
In 2021, evaluated ~780 startups
through
modular
and
flexible
financial
solutions
benefitting
from
the
provisions
of
the
"Decreto
Rilancio"
which
raise
the
deduction
to
110%
for
expenses
related
to
energy
efficiency
and
measures
to
reduce
seismic
(~3,420 since 2018) in 7
acceleration programs,
with 209
risk
coached startups (~600 since 2018), introducing them to Donated €100m to strengthen the National Health System through the Civil Protection Department across Italy, and in particular in the most affected areas of Bergamo and Brescia. 16 hospitals and 3
selected investors and ecosystem players (~6,150 to date)
COVID-19 Emergency Centres
have benefitted from the donation with the creation of 36 new hospital wards and 500 hospital beds mainly in Intensive and Sub-Intensive Care Units
Circular Economy credit plafond: ~€7.7bn disbursed since
€10m to support families in financial and social difficulty due to the COVID-19 crisis, of which €5m donated to Ricominciamo
Insieme
project of the Diocese of Bergamo and €5m donated to the
inception
(~€5.5bn in 2021)
Diocese of Brescia
In October 2021, ISP launched Digital Loans (D-Loans) aimed at improving
the digitalisation
of companies: €1.1m disbursed since the launch
from ISP People and Board
€6m in donations coming from the CEO (€1m) and top management's 2019 variable compensation, to strengthen healthcare initiatives, with additional voluntary donations coming
Green Bond
issued in March 2021
for
€1.25bn focused on green mortgages
€3.5m donated through ForFunding

the ISP crowdfunding platform –
to support Civil Protection Department COVID-19 initiatives
granted for the construction or purchase of energy efficient properties (energy
€1m allocated from the ISP Charity Fund to boost COVID-19 scientific research
classification A and B); the orderbook exceeded
€3.5bn
Three other Green Bonds issued in 2019 and 2017 for a total amount of €1.75bn (€750m
€600k intervention by the Fondazione Intesa Sanpaolo Onlus
to support entities that have guaranteed primary services and direct assistance to vulnerable individuals
Circular,
€500m renewables and energy efficiency
and €500m renewable energy sectors by UBI)
€350k donated to ANA(1) to accelerate the construction of a field hospital in Bergamo
In July 2020, ISP allocated a €2bn plafond for S-Loans (~€1.3bn granted since launch, of which ~€1.2bn
€200k to NGO WellGiving
in
Slovakia, to support hospitals during the
COVID-19 emergency
in 2021) dedicated to SMEs to finance projects aimed at improving their sustainability profile
In April 2021, the product offer was expanded with S-Loan Diversity, in July 2021 with S-Loan Climate
€115bn(2) suspension of existing mortgage and loan installments for families and companies (1st in Italy to launch the
initiative before the regulation came into force)
Change
and in November 2021 with S-Loan Agribusiness
and S-Loan Tourism. All S-Loans have a
reduced interest rate, subject to annual monitoring of 2 ESG KPIs that must be reported in the borrower's
annual report.
The S-Loans and Circular Economy loans may be eligible for the SACE Green agreement
€50bn in credit made available to support companies and professionals
aimed at protecting jobs and managing
payments during the emergency
€32bn(3) in loans with a State guarantee
Initiatives to reduce child poverty and support people in need well ahead of Business Plan target, €10bn
in new credit facilities to boost ~2,500 Italian industrial supplier value chains through enhancement of the
delivering since 2018: Sviluppo
Filiere
Program

~24.8 million meals

~1.5 million dormitory beds
€11bn(3) in loans with a guarantee from SACE (1st in Italy to sign the collaboration protocol with SACE, providing
immediate support to large corporates and SMEs under Liquidity Decree)

~296,250 medicine prescriptions

~249,200 articles of clothing
€80m Programma
Rinascimento, including impact loans to micro-enterprises and start-ups, for the recovery and to
re-shape their business models for the post COVID-19 era, leveraging on growth and innovation projects, boosting
ISP's "Giovani e Lavoro" Program, in partnership with Generation Italy, aimed at training economic growth and social and territorial cohesion. Launched in Bergamo (€30m, in partnership with the Municipality)
and introducing 5,000 young people to the Italian labour market: and in Florence (€50m, in partnership with CR Firenze Foundation)
~9,000
young people (aged 18-29) applied to the Program in 2021 (more than 24,000 since 2019).
More than 1,600 students interviewed and ~750 students trained/in training through 29 courses in
Gallerie
d'Italia: 14 new exhibitions opened in 2021. In Q4: "The Grand Tour" at GdI-Milan, in partnership
ISP Fund for Impact
launched in 4Q18 (~€1.5bn
2021 (more than 5,200 students interviewed and more than 2,200 students trained/in training since
with Hermitage Museum-St. Petersburg and Museo Archeologico
Nazionale-Naples, accompanied by an
lending capacity). Main initiatives:
2019). More than 2,000 companies
involved since the beginning of the Program
innovative digital experience; "How we will be" at GdI-Vicenza, a selection of photos from the ISP Publifoto
"Per Merito", the first line of credit without collateral
ISP is the Main Sponsor of Generation4Universities, developed
by
Archive; two paintings by Cima
da Conegliano, "Illustrious guests" at the Turin Skyscraper from Petit Palais
dedicated to university students residing in Italy, studying
Generation Italy and McKinsey & Co, aimed at facilitating talented senior
Paris and Pinacoteca Nazionale-Bologna. The construction sites of the new GdI
in Turin and Naples have
in Italy or abroad; €71m granted in 2021 (~€162m since
year university students -
facing difficulty in living up to their potential due
advanced considerably
the beginning of 2019)
to external factors -
to start a successful professional career.
MAMMA@WORK: a highly-subsidised
loan
launched in July 2020 to
Museum for all: among the initiatives dedicated to social inclusion, opening of the educational-exhibition project
The Program, which ended in July,
involved 70 students from 31
balance motherhood and work in their children's early years of life
"Clay. Stories of Vases" set up at GdI-Vicenza, in collaboration with Università
degli
Studi-Padua, equipped with audio,
universities and 18 top-tier Italian corporations as potential employers
(~€0.8m in 2021; ~€1m granted since the launch)
video and tactile supports to be widely accessible
P-Tech initiative, in partnership with IBM, aimed at
Support to working mothers
in India and people
over 50 who have lost their jobs
In 2021, 166 artworks from owned collections participated in 44 temporary exhibitions in national and international
training young professionals in new digital skills:
or have difficulty accessing pension schemes
museums
3 webinars a year for all participants, a 3-day workshop
"Per Esempio"

dedicated to Civil Service volunteers , "per Crescere"
dedicated to school
Important partnerships with public and private entities: Artissima-International Contemporary Art Fair in Turin with
for those interested in finance and mentoring activities
age children's parents, "per avere
Cura"
for families with non-self-sufficient relatives. All 3
enhancement of masterpieces from the ISP collections; International Book Fair, Turin; Municipality of Milan, support for
with 20 ISP mentors for 40 young professionals
initiatives launched in July 2021
the traditional Christmas exhibition in Palazzo Marino "The Renaissance in Bergamo and Brescia"
XME StudioStation
launched in August 2020: loans to families to support distance learning (~€0.5m
granted in 2021; ~€1.7m granted since launch)
(1)
Associazione
Nazionale Alpini

(2) Suspensions granted until 31.12.21 (flows), including renewals, including UBI Banca and considering the disposal of branches sold in 1H (3) As of 31.12.21, including UBI Banca and considering the disposal of branches sold in 1H

MIL-BVA362-03032014-90141/VR

SELECTED HIGHLIGHTS

ISP leads in the main sustainability indexes and rankings

The only Italian bank listed in 67 A AAA 99 16.8
the Dow Jones Sustainability 62 A AAA 99 20.6
Indices. 57 A AAA 97 20.7
Ranked first among peers by 57 A AA 94 21.7
Bloomberg (ESG Disclosure
Score), Sustainalytics
and MSCI
56 A AA 94 22.2
56 A AA 94 22.4
55 A AA 93 22.5
55 B AA 92 22.6
54 B AA 92 23.3
In 2021 ranking by Institutional 54 B AA 81 23.9
Investor, ISP was Europe's Best 54 B AA 79 24.1
Bank and Italy's Best Company
for ESG Aspects
54 B AA 78 24.5
54 B AA 71 24.9
54 B A 70 25.6
In October 2021, ISP was 53 B A 70 27.4
included in the Euronext -
Borsa
50 B A 69 27.8
Italiana
MIB ESG Index
46 F A 65 28.2

Top ranking(1) for Sustainability

(1) ISP peer group

Source: Bloomberg ESG Disclosure Score (Bloomberg as of 31.12.21), CDP Climate Change Score 2021 (https://www.cdp.net/en/companies/companies-scores); MSCI ESG Score (https://www.msci.com/esg-ratings) data as of 31.12.21; S&P Global (Bloomberg as of 31.12.21); Sustainalytics score (https://www.sustainalytics.com/ ESG Risk Rating as of 31.12.21)

MIL-BVA362-03032014-90141/VR

2021: excellent performance

Ready for the new Business Plan

MIL-BVA362-03032014-90141/VR

2021: highlights

  • Excellent economic performance despite COVID-19 impact while successfully merging UBI Banca and paving the way for the new Business Plan:
  • Best year since 2007 for Net income at €4,185m (+19.4% vs FY20(1))
  • €179m Net income in Q4, with the best quarter ever for Commissions and €1.7bn Pre-tax income allocated to succeed in the coming years (€2.2bn in FY21)
  • Best-ever year for Operating income (+1.9% vs FY20(2)) and Operating margin (+5.4% vs FY20(2))
  • Best-ever year for Commissions (+9.3% vs FY20(2)), with €90bn growth in Customer financial assets
  • Decrease in Operating costs (-1.1% vs FY20(2)) with Administrative costs down 5.8%
  • Cost of risk at 59bps(3) (25bps(3) excluding additional provisions on NPL portfolios to accelerate NPL deleveraging)
  • Lowest-ever gross NPL inflow coupled with a strong increase in NPL coverage (53.6%, +5pp vs FY20)
  • Best-in-class capital position and balance sheet further strengthened:
  • Common Equity ratio at 15.2%(4), 14.0% fully phased-in (14.2% and 12.9% pro-forma considering the impact from the 2022 buyback(5)), well above regulatory requirements even under the EBA stress test adverse scenario
  • €5.7bn gross NPL stock reduction in FY21 (€10.5bn on a pro-forma basis(6), of which €7.8bn in Q4(6))
  • Lowest-ever NPL stock and ratios, with gross NPL ratio at 2.4%(7) and net NPL ratio at 1.2%(7) (<2% and <1% on a pro-forma basis(6)(7))
  • Best-in-class leverage ratio: 6.6%
  • Strong liquidity position: LCR and NSFR well above 100%; €335bn in Liquid assets

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

(2) Data redetermined - where necessary and material - considering the changes in the scope of consolidation following the inclusion of UBI Banca and, 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) 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

(4) Pro-forma fully loaded Basel 3 (31.12.21 financial statements considering the total absorption of DTA related to IFRS9 FTA, goodwill realignment/adjustments to loans/non-taxable public cash contribution of €1,285m covering the integration and rationalisation charges relating to the acquisition of the operations of the two former Venetian banks, DTA related to the combination with UBI Banca and to the new agreement with trade unions signed on 16.11.21, the expected absorption of DTA on losses carried forward and the expected distribution on FY21 Net income of insurance companies)

(5) €3.4bn buyback subject to ECB and shareholder approval. Buyback amount equivalent to 2019 suspended dividend

(6) Taking into account ~€4.8bn gross (~€1.5bn net) 2022 NPL disposals already funded in 4Q21 and still booked in NPL as at 31.12.21

MIL-BVA362-03032014-90141/VR 2021: strong growth in profitability thanks to solid operating performance while paving the way for the new Business Plan

FY21 P&L – 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

  • (1) Data redetermined where necessary and material considering the changes in the scope of consolidation following the inclusion of UBI Banca and, 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; excluding accounting effects from the combination with UBI Banca and goodwill impairment
  • (2) Net provisions and net impairment losses on other assets, Other income (expenses), Income (Loss) from discontinued operations
  • (3) Charges (net of tax) for integration and exit incentives, Effect of purchase price allocation (net of tax), Levies and other charges concerning the banking industry (net of tax), Impairment (net of tax) of goodwill and other intangible assets, Minority interests

MIL-BVA362-03032014-90141/VR Q4: best quarter ever for Commissions and €1.7bn Pre-tax income allocated to succeed in the coming years

4Q21 P&L € m

Note: figures may not add up exactly due to rounding

(1) Data redetermined - where necessary and material - considering the changes in the scope of consolidation following the inclusion of UBI Banca and, 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; excluding accounting effects from the combination with UBI Banca and goodwill impairment

(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

Best-ever year for Commissions

Net fees and commissions

(1) Data redetermined - where necessary and material - considering the changes in the scope of consolidation following the inclusion of UBI Banca and, 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) 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

~€1.3 trillion in Customer financial assets, with a €90bn increase on a yearly basis

Customer financial assets(1)(2)

Note: figures may not add up exactly due to rounding

(1) Net of duplications between Direct deposits and Indirect customer deposits

(2) Including UBI Banca, considering the disposal of branches sold in 1H21 and the full line-by-line consolidation of the REYL Group and 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)

Operating costs

~3,380 headcount reduction on a yearly basis

  • ~7,200 voluntary exits by 2023 ‒ of which ~2,850 exited in 2021 and ~700 as of 1.1.22 ‒ related to the combination with UBI Banca, previously agreed with Labour Unions and already fully provisioned (with 3,500 hires by 1H24)
  • Further ~2,000 voluntary exits by 1Q25 agreed in November with Labour Unions and already fully provisioned in Q4 (with 1,100 hires by 2025)

(1) Data redetermined - where necessary and material - considering the changes in the scope of consolidation following the inclusion of UBI Banca and, 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

Massive NPL stock reduction

25th quarter of continuous deleveraging, with 2018-21 NPL deleveraging target exceeded by €11bn, €16bn on a pro-forma basis(4)

Note: figures may not add up exactly due to rounding

  • (1) Excluding €5.4bn gross NPL (€2.1bn net) booked in Discontinued operations
  • (2) Excluding €4.7bn gross NPL (€1.7bn net) booked in Discontinued operations
  • (3) Excluding €4.5bn gross NPL (€1.2bn net) booked in Discontinued operations
  • (4) Taking into account ~€4.8bn gross (~€1.5bn net) 2022 NPL disposals already funded in 4Q21 and still booked in NPL as at 31.12.21

Strong reduction in Loan loss provisions and Cost of risk…

(2) As at 31.12.21

MIL-BVA362-03032014-90141/VR

(1) Data redetermined - where necessary and material - considering the changes in the scope of consolidation following the inclusion of UBI Banca and, 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

… coupled with lowest-ever gross NPL inflow and increased coverage

(1) Inflow to NPL (Bad loans, Unlikely to pay and Past due) from Performing loans

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

MIL-BVA362-03032014-90141/VR

Rock-solid capital base, well above regulatory requirements

Note: figures may not add up exactly due to rounding

(1) Pro-forma fully loaded Basel 3 (31.12.21 financial statements considering the total absorption of DTA related to IFRS9 FTA, goodwill realignment/adjustments to loans/non-taxable public cash contribution of €1,285m covering the integration and rationalisation charges relating to the acquisition of the operations of the two former Venetian banks, DTA related to the combination with UBI Banca and to the new agreement with trade unions signed on 16.11.21, the expected absorption of DTA on losses carried forward and the expected distribution on FY21 Net income of insurance companies)

(2) €3.4bn buyback subject to ECB and shareholder approval. Buyback amount equivalent to 2019 suspended dividend

MIL-BVA362-03032014-90141/VR

19

2021: excellent performance

Ready for the new Business Plan

MIL-BVA362-03032014-90141/VR In the 2018-2021 Business Plan horizon, ISP substantially reduced NPL stock, while strengthening capital and reinforcing an already efficient business model…

(1) Not including €4.5bn gross NPL (€1.2bn net) booked in Discontinued operations as of 31.12.21

(2) Taking into account ~€4.8bn gross (~€1.5bn net) 2022 NPL disposals already funded in 4Q21 and still booked in NPL as at 31.12.21

(3) €3.4bn buyback subject to ECB and shareholder approval. Buyback amount equivalent to 2019 suspended dividend

(4) Pro-forma fully loaded Basel 3 (31.12.21 financial statements considering the total absorption of DTA related to IFRS9 FTA, goodwill realignment/adjustments to loans/non-taxable public cash contribution of €1,285m covering the integration and rationalisation charges relating to the acquisition of the operations of the two former Venetian banks, DTA related to the combination with UBI Banca and to the new agreement with trade unions signed on 16.11.21, the expected absorption of DTA on losses carried forward and the expected distribution on FY21 Net income of insurance companies)

(5) 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

… and is now far better equipped than European peers to capture growth opportunities…

Note: figures may not add up exactly due to rounding

  • (3) Calculated as the difference between the fully loaded CET1 ratio vs requirements SREP + combined buffer; only top European banks that have communicated their SREP requirement
  • (4) €3.4bn buyback subject to ECB and shareholder approval. Buyback amount equivalent to 2019 suspended dividend
  • (5) 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
  • (6) Sample: BBVA, Deutsche Bank, ING Group, Nordea, Santander, UBS and UniCredit (31.12.21 data); Barclays, BNP Paribas, Commerzbank, Crédit Agricole S.A., Credit Suisse, HSBC, Lloyds Banking Group, Société Générale and Standard Chartered (30.9.21 data)

(1) Fully phased-in CET1. Sample: BBVA, Deutsche Bank, ING Group, Nordea, Santander, UBS and UniCredit (31.12.21 data); Barclays, BNP Paribas, Commerzbank, Crédit Agricole S.A., Credit Suisse, HSBC, Lloyds Banking Group, Société Générale and Standard Chartered (30.9.21 data)

(2) Total illiquid assets include net NPL stock, Level 2 assets and Level 3 assets. Sample: BBVA, Deutsche Bank, ING Group, Nordea, Santander, UBS and UniCredit (net NPL 31.12.21 data); Barclays, Commerzbank, Crédit Agricole S.A., Credit Suisse, HSBC, Lloyds Banking Group, Société Générale and Standard Chartered (net NPL 30.9.21 data); BNP Paribas (net NPL 30.6.21 data). Level 2 and Level 3 assets 30.6.21 data; (Nordea 31.12.21 data)

… delivering more than €5bn Net income in 2022

Growth in Revenues and continued Cost management…

… leading to Operating margin growth

Strong decline in Cost of risk… … triggering further growth in Gross income

>€5bn Net income in 2022, with a 70% payout ratio

2021 Results

Detailed information

Key P&L and Balance sheet figures

€ m
2021(1) 31.12.21
Operating
income
20,786 Loans to customers 465,254
Operating
costs
(10,920) Customer financial assets(2) 1,276,312
Cost/Income ratio 52.5% of which Direct deposits from banking business 555,565
Operating margin 9,866 of which Direct deposits from insurance
business and technical reserves
204,479
Gross income (loss) 6,639 of which Indirect customer deposits 719,231
Net income 4,185 -
Assets under management
474,405
-
Assets under administration
244,826
RWA 326,903
Total assets 1,069,003

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

(2) Net of duplications between Direct deposits and Indirect customer deposits

25

Detailed consolidated P&L results

Liquidity, Funding and Capital base

Asset quality

Divisional results and other information

2021: best Net income since 2007

€ m

2020 2021 D
%
redetermined(1)
[ A ]
stated(2)
[ B ]
redetermined(3)
[ C ]
[ C ] / [ A ]
Net interest income 8,278 7,966 7,900 (4.6)
Net fee and commission income 8,725 9,634 9,540 9.3
Income from insurance business 1,685 1,586 1,629 (3.3)
Profits on financial assets and liabilities at fair value 1,675 1,626 1,625 (3.0)
Other operating income (expenses) 37 106 92 148.6
Operating income 20,400 20,918 20,786 1.9
Personnel expenses (6,705) (6,824) (6,773) 1.0
Other administrative expenses (3,078) (2,892) (2,899) (5.8)
Adjustments to property, equipment and intangible assets (1,256) (1,246) (1,248) (0.6)
Operating costs (11,039) (10,962) (10,920) (1.1)
Operating margin 9,361 9,956 9,866 5.4
Net adjustments to loans (4,493) (2,772) (2,766) (38.4)
Net provisions and net impairment losses on other assets (365) (848) (851) 133.2
Other income (expenses) 97 332 332 242.3
Income (Loss) from discontinued operations 1,588 0 58 (96.3)
Gross income (loss) 6,188 6,668 6,639 7.3
Taxes on income (1,510) (1,622) (1,623) 7.5
Charges (net of tax) for integration and exit incentives (1,549) (439) (439) (71.7)
Effect of purchase price allocation (net of tax) 1,960 (39) (39) n.m.
Levies and other charges concerning the banking industry (net of tax) (513) (524) (4)
(511)
(0.4)
Impairment (net of tax) of goodwill and other intangible assets (912) 0 0 n.m.
Minority interests (387) 141 158 n.m.
Net income 3,277 4,185 4,185 27.7
Net income excluding the accounting effect of the combination
with UBI Banca and of the impairment of goodwill
3,505 4,185 4,185 19.4

Note: figures may not add up exactly due to rounding

(1) Data redetermined - where necessary and material - considering the changes in the scope of consolidation following the inclusion of UBI Banca and - 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) 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

(3) 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

(4) €745m pre-tax of which charges for the Resolution Fund: €278m pre-tax (€192m net of tax), charges for the Deposit Guarantee Scheme: €340m pre-tax (€230m net of tax), and additional contribution to the National Resolution Fund: €103m pre-tax (€69m net of tax)

3Q21 D % Q4 vs Q3: best quarter ever for Commissions while paving the way for the new Business Plan

4Q21
Net interest income 1,999 1,954 (2.3)
Net fee and commission income 2,325 2,532 8.9
Income from insurance business 365 410 12.3
Profits on financial assets and liabilities at fair value 378 108 (71.4)
Other operating income (expenses) 25 16 (36.0)
Operating income 5,092 5,020 (1.4)
Personnel expenses (1,643) (1,844) 12.2
Other administrative expenses (693) (845) 21.9
Adjustments to property, equipment and intangible assets (302) (338) 11.9
Operating costs (2,638) (3,027) 14.7
Operating margin 2,454 1,993 (18.8)
Net adjustments to loans (543) (1,222) 125.0
Net provisions and net impairment losses on other assets (82) (415) 406.1
Other income (expenses) 63 78 23.8
Income (Loss) from discontinued operations (0) (0) n.m.
Gross income (loss) 1,892 434 (77.1)
Taxes on income (619) (82) (86.8)
Charges (net of tax) for integration and exit incentives (41) (291) 609.8
Effect of purchase price allocation (net of tax) (51) 46 n.m.
Levies and other charges concerning the banking industry (net of tax) (210) (22) (89.5)
Impairment (net of tax) of goodwill and other intangible assets 0 0 n.m.
Minority interests 12 94 683.3
Net income 983 179 (81.8)

Net interest income: impacted by all-time low interest rates

  • 2.0% growth in average Direct deposits from banking business vs Q3 (+6.0% vs 4Q20)
  • 1.6% growth in average Performing loans to customers vs 4Q20

  • Increase in the commercial component

  • 8.4% growth in average Direct deposits from banking business
  • 2.8% growth in average Performing loans to customers

(1) Considering, on the basis of management accounts, the reallocation of the contribution of branches sold in 1H21 to Income (Loss) from discontinued operations, the full line-by-line consolidation of Assicurazioni Vita (former Aviva Vita), Lombarda Vita and Cargeas Assicurazioni (not considering, on the basis of management accounts, the contribution of branches sold in 1H21), and the effects of the acquisition of the REYL Group

MIL-BVA362-03032014-90141/VR

Net interest income: yearly increase in the commercial component

Note: figures may not add up exactly due to rounding

(1) ~€242m benefit from hedging on core deposits in FY21, of which ~€70m in 4Q21

(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

  • 4Q21 is the best quarter ever
  • Strong increase vs 4Q20 and Q3 due to growth in Commissions from Management, dealing and consultancy activities (+5.9%; +€92m and +15.4%; +€220m respectively)
  • €4.5bn in AuM net inflows in 4Q21

  • Best year ever despite multiple lockdowns and while successfully merging UBI Banca

  • Commissions from Management, dealing and consultancy activities up 11% (+€603m)
  • Commissions from Commercial banking activities up 4.9% (+€118m)
  • €16.9bn in AuM net inflows in 2021(1)

(1) Considering, on the basis of management accounts, the reallocation of the contribution of branches sold in 1H21 to Income (Loss) from discontinued operations, the full line-by-line consolidation of Assicurazioni Vita (former Aviva Vita), Lombarda Vita and Cargeas Assicurazioni (not considering, on the basis of management accounts, the contribution of branches sold in 1H21), and the effects of the acquisition of the REYL Group

Profits on financial assets and liabilities at fair value: solid yearly performance

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

Operating costs: further yearly reduction while investing for growth

  • Cost/Income ratio at 52.5%(1) (vs 54.1% in FY20)
  • ~3,380(2) headcount reduction
  • Decrease in Adjustments due to the 4Q20 write-off of UBI Banca IT investments

(2) Including UBI Banca and not considering the disposal of branches sold in 1H21

MIL-BVA362-03032014-90141/VR

(1) Considering, on the basis of management accounts, the reallocation of the contribution of branches sold in 1H21 to Income (Loss) from discontinued operations, the full line-by-line consolidation of Assicurazioni Vita (former Aviva Vita), Lombarda Vita and Cargeas Assicurazioni (not considering, on the basis of management accounts, the contribution of branches sold in 1H21), and the effects of the acquisition of the REYL Group

MIL-BVA362-03032014-90141/VR Net adjustments to loans: significant yearly reduction coupled with a strong decrease in NPL stock and inflows, and increased coverage

  • Cost of credit at 59bps(1), 25bps(1) excluding additional provisions on NPL portfolios to accelerate NPL deleveraging
  • Lowest-ever NPL gross inflow
  • Strong increase in NPL coverage (53.6% vs 48.6% as at 31.12.20)

  • Twenty-fifth consecutive quarterly reduction in NPL stock

  • Strong increase in NPL coverage in 4Q21 (53.6% vs 49.9% as at 30.9.21)

(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

Strong growth in Customer financial assets

% D 31.12.21 vs 31.12.20 and 30.9.21

527 536 556 31.12.20 30.9.21 (2) 31.12.21

240 245

Note: figures may not add up exactly due to rounding

(1) Net of duplications between Direct deposits and Indirect customer deposits

(2) Including UBI Banca, considering the disposal of branches sold in 1H21 and the full line-by-line consolidation of the REYL Group and 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)

Assets under mgt.

Funding mix

Retail funding represents 84% of Direct deposits from banking business

Note: figures may not add up exactly due to rounding

(1) Including Senior non-preferred

(2) Certificates of deposit + Commercial papers

(3) Including Certificates

Strong funding capability: broad access to international markets

High liquidity: LCR and NSFR well above regulatory requirements

195 192 31.12.20 30.9.21 31.12.21 181 Liquid assets(1) Unencumbered eligible assets with Central Banks(2) (net of haircuts)

Refinancing operations with the ECB: ~€132bn(3) consisting entirely of TLTRO III, out of a maximum allowance of ~€133bn

Loan to Deposit ratio(4) at 84%

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

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) €36bn borrowed in March (settlement date 27.3.21), €11bn borrowed in June (settlement date 24.6.21), €1.5bn borrowed in September (settlement date 29.9.21) and €0.5bn borrowed in December (settlement date 22.12.21)

Solid Capital base

  • 15.2%(3) pro-forma fully loaded Common Equity Tier 1 ratio, 14.2% considering the €3.4bn buyback in 2022(2) (14.0% fully phased-in, 12.9% considering the €3.4bn buyback in 2022(2))
  • 6.6% leverage ratio

(2) Subject to ECB and shareholder approval. Buyback amount equivalent to 2019 suspended dividend

(3) Pro-forma fully loaded Basel 3 (31.12.21 financial statements considering the total absorption of DTA related to IFRS9 FTA, goodwill realignment/adjustments to loans/non-taxable public cash contribution of €1,285m covering the integration and rationalisation charges relating to the acquisition of the operations of the two former Venetian banks, DTA related to the combination with UBI Banca and to the new agreement with trade unions signed on 16.11.21, the expected absorption of DTA on losses carried forward and the expected distribution on FY21 Net income of insurance companies)

(1) Including €1.4bn paid as interim dividend on 24.11.21

Detailed consolidated P&L results

Liquidity, Funding and Capital base

Asset quality

Divisional results and other information

MIL-BVA362-03032014-90141/VR Non-performing loans: sizeable and increased coverage after massive deleveraging, paving the way for the new Business Plan

Cash coverage; %

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

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

(2) 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)

(3) Including UBI Banca

MIL-BVA362-03032014-90141/VR

Non-performing loans: gross inflow

€ 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)

Non-performing loans: net inflow

€ 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)

Non-performing loans: lowest-ever stock and ratios

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

bn
31.12.20(1) 30.9.21(2) 31.12.21(3)
bn
31.12.20(5) 30.9.21(6) 31.12.21(7)
Bad loans 9.6 9.1 7.2 Bad loans 4.0 3.6 2.1
-
of which forborne
1.6 1.9 1.5 -
of which forborne
0.7 0.8 0.5
Unlikely to pay 10.7 8.4 7.3 Unlikely to pay 6.2 5.0 4.3
-
of which forborne
4.2 3.5 2.9 -
of which forborne
2.8 2.4 2.1
Past due 0.6 0.7 0.8 Past due 0.5 0.6 0.6
-
of which forborne
- 0.1 0.2 -
of which forborne
- - 0.1
Total 20.9 18.3 15.2 €10.4bn pro-forma(4) Total 10.7 9.1 7.1 €5.6bn pro-forma(4)
4.4 3.8 3.2 2.2 pro-forma(4) 2.3 2.0 1.5 1.2 pro-forma(4)
3.6 2.9 2.4 ˂2 pro-forma(4) 1.9 1.5 1.2 ˂1 pro-forma(4)

Note: figures may not add up exactly due to rounding

(1) Not including €5.4bn gross NPL booked in Discontinued operations

(2) Not including €4.7bn gross NPL booked in Discontinued operations

(3) Not including €4.5bn gross NPL booked in Discontinued operations

(4) Taking into account ~€4.8bn gross (~€1.5bn net) 2022 NPL disposals already funded in 4Q21 and still booked in NPL as at 31.12.21

(5) Not including €2.1bn net NPL booked in Discontinued operations

(6) Not including €1.7bn net NPL booked in Discontinued operations

(7) Not including €1.2bn net NPL booked in Discontinued operations

Breakdown by business area (data as at 31.12.21) Breakdown by economic business sector

  • Low risk profile of residential mortgage portfolio
  • Instalment/available income ratio at 31%
  • Average Loan-to-Value equal to ~59%
  • Original average maturity equal to ~24 years
  • Residual average life equal to ~19 years
31.12.21
Loans of the Italian banks and companies of the Group
Households 30.4%
Public Administration 3.7%
Financial companies 7.8%
Non-financial companies
of which:
45.5%
UTILITIES 4.8%
SERVICES 4.3%
REAL ESTATE 3.6%
TRANSPORTATION MEANS 3.4%
DISTRIBUTION 3.0%
CONSTRUCTION AND MATERIALS FOR CONSTR. 2.9%
TRANSPORT 2.5%
FOOD AND DRINK 2.5%
METALS AND METAL PRODUCTS 2.4%
INFRASTRUCTURE 2.2%
FASHION 2.1%
ENERGY AND EXTRACTION 2.0%
MECHANICAL 1.6%
TOURISM 1.6%
AGRICULTURE 1.5%
CHEMICALS, RUBBER AND PLASTICS 1.4%
ELECTRICAL COMPONENTS AND EQUIPMENT 0.8%
PHARMACEUTICAL 0.8%
FURNITURE AND WHITE GOODS 0.7%
MEDIA 0.5%
WOOD AND PAPER 0.5%
OTHER CONSUMPTION GOODS 0.2%
Loans of international banks and companies of the Group 11.0%
Non-performing loans 1.5%
TOTAL 100.0%

Moratoria volumes: enterprises accounting for ~89%

Moratoria stock as at 31.12.21
Segments # Clients (k) Volumes (€ bn) % of total net loan
portfolio
Households 5 1 0.1%
Enterprises 8 4 0.9%
Total 13 (1)
5
1.0%

€47bn expired moratoria with 2.8%(2) default rate

Note: figures may not add up exactly due to rounding (1) €1.1bn according to EBA criteria (2) Italian perimeter

Detailed consolidated P&L results

Liquidity, Funding and Capital base

Asset quality

Divisional results and other information

Divisional financial highlights

Data as at 31.12.21
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
redetermined(6)
Operating income (€ m) 8,938 4,571 1,972 2,376 1,344 1,572 13 20,786
Operating margin (€ m) 2,473 3,206 900 1,470 1,105 1,171 (459) 9,866
Net income (€ m) 385 2,202 463 1,076 787 712 (1,440) 4,185
Cost/Income (%) 72.3 29.9 54.4 38.1 17.8 25.5 n.m. 52.5
RWA (€ bn) 94.3 112.2 34.4 11.6 1.8 0.0 72.5 326.9
Direct deposits from banking business (€ bn) 296.3 88.9 51.5 54.2 0.0 0.0 64.6 555.6
Loans to customers (€ bn) 251.0 152.1 39.0 13.8 0.8 0.0 8.6 465.3

Note: figures may not add up exactly due to rounding

(1) Excluding the Russian subsidiary Banca Intesa which is included in IMI C&IB

(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

(6) 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

Banca dei Territori: 2021 vs 2020

2020 2021 D%
redetermined
Net interest income 4,199 3,985 (5.1)
Net fee and commission income 4,548 4,836 6.3
Income from insurance business 0 0 n.m.
Profits on financial assets and liabilities at fair value 109 103 (5.5)
Other operating income (expenses) 11 14 27.3
Operating income 8,867 8,938 0.8
Personnel expenses (3,590) (3,526) (1.8)
Other administrative expenses (3,067) (2,933) (4.4)
Adjustments to property, equipment and intangible assets (4) (6) 50.0
Operating costs (6,661) (6,465) (2.9)
Operating margin 2,206 2,473 12.1
Net adjustments to loans (2,909) (1,235) (57.5)
Net provisions and net impairment losses on other assets (104) (120) 15.4
Other income (expenses) 29 12 (58.6)
Income (Loss) from discontinued operations 0 0 n.m.
Gross income (loss) (778) 1,130 n.m.
Taxes on income 331 (358) n.m.
Charges (net of tax) for integration and exit incentives (16) (180) n.m.
Effect of purchase price allocation (net of tax) (6) (15) 150.0
Levies and other charges concerning the banking industry (net of tax) (142) (190) 33.8
Impairment (net of tax) of goodwill and other intangible assets (912) 0 n.m.
Minority interests 0 (2) n.m.
Net income (1,523) 385 n.m.

Banca dei Territori: Q4 vs Q3

3Q21 4Q21 D%
Net interest income 998 995 (0.2)
Net fee and commission income 1,204 1,231 2.3
Income from insurance business 0 0 (20.3)
Profits on financial assets and liabilities at fair value 24 29 18.0
Other operating income (expenses) 5 1 (69.4)
Operating income 2,231 2,257 1.2
Personnel expenses (861) (921) 7.0
Other administrative expenses (725) (768) 5.9
Adjustments to property, equipment and intangible assets (2) (1) (63.0)
Operating costs (1,588) (1,689) 6.4
Operating margin 643 567 (11.8)
Net adjustments to loans (348) (219) (37.0)
Net provisions and net impairment losses on other assets (27) (68) 152.9
Other income (expenses) 52 (41) n.m.
Income (Loss) from discontinued operations (0) (0) 46.0
Gross income (loss) 320 239 (25.3)
Taxes on income (89) (80) (10.3)
Charges (net of tax) for integration and exit incentives (4) (160) n.m.
Effect of purchase price allocation (net of tax) (1) (12) n.m.
Levies and other charges concerning the banking industry (net of tax) (190) 0 n.m.
Impairment (net of tax) of goodwill and other intangible assets 0 0 n.m.
Minority interests (1) (1) 27.5
Net income 35 (14) n.m.

IMI Corporate & Investment Banking: 2021 vs 2020

2020 2021 D%
redetermined
Net interest income 2,048 2,094 2.2
Net fee and commission income 1,049 1,176 12.1
Income from insurance business 0 0 n.m.
Profits on financial assets and liabilities at fair value 1,341 1,299 (3.1)
Other operating income (expenses) 7 2 (71.4)
Operating income 4,445 4,571 2.8
Personnel expenses (466) (503) 7.9
Other administrative expenses (847) (841) (0.7)
Adjustments to property, equipment and intangible assets (21) (21) 0.0
Operating costs (1,334) (1,365) 2.3
Operating margin 3,111 3,206 3.1
Net adjustments to loans (477) 21 n.m.
Net provisions and net impairment losses on other assets (41) (45) 9.8
Other income (expenses) 65 0 (100.0)
Income (Loss) from discontinued operations 0 0 n.m.
Gross income (loss) 2,658 3,182 19.7
Taxes on income (848) (976) 15.1
Charges (net of tax) for integration and exit incentives (19) (24) 26.3
Effect of purchase price allocation (net of tax) 0 20 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 1,791 2,202 22.9

IMI Corporate & Investment Banking: Q4 vs Q3

3Q21 4Q21 D%
Net interest income 529 507 (4.1)
Net fee and commission income 278 322 16.1
Income from insurance business 0 0 n.m.
Profits on financial assets and liabilities at fair value 339 139 (58.9)
Other operating income (expenses) (1) 2 n.m.
Operating income 1,145 970 (15.2)
Personnel expenses (122) (148) 21.3
Other administrative expenses (216) (223) 3.3
Adjustments to property, equipment and intangible assets (5) (6) 8.9
Operating costs (343) (376) 9.8
Operating margin 802 594 (25.9)
Net adjustments to loans 16 59 281.4
Net provisions and net impairment losses on other assets (3) (45) n.m.
Other income (expenses) 0 0 n.m.
Income (Loss) from discontinued operations 0 0 n.m.
Gross income (loss) 815 609 (25.3)
Taxes on income (254) (172) (32.2)
Charges (net of tax) for integration and exit incentives (5) (9) 81.7
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 555 427 (23.1)

International Subsidiary Banks: 2021 vs 2020

€ m

2020 2021 D%
redetermined
Net interest income 1,310 1,337 2.1
Net fee and commission income 505 546 8.1
Income from insurance business 0 0 n.m.
Profits on financial assets and liabilities at fair value 131 127 (3.1)
Other operating income (expenses) (38) (38) 0.0
Operating income 1,908 1,972 3.4
Personnel expenses (527) (554) 5.1
Other administrative expenses (393) (401) 2.0
Adjustments to property, equipment and intangible assets (110) (117) 6.4
Operating costs (1,030) (1,072) 4.1
Operating margin 878 900 2.5
Net adjustments to loans (247) (157) (36.4)
Net provisions and net impairment losses on other assets (15) (74) 393.3
Other income (expenses) 7 6 (14.3)
Income (Loss) from discontinued operations 0 0 n.m.
Gross income (loss) 623 675 8.3
Taxes on income (125) (143) 14.4
Charges (net of tax) for integration and exit incentives (59) (43) (27.1)
Effect of purchase price allocation (net of tax) 0 0 n.m.
Levies and other charges concerning the banking industry (net of tax) (58) (26) (55.2)
Impairment (net of tax) of goodwill and other intangible assets 0 0 n.m.
Minority interests 0 0 n.m.
Net income 381 463 21.5

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

International Subsidiary Banks: Q4 vs Q3

3Q21 4Q21 D%
Net interest income 339 349 2.9
Net fee and commission income 145 138 (4.7)
Income from insurance business 0 0 n.m.
Profits on financial assets and liabilities at fair value 31 23 (26.2)
Other operating income (expenses) (10) (9) 12.1
Operating income 504 500 (0.8)
Personnel expenses (138) (153) 11.1
Other administrative expenses (101) (114) 13.1
Adjustments to property, equipment and intangible assets (29) (31) 7.2
Operating costs (267) (298) 11.4
Operating margin 237 202 (14.5)
Net adjustments to loans (40) (39) (0.9)
Net provisions and net impairment losses on other assets (8) (51) 553.5
Other income (expenses) 1 2 162.9
Income (Loss) from discontinued operations 0 0 n.m.
Gross income (loss) 190 115 (39.7)
Taxes on income (34) (26) (23.1)
Charges (net of tax) for integration and exit incentives (10) (14) 47.0
Effect of purchase price allocation (net of tax) 0 0 n.m.
Levies and other charges concerning the banking industry (net of tax) (5) (5) 0.7
Impairment (net of tax) of goodwill and other intangible assets 0 0 n.m.
Minority interests 0 0 n.m.
Net income 142 70 (50.9)

Private Banking: 2021 vs 2020

2020 2021 D%
redetermined
Net interest income 252 212 (15.9)
Net fee and commission income 1,921 2,097 9.2
Income from insurance business 0 0 n.m.
Profits on financial assets and liabilities at fair value 47 46 (2.1)
Other operating income (expenses) 2 21 950.0
Operating income 2,222 2,376 6.9
Personnel expenses (466) (483) 3.6
Other administrative expenses (335) (350) 4.5
Adjustments to property, equipment and intangible assets (68) (73) 7.4
Operating costs (869) (906) 4.3
Operating margin 1,353 1,470 8.6
Net adjustments to loans (18) 3 n.m.
Net provisions and net impairment losses on other assets (46) (37) (19.6)
Other income (expenses) (4) 195 n.m.
Income (Loss) from discontinued operations 0 0 n.m.
Gross income (loss) 1,285 1,631 26.9
Taxes on income (378) (481) 27.2
Charges (net of tax) for integration and exit incentives (32) (40) 25.0
Effect of purchase price allocation (net of tax) (2) (22) n.m.
Levies and other charges concerning the banking industry (net of tax) (12) (15) 25.0
Impairment (net of tax) of goodwill and other intangible assets 0 0 n.m.
Minority interests 5 3 (40.0)
Net income 866 1,076 24.2

Private Banking: Q4 vs Q3

3Q21 4Q21 D%
Net interest income 55 51 (7.3)
Net fee and commission income 518 539 4.0
Income from insurance business 0 0 n.m.
Profits on financial assets and liabilities at fair value 9 5 (48.4)
Other operating income (expenses) 6 1 (82.8)
Operating income 589 596 1.2
Personnel expenses (118) (140) 18.5
Other administrative expenses (84) (96) 13.8
Adjustments to property, equipment and intangible assets (18) (19) 4.9
Operating costs (220) (255) 15.6
Operating margin 368 341 (7.5)
Net adjustments to loans (1) 4 n.m.
Net provisions and net impairment losses on other assets (11) (9) (21.1)
Other income (expenses) 0 0 n.m.
Income (Loss) from discontinued operations 0 0 n.m.
Gross income (loss) 356 335 (5.8)
Taxes on income (103) (92) (10.6)
Charges (net of tax) for integration and exit incentives (4) (25) 521.2
Effect of purchase price allocation (net of tax) (5) (6) 30.0
Levies and other charges concerning the banking industry (net of tax) (15) 0 n.m.
Impairment (net of tax) of goodwill and other intangible assets 0 0 n.m.
Minority interests 2 1 (54.5)
Net income 231 213 (7.9)

Asset Management: 2021 vs 2020

2020 2021 D%
redetermined
Net interest income (1) (1) n.m.
Net fee and commission income 1,074 1,282 19.4
Income from insurance business 0 0 n.m.
Profits on financial assets and liabilities at fair value (1) (4) 300.0
Other operating income (expenses) 33 67 103.0
Operating income 1,105 1,344 21.6
Personnel expenses (103) (120) 16.5
Other administrative expenses (108) (112) 3.7
Adjustments to property, equipment and intangible assets (7) (7) 0.0
Operating costs (218) (239) 9.6
Operating margin 887 1,105 24.6
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) 887 1,105 24.6
Taxes on income (242) (296) 22.3
Charges (net of tax) for integration and exit incentives (2) (8) 300.0
Effect of purchase price allocation (net of tax) 0 (4) 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 (49) (10) (79.6)
Net income 594 787 32.5

Asset Management: Q4 vs Q3

3Q21 4Q21 D%
Net interest income (0) (0) 18.2
Net fee and commission income 291 395 35.6
Income from insurance business 0 0 n.m.
Profits on financial assets and liabilities at fair value (1) (2) (190.8)
Other operating income (expenses) 15 12 (15.6)
Operating income 305 406 32.9
Personnel expenses (28) (42) 51.8
Other administrative expenses (28) (32) 15.6
Adjustments to property, equipment and intangible assets (2) (2) 0.9
Operating costs (57) (76) 32.6
Operating margin 248 330 32.9
Net adjustments to loans 0 0 n.m.
Net provisions and net impairment losses on other assets 0 0 (38.3)
Other income (expenses) 0 0 n.m.
Income (Loss) from discontinued operations 0 0 n.m.
Gross income (loss) 248 330 32.9
Taxes on income (64) (91) 42.9
Charges (net of tax) for integration and exit incentives (1) (6) 473.2
Effect of purchase price allocation (net of tax) (3) (1) (66.7)
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 181 230 27.3

Insurance: 2021 vs 2020

2020 2021 D%
redetermined
Net interest income 0 0 n.m.
Net fee and commission income (3) 2 n.m.
Income from insurance business 1,613 1,586 (1.7)
Profits on financial assets and liabilities at fair value 1 0 (100.0)
Other operating income (expenses) (8) (16) 100.0
Operating income 1,603 1,572 (1.9)
Personnel expenses (138) (143) 3.6
Other administrative expenses (236) (238) 0.8
Adjustments to property, equipment and intangible assets (20) (20) 0.0
Operating costs (394) (401) 1.8
Operating margin 1,209 1,171 (3.1)
Net adjustments to loans 0 0 n.m.
Net provisions and net impairment losses on other assets (26) (334) n.m.
Other income (expenses) 0 0 n.m.
Income (Loss) from discontinued operations 0 0 n.m.
Gross income (loss) 1,183 837 (29.2)
Taxes on income (275) (211) (23.3)
Charges (net of tax) for integration and exit incentives (16) (42) 162.5
Effect of purchase price allocation (net of tax) (24) (52) 116.7
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 (177) 180 n.m.
Net income 691 712 3.0

Insurance: Q4 vs Q3

3Q21 4Q21 D%
Net interest income (0) (0) 5.5
Net fee and commission income 0 1 46.1
Income from insurance business 364 397 9.2
Profits on financial assets and liabilities at fair value 0 0 n.m.
Other operating income (expenses) (4) (6) (33.1)
Operating income 360 392 9.0
Personnel expenses (31) (40) 29.7
Other administrative expenses (61) (70) 15.8
Adjustments to property, equipment and intangible assets (5) (5) (5.0)
Operating costs (96) (115) 19.2
Operating margin 263 277 5.3
Net adjustments to loans 0 0 n.m.
Net provisions and net impairment losses on other assets (24) (179) 657.4
Other income (expenses) 0 0 n.m.
Income (Loss) from discontinued operations 0 0 n.m.
Gross income (loss) 240 98 (59.2)
Taxes on income (63) (37) (40.6)
Charges (net of tax) for integration and exit incentives (11) (24) 118.9
Effect of purchase price allocation (net of tax) (4) (37) 877.3
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 16 95 513.4
Net income 178 96 (46.1)

Quarterly P&L

€ m

1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21
redetermined(1)
Net interest income 2,040 2,037 2,129 2,072 1,952 1,995 1,999 1,954
Net fee and commission income 2,122 2,014 2,147 2,442 2,313 2,370 2,325 2,532
Income from insurance business 440 456 353 436 398 456 365 410
Profits on financial assets and liabilities at fair value 1,049 306 127 193 795 344 378 108
Other operating income (expenses) 1 29 1 6 32 19 25 16
Operating income 5,652 4,842 4,757 5,149 5,490 5,184 5,092 5,020
Personnel expenses (1,648) (1,663) (1,648) (1,746) (1,629) (1,657) (1,643) (1,844)
Other administrative expenses (694) (746) (742) (896) (651) (710) (693) (845)
Adjustments to property, equipment and intangible assets (314) (314) (313) (315) (307) (301) (302) (338)
Operating costs (2,656) (2,723) (2,703) (2,957) (2,587) (2,668) (2,638) (3,027)
Operating margin 2,996 2,119 2,054 2,192 2,903 2,516 2,454 1,993
Net adjustments to loans (538) (1,543) (972) (1,440) (402) (599) (543) (1,222)
Net provisions and net impairment losses on other assets (431) 251 (64) (121) (134) (220) (82) (415)
Other income (expenses) 13 0 22 62 198 (7) 63 78
Income (Loss) from discontinued operations 149 1,230 80 129 48 10 (0) (0)
Gross income (loss) 2,189 2,057 1,120 822 2,613 1,700 1,892 434
Taxes on income (635) (362) (322) (191) (837) (85) (619) (82)
Charges (net of tax) for integration and exit incentives (15) (22) (27) (1,485) (52) (55) (41) (291)
Effect of purchase price allocation (net of tax) (26) (24) 3,237 (1,227) (16) (18) (51) 46
Levies and other charges concerning the banking industry (net of tax) (206) (91) (178) (38) (196) (83) (210) (22)
Impairment (net of tax) of goodwill and other intangible assets 0 0 0 (912) 0 0 0 0
Minority interests (156) (143) (20) (68) 4 48 12 94
Net income 1,151 1,415 3,810 (3,099) 1,516 1,507 983 179

€546m and €393m respectively when excluding the accounting effect of the combination with UBI Banca and of the impairment of goodwill

Note: figures may not add up exactly due to rounding

(1) Data redetermined - where necessary and material - considering the changes in the scope of consolidation following the inclusion of UBI Banca and - on the basis of management accounts - the reallocation of the contribution of branches sold in 1H21 to Income (Loss) from discontinued operations, the full line-by-line consolidation of Assicurazioni Vita (former Aviva Vita), Lombarda Vita and Cargeas Assicurazioni (not considering, on the basis of management accounts, the contribution of branches sold in 1H21), and the effects of the acquisition of the REYL Group

Net fee and commission income: quarterly development breakdown

€ m

Net fee and commission income
1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21
redetermined(1)
Guarantees given / received 46 44 43 44 42 51 57 52
Collection and payment services 124 113 115 140 137 139 138 138
Current accounts 352 353 360 366 344 352 352 364
Credit and debit cards 65 73 85 89 61 106 108 89
Commercial banking activities 587 583 603 639 584 648 655 643
Dealing and placement of securities 195 164 189 225 290 283 207 227
Currency dealing 1 1 2 2 3 3 3 4
Portfolio management 663 649 687 844 733 781 764 896
Distribution of insurance products 388 365 396 418 406 383 401 417
Other 77 64 71 72 58 50 58 109
Management, dealing and consultancy activities 1,324 1,243 1,345 1,561 1,490 1,500 1,433 1,653
Other net fee and commission income 211 188 199 242 239 222 237 236
Net fee and commission income 2,122 2,014 2,147 2,442 2,313 2,370 2,325 2,532

Note: figures may not add up exactly due to rounding

(1) Data redetermined - where necessary and material - considering the changes in the scope of consolidation following the inclusion of UBI Banca and - 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

Market leadership in Italy

Note: figures may not add up exactly due to rounding

  • (1) Excluding Corporate centre
  • (2) Data as at 31.12.21
  • (3) Including bonds
  • (4) Mutual funds; data as at 30.9.21
  • (5) Data as at 30.9.21

International Subsidiary Banks: key P&L data by country

Data as at 31.12.21

Gross income Operating income Operating costs Operating margin € m € m € m € m +2.3 +2.4 +2.0 +7.9 +16.9 +0.9 +4.5 +9.3 (5.2) +9.8 +9.4 458 440 282 207 69 45 40 39 15 11 Albania Slovakia Hungary Moldova Croatia Slovenia Egypt Serbia Bosnia Romania Ukraine 371 221 184 112 111 43 30 23 22 21 9 Croatia Serbia Slovakia Egypt Hungary Slovenia Bosnia Romania Albania 154 +1.2 (0.3) +2.0 +8.7 +2.9 +1.5 +5.3 +4.4 +8.4 +9.8 (1.0) 256 237 169 96 26 23 18 10 2 (5) Hungary Croatia Slovakia Serbia Egypt Bosnia Slovenia Albania Romania Moldova Ukraine 217 +4.5 +3.4 +2.1 +7.4 +39.0 (0.1) +4.5 +10.3 (27.3) n.m. (9.8) 211 185 131 76 26 20 9 5 2 Bosnia Egypt Croatia Slovakia Serbia Albania Hungary Slovenia Romania 166 +21.5 +1.2 +4.2 +10.7 +52.5 +30.1 +63.4 (41.5) (2.1) n.m. (71.7)

Note: excluding the Russian subsidiary Banca Intesa which is included in IMI C&IB

(8)

Ukraine

Moldova

Moldova

Ukraine

MIL-BVA362-03032014-90141/VR

International Subsidiary Banks by country: 8% of the Group's total loans

Data as at 31.12.21

Hungary Slovakia Slovenia Croatia Bosnia Serbia Albania Romania Moldova Ukraine Total
CEE
Egypt Total
Oper. income (€ m) 207 458 6
9
440 4
5
282 4
0
3
9
1
1
1
5
1,607 371 1,978
% of Group total 1.0% 2.2% 0.3% 2.1% 0.2% 1.4% 0.2% 0.2% 0.1% 0.1% 7.7% 1.8% 9.5%
Net income (€ m) 4
4
113 1
8
164 1
6
9
0
4 2 1 (8) 445 118 563
% of Group total 1.1% 2.7% 0.4% 3.9% 0.4% 2.1% 0.1% 0.0% 0.0% n.m. 10.6% 2.8% 13.4%
Customer deposits (€ bn) 5.5 18.0 2.8 10.9 0.9 4.9 1.4 1.0 0.2 0.2 45.8 5.4 51.2
% of Group total 1.0% 3.2% 0.5% 2.0% 0.2% 0.9% 0.3% 0.2% 0.0% 0.0% 8.2% 1.0% 9.2%
Customer loans (€ bn) 3.4 16.5 2.1 7.6 0.8 4.0 0.4 0.9 0.1 0.2 36.1 2.9 39.0
% of Group total 0.7% 3.5% 0.4% 1.6% 0.2% 0.9% 0.1% 0.2% 0.0% 0.0% 7.8% 0.6% 8.4%
Total assets (€ bn) 7.5 23.3 3.5 14.0 1.3 6.5 1.6 1.4 0.2 0.3 59.7 6.7 66.3
% of Group total 0.7% 2.2% 0.3% 1.3% 0.1% 0.6% 0.2% 0.1% 0.0% 0.0% 5.6% 0.6% 6.2%
Book value (€ m)
- intangibles
717
31
1,705
132
321
7
1,829
31
175
1
1,014
41
185
4
179
6
3
5
2
5
5
4
6,215
260
694
9
6,909
269

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

International Subsidiary Banks by country: loan breakdown and coverage

Data as at 31.12.21

Total Total
Hungary Slovakia Slovenia Croatia Bosnia Serbia Albania Romania Moldova Ukraine CEE Egypt
Performing loans (€ bn)
of which:
3.4 16.3 2.1 7.4 0.8 4.0 0.4 0.9 0.1 0.2 35.6 2.8 38.4
Retail local currency 48% 60% 41% 30% 32% 24% 21% 14% 55% 31% 45% 57% 46%
Retail foreign currency 0% 0% 0% 20% 14% 29% 13% 14% 0% 0% 8% 0% 8%
Corporate local currency 22% 33% 59% 26% 19% 6% 13% 49% 18% 36% 29% 33% 29%
Corporate foreign currency 30% 6% 0% 24% 36% 41% 53% 23% 28% 33% 18% 10% 17%
Bad loans(1) (€ m) 8 54 0 61 6 15 4 6 1 0 155 1 156
Unlikely to pay(2) (€ m) 59 55 8 155 11 25 4 18 1 0 336 56 392
Performing loans coverage 1.6% 0.6% 1.1% 1.6% 1.8% 1.6% 1.8% 1.2% 4.2% 0.6% 1.1% 1.4% 1.1%
Bad loans(1) coverage 60% 78% 100% 66% 70% 78% 56% 65% 57% n.m. 73% 98% 75%
Unlikely to pay(2) coverage 39% 53% 62% 33% 27% 52% 50% 49% 50% n.m. 42% 46% 43%
Cost of credit(3) (bps) 29 43 10 21 35 64 90 62 n.m. n.m. 38 73 41

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

(1) Sofferenze

(2) Including Past due

(3) Net adjustments to loans/Net customer loans

MIL-BVA362-03032014-90141/VR

Common Equity Tier 1 ratio as at 31.12.21: from phased-in to pro-forma fully loaded

~€ bn ~bps
Direct-deduction relevant items
DTA on losses carried forward(1)
IFRS9 transitional adjustment
1.9
(1.5)
60
(45)
Total 0.4 15
Cap relevant items(*)(2)
Total 0.0 25
(*) as a memo, constituents of deductions subject to cap:
- Other DTA(3)
1.5
- Investments in banking and financial companies 1.3
RWA from 100% weighted DTA(4) (8.7) 40
Total estimated impact 80
Pro-forma fully loaded Common Equity Tier 1 ratio 15.2%

Note: figures may not add up exactly due to rounding.

(1) Considering the expected absorption of DTA on losses carried forward (€2.1bn as at 31.12.21)

(3) Other DTA: mostly related to provisions for risks and charges, considering the total absorption of DTA related to IFSR9 FTA (€1.1bn as at 31.12.21) and DTA related to the 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 31.12.21), DTA related to the acquisition of UBI Banca and to the new agreement with trade unions signed on 16.11.21 (€0.7bn as at 31.12.21). DTA related to goodwill realignment and adjustments to loans are excluded due to their treatment as credits to tax authorities

(4) Considering the total absorption of DTA convertible into tax credit related to goodwill realignment (€5.8bn as at 31.12.21) and adjustments to loans (€2.9bn as at 31.12.21)

(2) Following the application of the Danish Compromise, insurance investments are risk weighted instead of being deducted from capital. In the amount of insurance investments, the expected distribution on FY21 Net income of insurance companies is considered, which for the sake of simplicity is left included in the benefit allocated to this caption

Total exposure(1) by main countries

€ m

DEBT SECURITIES
Banking Business Insurance LOANS
AC FVTOCI FVTPL(2) Total Business(3) Total
EU Countries 35,377 43,502 668 79,547 79,115 158,662 426,766
Austria 193 167 -107 253 358 611 1,677
Belgium 804 2,816 224 3,844 709 4,553 928
Bulgaria 0 0 -2 -2 129 127 23
Croatia 278 751 151 1,180 240 1,420 7,514
Cyprus 0 0 0 0 99 99 32
Czech Republic 101 0 0 101 41 142 981
Denmark 33 18 0 51 68 119 45
Estonia 0 0 0 0 2 2 5
Finland 15 55 -33 37 146 183 329
France 2,903 5,432 -719 7,616 6,036 13,652 12,118
Germany 1,294 1,359 -476 2,177 2,784 4,961 8,102
Greece 62 0 49 111 6 117 13
Hungary 389 806 34 1,229 70 1,299 3,239
Ireland 459 1,407 517 2,383 128 2,511 644
Italy 23,520 18,244 1,879 43,643 60,511 104,154 357,872
Latvia 0 0 3 3 21 24 31
Lithuania 0 0 0 0 0 0 1
Luxembourg 229 485 76 790 133 923 7,641
Malta 0 0 0 0 0 0 191
The Netherlands 266 887 147 1,300 1,302 2,602 1,866
Poland 201 129 0 330 62 392 1,235
Portugal 194 327 -110 411 685 1,096 147
Romania 66 369 22 457 458 915 1,012
Slovakia 0 923 0 923 47 970 14,194
Slovenia 1 200 -23 178 42 220 2,065
Spain 4,345 8,890 -967 12,268 4,888 17,156 4,533
Sweden 24 237 3 264 150 414 328
Albania 181 400 0 581 53 634 477
Egypt 0 1,839 1 1,840 127 1,967 3,509
Japan 58 3,321 6 3,385 173 3,558 710
Russia 9 50 0 59 68 127 5,571
Serbia 7 730 10 747 107 854 4,268
United Kingdom 650 623 13 1,286 1,876 3,162 16,209
U.S.A. 2,195 6,416 206 8,817 3,140 11,957 7,932
Other Countries 1,844 7,038 369 9,251 3,755 13,006 25,569
Total 40,321 63,919 1,273 105,513 88,414 193,927 # 491,011

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 31.12.21

(2) Taking into account cash short positions

(3) Excluding securities in which money is collected through insurance policies where the total risk is retained by the insured

Exposure to sovereign risks(1) by main countries

€ m

DEBT SECURITIES
Banking Business Insurance
Business(3)
Total FVTOCI/AFS
Reserve
(4)
LOANS
A
C
FVTOCI FVTPL(2) Total
EU Countries 22,493 35,693 -1,454 56,732 68,852 125,584 131 10,967
Austria 0 71 -96 -25 241 216 0 0
Belgium 758 2,747 224 3,729 503 4,232 -36 0
Bulgaria 0 0 -2 -2 67 65 0 0
Croatia 147 751 151 1,049 230 1,279 0 1,247
Cyprus 0 0 0 0 99 99 0 0
Czech Republic 0 0 0 0 0 0 0 0
Denmark 0 0 0 0 0 0 0 0
Estonia 0 0 0 0 0 0 0 0
Finland 0 0 -38 -38 30 -8 0 0
France 2,365 3,985 -761 5,589 3,327 8,916 -56 27
Germany 510 395 -496 409 1,624 2,033 0 0
Greece 0 0 47 47 6 53 0 0
Hungary 199 770 34 1,003 56 1,059 5 113
Ireland 137 364 10 511 96 607 3 0
Italy 14,279 16,141 460 30,880 57,447 88,327 201 9,099
Latvia 0 0 3 3 21 24 0 27
Lithuania 0 0 0 0 0 0 0 0
Luxembourg 0 134 59 193 0 193 0 0
Malta 0 0 0 0 0 0 0 0
The Netherlands 52 120 50 222 327 549 1 0
Poland 52 69 0 121 26 147 -1 0
Portugal 83 310 -127 266 620 886 -1 0
Romania 66 369 22 457 435 892 -8 5
Slovakia 0 895 0 895 0 895 6 169
Slovenia 1 193 -23 171 42 213 0 225
Spain 3,844 8,360 -971 11,233 3,655 14,888 17 55
Sweden 0 19 0 19 0 19 0 0
Albania 181 400 0 581 53 634 7 1
Egypt 0 1,839 1 1,840 127 1,967 10 391
Japan 0 3,004 0 3,004 0 3,004 8 0
Russia 0 50 0 50 21 71 0 0
Serbia 7 730 10 747 107 854 4 70
United Kingdom 0 192 1 193 66 259 -6 0
U.S.A. 1,358 4,841 95 6,294 7 6,301 -115 0
Other Countries 1,508 5,124 272 6,904 1,609 8,513 -56 5,109
Total 25,547 51,873 -1,075 76,345 70,842 147,187 -17 # 16,538

Banking business government bond duration: 6.8y Adjusted duration due to hedging: 0.4y

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 31.12.21

(2) Taking into account cash short positions

(3) Excluding securities in which money is collected through insurance policies where the total risk is retained by the insured

(4) Net of tax and allocation to insurance products under separate management

MIL-BVA362-03032014-90141/VR

Exposure to banks by main countries(1)

€ m

DEBT SECURITIES
Banking Business
AC FVTOCI FVTPL(2) Total Insurance
Business(3)
Total LOANS
EU Countries 1,864 3,940 707 6,511 4,785 11,296 21,362
Austria 174 46 -11 209 91 300 198
Belgium 11 49 -2 58 97 155 284
Bulgaria 0 0 0 0 0 0 0
Croatia 43 0 0 43 0 43 35
Cyprus 0 0 0 0 0 0 2
Czech Republic 0 0 0 0 3 3 0
Denmark 20 8 0 28 45 73 28
Estonia 0 0 0 0 0 0 0
Finland 9 14 0 23 57 80 66
France 290 962 -7 1,245 1,653 2,898 10,208
Germany 74 544 13 631 362 993 6,038
Greece 0 0 2 2 0 2 5
Hungary 124 36 0 160 12 172 91
Ireland 7 27 0 34 1 35 298
Italy 756 1,188 736 2,680 1,585 4,265 3,293
Latvia 0 0 0 0 0 0 0
Lithuania 0 0 0 0 0 0 0
Luxembourg 0 181 -4 177 41 218 114
Malta 0 0 0 0 0 0 135
The Netherlands 101 292 -6 387 391 778 127
Poland 0 51 0 51 0 51 0
Portugal 0 17 -3 14 0 14 2
Romania 0 0 0 0 0 0 40
Slovakia 0 28 0 28 0 28 0
Slovenia 0 7 0 7 0 7 6
Spain 237 335 -12 560 392 952 382
Sweden 18 155 1 174 55 229 10
Albania 0 0 0 0 0 0 22
Egypt 0 0 0 0 0 0 61
Japan 29 143 0 172 64 236 2
Russia 0 0 0 0 4 4 100
Serbia 0 0 0 0 0 0 49
United Kingdom 158 245 -7 396 694 1,090 3,909
U.S.A. 293 793 44 1,130 1,645 2,775 505
Other Countries 72 1,377 78 1,527 915 2,442 5,233
Total 2,416 6,498 822 9,736 8,107 17,843 # 31,243

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

(1) Book Value of Debt Securities and Net Loans as at 31.12.21

(2) Taking into account cash short positions

(3) Excluding securities in which money is collected through insurance policies where the total risk is retained by the insured

MIL-BVA362-03032014-90141/VR

Exposure to other customers by main countries(1)

DEBT SECURITIES
Banking Business Insurance
Total
LOANS
AC FVTOCI FVTPL(2) Total Business(3)
EU Countries 11,020 3,869 1,415 16,304 5,478 21,782 394,437
Austria 19 50 0 69 26 95 1,479
Belgium 35 20 2 57 109 166 644
Bulgaria 0 0 0 0 62 62 23
Croatia 88 0 0 88 10 98 6,232
Cyprus 0 0 0 0 0 0 30
Czech Republic 101 0 0 101 38 139 981
Denmark 13 10 0 23 23 46 17
Estonia 0 0 0 0 2 2
Finland 6 41 5 52 59 111 263
France 248 485 49 782 1,056 1,838 1,883
Germany 710 420 7 1,137 798 1,935 2,064
Greece 62 0 0 62 0 62
Hungary 66 0 0 66 2 68 3,035
Ireland 315 1,016 507 1,838 31 1,869 346
Italy 8,485 915 683 10,083 1,479 11,562 345,480
Latvia 0 0 0 0 0 0
Lithuania 0 0 0 0 0 0
Luxembourg 229 170 21 420 92 512 7,527
Malta 0 0 0 0 0 0
The Netherlands 113 475 103 691 584 1,275 1,739
Poland 149 9 0 158 36 194 1,235
Portugal 111 0 20 131 65 196 145
Romania 0 0 0 0 23 23 967
Slovakia 0 0 0 0 47 47 14,025
Slovenia 0 0 0 0 0 0 1,834
Spain 264 195 16 475 841 1,316 4,096
Sweden 6 63 2 71 95 166 318
Albania 0 0 0 0 0 0 454
Egypt 0 0 0 0 0 0 3,057
Japan 29 174 6 209 109 318 708
Russia 9 0 0 9 43 52 5,471
Serbia 0 0 0 0 0 0 4,149
United Kingdom 492 186 19 697 1,116 1,813 12,300
U.S.A. 544 782 67 1,393 1,488 2,881 7,427
Other Countries 264 537 19 820 1,231 2,051 15,227
Total 12,358 5,548 1,526 19,432 9,465 28,897 # 443,230

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

(1) Book Value of Debt Securities and Net Loans as at 31.12.21

(2) Taking into account cash short positions

(3) Excluding securities in which money is collected through insurance policies where the total risk is retained by the insured

"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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