Intesa Sanpaolo

Quarterly Report • May 26, 2025

Interim Statement as at 31 March 2025

This is an English translation of the original Italian document "Resoconto Intermedio al 31 marzo 2025". In cases of conflict between the English language document and the Italian document, the interpretation of the Italian language document prevails. The Italian original is available on group.intesasanpaolo.com. This document contains certain forward-looking statements, projections, objectives, estimates and forecasts reflecting the Intesa Sanpaolo management's current views with respect to certain 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 Intesa Sanpaolo's future financial position and results of operations, strategy, plans, objectives, goals and targets and future developments in the markets where Intesa Sanpaolo 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 Intesa Sanpaolo 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 forwardlooking 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 Intesa Sanpaolo as of the date of approval of this document. Intesa Sanpaolo 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 Intesa Sanpaolo or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements.

Interim Statement as at 31 March 2025

Intesa Sanpaolo S.p.A. Registered Office: Piazza S. Carlo, 156 10121 Torino Italy Secondary Registered Office: Via Monte di Pietà, 8 20121 Milano Italy Share Capital Euro 10,368,870,930.08 Torino Company Register and Fiscal Code No. 00799960158 "Intesa Sanpaolo" VAT Group representative Vat Code No. 11991500015 (IT11991500015) Included in the National Register of Banks No. 5361 ABI Code 3069.2 Member of the National Interbank Deposit Guarantee Fund and of the National Guarantee Fund and Parent Company of the banking group "Intesa Sanpaolo" included in the National Register of Banking Groups

Contents

The Intesa Sanpaolo Group	7
Board of Directors, Manager responsible for preparing the Company's financial reports and Independent Auditors	11
Introduction	13
Overview of the first quarter of 2025 Income statement figures and Alternative Performance Measures Balance sheet figures and Alternative Performance Measures Alternative Performance Measures and other measures The first quarter of 2025	16 18 19 22
Consolidated financial statements	33
Report on operations Economic results Balance sheet aggregates Breakdown of consolidated results by business area Risk management	43 57 74 88
Accounting policies Criteria for the preparation of the Interim Statement	115
Declaration of the Manager responsible for preparing the Company's financial reports	119
Attachments	121
Contacts	143
Financial calendar	147

7

THE INTESA SANPAOLO GROUP

The Intesa Sanpaolo Group: presence in Italy

Banks

NORTH WEST
Branches
944

NORTH EAST

Branches
616

CENTRE

Branches 637

SOUTH

Branches 565

ISLANDS

Branches
204

Figures as at 31 March 2025

Product Companies1

Bancassurance and Pension Funds

Asset Management Fiduciary Services

Consumer Credit 2

1 Factoring and Leasing activities are carried out directly by Intesa Sanpaolo S.p.A., the Parent Company 2 Consumer Credit activities are also carried out directly by Intesa Sanpaolo S.p.A., the Parent Company

The Intesa Sanpaolo Group: international presence

Banks, Branches and Representative Offices

Singapore Seoul

Tokyo

D

AFRICA
Representative Offices	Country	Subsidiaries	Branches
Cairo	Egypt	Bank of Alexandria	176

Country	Subsidiaries	Branches
Albania	Intesa Sanpaolo Bank Albania	34
Belgium	Intesa Sanpaolo Wealth Management	2
	Bosnia and Herzegovina Intesa Sanpaolo Banka Bosna i Hercegovina	43
Croatia	Privredna Banka Zagreb	135
Czech Republic	VUB Banka	1
Hungary	CIB Bank	58
Ireland	Intesa Sanpaolo Bank Ireland	1
Luxembourg	Intesa Sanpaolo Wealth Management	1
	Intesa Sanpaolo Bank Luxembourg	1
Moldova	Eximbank	17
	Intesa Sanpaolo Bank Romania	34
Romania	First Bank	40
Russian Federation	Banca Intesa	20
Serbia	Banca Intesa Beograd	134
Slovakia	VUB Banka	152
Slovenia	Intesa Sanpaolo Bank	40
Switzerland	Reyl Intesa Sanpaolo	3
Ukraine	Pravex Bank	39

Paris Warsaw

Figures as at 31 March 2025 * European Regulatory & Public Affairs

Product Companies

AUSTRALIA/OCEANIA

Sydney

Direct Branches

Board of Directors, Manager responsible for preparing the Company's financial reports and Independent Auditors

Gian Maria GROS-PIETRO
Paola TAGLIAVINI
Carlo MESSINA (a)
Maura CAMPRA () Guido CELONA Franco CERUTI Roberto FRANCHINI () Anna GATTI Paolo Maria Vittorio GRANDI Liana LOGIURATO Fabrizio MOSCA () Riccardo Secondo Carlo MOTTA () Luciano NEBBIA Bruno Maria PARIGI Pietro PREVITALI Maria Alessandra STEFANELLI Mariarosaria TADDEO Mariella TAGLIABUE () Maria Angela ZAPPIA
Elisabetta STEGHER
EY S.p.A.

(a) General Manager

(*) Member of the Management Control Committee

(**) Chair of the Management Control Committee

Introduction

Italian Legislative Decree 25 of 15 February 2016, which implemented the Transparency Directive (2013/50/EU), eliminated the pre-existing obligation to publish interim statements and gave Consob the option of establishing any additional disclosure obligations with respect to the annual and half-yearly reports. By Resolution 19770 dated 26 October 2016, Consob, pursuant to regulatory delegation provided for in said Decree, approved the changes to the Issuers' Regulation, which have applied since 2 January 2017. Article 82-ter gave listed companies the option to choose whether or not to publish additional periodic financial information, specifying the application principles and criteria to be adopted.

In announcing the 2025 financial calendar to the market, Intesa Sanpaolo reiterated its decision, pursuant to Article 65-bis and the above-mentioned Article 82-ter of the Issuers' Regulation, that it had opted to disclose – on a voluntary basis – financial information as at 31 March and 30 September of each financial year, in addition to the annual and half-yearly reports. This information consists of interim statements approved by the Board of Directors.

As illustrated in detail in the chapter "Criteria for the preparation of the Interim Statement", the Interim Statement as at 31 March 2025 has been prepared, in consolidated form, in compliance with the recognition and measurement criteria required by the IAS/IFRS issued by the International Accounting Standards Board (IASB) and the relative interpretations of the International Financial Reporting Standards Interpretations Committee (IFRS-IC) and endorsed by the European Commission, as provided for by Regulation (EC) no. 1606 of 19 July 2002.

The Interim Statement contains the Consolidated balance sheet, the Consolidated income statement, the Statement of consolidated comprehensive income, the Changes in consolidated shareholders' equity, prepared in accordance with Bank of Italy Circular 262/2005, 8th update of 17 November 2022, as well as the Accounting policies and the Report on operations. It is also complemented by information on significant events which occurred during the period in question and the main risks and uncertainties.

The document contains financial information taken from or attributable to the financial statements, as well as other information – for example, figures on quarterly trends, and certain Alternative Performance Measures – not directly attributable to the financial statements. See the chapter Alternative Performance Measures in the Report on operations accompanying the 2024 Consolidated Financial Statements for a definition of these measures and their calculation methods, confirming that, with specific regard to the military conflict between Russia and Ukraine, in line with the ESMA guidance, no new measures have been added, nor have any changes been made to the measures used.

To support the comments on results for the period, the Interim Statement also presents and illustrates reclassified consolidated income statement and balance sheet schedules.

In the reclassified schedules, the figures are usually restated, where necessary and where material, to enable the best likefor-like comparison between the different periods covered, particularly in relation to changes in the scope of consolidation.

Breakdowns of reclassifications and any restatements as compared to the accounting schedules established in Bank of Italy Circular 262 are provided in separate reconciliation tables included in the attachments to this report, as also required by Consob in its Communication 6064293 of 28 July 2006.

15

Overview of the first quarter of 2025

Income statement figures and Alternative Performance Measures(°)

Consolidated income statement figures (millions of euro)		Changes amount	%
Net interest income		3,632 3,947	-315	-8.0
Net fee and commission income		2,435 2,276	159	7.0
Income from insurance business		462 455	7	1.5
Profits (Losses) on financial assets and liabilities at fair value		265 81	184
Operating income			6,792 36 6,756	0.5
Operating costs	-2,578 -2,591		-13	-0.5
Operating margin		4,214 4,165	49	1.2
Net adjustments to loans	-224 -234		-10	-4.3
Net income (loss)		2,615 2,301	314	13.6

31.03.2025 31.03.2024

(°) For more detailed information on the Alternative Performance Measures, see the specific chapter of the Report on operations accompanying the 2024 Annual Report.

31.03.2025 31.03.2024

Balance sheet figures and Alternative Performance Measures(°)

Consolidated balance sheet figures (millions of euro)		Changes amount	0/0
Banking business financial assets	202,309 184,988	17,321	9.4
Financial assets pertaining to insurance companies	172,503 177,322	-4,819	-2.7
Loans to customers	416,797 421,512	-4.715	-1.1
Total assets	935,134 933,285	1,849	0.2
Direct deposits from banking business	573,911 584,508	-10,597	-1.8
Direct deposits from insurance business	173,536 177,430	-3,894	-2.2
Indirect deposits:	796,043 788,399	7,644	1.0
of which: Assets under management	469,784 473,129	-3,345	-0.7
Shareholders' equity	66,633 65,176	1,457	2.2
Loans to customers / Direct deposits from banking business (%) (Loan to deposit ratio)	72.6% 72.1%

(°) For more detailed information on the Alternative Performance Measures, see the specific chapter of the Report on operations accompanying the 2024 Annual Report.

Alternative Performance Measures and other measures(°)

31.03.2025 31.12.2024

(°) For more detailed information on the Alternative Performance Measures, see the specific chapter of the Report on operations accompanying the 2024 Annual Report.

31.03.2025 31.03.2024

Earnings per share (euro)
Basic earnings per share (basic EPS) (d)	0.15 0.13
Diluted earnings per share (diluted EPS) (e)	0.15 0.13
Concolidated viak ration (0/ )

ับบทวงที่นิ้นในสีเธน ที่วิท Tatibo ( 70)
Net bad loans / Loans to customers	0.3 0.3
Net non-performing loans / Loans to customers	1.2 1.2
Cumulated adjustments on bad loans / Gross bad loans to customers	67.3 68.0
Cumulated adjustments on non-performing loans Gross non- performing loans to customers	50.1 49.5

Operating structure	31.03.2025	31.12.2024	Changes amount
Number of employees (f)	91,825	94,736	-2,911
Italy	69,095	71,320	-2,225
Abroad	22,730	23,416	-686
Number of financial advisors	5,933	5,868	65
Number of branches (g)	3,914	3,925	-11
Italy	2,966	2,971	-5
Abroad	948	954	-6

Figures restated, where necessary and material, considering the changes in the scope of consolidation.

(f) The workforce indicated refers to the exact number of employees at the end of the period, counting part-time workers as equal to 1 unit.

(g) The figure includes Retail/Exclusive Branches, Non-Profit Sector Branches, Agribusiness Branches, SME Branches and Corporate Branches. The comparative figure has not been restated.

31.03.2025 31.03.2024 (Income statement figures)

31.12.2024 (Balance sheet figures)

The first quarter of 2025

Economic trends

In the first quarter of 2025, the global economy showed conflicting signs. In the United States, economic activity remained relatively strong. However, households began to express concerns about a non-transitory rise in prices and a worsening of the economic situation linked to the policies of the new administration. Specifically, the tightening of US trade policies, implemented aggressively without clear objectives, is a considerable source of risk both for the international economic trend, and for the performance of financial markets. Moreover, the promises to quickly put an end to the conflicts in Ukraine and the Middle East have yet to produce concrete results.

In the Eurozone, GDP growth remains positive but modest. Manufacturing continues to suffer, while services are holding steady. In March, inflation dropped to 2.2% on an annual basis. In this context, the ECB cut official rates by 75 basis points from January to April, bringing the deposit facility rate to 2.25%. At the same time, it continued to reduce the securities portfolio by not reinvesting maturities. The excess reserves in the banking system thus further decreased.

In Italy, the contraction in industrial production continued in the first two months of 2025. Conversely, construction remained resilient and services showed opposing trends. Consumer spending continued to be boosted by purchasing power, in a context of ongoing robust growth in overall employment (+2.4% in February year-on-year) and wage increases higher than those in consumer prices. GDP growth in the first quarter was estimated by ISTAT at 0.3% on a quarterly basis and at 0.6% on an annual basis. Inflation stood at 2.1% in March, as measured by the harmonised index. In the foreign sector, Italian exports were impacted by trade tensions and the weakness in global demand, specifically in relation to the United States. The trade balance remained positive, but shrinking year-on-year.

On the financial markets medium-long-term bond yields rose moderately in the first quarter, partially reabsorbed in the first half of April. The ten-year BTP-Bund spread remained stable at around 110 basis points. The foreign exchange markets were characterised by high volatility and a general weakening of the USD, which was aggravated in the first half of April. The EUR-USD exchange rate closed the quarter at 1.08, but subsequently increased further. The depreciation of the USD also reflected growing expectations that the US official rates will be cut during 2025, after the Federal Reserve left the Fed funds target unchanged at 4.25%-4.50% at its January and March meetings.

On the Italian banking market, in a context of persistent uncertainty, the demand for loans from businesses remained weak, despite the easing of conditions through the significant reduction in interest rates, which have dropped below 4% on average since February for new loans compared to 4.4% at the end of 2024. Loans to non-financial companies continued to decline, by 1.1% year-on-year in March, though at a slower pace compared to the previous months. Differently, loans to households continued to recover, driven by mortgage loans, up by 2.0% in March, due to the strong increase in new loans (+49% year-onyear in the first two months).

Moderate growth in deposits was confirmed, showing opposing trends in current accounts, with a steady increase of around 2% in the first quarter, and time deposits, which continued to decelerate. Bonds also retained a more moderate pace and, as a result, the trend in funding from customers also slowed. Deposit rates continued to gradually decline, driving the decrease in the cost of funding from customers, against a stickier average rate on the stock of bonds.

In the first two months of 2025, savers began to invest in securities once again, with an increase of 20 billion euro in debt securities of households and businesses in custody with banks, after the monthly outflows recorded in the second half of 2024. Mutual funds reported positive net inflows in the first quarter, driven by bond and monetary funds. New life insurance business continued to rise, at a more moderate pace for traditional policies and with double-digit growth for Class III policies.

The consolidated income statement for the first quarter of 2025 closed with net income of 2,615 million euro, up by 13.6% compared to the 2,301 million euro earned in the same period of 2024, by virtue of growth in the operating margin, despite the scenario of declining interest rates¹ , and decreased levies and other charges concerning the banking and insurance industry. Instead, if compared with the 1,499 million euro realised in the fourth quarter of 2024, the net income in the first three months of 2025 improved by 74.4%, benefiting from a favourable evolution of the operating margin, especially on the cost side, as well as from lower adjustments, provisions and charges for integration.

Operating income rose to 6,792 million euro (+36 million euro, +0.5% compared to the first quarter of 2024; +124 million euro, +1.9% compared to the last three months of 2024).

The trend in revenues, both year-on-year and on a quarterly basis, incorporates a decrease in net interest income which was more than offset by the favourable trend in other categories of income.

Net interest income decreased to 3,632 million euro, impacted by the lower level of interest rates and the different number of days with respect to the two comparative periods. In that context, the decrease in net interest income (i) amounted to -8% compared to the first quarter of 2024, due to the smaller contribution from customer dealing and relations with banks, only partially offset by the increased interest income on securities held (also due to the growth in the stock of investments), and by the differentials on hedging derivatives, which turned positive; (ii) was instead equal to -4.4% compared to the fourth quarter 2024, also due to the smaller contribution of customer dealing, mitigated by improved contributions from the other components, with the exception of other net interest income.

Continuing its positive trend, net fee and commission income grew to 2,435 million euro, the highest level of the last five quarters, improving +7% year-on-year and +0.8% on a quarterly basis.

The increase on the first quarter of 2024 was fully attributable to management, dealing and consultancy activities, which saw improvement in all captions, while the decreased contribution from the commercial banking activities was fully offset by the growth in other net fee and commission income, specifically on lending. The more modest increase seen on the fourth quarter of 2024 actually incorporates a highly positive development of management, dealing and consultancy activities - despite the lower contribution from performance fees - in opposition to the decreased contributions from commercial banking activities and other net fee and commission income.

The level reached by income from insurance business, amounting to 462 million euro, was also the best of the last five quarters, with a change of +1.5% on the first three months of 2024, attributable to the non-life business, and +9% on the last quarter of 2024, fuelled by both the non-life business and the life business. Total premiums written grew by 13.7% compared to the initial months of 2024, and regarded both insurance products and investment contracts. Compared to the fourth quarter of 2024, instead, they fell slightly (-2.2%) in the life business.

The combined contribution of net fee and commission income and income from insurance business accounted for around 43% of operating income, confirming the diversification of the Group's business model.

Profits (losses) on financial assets and liabilities at fair value came to 265 million euro, recovering significantly on the 81 million euro in the first quarter of 2024 and the 5 million euro in the fourth quarter of 2024. With regard to both the comparison periods, the improvement was due to the positive change in "Profits (losses) on trading and on financial instruments under fair value option" which incorporates the effects of transactions in certificates, measured at fair value, correlated with the management of financial risks, where, in relation to the trends in market interest rates, the benefit deriving from the use of the liquidity collected through those instruments is recorded in net interest income. On a quarterly basis, the improvement in the caption was also favoured by an increased contribution of the result from the disposal of debt securities, specifically Italian and international government bonds.

The caption other operating income (expenses), which includes profits on investments carried at equity and other income/expenses from continuing operations, showed a net balance of -2 million euro, compared to -3 million euro in the first quarter of 2024 and +22 million euro in the fourth quarter of 2024. The performance of this caption is mainly attributable to profits on investments carried at equity, equal to 8 million euro, 10 million euro and 25 million euro, respectively.

Operating costs, amounting to 2,578 million euro, were down: more modestly year-on-year (-13 million euro; -0.5%), but particularly significant on a quarterly basis (-1,006 million euro; -28.1%), both because the fourth quarter of 2024 recorded a non-recurring variable portion of personnel expenses linked to the results, and due to the specific characteristics that usually mark the last quarter of the year, not only in terms of the seasonality of the invoicing of certain expense captions, but also regarding specific projects/initiatives.

In detail, personnel expenses of 1,583 million euro decreased by 1.2% on the first three months of 2024 and by 30.7% compared to the last three months of 2024, in relation to a decrease in the average workforce of -1,977 resources (-2.1%) year-on-year, partially offset by the contractual and operational trends, and by -1,834 resources (-1.9%) on a quarterly basis. Administrative expenses of 623 million euro decreased by 1.1% year-on-year and by 31.6% on a quarterly basis. As a result of the significant investments in technology made so far (total of 4.4 billion euro in the period 2022-first three months of 2025), amortisation and depreciation of 372 million euro grew by 3.6% compared to the first quarter of 2024, almost fully concentrated on intangible assets. Instead, they decreased by 4.1% on the previous three months.

As a result of these trends in revenues and costs, the operating margin grew to 4,214 million euro, showing a slight progress on the first three months of 2024 (+49 million euro; +1.2%) but a more pronounced improvement on the last quarter of 2024

¹ The quarterly average of the 1-month Euribor fell from 3.86% in the first quarter of 2024 to 2.60% in the first quarter of 2025 (3.06% in the fourth quarter of 2024).

(+1,130 million euro; +36.6%). Thus, the cost/income ratio decreased to 38%, compared to 38.4% in the first quarter of 2024 and to 53.7% in the fourth quarter of 2024.

Net adjustments to loans totalled 224 million euro, down on both of the comparative periods: -10 million euro, -4.3% on the first quarter of 2024 and -258 million euro, -53.5% on the fourth quarter.

The changes indicated mainly benefited from decreased adjustments to Stage 3 non-performing loans, which dropped to 272 million euro, also thanks to net inflows from performing loans that remained low. On the whole, performing loans and provisions for credit risk associated with commitments and financial guarantees given showed recoveries of 55 million euro, down year-on-year, but up on a quarterly basis. The cost of risk, represented as the ratio of net adjustments to net loans, consequently stood at 21 basis points in annualised terms compared to 30 basis points for the full year 2024.

Other net provisions and net impairment losses on other assets decreased to 23 million euro from 52 million euro in the first quarter of 2024 (-55.8%) and from 353 million euro in the fourth quarter of 2024 (-93.5%). The caption breaks down as follows:

• 2 million euro from recoveries on net provisions, in the presence of net provisions for legal and tax disputes of 16 million euro. Net provisions came to 53 million euro in the first quarter of 2024 – of which 9 million euro net for legal and tax disputes and 34 million euro for the write off of the equity contribution of the Russian investee to the consolidated financial statements against the income accrued during the period – and to 205 million euro in the fourth quarter of 2024, of which 30 million euro for legal and tax disputes and 104 million euro for the write-off of the equity contribution of the Russian investee to the consolidated financial statements;
• 25 million euro from net impairment losses on securities and other assets, compared to net recoveries of 1 million euro in the first three months of 2024 and net adjustments of 148 million euro in the last three months of 2024.

Other income (expenses), which include realised gains and losses on investments, equity investments and financial assets at amortised cost other than loans, as well as income/expenses not strictly related to operations, made a negative contribution of 4 million euro, which compares to the positive contributions of 57 million euro and 67 million euro, respectively, in the first and fourth quarters of 2024, essentially attributable to income related to commercial agreements entered into by the Group in those periods.

As a result of the changes described above, gross income rose to 3,963 million euro, the highest level in the last five quarters, demonstrating only slight progress year-on-year (+27 million euro; +0.7%) but a significant improvement on a quarterly basis (+1,647 million euro; +71.1%).

Taxes on income for the period were then recorded for 1,250 million euro, equal to a tax rate of 31.5% (1,280 million euro, with a tax rate of 32.5% in the first three months of 2024). In the last three months of 2024, the tax expense was only 345 million euro, with a tax rate of 14.9%, both due to the lower taxable base for the period and the benefit from the recognition of deferred tax assets of 499 million euro relating to losses carried forward of the incorporated companies UBI Banca and Intesa Sanpaolo Provis, and intangibles of the incorporated company Intesa Sanpaolo Life.

The following were recognised after tax: charges for integration and exit incentives of 57 million euro (56 million euro in the first quarter of 2024; 424 million euro in the fourth quarter of 2024, including 295 million euro relating to the trade union agreement of October 2024) and negative effects of purchase price allocation of 24 million euro (-29 million euro in the first three months and -12 million euro in the last three months of 2024).

Levies and other charges concerning the banking and insurance industry, considered net of taxes, came to 9 million euro (10 million euro gross of tax), essentially attributable to the Group's international banks. This compares with 257 million euro (381 million euro gross) in the same quarter of 2024, mainly comprised of the estimated amount of 2024 contributions to the deposit guarantee scheme for the Group's Italian banks (238 million euro net; 356 million euro gross), for which an early call up was announced in view of the achievement of the target level of the fund by the following July. In the last three months of 2024, instead, 55 million euro were recorded (79 million euro gross of tax), which included 29 million euro (42 million euro gross) as 2024 contribution to the Life Insurance Guarantee Fund borne by the Group's insurance and distribution companies, supplementing the amount charged in the second quarter, and 20 million euro (30 million euro gross) from the write-down of the Atlante Fund.

After the allocation of the net income of 8 million euro to minority interests (income of 13 million euro in the first three months of 2024 and losses of 19 million euro in the last three months of 2024), the consolidated income statement closed, as already stated, with a net income of 2,615 million euro, up by 13.6% and by 74.4% compared to the first and last quarters of 2024, respectively.

As regards the balance sheet aggregates, as at 31 March 2025 loans to customers totalled 416.8 billion euro, down slightly on the 421.5 billion euro in December 2024 (-4.7 billion euro; -1.1%). The performance in the quarter was determined by commercial banking loans, which dropped to 387.1 billion euro (-5.2 billion euro; -1.3%), in a context featuring rapidly declining market interest rates, with a demand for credit from businesses remaining weak against a recovery in loans to households, driven by mortgage loans for home purchases.

The decrease in stocks exclusively regarded short-term loans: the modest growth seen in current accounts (+0.6% to 21.3 billion euro) was offset by the reduction in the aggregate of advances and other loans (-3.7% to 150.4 billion euro), mainly attributable to ordinary forms of advances, including factoring. Conversely, medium-long term loans recovered slightly (+0.2% to 215.4 billion euro), thanks to a positive trend in new loans in Italy.

With regard to the remaining components of the aggregate: short-term loans of financial nature, comprised of repurchase agreements used in overall treasury management, decreased to 17.4 billion euro (-3.3%); loans represented by securities rose to 7.3 billion euro (+16.6%), essentially as a result of securities of large corporate issuers subscribed by the Parent Company; and non-performing loans increased slightly (+0.9%), though remaining at a level of just under 5 billion euro.

In terms of credit quality, the NPL ratio stood unchanged at 2.3 gross and 1.2% net (2.3% and 1.2% in December 2024, respectively)2 . The coverage ratio for non-performing loans increased to 50.1% from 49.5% at the end of 2024, while the coverage ratio for performing loans, of 0.52%, remained at levels of the end of 2024 (0.53%). The weight of Stage 2 loans on the total portfolio decreased to 7.7% (from 7.9% at the end of 2024) with coverage ratio improving to 4.64%.

On the funding side, at the end of the first quarter of 2025, direct deposits from banking business amounted to 573.9 billion euro, down by 1.8% (-10.6 billion euro) compared to the 584.5 billion euro at the end of 2024. The trend of the aggregate was determined by the total of current accounts and deposits as well as bonds, only marginally offset by the positive performance of other forms of funding.

In detail, current accounts and deposits dropped to 401.1 billion euro from 409 billion euro in December (-7.9 billion euro; -1.9%). This decrease, which impacted both components, is mainly attributable to corporate customers, but was also influenced by households' investment choices. In any event, current accounts and deposits remained at 69.9% of total direct deposits from banking business, continuing to represent a key strength of the Group's liquidity position. Bonds decreased to 76.2 billion euro (-4.2 billion euro; -5.3% on the end of 2024): the negative trend – to be correlated with the pre-funding carried out in 2024 – affected both covered bonds (-2.4 billion euro) and senior preferred securities (-1.8 billion euro), compared to stable non-preferred senior securities. However, the decrease in subordinated liabilities to 11.7 billion euro (-0.1 billion euro; -1.1%) was completely marginal, only due to the effects of accounting valuations, as no issues or maturities occurred during the quarter.

Conversely, the following improved: (i) other funding, to 65.7 billion euro, with an increase of 0.7 billion euro (+1.1%) in the three months, essentially attributable to the component measured at fair value (+2.1% to 33.2 billion euro), almost fully composed of investment certificates; (ii) financial funding in the form of repurchase agreements and securities lending, to 16.4 billion euro (+0.8 billion euro; +5.1%), used in treasury management and, therefore, subject to short-term fluctuations; and (iii) certificates of deposit, to 2.8 billion euro (+0.2 billion euro, +6%), although that type of funding now plays a completely marginal role in the Group's overall deposits from banking business.

As a result of the different trends in the two aggregates, the loan to deposit ratio rose to 72.6% from 72.1% in December 2024.

At the end of March 2025, direct deposits from insurance business amounted to 173.5 billion euro, decreasing by 3.9 billion euro (-2.2%) compared to the 177.4 billion euro in December 2024, almost fully attributable to the life business.

Both of the main components recorded negative performance: insurance liabilities, which account for 71.6% of the total aggregate, decreased to 124.2 billion euro (-1.9 billion euro; -1.5%), in parallel with a drop in collected premiums (-3.1% compared to the fourth quarter of 2024) which specifically involved traditional life business products; financial liabilities pertaining to insurance companies – fully composed of unit-linked investment contracts included under Financial liabilities designated at fair value pertaining to insurance companies in the Reclassified Balance Sheet – decreased to 48.1 billion euro (-2.5 billion euro; -5%), despite the increase in collected premiums (+2.3% compared to the last three months of 2024), and, as a result, their weight on the total decreased to 27.7%.

With an always residual portion, though increasing to 0.7% of the total, other insurance deposits – included among Financial liabilities at amortised cost pertaining to insurance companies in the Reclassified Balance Sheet, which also include subordinated liabilities – improved significantly to 1.2 billion euro (+0.5 billion euro; +71.4%), due to a Tier 2 subordinated issue of 500 million euro, with 10-year maturity, placed on the institutional market by Intesa Sanpaolo Assicurazioni at the beginning of March.

Indirect customer deposits, measured at market price, amounted to 796 billion euro as at 31 March 2025, up on the 788.4 billion euro at the end of 2024 (+7.6 billion euro; +1%), as the summary of the opposing trends in assets under management compared to assets under administration.

Continuing the trend underway since 2023, assets under administration rose further to over 326.2 billion euro (+11 billion euro; +3.5%), reaching the 41% of total indirect customer deposits. The aggregate benefited from a positive market effect linked to the decrease in interest rates, but above all from positive net inflows of 7.6 billion euro.

Instead, assets under management saw a slight downturn to 469.8 billion euro (-3.3 billion euro; -0.7%), accounting for 59% of total indirect customer deposits, impacted by the negative market effect resulting from greater diversification of investments on foreign equity markets, featuring negative performance, despite positive net inflows of 2.2 billion euro. All the captions recorded decreases, though slight, during the quarter, as they were impacted by the negative effects of prices: mutual funds (-0.3% to 166.8 billion euro), total insurance liabilities and insurance financial liabilities (-2% to 164.8 billion euro) and portfolio management schemes (-0.5% to 90.2 billion euro), as well as, albeit as a small proportion of the total, pension funds (-0.2% to 17.2 billion euro). Only deposits from institutional customers bucked the trend (+3.4% to 30.8 billion euro).

² Also based on the EBA definition, as at 31 March 2025 the NPL ratio remained stable at 2% gross and at 1% net (2% and 1%, respectively, in December 2024).

Highlights

The military conflict between Russia and Ukraine

The ISP subsidiaries in Russia and Ukraine

The Group is present in Russia and Ukraine through two subsidiaries:

• Joint-Stock Company Banca Intesa (Banca Intesa Russia), 47% owned by Intesa Sanpaolo and 53% by Intesa Sanpaolo Holding International (Luxembourg). This is a Moscow-based corporate bank, which operates with 20 branches and 768 staff. The Group's presence in Russia dates back around 50 years (initially as a Representative Office, closed in August 2023). The bank has participated in the financing of large national and international Russian projects, also offering a full range of banking services for small and medium-sized enterprises, retail customers and companies. The regional branch network extends from Kaliningrad to Vladivostok;
• Pravex Bank Joint-Stock Company, 100%-owned by Intesa Sanpaolo. This is a small commercial bank based in Kyiv, part of the International Banks Division, which operates with 39 branches mainly in the Kyiv region and employs 589 people. Intesa Sanpaolo acquired the bank in 2008 and has been operating in the country continuously since that date.

The observations made concerning Intesa Sanpaolo's continued control over the two entities, as reported in Section 5 – Other Aspects of Part A of the Notes to the 2024 Consolidated Financial Statements, still apply, to which readers are therefore referred for details.

Despite the objective constraints imposed by the current situation, particularly for Pravex, the two subsidiaries are continuing to operate with the support of the Parent Company structures, while the overall exposure to and operations with the Russian Federation have decreased significantly over the past three years, as required by the European regulators and the ECB recommendations, the latest of which was issued in December 2024.

Risk management

In light of the continuing military conflict between Russia and Ukraine, notwithstanding ongoing negotiation efforts, the Group has not relaxed the safeguards put in place and described in the previous disclosures. The situation continues to be monitored both at Parent Company level and in all the Group banks directly involved in the conflict or close to it, where direct and continuous contacts are being maintained. Appropriate information is also always prepared for the Board Committees and the Board of Directors.

The Risk Management and Control Task Force

With regard to the monitoring of credit risk, in 2025 there were again no significant new developments. In continuity with the second half of 2022, there were no specific initiatives under the Credit Action Plan dedicated to the conflict between Russia and Ukraine. However, the specific diagnostic initiatives designed to prevent flows into non-performing status for exposures showing signs of difficulty, but without being past due, are still being implemented for companies in the energy and gas sectors that are particularly sensitive to fluctuations in the cost of energy, also linked to the continuation of the conflict.

In light of the further tightening of the sanctions imposed on Russia by Western countries, in order to ensure regulatory compliance, the close supervision continued through a specific dashboard at Group level, aimed at monitoring the changes in the lists of sanctioned persons and entities at European and international level, identifying sanctioned persons and entities for the purpose of blocking positions and payments, complying with the specific ban on accepting deposits above the threshold set by the European regulations, and identifying and blocking financial instruments subject to sanctions. As at 31 March 2025, the exposure to Russian counterparties included in the OFAC (Office of Foreign Assets Control) SDN and/or EU asset freeze lists amounted to 389.9 million euro, compared to 219.5 million euro at the end of 2024. The Group's overall exposure increased as a result of the inclusion of new sanctioned entities, following the application of the OFAC measures of 10 January 2025 and the sixteenth package of European sanctions issued on 24 February 2025.

In its risk management, the Group also pays close attention to the geopolitical context, the issues arising from it and their developments, in order to identify the main phenomena that could have an impact on an international scale and could significantly alter its risk profile and influence its operations.

The Group therefore conducts specific scenario and stress analyses, also in relation to the Russia-Ukraine conflict, to assess the potential impacts in terms of profitability and capital adequacy.

The Operational Resilience Task Force

With regard to business continuity in Ukraine, operations continue to be ensured thanks to a series of solutions gradually adopted to guarantee normal functioning in the event of interruptions to essential services, as already described in the 2024 Annual Report. Specifically: i) to overcome electricity supply issues, power banks were provided to head offices and personnel with critical and strategic roles, while branches were equipped with inverter generators, which can be easily and promptly used by branch personnel; and ii) data connection is ensured through the installation of satellite devices. The measures implemented are enabling the uninterrupted provision of services and are still considered valid and sufficient to deal with the situation, even in light of increasing Russian attacks on Ukrainian power plants.

In 2025, the number of branches open daily stabilised at the total number of available branches. The decision-making process regarding the operations of the individual branches continues to be based on a risk assessment methodology agreed with the Parent Company, which involves the use of specific indicators, while always taking staff safety into account. In the current year, as in 2024, no branches have been temporarily damaged by Russian attacks.

At Banca Intesa Russia, the systems have always functioned without any operational problems since the beginning of the conflict.

In terms of cybersecurity, the monitoring and threat intelligence activities continue, alongside the continued strengthening of the cybersecurity controls throughout the Intesa Sanpaolo Group.

Within the threat intelligence activities aimed at preventing possible cyber threats to Pravex, the containment measures have enabled the management of the attacks suffered, ensuring service delivery with minimal disruption. Specific educational initiatives on cyber risks, through training courses and in-depth studies on specific topics, are regularly implemented to continually raise awareness among all the Group's staff.

As usual, the additional costs incurred for business continuity and any losses resulting from physical damage to premises/branches located in the conflict zone form part of the monitoring of the exposure to operational risk, including that relating to the Risk Appetite Framework.

The main accounting aspects and the approach adopted by the Intesa Sanpaolo Group

The main accounting issues arising from the ongoing conflict between the Russian Federation and Ukraine and the Intesa Sanpaolo Group's approach to addressing them are summarised in the paragraphs below. The situation of the Russian/Ukrainian crisis has been the subject of close attention since the outbreak of hostilities at the end of February 2022. The Group had significant cross-border exposures to counterparties resident in the Russian Federation, as well as, as already mentioned, two subsidiaries operating in the warring countries, which were therefore particularly exposed to the consequences of the conflict: Pravex and Banca Intesa Russia.

At the beginning of 2022, loans to Russian customers represented around 1% (almost 5 billion euro) of the Intesa Sanpaolo Group's total loans to customers (net of the exposures backed by Export Credit Agency - ECA guarantees). The de-risking activities have therefore focused on reducing these exposures, and this activity has continued in 2025. In particular, the business conducted in the Russian Federation has been decreasing for many years now, as also requested by the European regulators. Total gross exposures (customers, banks and securities) as at 31 March 2025 to counterparties resident in Russia and Ukraine amounted to just 916 million euro gross (690 million euro after adjustments), a decrease of 709 million euro or - 44% (-731 million euro in net values, -51%) compared with 31 December 2024, when the gross exposure stood at 1,625 million euro (1,421 million euro in net values). The decrease was mainly due to the reduction in the volume of term deposits held with Central Banks by Banca Intesa Russia (-715 million euro in gross terms), following their conversion into liquid assets (cash and on-demand deposits). More specifically, as at 31 March 2025, the remaining exposures to customers amounted, in terms of gross values, to 123 million euro (48 million euro net) for Banca Intesa Russia, with its non-performing component reduced to zero as at 31 March 2025, and 379 million euro (298 million euro net) for cross-border exposures to customers resident in Russia (net of ECA guarantees). These amounts are in addition to the gross exposures to Russian banks totalling 50 million euro (41 million euro net) after the above-mentioned decrease in Banca Intesa Russia's term deposits with central banks, and in securities for a total of 1 million euro (zero book value in net terms)3 . The amounts of the gross exposures to customers resident in Ukraine are small (as in previous years). Specifically, they amounted to 190 million euro (134 million euro net), of which 55 million euro (zero book value in net terms) related to the subsidiary Pravex (figures as at 31 December 2024, as described below)⁴ , in addition to exposures to banks and in Ukrainian short-term government bonds totalling 125 million euro gross (121 million euro net).

That said, the situation as at 31 March 2025 is essentially the same as that described in the Annual Report as at 31 December 2024. In particular, as already indicated, the Intesa Sanpaolo Group continued to exercise control over the two banks, which operated on the basis of the Parent Company's instructions in their respective environments. Consequently, the main methodological choices – both in terms of consolidation of the two subsidiaries and valuation of the credit exposures – are essentially the same as those used in the 2024 Annual Report. Before outlining the valuation issues regarding the two subsidiaries and the aspects related to the valuation of the cross-border exposures, it is necessary to provide some preliminary information about how Pravex and Banca Intesa Russia contributed to the consolidated financial statements as at 31 March 2025. More specifically, while it was possible to consolidate an accounting situation aligned to that of the Parent Company for Banca Intesa Russia (therefore, consolidated with reference to the results as at 31 March 2025), for Pravex, the specific situation in the city of Kyiv (where the bank is based) led to the conclusion that – in order to contain the "operational" risk – it was considered more appropriate to consolidate the figures of the Ukrainian bank using an accounting situation as at 31 December 2024, translated at the exchange rate of 31 March 2025, for the consolidation. The balance sheet results5 of Pravex have therefore been incorporated by means of the line-by-line consolidation of a consolidation package prepared in accordance with the IAS/IFRS for the previous quarter, in keeping with the approach already adopted for the 2022, 2023 and 2024 Annual Reports. However, it is worth recalling here that the balances of the Ukrainian subsidiary are substantially immaterial in the context of those of the Intesa Sanpaolo Group.

With regard to the valuation choices, the absolutely serious situation in all of Ukraine resulted in the definition, for the purpose of measuring Pravex's loan portfolio, of a specific approach, significantly based on prudent rationales, in light of the continuation of the conflict and the consequent repercussions on the Ukrainian economy. As at 31 March 2025, as in the 2024 Consolidated Financial Statements, it was still considered appropriate to maintain the full write down of Pravex's on-balance sheet loans to customers, with consequent classification to Stage 3. As a result of that choice, for the purposes of the Group's consolidated financial statements, the equity of the subsidiary has essentially been reduced to zero.

³ There were also 33 million euro (28 million euro net) in gross off-balance sheet exposures to customers at Banca Intesa Russia and 20 million euro cross-border (with no impact in terms of net values) with customers resident in Russia (net of ECA). Lastly, there were 20 million euro (gross and net values) of cross-border positions with Russian resident banks.

⁴ The cross-border exposures to customers resident in Ukraine are, for the corporate part, backed by guarantees provided by European and US entities, while, for the household part, these mainly relate to exposures disbursed by the subsidiary VUB to Ukrainian families with permanent residence in Slovakia.

⁵ The consolidation of Pravex only included the balance sheet figures, due to the immateriality of income statement items.

For Banca Intesa Russia, an approach to classifying and measuring performing loans continued to be adopted that strongly considers the geopolitical risk deriving from the ongoing crisis. Therefore, as was already the case in the 2024 Annual Report, the assessments carried out as at 31 March 2025 on the loans of the subsidiary included a centrally determined prudent factor that takes account of the worsening of the domestic economic situation in light of the continuation of the conflict and the increased isolation of the Russian economy. As a result of these valuations, the total coverage of performing loans of the Russian subsidiary amounted to around 45% of their gross value, up on 36% in December 2024. Additionally, on a prudential basis, the remaining non-performing loans of Banca Intesa Russia have been fully written down starting from 31 March 2025. The significant adjustments on the credit exposures of Banca Intesa Russia and Pravex, made on a prudential basis, reflect the evolution of the conflict up to 31 March 2025, which requires careful consideration of the above-mentioned country risk for Russia and Ukraine, with appropriate measurement of the risk that the capital invested abroad is exposed to, connected to the possibility that political or economic circumstances may result in non-repayment of the loan (irrespective of the specific credit risk of the individual counterparty).

In addition, in view of the gradual reduction in the volume of operations and, consequently, the risk profile of Banca Intesa Russia (in compliance with the guidance from the EU Regulator) and its earnings outlook which still remains positive, despite an expected progressive decline, it was decided, for consolidated reporting purposes, to include the positive earnings achieved by the bank, of 54 million euro, in the consolidated net income for the period, starting from the first quarter of 2025. In line with the financial statements as at 31 December 2024, the provision made to eliminate the shareholders' equity of the subsidiary on that date has been substantially maintained. This provision, allocated to a specific allowance for risks and charges, amounted to 447 million euro as at 31 March 2025 (382 million euro as at 31 December 2024, with the change mainly linked to the appreciation of the rouble against the euro).

For the cross-border positions, the Group continued to adopt the measurement approach guided by the emergence of the socalled "transfer" risk (an approach applied both for the determination of the SICR and the related classification to Stage 2, and for the calculation of the ECL through the application of managerial adjustments) in order to better incorporate provisions related to the risk associated with the current conflict that would otherwise not be properly captured by the risk measurement systems normally used. At the same time, the ratings for the highest risk class already assigned to the most significant counterparties exposed to conflict-related risk have been maintained.

In addition to the 54 million euro contribution to Banca Intesa Russia's consolidated result, already mentioned above, in the first quarter of 2025, as in the first quarter of 2024, the Group overall did not experience any significant profit and loss impacts from the exposures to Russian or Ukrainian counterparties. For the full year 2024, the Group had a negative profit and loss impact, before tax, of 273 million euro relating to the valuation of the exposures to Russian or Ukrainian counterparties. This impact was essentially due to the inclusion of the above-mentioned provision, amounting to 263 million euro, made upon consolidation of Banca Intesa Russia to write off its equity contribution to the Group's consolidated financial statements, while the other effects relating to collections and valuations of other items related to Russian or Ukrainian counterparties were substantially offset, which amounted to a total of -10 million euro.

The other significant events that occurred in the first quarter of 2025, as well as certain events or developments after the end of the quarter, are described below.

On 28 January 2025, Intesa Sanpaolo announced the signing of an industrial partnership in the operational leasing of capital goods with Grenke AG, a company listed on the Frankfurt Stock Exchange and a market leader in Italy through its subsidiary Grenke Locazione S.r.l. This type of product strategically complements the traditional financial offering by allowing companies to renew their operating equipment without weighing on their financial structure and the tax deductibility of expenses.

Approved by the Board of Directors of Intesa Sanpaolo on 17 January 2025 and signed by the parties on 28 January 2025, the partnership is aimed at strengthening the Intesa Sanpaolo Group's strategic positioning in operational leasing. Pending the expected authorisations, it includes the contribution of the entire stake (equal to 100% of the share capital) held by Intesa Sanpaolo in Intesa Sanpaolo Rent Foryou S.p.A. to Grenke Locazione, followed by the subsequent merger by incorporation of Rent Foryou into Grenke Locazione. Following the contribution, Intesa Sanpaolo will retain a stake of approximately 17% in the company controlled by Grenke AG, which will retain the remaining 83% of the capital. This will create a new marketleading player, leveraging the branch network and customer base of Intesa Sanpaolo together with Grenke's strong competitive positioning.

The transaction is expected to be completed by the first half of 2025.

In the initial months of the year, a project was launched for the evolution of Wealth Management, aimed at optimising the operation of the product factories through the reorganisation and restructuring of collective and asset management activities. The ultimate goal is the simplification of the Group's corporate and organisational structure, increased specialisation of the product factories by creating specialist centres of excellence, and improved coordination between the factories and distribution networks.

This project included the following:

– on 19 February 2025, the deed was executed for the merger by incorporation of Epsilon SGR S.p.A. into its parent company Eurizon Capital SGR S.p.A., in turn wholly owned by Intesa Sanpaolo. The transaction, which became legally effective from 1 March 2025, with accounting and tax effects from 1 January 2025, was authorised by the Bank of Italy by order dated 27 January 2025, which also approved the amendments to the rules of the funds managed by Epsilon SGR. As a merger involving a wholly owned company, it was carried out in the simplified manner provided for in Article 2505 of the Italian Civil Code.

The merger was carried out on the basis of a merger plan filed by the two companies on 27 January 2025 and registered with the Company Register, Milan Monza Brianza Lodi office, on 28 and 29 January. The resolution approving the transaction by the Extraordinary Shareholders' Meetings of the two companies was passed on 29 January, with registration in the above-mentioned Register on 31 January 2025;

• by order of 5 March 2025, the Bank of Italy authorised:
  • o the full demerger of Fideuram Asset Management SGR S.p.A., wholly owned by Fideuram Intesa Sanpaolo Private Banking S.p.A., in favour of Eurizon Capital SGR (the business line comprising the Italian funds established and the management mandates received from Fideuram Asset Management Ireland) and of Fideuram - Intesa Sanpaolo Private Banking (portfolio management schemes business line);
  • o the partial demerger of Eurizon Capital SGR in favour of Fideuram Intesa Sanpaolo Private Banking of the business line comprising the portfolio management schemes distributed by the Private Banking Division;
  • o the approval of the amendments to the rules of the funds managed by Fideuram Asset Management SGR.

With regard to the 22.5% stake in Cronos Vita Assicurazioni acquired by Intesa Sanpaolo Assicurazioni (formerly Intesa Sanpaolo Vita) within the industry-wide transaction carried out in 2023 to protect policyholders of Eurovita, involving the five main Italian insurance companies – a stake which has been classified since December 2023 under assets held for sale in view of the explicit intention of the shareholder companies to hold the stake for a limited period – between late March and early April of this year, the five shareholder companies, along with Cronos Vita Assicurazioni, approved, to the extent of their competence, the total non-proportional demerger plan of Cronos, with statutory, accounting and tax effects from the same date (set as 1 October 2025, following the completion of the legal procedures). On 7 April 2025 they submitted their application to IVASS for the necessary authorisations, which are expected to be received in May this year. Following the demerger, Cronos Vita Assicurazioni will cease to exist without undergoing liquidation.

More specifically, regarding the Intesa Sanpaolo Group, on 27 March 2025 the Board of Directors of Intesa Sanpaolo gave its prior approval to the plan, which designates Fideuram Vita as the beneficiary of the demerger. The decision to designate Fideuram Vita as the beneficiary derives from the nature of the portfolio to be transferred to the Intesa Sanpaolo Group, which mainly consists of policies, no longer being distributed, entered into with customers of Fideuram - Intesa Sanpaolo Private Banking.

On the basis of the above-mentioned authorisation by the Parent Company, on 31 March 2025 and 3 April 2025, respectively, the Boards of Directors of Intesa Sanpaolo Assicurazioni and Fideuram Vita approved the demerger plan which includes, inter alia, a capital increase by Fideuram Vita to service the demerger for an amount equal to the carrying amount of the investment in Cronos Vita Assicurazioni, with the issuance of new shares in favour of Intesa Sanpaolo Assicurazioni and the related amendment to the company's Articles of Association.

At the meeting of 27 March 2025, the Board of Directors of Intesa Sanpaolo also gave its approval to the merger by incorporation of First Bank S.A. – the Romanian bank acquired in 2024 and 99.98% owned by Intesa Sanpaolo – into Banca Comerciala Intesa Sanpaolo Romania S.A. (Intesa Sanpaolo Bank Romania), the subsidiary through which the Group has operated in Romania since 2001, and which is 99.73% owned by Intesa Sanpaolo and 0.27% by Intesa Sanpaolo Holding International Luxembourg. On 28 March, the Boards of Directors of the two banks approved the merger plan, which was registered with the Company Register in the days that followed.

The merger will enable the implementation of a unified business strategy based on multi-channelling, the streamlining of the branch network, and the achievement of significant cost synergies, also through the simplification of governance.

With regard to the de-risking initiatives, the true sale was completed on 24 March 2025 of a portfolio of bad loans of Intesa Sanpaolo with a GBV (Gross Book Value) of 0.3 billion euro, which had been classified under assets held for sale in December 2024, with the alignment of the carrying amount to the sale price.

The voluntary exits under the Trade Union Agreement of 23 October 2024 took effect from the beginning of 2025, with 1,899 exits (of which 966 effective from 1 January) of the 4,000 foreseen by the end of 2027.

During the first three months, there were around 185 new hires under this Agreement (including approximately 140 as Global Advisors for the Network commercial activities), with a grand total of 3,500 (of which 1,500 Global Advisors) expected to take place by the first half of 2028.

The remaining exits and hires of the plan set with the Trade Union Agreement of 16 November 2021 were completed on 31 March 2025 (while the plan for hires and exits resulting from the 2020 Agreement had been completed in 2024).

Within the Next Way of Working project – aimed at implementing a new working model based on strengthening individual responsibility and improving work-life balance – in this last year of the 2022-2025 Business Plan the preliminary real estate and technological interventions are continuing, aimed at constructing new workspaces designed to enhance the moments of presence in the office. In Rome, the work is nearing completion for the layout of the spaces in Via del Corso, while the work has started in Cuneo. In the coming months the model will be further extended nationwide. The renovation of the spaces is continuing alongside the implementation of technological tools (release of the space booking function in the planning and reservation tool), together with specific targeted communication campaigns.

On 18 April, the international agency S&P Global Ratings raised Intesa Sanpaolo's long-term issuer credit rating by one notch, from "BBB" to "BBB+" with Stable Outlook, while the "A-2" short-term issuer credit rating was affirmed. This action was part of various rating actions taken on 15 Italian banks following the upgrade of the sovereign rating on 11 April 2025 (on that date, Italy's long-term rating was raised from "BBB" to "BBB+" with Stable Outlook, while the "A-2"short-term rating was affirmed), as well as the improved systemic risk assessment of the Italian banking sector.

The Shareholders' Meeting of Intesa Sanpaolo was held on 29 April 2025. The Meeting was validly constituted, on single call, to pass resolutions as those in attendance through the appointed representative (in accordance with Article 106, paragraph 4, of Decree Law no. 18 dated 17 March 2020 converted by Law no. 27 dated 24 April 2020, the effects of which were extended by Law no. 15 dated 21 February 2025) counted 4,356 holders of voting rights attached to 10,867,347,981 ordinary shares without nominal value representing 61.03993% of the share capital. The Shareholders' Meeting voted in favour of all the items on the agenda (see the press release published on the Group's official website, for details of the individual resolutions and the respective majorities of votes). In the ordinary part, the resolutions concerned:

• the approval of the 2024 financial statements of the Parent Company Intesa Sanpaolo and the allocation of the net income for the year with the distribution to shareholders of a dividend and part of the Share premium reserve. The cash distribution to shareholders of a remaining amount of 3,044,427,655.67 euro (corresponding to 17.10 euro cents for each of the 17,803,670,501 ordinary shares) was approved, of which 2,252,164,318.38 euro as dividends from the net income for the year (corresponding to 12.65 euro cents per share) and 792,263,337.29 euro as assignment of reserves drawn on the Share premium reserve (corresponding to 4.45 euro cents on each share). Also taking into account the interim dividend paid in November 2024, amounting to 3,022,396,312.63 euro6 (corresponding to 17 euro cents per share), the total interim and remaining dividends distributed for the year 2024 amounted to 6,066,823,968.30 euro, corresponding to a 70% payout of the consolidated net income. The dividend distribution will take place from 21 May 2025 (with coupon presentation on 19 May and record date on 20 May);
• the determination of the number of Board Directors for the financial years 2025/2026/2027, the appointment of Board Directors and members of the Management Control Committee for the financial years 2025/2026/2027, on the basis of slates of candidates submitted by shareholders, and the election of the Chair and one or more Deputy Chairs of the Board of Directors for the financial years 2025/2026/2027. The Shareholders' Meeting set the number of Board Directors at 19, appointing them based on the votes received from the two slates presented and in compliance with regulatory provisions concerning gender balance, and appointed Gian Maria Gros-Pietro as Chair and Paola Tagliavini as Deputy Chair;
• the remuneration policies and incentive plans. In particular, the Shareholders' Meeting (i) approved the remuneration policies in respect of Board Directors in accordance with the terms described in Section I, point 2 of the Report on remuneration policy and compensation paid; (ii) set the gross annual remuneration of Board Directors for the entire term of office, pursuant to Articles 16.2 and 16.3 of the Articles of Association; (iii) approved the remuneration and incentive policies for 2025, and the procedures used to adopt and implement them, as described respectively in chapters 4 and 1 of Section I of the above-mentioned Report; (iv) passed a resolution agreeing on the Disclosure on compensation paid in the financial year 2024, as described in Section II of the same Report; and (v) approved the 2025 Annual Incentive Plan, which involves the use of Intesa Sanpaolo ordinary shares to be purchased on the market;
• authorisation to purchase own shares for annulment with no reduction of the share capital. More specifically, the Shareholders' Meeting authorised: (i) the purchase, even partially and/or in tranches, of Intesa Sanpaolo shares for a maximum overall outlay of 2 billion euro and not exceeding 1,000,000,000 shares, with execution by 24 October 2025; (ii) the Board of Directors to carry out the purchases at a price to be identified from time to time, subject to the condition that the purchase price may not be more than 10% below or above the reference price of the Intesa Sanpaolo shares registered on the regulated market Euronext Milan managed by Borsa Italiana S.p.A. the day before the execution of each individual purchase, through transactions to be carried out in line with the provisions of Article 132 of the

⁶ Interim dividends are considered net of the portion not distributed to the 24,868,662 own shares held by the Bank at the record date, amounting to 4,227,672.54 euro.

The first quarter of 2025

Consolidated Law on Finance, Article 144-bis, paragraph 1, letter b) of the Issuers' Regulation and with any other legislative and regulatory provisions (including the regulations and other rules of the European Union) applicable and in force from time to time; and (iii) the Board of Directors, which may delegate this power to the Managing Director and CEO, to carry out the purchases using the Extraordinary Reserve and/or the Share Premium Reserve;

– the authorisation to purchase and dispose of own shares to serve the incentive plans and for trading purposes.

In the extraordinary part, the Shareholders' Meeting approved the proposal to annul Intesa Sanpaolo's own shares purchased and held by the Company by virtue of the authorisation from the Shareholders' Meeting in the ordinary part, delegating the Board of Directors – with the option of sub-delegating the Chair and the Managing Director and CEO, jointly or severally – to execute the annulment, in one or more tranches, by 24 October 2025 and to update Article 5 of the Articles of Association accordingly. With regard to the statutory changes approved by the Shareholders' Meeting, the required authorisation was issued on 5 March 2025 by the Supervisory Authority.

At its first meeting held on 29 April, the new Board of Directors of Intesa Sanpaolo unanimously appointed Carlo Messina as Managing Director and CEO, conferring on him the powers necessary and appropriate to ensure consistent management of the Company.

Outlook

For the remainder of 2025, a moderate strengthening of Italian economic activity is expected, driven by domestic demand and supported by improved household purchasing power and an easing of financial conditions. The impact of the NRRP may also bolster domestic demand. Uncertainties remain concerning the evolution of the international situation and trade policy decisions by the United States, resulting in GDP growth forecasts remaining below one per cent.

Despite a resurgence in the early part of the year, inflation is expected to stabilise at levels close to 2%. Financial markets expect the ECB to continue its monetary easing, with policy rates likely to fall below 2% by year-end.

For the Intesa Sanpaolo Group, the implementation of the 2022-2025 Business Plan is proceeding at full speed, with the outlook for 2025 net income confirmed at well above 9 billion euro.

The forecast for 2025 envisages:

• − increasing revenues, managed in an integrated manner, with: resilience in net interest income (expected to be above the 2023 level), thanks to a higher contribution from core deposits hedging; growth in net fee and commission income and income from insurance business which leverages on the Group's leadership in Wealth Management, Protection & Advisory; strong growth in profits from trading;
• − decreasing operating costs with: reduction in the Group's people due to voluntary exits already agreed upon and natural turnover; additional benefits deriving from technology (e.g., branch network rationalisation and IT processes streamlining); real-estate rationalisation;
• − low cost of risk, with: low NPL stock; high-quality loan portfolio; proactive credit management;
• − lower levies and other charges concerning the banking and insurance industry due to no further contribution to the deposit guarantee scheme.

A strong value distribution is envisaged:

• − cash payout ratio of 70% of the consolidated net income for each year of the Business Plan, with an increase in the dividend per share for 2025 versus the dividend per share for 2024;
• − buyback of 2 billion euro to be launched in June 2025;
• − additional distribution for 2025 to be quantified when full-year results are approved.

A solid capital position is envisaged, with the Common Equity Tier 1 ratio - confirming the Basel 3/Basel 4 target of above 12% over the 2022-2025 Business Plan horizon - expected to stand at year-end 2025 at over 13.7% post 2025 Basel 4 negative impact of around 40 basis points, and at around 14.5% post overall Basel 4 negative impact of around 60 basis points (of which around 20 in 2026-2033, including around 10 in 2026 relating to FRTB) and including the benefit from the absorption of DTAs after 2025 of around 100 basis points (mostly by 2028), taking into account the above-mentioned payout ratio envisaged for the years covered by the Business Plan, the buyback to be launched in June 2025 and not considering an additional distribution for 2025.

33

Consolidated financial statements

Consolidated balance sheet

				(millions of euro)
Assets		31.03.2025	31.12.2024	Changes
				amount	%
10.	Cash and cash equivalents	37,447	40,533	-3,086	-7.6
20.	Financial assets measured at fair value through profit or loss	151,782	150,943	839	0.6
	a) financial assets held for trading	44,463	41,439	3,024	7.3
	b) financial assets designated at fair value	6	6	-	-
	c) other financial assets mandatorily measured at fair value	107,313	109,498	-2,185	-2.0
30.	Financial assets measured at fair value through other comprehensive income	160,704	150,269	10,435	6.9
40.	Financial assets measured at amortised cost	516,039	518,702	-2,663	-0.5
	a) due from banks	39,239	38,460	779	2.0
	b) loans to customers	476,800	480,242	-3,442	-0.7
50.	Hedging derivatives	6,723	6,505	218	3.4
60.	Fair value change of financial assets in hedged portfolios (+/-)	-5,056	-3,602	1,454	40.4
70.	Investments in associates and companies subject to joint control	2,970	3,036	-66	-2.2
80.	Insurance assets	764	693	71	10.2
	a) insurance contracts issued that are assets	536	444	92	20.7
	b) reinsurance contracts held that are assets	228	249	-21	-8.4
90.	Property and equipment	8,772	9,024	-252	-2.8
100.	Intangible assets	9,725	9,860	-135	-1.4
	of which:
	- goodwill	3,694	3,697	-3	-0.1
110.	Tax assets	12,462	12,916	-454	-3.5
	a) current	1,608	1,650	-42	-2.5
	b) deferred	10,854	11,266	-412	-3.7
120.	Non-current assets held for sale and discontinued operations	907	667	240	36.0
130.	Other assets	31,895	33,739	-1,844	-5.5
	Total assets	935,134	933,285	1,849	0.2

Consolidated balance sheet

Liabilities and Shareholders' Equity		31.03.2025	31.12.2024	(millions of euro) Changes
				amount	%
10.	Financial liabilities measured at amortised cost	603,926	599,620	4,306	0.7
	a) due to banks	60,876	45,794	15,082	32.9
	b) due to customers	436,347	443,457	-7,110	-1.6
	c) securities issued	106,703	110,369	-3,666	-3.3
20.	Financial liabilities held for trading	41,525	42,882	-1,357	-3.2
30.	Financial liabilities designated at fair value	72,311	74,083	-1,772	-2.4
40.	Hedging derivatives	3,569	4,410	-841	-19.1
50.	Fair value change of financial liabilities in hedged portfolios (+/-)	-2,492	-1,819	673	37.0
60.	Tax liabilities	2,614	2,097	517	24.7
	a) current	630	383	247	64.5
	b) deferred	1,984	1,714	270	15.8
70.	Liabilities associated with non-current assets held for sale and discontinued operations	249	5	244
80.	Other liabilities	17,114	15,014	2,100	14.0
90.	Employee termination indemnities	656	706	-50	-7.1
100.	Allowances for risks and charges	4,700	4,885	-185	-3.8
	a) commitments and guarantees given	585	601	-16	-2.7
	b) post-employment benefits	98	98	-	-
	c) other allowances for risks and charges	4,017	4,186	-169	-4.0
110.	Insurance liabilities	124,195	126,081	-1,886	-1.5
	a) insurance contracts issued that are liabilities	124,144	126,013	-1,869	-1.5
	b) reinsurance contracts held that are liabilities	51	68	-17	-25.0
120.	Valuation reserves	-2,216	-2,332	-116	-5.0
130.	Redeemable shares	-	-	-
140.	Equity instruments	7,572	8,706	-1,134	-13.0
150.	Reserves	23,878	15,367	8,511	55.4
155.	Interim dividend (-)	-3,022	-3,022	-	-
160.	Share premium reserve	27,605	27,601	4	0.0
170.	Share capital	10,369	10,369	-	-
180.	Treasury shares (-)	-168	-179	-11	-6.1
190.	Minority interests (+/-)	134	145	-11	-7.6
200.	Net income (loss) (+/-)	2,615	8,666	-6,051	-69.8
	Total liabilities and shareholders' equity	935,134	933,285	1,849	0.2

Consolidated income statement

		31.03.2025	31.03.2024	(millions of euro) Changes
				amount	%
10.	Interest and similar income	7,351	9,109	-1,758	-19.3
	of which: interest income calculated using the effective interest rate method	6,428	7,684	-1,256	-16.3
20.	Interest and similar expense	-3,120	-4,650	-1,530	-32.9
30.	Interest margin	4,231	4,459	-228	-5.1
40.	Fee and commission income	2,966	2,793	173	6.2
50.	Fee and commission expense	-709	-668	41	6.1
60.	Net fee and commission income	2,257	2,125	132	6.2
70.	Dividend and similar income	182	161	21	13.0
80.	Profits (Losses) on trading	432	163	269
90.	Fair value adjustments in hedge accounting	-14	2	-16
100.	Profits (Losses) on disposal or repurchase of:	-14	127	-141
	a) financial assets measured at amortised cost	50	48	2	4.2
	b) financial assets measured at fair value through other comprehensive income	-32	62	-94
	c) financial liabilities	-32	17	-49
110.	Profits (Losses) on other financial assets and liabilities measured at fair value through profit or loss	-599	1,154	-1,753
	a) financial assets and liabilities designated at fair value	864	-2,429	3,293
	b) other financial assets mandatorily measured at fair value	-1,463	3,583	-5,046
120.	Net interest and other banking income	6,475	8,191	-1,716	-20.9
130.	Net losses/recoveries for credit risk associated with:	-272	-262	10	3.8
	a) financial assets measured at amortised cost	-251	-259	-8	-3.1
	b) financial assets measured at fair value through other comprehensive income	-21	-3	18
140.	Profits (Losses) on changes in contracts without derecognition	-7	-	7
150.	Net income from banking activities	6,196	7,929	-1,733	-21.9
160.	Insurance service result	410	380	30	7.9
	a) insurance revenue arising from insurance contracts issued	828	771	57	7.4
	b) insurance service expenses arising from insurance contracts issued	-399	-364	35	9.6
	c) insurance revenue arising from reinsurance contracts held	21	19	2	10.5
	d) insurance service expenses arising from reinsurance contracts held	-40	-46	-6	-13.0
170.	Balance of financial income and expenses related to insurance operations	-198	-1,934	-1,736	-89.8
	a) net financial expenses/revenue related to insurance contracts issued b) net financial expenses/revenue related to reinsurance contracts held	-198 -	-1,932 -2	-1,734 -2	-89.8
180.	Net income from banking and insurance activities	6,408	6,375	33	0.5
190.	Administrative expenses:	-2,497	-2,829	-332	-11.7
	a) personnel expenses	-1,529	-1,550	-21	-1.4
	b) other administrative expenses	-968	-1,279	-311	-24.3
200.	Net provisions for risks and charges	38	-58	96
	a) commitments and guarantees given	17	28	-11	-39.3
	b) other net provisions	21	-86	107
210.	Net adjustments to / recoveries on property and equipment	-159	-162	-3	-1.9
220.	Net adjustments to / recoveries on intangible assets	-299	-269	30	11.2
230.	Other operating expenses (income)	306	284	22	7.7
240.	Operating expenses	-2,611	-3,034	-423	-13.9
250.	Profits (Losses) on investments in associates and companies subject to joint control	4	45	-41	-91.1
260.	Valuation differences on property, equipment and intangible assets measured at fair value	1	-	1
270.	Goodwill impairment	-	-	-
280.	Profits (Losses) on disposal of investments	-3	1	-4
290.	Income (Loss) before tax from continuing operations	3,799	3,387	412	12.2
300.	Taxes on income from continuing operations	-1,176	-1,077	99	9.2
310.	Income (Loss) after tax from continuing operations	2,623	2,310	313	13.5
320.	Income (Loss) after tax from discontinued operations	-	-	-
330.	Net income (loss)	2,623	2,310	313	13.5
340.	Minority interests	-8	-9	-1	-11.1
350.	Parent Company's net income (loss)	2,615	2,301	314	13.6
	Basic EPS - Euro	0.15	0.13
	Diluted EPS - Euro	0.15	0.13

Statement of consolidated comprehensive income

				(millions of euro)
		31.03.2025	31.03.2024	Changes
				amount	%
10.	Net income (Loss) Other comprehensive income (net of tax) that may not be reclassified to the income	2,623	2,310	313	13.5
	statement	84	-87	171
20.	Equity instruments designated at fair value through other comprehensive income	28	44	-16	-36.4
30.	Financial liabilities designated at fair value through profit or loss (change in own credit rating)	51	-115	166
40.	Hedging of equity instruments designated at fair value through other comprehensive income	-	-	-
50.	Property and equipment	-1	-23	-22	-95.7
60.	Intangible assets	-	-	-
70.	Defined benefit plans	6	7	-1	-14.3
80.	Non-current assets classified as held for sale	-	-	-
90.	Share of valuation reserves connected with investments carried at equity	-	-	-
100.	Financial revenue and expenses related to insurance contracts issued	-	-	-
	Other comprehensive income (net of tax) that may be reclassified to the income statement	37	-224	261
110.	Hedges of foreign investments	-5	19	-24
120.	Foreign exchange differences	-8	-242	-234	-96.7
130.	Cash flow hedges	-21	62	-83
140.	Hedging instruments (not designated elements)	-	-	-
150.	Financial assets (other than equities) measured at fair value through other comprehensive income	-611	131	-742
160.	Non-current assets held for sale and discontinued operations	-	-	-
170.	Share of valuation reserves connected with investments carried at equity	-15	16	-31
180.	Financial revenue and expenses related to insurance contracts issued	697	-210	907
190.	Financial revenue and expenses related to reinsurance contracts held	-	-	-
200.	Total other comprehensive income (net of tax)	121	-311	432
210.	Total comprehensive income (captions 10 + 200)	2,744	1,999	745	37.3
220.	Total consolidated comprehensive income pertaining to minority interests	13	-32	45
230.	Total consolidated comprehensive income pertaining to the Parent Company	2,731	2,031	700	34.5

Changes in consolidated shareholders' equity as at 31 March 2025

													(millions of euro)
				31.03.2025
	Share capital		Share premium reserve	Reserves		Valuation reserves	Equity instruments	Interim dividend	Treasury shares	Net income (loss)	Shareholders' equity	Group shareholders' equity	Minority interests
	ordinary shares	other shares		retained earnings	other
AMOUNTS AS AT 31.12.2024	10,508	-	27,644	14,217	1,304	-2,515	8,706	-3,022	-180	8,659	65,321	65,176	145
Changes in opening balances	-	-	-	-	-	-	-	-	-	-	-	-	-
AMOUNTS AS AT 1.1.2025	10,508	-	27,644	14,217	1,304	-2,515	8,706	-3,022	-180	8,659	65,321	65,176	145
ALLOCATION OF NET INCOME OF THE PREVIOUS YEAR (a)
Reserves	-	-	-	8,637	-	-	-	-	-	-8,637	-	-	-
Dividends and other allocations	-	-	-	-	-	-	-	-	-	-22	-22	-	-22
CHANGES IN THE PERIOD
Changes in reserves	-	-	-	-	38	-	-	-	-	-	38	38	-
Operations on shareholders' equity
Issue of new shares	-	-	4	-	-	-	-	-	26	-	30	30	-
Purchase of treasury shares	-	-	-	-	-	-	-	-	-15	-	-15	-15	-
Interim dividend	-	-	-	-	-	-	-	-	-	-	-	-	-
Dividends	-	-	-	-	-	-	-	-	-	-	-	-	-
Changes in equity instruments	-	-	-	-	-	-	-1,134	-	-	-	-1,134	-1,134	-
Derivatives on treasury shares	-	-	-	-	-	-	-	-	-	-	-	-	-
Stock options	-	-	-	-	-	-	-	-	-	-	-	-	-
Changes in equity investments	-	-	-	-	-	-	-	-	-	-	-	-	-
Other	-	-	1	-196	-	-	-	-	-	-	-195	-193	-2
Total comprehensive income for the period	-	-	-	-	-	121	-	-	-	2,623	2,744	2,731	13
SHAREHOLDERS' EQUITY AS AT 31.03.2025	10,508	-	27,649	22,658	1,342	-2,394	7,572	-3,022	-169	2,623	66,767	66,633	134
- Group	10,369	-	27,605	22,536	1,342	-2,216	7,572	-3,022	-168	2,615	66,633
- minority interests	139	-	44	122	-	-178	-	-	-1	8	134

(a) Includes dividends and amounts allocated to the charity allowance of the Parent Company, as well as those relating to consolidated companies, pertaining to minorities.

Consolidated financial statements

Changes in consolidated shareholders' equity as at 31 March 2024

	31.03.2024						(millions of euro)
	Share capital		Share premium reserve	Reserves		Valuation reserves		Equity Interim Treasury instruments dividend shares			Shareholders' equity	Group shareholders' equity	Minority interests
	ordinary shares	other shares		retained earnings	other
AMOUNTS AS AT 31.12.2023	10,491	-	28,019	13,711	1,132	-2,157	7,948	-2,629	-140	7,752	64,127	63,963	164
Changes in opening balances	-	-	-	-	-	-	-	-	-	-	-	-	-
AMOUNTS AS AT 1.1.2024	10,491	-	28,019	13,711	1,132	-2,157	7,948	-2,629	-140	7,752	64,127	63,963	164
ALLOCATION OF NET INCOME OF THE PREVIOUS YEAR (a)
Reserves	-	-	-	7,743	-	-	-	-	-	-7,743	-	-	-
Dividends and other allocations	-	-	-	-	-	-	-	-	-	-9	-9	-	-9
CHANGES IN THE PERIOD
Changes in reserves	-	-	-	-	39	-	-	-	-	-	39	39	-
Operations on shareholders' equity
Issue of new shares	-	-	-	-	-	-	-	-	1	-	1	1	-
Purchase of treasury shares	-	-	-	-	-	-	-	-	-2	-	-2	-2	-
Interim dividend	-	-	-	-	-	-	-	-	-	-	-	-	-
Dividends	-	-	-	-	-	-	-	-	-	-	-	-	-
Changes in equity instruments	-	-	-	-	-	-	-59	-	-	-	-59	-59	-
Derivatives on treasury shares	-	-	-	-	-	-	-	-	-	-	-	-	-
Stock options	-	-	-	-	-	-	-	-	-	-	-	-	-
Changes in equity investments	-	-	-	-	-	-	-	-	-	-	-	-	-
Other	-	-	-	-170	-	-	-	-	-	-	-170	-169	-1
Total comprehensive income for the period	-	-	-	-	-	-311	-	-	-	2,310	1,999	2,031	-32
SHAREHOLDERS' EQUITY AS AT 31.03.2024	10,491	-	28,019	21,284	1,171	-2,468	7,889	-2,629	-141	2,310	65,926	65,804	122
- Group	10,369	-	28,003	21,120	1,171	-2,279	7,889	-2,629	-141	2,301	65,804
- minority interests	122	-	16	164	-	-189	-	-	-	9	122

(a) Includes dividends and amounts allocated to the charity allowance of the Parent Company, as well as those relating to consolidated companies, pertaining to minorities.

41

Report on operations

Economic results

General aspects

A condensed reclassified consolidated income statement has been prepared to give a more immediate understanding of results. In addition to the amounts for the reporting period, the format adopted shows the comparative figures for the same period of 2024 and their quarterly movements.

To ensure comparison on a like-for-like basis, the income statement data referring to previous periods are normally restated, where necessary and material, to make them as consistent as possible with the different periods presented, particularly in relation to any changes in the scope of consolidation.

In this Report on operations, the reclassified consolidated income statement figures for the first two quarters of 2024 were restated to take account of the following changes in the scope of consolidation, with the conventional attribution of the net economic effect to the caption Minority interests:

– the inclusion of the Romanian bank First Bank, acquired on 31 May 2024 and consolidated from the third quarter of 2024;

– the inclusion of Alpian S.A., previously consolidated using the equity method, following the capital increase finalised in the third quarter of 2024, which brought the percentage of the Group's stake in the company to 61.599%, of which 51.141% held by Fideuram - Intesa Sanpaolo Private Banking and 10.458% by Reyl & Cie (in this regard, see the information disclosed in the Highlights section of the 2024 Annual Report). On consolidating the income statement of Alpian for the quarters indicated on a line-by-line basis, the contribution of the company in terms of dividends and profits (losses) on investments carried at equity, included among Other operating income (expenses) of the reclassified consolidated income statement, was derecognised.

Certain aggregations and reclassifications have been made with respect to the model provided in Circular 262 of the Bank of Italy. Breakdowns of restatements, aggregations and reclassifications are provided in separate tables included in the attachments to this report, as also required by Consob in its Communication 6064293 of 28 July 2006.

• The aggregations and reclassifications of captions in the reclassified consolidated income statement refer to: – dividends relating to shares or units in portfolio and dividends collected or paid within the framework of securities lending,
• which have been reallocated to the caption Profits (losses) on financial assets and liabilities at fair value;
• insurance companies' portions of Net interest income, Dividends, Profits (Losses) on other financial assets and liabilities at fair value through profit or loss, Net losses/recoveries for credit risk associated with financial assets measured at amortised cost and with financial assets measured at fair value through other comprehensive income, which are posted, along with the Insurance service result and the Balance of financial income and expenses related to insurance operations, in the specific caption Income from insurance business. The Insurance service result is considered excluding the related operating costs (personnel expenses, administrative expenses and amortisation/depreciation) and the fees and commissions paid to financial advisors of the Private Banking Division for placing and managing insurance products which, in line with the representation of costs by the nature of the expense, are attributed to the specific captions;
• differentials on derivatives, classified to the trading book and contracted to hedge transactions in foreign currencies, which have been allocated among Net interest income owing to the close correlation;
• net fee and commission income, which includes the above-mentioned fees and commissions paid to financial advisors of the Private Banking Division for placing and managing insurance products, in line with the representation of costs by the nature of the expense;
• Profits (losses) on trading, Fair value adjustments in hedge accounting, Profits (losses) on other financial assets and liabilities measured at fair value through profit or loss, Profits (losses) on disposal or repurchase of financial assets measured at fair value through other comprehensive income and on disposal or repurchase of financial liabilities – for the portion contributed by the banking segment – which have been reallocated to the single caption Profits (losses) on financial assets and liabilities at fair value, except for any amounts relating to adjustments on portions of loans mandatorily measured at fair value which, as they relate to the measurements of credit positions, are reclassified to the caption Net adjustments to loans in order to permit unitary representation of the adjustments relating to the same position;
• the share of the premium on the issue of the certificates paid to the networks for their placement, which is reclassified from Profits (losses) on trading and Profits (losses) on other financial assets and liabilities measured at fair value through profit or loss to Net fee and commission income;
• the return components of the insurance policies taken out to cover contractual indemnities and retention plans for financial advisors, which are deducted directly from Profits (Losses) on financial assets and liabilities at fair value, in accordance with the valuation effect of the assets in question, rather than being presented – as attributable to the advisors – among Other net provisions and net impairment losses on other assets (for valuation effects) or among Net fee and commission income or Other operating income (expenses), depending on the type of insurance policy used (for effects from realisation);
• the operating income and costs of entities operating in sectors entirely distinct from banking and finance, synthetically reallocated to Other operating income (expenses), including those of the entities not subject to management and coordination within the framework of the Group (Risanamento and its subsidiaries);
• the costs of several incentive systems for employees of the Group's distribution networks, where funded by fee and commission income generated by the networks in question on the basis of deterministic quantification criteria correlated to the revenues concerned, which are reclassified from Personnel expenses to Fee and commission expense by analogy to the accounting treatment of incentive systems for non-employee financial advisors;

• the recoveries of expenses and indirect taxes, which are deducted from Administrative expenses, rather than being included under Other operating income (expenses), as well as the amounts relating to certain taxes of some international subsidiary banks, which – due to their nature – have been reclassified from Administrative expenses to Taxes on income;
• operating costs, which include the above operating costs relating to the Insurance service result attributed to the specific captions (personnel expenses, administrative expenses and amortisation/depreciation), in line with the representation of costs by the nature of the expense;
• profits and losses on disposal or repurchase of financial assets measured at amortised cost (loans and debt securities representing loans), which have been allocated to Net adjustments to loans;
• the portion of net losses/recoveries for credit risk associated with financial assets measured at amortised cost (loans and debt securities representing loans) and financial assets measured at fair value through other comprehensive income contributed by the banking segment, the effects on the income statement of the changes in contracts without derecognition as well as the net provisions for risks and charges for credit risk relating to commitments and guarantees given, attributed to the single caption Net adjustments to loans. The caption also includes any amounts relating to credit risk adjustments to portions of loans mandatorily measured at fair value, which, as they relate to the measurement of credit positions, are reclassified to the caption Net adjustments to loans to permit unitary representation of the adjustments relating to the same position;
• the reversal in the time value of Employee termination indemnities and Allowances for risks and charges, which has been included among Net interest income, as a phenomenon deriving directly from the application of the amortised cost criterion, in the absence of changes in projected future cash flows, in keeping with the treatment of the time value of financial assets measured at amortised cost;
• Net losses for credit risk associated with financial assets measured at amortised cost other than loans and net impairment losses on equity investments, as well as property and equipment and intangible assets (including property and other assets, also those resulting from the enforcement of guarantees or purchase at auction and intended for sale on the market in the near future), which have been reclassified to Other net provisions and net impairment losses on other assets. This last caption consequently includes – in addition to the provisions for risks and charges other than those relating to commitments and guarantees – the valuation effects of the assets other than loans, with the sole exception of impairment losses on intangible assets that are reclassified to Impairment (net of tax) of goodwill and other intangible assets;
• realised profits (losses) on financial assets measured at amortised cost other than loans, on equity investments and on other investments, which have been reclassified to Other income (expenses). Accordingly, in addition to the income and expenses not strictly related to operations, this caption represents the summary of the effects from the realisation of assets other than loans. Profits (Losses) realised on debt securities represent an exception; in view of their business model, which involves management closely correlated with the other financial instruments, they are classified to Profits (Losses) on financial assets and liabilities at fair value;
• Charges (net of tax) for integration and exit incentives, which are reclassified from Personnel expenses, Administrative expenses and other captions of the income statement to a separate caption;
• the Effects of purchase price allocation, net of tax, which are indicated in a specific caption. They normally represent adjustments to and any impairment losses on financial assets and liabilities as well as property, equipment and intangible assets which are measured at fair value as provided for by IFRS 3;
• levies and other charges concerning the banking and insurance industry, with the latter relating to the Group's contribution to the Life Insurance Guarantee Fund, which have been reclassified, net of tax, to the specific caption;
• impairment of goodwill and other intangible assets, which where present is shown net of tax in this specific caption, as stated above.

Report on operations – Economic results

Reclassified consolidated income statement

			(millions of euro)
	31.03.2025	31.03.2024	Changes
			amount	%
Net interest income	3,632	3,947	-315	-8.0
Net fee and commission income	2,435	2,276	159	7.0
Income from insurance business	462	455	7	1.5
Profits (Losses) on financial assets and liabilities at fair value	265	81	184
Other operating income (expenses)	-2	-3	-1	-33.3
Operating income	6,792	6,756	36	0.5
Personnel expenses	-1,583	-1,602	-19	-1.2
Administrative expenses	-623	-630	-7	-1.1
Adjustments to property, equipment and intangible assets	-372	-359	13	3.6
Operating costs	-2,578	-2,591	-13	-0.5
Operating margin	4,214	4,165	49	1.2
Net adjustments to loans	-224	-234	-10	-4.3
Other net provisions and net impairment losses on other assets	-23	-52	-29	-55.8
Other income (expenses)	-4	57	-61
Income (Loss) from discontinued operations	-	-	-	-
Gross income (loss)	3,963	3,936	27	0.7
Taxes on income	-1,250	-1,280	-30	-2.3
Charges (net of tax) for integration and exit incentives	-57	-56	1	1.8
Effect of purchase price allocation (net of tax)	-24	-29	-5	-17.2
Levies and other charges concerning the banking and insurance industry (net of tax)	-9	-257	-248	-96.5
Impairment (net of tax) of goodwill and other intangible assets	-	-	-	-
Minority interests	-8	-13	-5	-38.5
Net income (loss)	2,615	2,301	314	13.6

Figures restated, where necessary and material, considering the changes in the scope of consolidation.

Quarterly development of the reclassified consolidated income statement

	2025		2024
	First quarter	Fourth quarter	Third quarter	Second quarter	First quarter
Net interest income	3,632	3,801	3,942	4,028	3,947
Net fee and commission income	2,435	2,416	2,307	2,387	2,276
Income from insurance business	462	424	408	448	455
Profits (Losses) on financial assets and liabilities at fair value	265	5	150	20	81
Other operating income (expenses)	-2	22	-5	-2	-3
Operating income	6,792	6,668	6,802	6,881	6,756
Personnel expenses	-1,583	-2,285	-1,679	-1,619	-1,602
Administrative expenses	-623	-911	-713	-725	-630
Adjustments to property, equipment and intangible assets	-372	-388	-344	-315	-359
Operating costs	-2,578	-3,584	-2,736	-2,659	-2,591
Operating margin	4,214	3,084	4,066	4,222	4,165
Net adjustments to loans	-224	-482	-238	-320	-234
Other net provisions and net impairment losses on other assets	-23	-353	-150	-125	-52
Other income (expenses)	-4	67	-2	31	57
Income (Loss) from discontinued operations	-	-	-	-	-
Gross income (loss)	3,963	2,316	3,676	3,808	3,936
Taxes on income	-1,250	-345	-1,189	-1,234	-1,280
Charges (net of tax) for integration and exit incentives	-57	-424	-61	-46	-56
Effect of purchase price allocation (net of tax)	-24	-12	-28	-25	-29
Levies and other charges concerning the banking and insurance industry (net of tax)	-9	-55	1	-37	-257
Impairment (net of tax) of goodwill and other intangible assets	-	-	-	-	-
Minority interests	-8	19	2	-1	-13
Net income (loss)	2,615	1,499	2,401	2,465	2,301

Figures restated, where necessary and material, considering the changes in the scope of consolidation.

Operating income

In an economic environment featuring continuing uncertainty at international level, in this beginning of the year, the Intesa Sanpaolo Group achieved excellent results in terms of profitability, liquidity and capital strength, which translated into the best quarterly performance in terms of net income and gross operating margin since 2007, the year the Group was established. Operating income amounted to 6,792 million euro in the first quarter, up slightly by 0.5% from 6,756 million euro in the same period of 2024. That trend was mainly due to the increase in net fee and commission income and profits (losses) on financial assets and liabilities at fair value, offset by the drop in net interest income, which in the first quarter of 2024 had benefited from higher interest rates. There was also a rise in income deriving from insurance business, while the caption other operating income (expenses) was substantially stable.

Net interest income

				(millions of euro)
	31.03.2025	31.03.2024		Changes
			amount	%
Relations with customers	3,052	3,552	-500	-14.1
Securities issued	-1,074	-1,102	-28	-2.5
Customer dealing	1,978	2,450	-472	-19.3
Instruments measured at amortised cost which do not constitute loans	433	423	10	2.4
Other financial assets and liabilities measured at fair value through profit or loss	50	59	-9	-15.3
Other financial assets measured at fair value through other comprehensive income	634	558	76	13.6
Financial assets and liabilities	1,117	1,040	77	7.4
Relations with banks	142	176	-34	-19.3
Differentials on hedging derivatives	32	-76	108
Other net interest income	363	357	6	1.7
Net interest income	3,632	3,947	-315	-8.0

Figures restated, where necessary and material, considering the changes in the scope of consolidation.

Net interest income, amounting to 3,632 million euro, decreased by 8% compared to the first quarter of 2024. Specifically, a lower contribution came from customer dealing (-19.3%, or -472 million euro), mainly due to the decrease in interest on customer dealing following the ECB's reduction of interest rates, only partly attenuated by lower interest expense on securities issued. Conversely, financial assets and liabilities increased (+7.4%, or +77 million euro) thanks to the positive performance of other financial assets measured at fair value through other comprehensive income (+76 million euro) and instruments measured at amortised cost which do not constitute loans (+10 million euro), while other financial assets and liabilities at fair value through other comprehensive income decreased (-9 million euro).

Differentials on hedging derivatives showed a favourable trend, reaching positive levels (32 million euro compared to -76 million euro in the first three months of 2024).

Net interest income on relations with banks decreased by 19.3% (-34 million euro), impacted by operations with the ECB.

It must be noted that the trend in relations with banks also incorporates the effects of the evolution of operations with the

ECB, in terms of both stocks and interest rates applied. In the first quarter of 2025, those operations only concerned ondemand deposits of available liquidity, as the funds obtained through the TLTRO operations were gradually repaid during the first three quarters of 2024.

More in detail, in the first three months of 2025, operations with the ECB generated interest income of 149 million euro. Instead, in the same period of 2024, interest income of 807 million euro was recorded (reflecting average deposited balances more than three times higher than those in the first quarter of 2025 and an interest rate applied still at 4%) against interest expense on TLTRO III loans of 439 million euro.

Finally, other net interest income, inclusive of the income accrued on non-performing assets and other transactions with customers reached 363 million euro (+6 million euro).

The net interest income flow showed a value in the first quarter of 2025 lower than the previous quarters, also in relation to the decreasing trend in interest rates.

	(millions of euro)
		amount	%
			0.3
722	758	-36	-4.7
613	655	-42	-6.4
260	313	-53	-16.9
11	14	-3	-21.4
-	-	-	-
3,351	3,479	-128	-3.7
281	468	-187	-40.0
3,632	3,947	-315	-8.0
	31.03.2025 1,745	31.03.2024 1,739	Changes 6

Figures restated, where necessary and material, considering the changes in the scope of consolidation and in business unit constituents.

The Banca dei Territori Division, which accounts for 52.1% of the operating business areas results, showed resilience in net interest income, which amounted to 1,745 million euro (+0.3%, equal to +6 million euro). Conversely, the other business units provided a lower contribution in terms of net interest income: the Private Banking Division (-16.9%, or -53 million euro), related to the decrease in market interest rates, the IMI Corporate & Investment Banking Division (-4.7%, or -36 million euro), attributable to Global Markets operations, the International Banks Division (-6.4%, or -42 million euro), mainly relating to the stated evolution of the subsidiaries operating in Hungary and Croatia, and Asset Management (-3 million euro). The Corporate Centre's net interest income decreased sharply (-187 million euro), due to the drop in market interest rates.

Net fee and commission income

								(millions of euro)
	31.03.2025				31.03.2024	Changes
	Income	Expense	Net	Income	Expense	Net	amount	%
Guarantees given / received	131	-93	38	135	-87	48	-10	-20.8
Collection and payment services	206	-36	170	204	-37	167	3	1.8
Current accounts	323	-	323	327	-	327	-4	-1.2
Credit and debit cards	223	-137	86	216	-120	96	-10	-10.4
Commercial banking activities	883	-266	617	882	-244	638	-21	-3.3
Dealing and placement of securities	440	-67	373	374	-71	303	70	23.1
Currency dealing	4	-1	3	4	-1	3	-	-
Portfolio management	971	-286	685	915	-255	660	25	3.8
Distribution of insurance products	400	-	400	375	-	375	25	6.7
Other	173	-61	112	132	-59	73	39	53.4
Management, dealing and consultancy activities	1,988	-415	1,573	1,800	-386	1,414	159	11.2
Other net fee and commission income	310	-65	245	283	-59	224	21	9.4
Net fee and commission income	3,181	-746	2,435	2,965	-689	2,276	159	7.0

Figures restated, where necessary and material, considering the changes in the scope of consolidation.

The net fee and commission income earned in the first quarter of 2025 amounted to 2,435 million euro, up by 7% from the 2,276 million euro recorded in the same period of 2024.

This result was mainly driven by the increase in fees and commissions on management, dealing and consultancy activities (+11.2%, or +159 million euro). In detail, there was an increase in the contribution from dealing and placement of securities (+23.1%, or +70 million euro), supported by new placements of mutual funds, from portfolio management schemes (+3.8%, or +25 million euro), both collective and individual, supported by positive net inflows, from other management and dealing commissions (+39 million euro), in particular related to advisory activities, and fee and commission from the distribution of insurance products (+25 million euro), attributable to both the life business and the non-life business.

In contrast, fees and commissions on commercial banking activities decreased (-3.3%, or -21 million euro), particularly on debit and credit card services (-10 million euro), on guarantees given/received (-10 million euro) and on current accounts (-4 million euro), against growth in commissions on collection and payment services (+3 million euro).

Lastly, other net fee and commission income increased (+21 million euro), mainly due to higher fee and commission income on loans.

In the first three months of 2025, the caption reported a value higher than the previous quarters, continuing the growth trend seen during 2024, with the exception of the third quarter, which was impacted by the usual seasonal slowdowns in operations in the summer period.

	31.03.2025	31.03.2024	(millions of euro) Changes
			amount	%
Banca dei Territori	1,278	1,207	71	5.9
IMI Corporate & Investment Banking	312	283	29	10.2
International Banks	168	150	18	12.0
Private Banking	562	533	29	5.4
Asset Management	215	214	1	0.5
Insurance	1	1	-	-
Total business areas	2,536	2,388	148	6.2
Corporate Centre	-101	-112	-11	-9.8
Intesa Sanpaolo Group	2,435	2,276	159	7.0

Figures restated, where necessary and material, considering the changes in the scope of consolidation and in business unit constituents.

With regard to the business areas, the Banca dei Territori Division, which accounts for 50.4% of the fee and commission income of the business units, recorded growth in fee and commission income in the first three months of 2025 (+5.9%, or +71 million euro), specifically attributable to the assets under management segment, supported by placement levels higher than in the same period of 2024, a greater contribution from advisory and by the non-life insurance segment. The other Divisions also posted an increase in fee and commission income, specifically: IMI Corporate & Investment Banking Division (+10.2%, or +29 million euro), essentially due to the performance of structured finance and investment banking, Private Banking (+5.4%, or +29 million euro), attributable to recurring fees related to the increase in average assets under management, and International Banks (+12%, or +18 million euro), mainly thanks to the positive contribution of the subsidiaries operating in Slovakia, Croatia, Hungary and Egypt. Fees and commissions of the Asset Management Division remained substantially stable. The Corporate Centre recorded a

moderate reduction in the negative balance of net fee and commission income, which rose from -112 million euro in the first quarter of 2024 to -101 million euro.

Income from insurance business

31.03.2025 Non-life 136	Total 351	Life 219	31.03.2024 Non-life	Total	Changes amount	%
			124	343	8	2.3
	299	276	17	293	6	2.0
332	489	143	289	432	57	13.2
346	788	419	306	725	63	8.7
-209	-416	-185	-179	-364	52	14.3
-1	-21	-15	-3	-18	3	16.7
-210	-437	-200	-182	-382	55	14.4
17	110	88	17	105	5	4.8
-4	-198	-1,935	1	-1,934	-1,736	-89.8
17	554	483	13	496	58	11.7
-	113	98	-	98	15	15.3
7	-577	25	6	31	-608
-1	168	1,363	-	1,363	-1,195	-87.7
-2	50	54	-3	51	-1	-2.0
						2.9
						-85.7
153	462	314	141	455	7	1.5
	14 153 -	461 1	307 7	141 -	448 7	13 -6

Figures restated, where necessary and material, considering the changes in the scope of consolidation.

Income from insurance business includes the cost and revenue captions of the insurance business, including the reinsurance component, of the Group's life and non-life companies. In the first quarter of 2025, this income came to 462 million euro, up on the same period of 2024 (+1.5%, or +7 million euro). This trend is mainly attributable to the non-life business, which benefited from the positive evolution of the technical margin, attributable to higher insurance income relating to claims, in the presence of a stable net investment result. In the life business the net investment result increased due to higher net interest income and dividends, and a decline in the technical margin, which was attributable to the increase in insurance costs related to claims and actual expenses, which more than offset the growth in insurance income.

In the first three months of 2025, income from insurance business, including the life and non-life businesses, reported a value higher than all previous quarters.

			(millions of euro)
Business	31.03.2025		31.03.2024
		of which
		new business
Life insurance business	3,455	3,381	3,127
Premiums issued on traditional products	1,922	1,895	2,160
Premiums issued on unit-linked products	826	784	353
Premiums issued on multi-line products	446	443	372
Premiums issued on pension funds	261	259	241
Premiums issued on capitalisation products	-	-	1
Non-life insurance business	476	94	420
Premiums issued	476	94	420
Premiums ceded to reinsurers	-36	-7	-50
Net premiums issued from insurance products	3,895	3,468	3,497
Business on unit-linked contracts	760	751	596
Total business from investment contracts	760	751	596
Total business	4,655	4,219	4,093

Figures restated, where necessary and material, considering the changes in the scope of consolidation.

In the first quarter of 2025, total business in the insurance segment amounted to 4.7 billion euro, higher than the business recorded in the same period of 2024 (4.1 billion euro). The growth in premiums was mainly driven by the increase in the life business, particularly unit-linked policies of a mainly insurance nature, which more than doubled (+0.5 billion euro). Premiums on multi-line policies and pension funds also increased, while those on traditional products decreased (-0.2 billion euro). Class III unit-linked policies of a mainly financial nature also grew (+0.2 billion euro). In the non-life business (+56 million euro), performance was good for the non-motor segment, including the CPI – Credit Protection Insurance and, to a lesser extent, the motor segment.

New business totalled 4.2 billion euro, accounting for over 90% of the total collected premiums of the Group's insurance companies.

Profits (Losses) on financial assets and liabilities at fair value

			(millions of euro)
	31.03.2025	31.03.2024	Changes
			amount	%
Profits (losses) on trading and on financial instruments under fair value option	-9	-234	-225	-96.2
Profits (losses) on hedges under hedge accounting	-14	2	-16
Profits (losses) on assets mandatorily measured at fair value through profit or loss	159	61	98
Profits (losses) on dividends and on disposal of assets measured at fair value through other comprehensive income and disposal of assets at amortised cost	161	236	-75	-31.8
Profits (losses) on the buyback of financial liabilities	-32	16	-48
Profits (Losses) on financial assets and liabilities at fair value	265	81	184

Figures restated, where necessary and material, considering the changes in the scope of consolidation.

In the first quarter of 2025, profits (losses) on financial assets and liabilities at fair value, equal to 265 million euro, increased sharply on the amount of 81 million euro recorded in the same period of 2024.

The growth was mainly attributable to the improvement in profits (losses) on trading and on financial instruments under fair value option, which rose from -234 million euro in the first quarter of 2024 to -9 million euro. The aggregate benefited from the management of financial risks connected with transactions in certificates measured at fair value, also as a result of the market rates trends, as well as those in equity, in addition to the contribution from operations in exchange rates and the positive impact of Own Credit Risk (OCR) of the certificates. Net income from assets measured at fair value through profit or loss also made a positive contribution to the trend in the aggregate, showing an increase of 98 million euro attributable to equity instruments, loans and the positive evolution of debt securities.

In contrast, profits (losses) on dividends and on disposal of assets measured at fair value through other comprehensive income and disposal of assets at amortised cost decreased (-75 million euro), following a smaller contribution from disposal of HTCS securities,

mainly government securities. Negative changes also came from profits (losses) on the repurchase of financial liabilities (-48 million euro) and profits (losses) on hedges under hedge accounting (-16 million euro).

The profits for the first three months of 2025 were significantly higher than the quarters of 2024, whose trend reflected the high volatility of trading operations and the profits (losses) on the sale of assets measured at fair value through other comprehensive income and assets measured at amortised cost.

Other operating income (expenses)

In the first quarter of 2025, this caption showed other operating expenses of -2 million euro, compared to -3 million euro recorded in the same period of 2024. This caption includes both operating income and expenses – including those of subsidiaries not subject to management and coordination and operating in sectors completely distinct from banking and finance – and profits on equity investments carried at equity. The substantial stability of the caption is due, on one hand, to a decrease in other operating expenses (-3 million euro) and, on the other, to a smaller contribution of dividends and profits on investments carried at equity (-2 million euro).

Operating costs
-----------------	--

				(millions of euro)
	31.03.2025	31.03.2024	Changes
			amount	%
Wages and salaries	1,087	1,100	-13	-1.2
Social security charges	276	281	-5	-1.8
Other	220	221	-1	-0.5
Personnel expenses	1,583	1,602	-19	-1.2
Information technology expenses	196	193	3	1.6
Management of real estate assets expenses	70	79	-9	-11.4
General structure costs	109	102	7	6.9
Professional and legal expenses	41	57	-16	-28.1
Advertising and promotional expenses	21	22	-1	-4.5
Indirect personnel costs	42	38	4	10.5
Other costs	109	104	5	4.8
Indirect taxes and duties	43	42	1	2.4
Recovery of expenses and charges	-8	-7	1	14.3
Administrative expenses	623	630	-7	-1.1
Property and equipment	134	139	-5	-3.6
Intangible assets	238	220	18	8.2
Adjustments	372	359	13	3.6
Operating costs	2,578	2,591	-13	-0.5

Figures restated, where necessary and material, considering the changes in the scope of consolidation.

1.1%. The main savings were recorded in legal and professional fees (-16 million euro), especially regarding lower advisory fees, and in property management expenses (-9 million euro), mainly related to measures to reduce consumption.

Adjustments to property, equipment and intangible assets, which in accordance with IFRS 16 also include the share relating to rights of use acquired under operating leases, increased (+3.6%) on the first quarter of 2024, due to the intangible assets, followed by technology investments focused on software, continuing the process of development already reported in the previous year. Despite significant investments in technology, the cost/income ratio in the first quarter of 2025 stood at 38%, among the best in the European banking sector, compared to the slightly higher figure for the same period of 2024 (38.4%).

The quarterly comparison confirms the trend of cost containment, with the exception of the amount in the fourth quarter of 2024, which was impacted by higher personnel expenses and the usual seasonal effects on administrative expenses.

			(millions of euro)
	31.03.2025	31.03.2024	Changes
			amount	%
Banca dei Territori	-1,450	-1,476	-26	-1.8
IMI Corporate & Investment Banking	-339	-348	-9	-2.6
International Banks	-328	-313	15	4.8
Private Banking	-251	-246	5	2.0
Asset Management	-53	-54	-1	-1.9
Insurance	-84	-86	-2	-2.3
Total business areas	-2,505	-2,523	-18	-0.7
Corporate Centre	-73	-68	5	7.4
Intesa Sanpaolo Group	-2,578	-2,591	-13	-0.5

Figures restated, where necessary and material, considering the changes in the scope of consolidation and in business unit constituents.

At the level of operating costs, the Banca dei Territori Division, which accounts for 57.9% of the costs of the operating business areas, reported a decrease (-1.8%, or -26 million euro), due to savings on administrative expenses. Decreases in costs were also seen in the IMI Corporate & Investment Banking Division (-2.6%, or -9 million euro), attributable to administrative expenses, the Insurance Division (-2.3%, or -2 million euro) related to administrative expenses and personnel expenses, and the Asset Management Division (-1.9%, or -1 million euro), relating to personnel expenses. In contrast, there were increases in International Banks (+4.8%, or +15 million euro), specifically in personnel expenses, and in the Private Banking Division (+2%, or +5 million euro), relating to administrative expenses and amortisation and depreciation. Lastly, operating costs of the Corporate Centre increased (+7.4%, or +5 million euro).

Operating margin

The operating margin amounted to 4,214 million euro, up by 1.2% on the amount recorded in the first quarter of 2024, as a result of the resilience of revenues and the focused management of operating costs.

Net adjustments to loans

				(millions of euro)
	31.03.2025	31.03.2024	Changes
			amount	%
Bad loans	-62	-61	1	1.6
Unlikely to pay	-150	-162	-12	-7.4
Past due loans	-60	-91	-31	-34.1
Stage 3 loans	-272	-314	-42	-13.4
of which debt securities	-1	-1	-	-
Stage 2 loans	13	2	11
of which debt securities	-1	1	-2
Stage 1 loans	25	50	-25	-50.0
of which debt securities	1	6	-5	-83.3
Net losses/recoveries on impairment of loans	-234	-262	-28	-10.7
Profits/losses from changes in contracts without derecognition	-7	-	7	-
Net provisions for risks and charges for credit risk associated with
commitments and financial guarantees given	17	28	-11	-39.3
Net adjustments to loans	-224	-234	-10	-4.3

Figures restated, where necessary and material, considering the changes in the scope of consolidation.

Net adjustments to loans amounted to 224 million euro, down on those recorded in the first quarter of 2024 (234 million euro).

The movement in the caption was attributable to a decrease in adjustments to Stage 3 non-performing loans (-42 million euro), partly offset by the trend in Stage 1 and 2 performing loans, which continued to show recoveries, though decreasing overall (-14 million euro), and net provisions relating to commitments and guarantees given (lower recoveries for 11 million euro). The change in Stage 3 loans amounted to: +1 million euro in adjustments to bad loans, -12 million euro on unlikely-to-pay loans and -31 million euro on past due loans.

In March 2025, the ratio of gross non-performing loans to total loans stood at 2.3%, at the same levels as December 2024.

The annualised cost of credit – expressed as the ratio of net adjustments to net loans – decreased in the first quarter of 2025 to 21 basis points, without release of prudential provisions (overlays), compared to 30 basis points in 2024. This figure, which represents a historic low, was supported by the reduction in adjustments in the presence of low inflows from performing loans to nonperforming loans in the first three months of 2025 (0.6 billion euro net of outflows from non-performing loans to performing loans).

The coverage ratio of non-performing loans in March 2025 amounted to 50.1%. Specifically, bad loans required net adjustments of 62 million euro, up by 1 million euro on those of the first quarter of 2024, with a coverage ratio of 67.3%. Net adjustments to unlikely-to-pay loans, totalling 150 million euro, were down (-7.4%) from 162 million euro recorded in the same period of 2024; the coverage ratio for these exposures amounted to 40.2%. Net adjustments to past due loans amounted to 60 million euro (91 million euro in the first three months of 2024), with a coverage ratio of 31%. The coverage ratio for forborne positions within the non-performing loan category was 44.9%. Finally, the coverage ratio of performing loans was 0.5% and incorporated the physiological risk inherent in the loan portfolio.

Other net provisions and net impairment losses on other assets

				(millions of euro)
	31.03.2025	31.03.2024	Changes
			amount	%
Other net provisions	2	-53	55
Net impairment losses on instruments measured at amortised cost and on instruments measured at fair value through other comprehensive income	-24	4	-28
Net impairment losses on other assets	-1	-3	-2	-66.7
Other net provisions and net impairment losses on other assets	-23	-52	-29	-55.8

Figures restated, where necessary and material, considering the changes in the scope of consolidation.

Within the layout of the reclassified income statement, this caption consists of other net provisions for risks and charges and net impairment losses on other assets and on securities measured at amortised cost and at fair value. In the first three months of 2025, other net provisions and net impairment losses on other assets amounted to 23 million euro, compared to the 52 million euro recorded in the same period of the previous year. The decrease should be read in relation to the caption other net provisions, which amounted to +2 million euro, compared to -53 million euro in the first three months of 2024, which included 34 million euro for the write-off of the shareholders' equity of the subsidiary Banca Intesa Russia. In contrast, net impairment losses on securities measured at amortised cost and securities measured at fair value through other comprehensive income reported negative performance, amounting to 24 million euro, mainly referring to the component of securities at amortised cost, compared to 4 million euro in recoveries in the same period of 2024.

Lastly, net impairment losses on other assets decreased, even though they amounted to marginal values.

Other income (expenses)

Other income (expenses), which include realised gains and losses on investments, equity investments and financial assets measured at amortised cost other than loans, as well as income/expenses not strictly related to operations, amounted to -4 million euro in expenses, compared to 57 million euro in income in the same period of 2024.

Gross income (loss)

In the first three months of 2025, income before tax from continuing operations came to 3,963 million euro, up by 0.7% compared with 3,936 million euro for the same period in 2024.

Taxes on income

Current and deferred taxes came to 1,250 million euro for a tax rate of 31.5%, one percentage point lower than the figure recorded in the first quarter of 2024 (32.5%).

Charges (net of tax) for integration and exit incentives

In the first quarter of 2025, that caption amounted to 57 million euro, at levels similar to those recorded in the same period of 2024 (56 million euro).

Effect of purchase price allocation (net of tax)

This caption comprises the income statement effects (adjustments and/or impairment losses) attributable to the revaluations of loans, debts, real estate and the recognition of new intangible assets, in application of IFRS 3, upon recognition of acquisition of equity investments and/or aggregate assets. In the first quarter of 2025, this caption amounted to -24 million euro, compared to the -29 million euro recorded in the same period of 2024.

Levies and other charges concerning the banking and insurance industry (net of tax)

The caption includes the levies imposed by legislative provisions and/or aimed at maintaining the stability of the banking and insurance industry and consequently outside the company management. In the first quarter of 2025, these charges came to 9 million euro, compared to the 257 million euro recorded in the same period of the previous year, which included 239 million euro relating to deposit guarantee funds.

The charges recognised during the reporting period include 2 million euro attributable to resolution funds, 4 million euro to deposit guarantee funds and 5 million euro to levies recognised by international banks as well as a positive amount of 2 million euro resulting from the revaluation of the Atlante Fund.

Minority interests

In the first three months of 2025, the caption showed net income of 8 million euro attributable to minority interests relating to companies subject to line-by-line scope of consolidation, compared with a figure of 13 million euro for the first quarter of 2024.

Net income (loss)

The Intesa Sanpaolo Group closed the first quarter of 2025 with a net income of 2,615 million euro, up by 13.6% on the same period of 2024. This result represents the best performance since 2007, underscoring a diversified and resilient business model, with leadership in Wealth Management, Protection & Advisory. The increase reflects the positive performance of revenues, which benefited from the strong trends in fees and commissions and the profits on trading, low adjustments to loans and the focused management of operating costs, also in the presence of significant technological investments.

Balance sheet aggregates

General aspects

A reclassified consolidated balance sheet has been prepared to permit a more immediate understanding of the Group's assets and liabilities.

In addition to the amounts as at the reporting date, the format adopted shows the comparative figures as at 31 December 2024 and their quarterly development. To enable a like-for-like comparison, the figures from the previous periods are normally restated, where necessary and material, to make them as consistent as possible, particularly in relation to any changes in the scope of consolidation.

In this Report on operations, the reclassified consolidated balance sheets for the first two quarters of 2024 have been restated to take account of the following changes in the scope of consolidation, with the conventional attribution of the equity of the companies being restated to the caption Minority interests:

• the inclusion of the Romanian bank First Bank, acquired on 31 May 2024, whose balance sheet figures were consolidated from the end of June 2024;
• the inclusion of Alpian S.A., previously consolidated using the equity method, following the capital increase finalised in the third quarter of 2024, which brought the percentage of the Group's stake in the company to 61.599%, of which 51.141% held by Fideuram - Intesa Sanpaolo Private Banking and 10.458% by Reyl & Cie (in this regard, see the information disclosed in the Highlight section of the 2024 Annual Report).

Certain aggregations and reclassifications have been made with respect to the model provided in Circular 262 of the Bank of Italy. Breakdowns of restatements, aggregations and reclassifications are provided in separate tables included in the attachments to this report, as also required by Consob in its Communication 6064293 of 28 July 2006.

Aggregations and reclassifications of captions in the consolidated reclassified balance sheet refer to:

• the separate presentation of financial assets of the banking segment constituting Due from banks and Loans to customers, regardless of the accounting portfolios to which they have been allocated;
• the separate presentation of financial assets of the banking segment not constituting loans, divided into financial assets measured at amortised cost, financial assets measured at fair value through profit or loss and financial assets measured at fair value through other comprehensive income, net of the amounts reclassified to Due from banks and Loans to customers;
• the separate presentation of financial assets and liabilities of the insurance segment, grouped based on the valuation method adopted for the purposes of IFRS 9 (fair value or amortised cost);
• the aggregation in one single caption of Property, equipment and intangible assets, broken down into the sub-captions Assets owned and Rights of use acquired under leases;
• the inclusion of Hedging derivatives of the banking segment and Fair value change of financial assets/liabilities in hedged portfolios under Other assets/Other liabilities;
• the inclusion of Insurance assets in Other assets;
• the separate presentation of Due to banks at amortised cost of the banking segment;
• the aggregation of Due to customers at amortised cost and Securities issued of the banking segment into one caption;
• the aggregation in one single caption (Allowances for risks and charges) of allowances for specific purposes (Employee termination indemnities and Allowances for risks and charges regarding: commitments and guarantees given, postemployment benefits and other allowances for risks and charges);
• the reclassification of Lease payables to a specific sub-caption of Other liabilities;
• the presentation of Reserves as an aggregate and net of any own shares.

Reclassified consolidated balance sheet

			(millions of euro)
Assets	31.03.2025	31.12.2024		Changes
			amount	%
Cash and cash equivalents	37,447	40,533	-3,086	-7.6
Due from banks	36,933	36,128	805	2.2
Loans to customers	416,797	421,512	-4,715	-1.1
Loans to customers measured at amortised cost	414,811	419,658	-4,847	-1.2
Loans to customers measured at fair value through other comprehensive income and through profit or loss	1,986	1,854	132	7.1
Financial assets measured at amortised cost which do not constitute loans	65,124	62,979	2,145	3.4
Financial assets measured at fair value through profit or loss	48,862	45,706	3,156	6.9
Financial assets measured at fair value through other comprehensive income	88,323	76,303	12,020	15.8
Financial assets pertaining to insurance companies measured at amortised cost	5	5	-	-
Financial assets pertaining to insurance companies measured at fair value through profit or loss	101,980	104,344	-2,364	-2.3
Financial assets pertaining to insurance companies measured at fair value through other comprehensive income	70,518	72,973	-2,455	-3.4
Investments in associates and companies subject to joint control	2,970	3,036	-66	-2.2
Property, equipment and intangible assets	18,497	18,884	-387	-2.0
Assets owned	17,419	17,655	-236	-1.3
Rights of use acquired under leases	1,078	1,229	-151	-12.3
Tax assets	12,462	12,916	-454	-3.5
Non-current assets held for sale and discontinued operations	907	667	240	36.0
Other assets	34,309	37,299	-2,990	-8.0
Total Assets	935,134	933,285	1,849	0.2

Liabilities	31.03.2025	31.12.2024		Changes
			amount	%
Due to banks at amortised cost	60,107	45,082	15,025	33.3
Due to customers at amortised cost and securities issued	540,743	552,029	-11,286	-2.0
Financial liabilities held for trading	41,513	42,866	-1,353	-3.2
Financial liabilities designated at fair value	24,175	23,437	738	3.1
Financial liabilities at amortised cost pertaining to insurance companies	1,971	1,412	559	39.6
Financial liabilities held for trading pertaining to insurance companies	100	63	37	58.7
Financial liabilities designated at fair value pertaining to insurance companies	48,136	50,646	-2,510	-5.0
Tax liabilities	2,614	2,097	517	24.7
Liabilities associated with non-current assets held for sale and discontinued operations	249	5	244
Other liabilities	19,208	18,655	553	3.0
of which lease payables	1,105	1,097	8	0.7
Insurance liabilities	124,195	126,081	-1,886	-1.5
Allowances for risks and charges	5,356	5,591	-235	-4.2
of which allowances for commitments and financial guarantees given	585	601	-16	-2.7
Share capital	10,369	10,369	-	-
Reserves	51,315	42,789	8,526	19.9
Valuation reserves	-1,849	-2,035	-186	-9.1
Valuation reserves pertaining to insurance companies	-367	-297	70	23.6
Interim dividend	-3,022	-3,022	-	-
Equity instruments	7,572	8,706	-1,134	-13.0
Minority interests	134	145	-11	-7.6
Net income (loss)	2,615	8,666	-6,051	-69.8
Total liabilities and shareholders' equity	935,134	933,285	1,849	0.2

Figures restated, where necessary and material, considering the changes in the scope of consolidation and discontinued operations.

Report on operations – Balance sheet aggregates

Quarterly development of the reclassified consolidated balance sheet

Assets	2025		2024		(millions of euro)
	31/3	31/12	30/9	30/6	31/3
Cash and cash equivalents	37,447	40,533	56,071	55,582	51,462
Due from banks	36,933	36,128	34,139	33,028	29,041
Loans to customers	416,797	421,512	421,946	422,216	424,234
Loans to customers measured at amortised cost	414,811	419,658	419,559	420,420	421,899
Loans to customers measured at fair value through other comprehensive income and through profit or loss	1,986	1,854	2,387	1,796	2,335
Financial assets measured at amortised cost which do not constitute loans	65,124	62,979	62,868	60,779	62,749
Financial assets measured at fair value through profit or loss	48,862	45,706	45,608	41,914	42,029
Financial assets measured at fair value through other comprehensive income	88,323	76,303	79,500	77,018	77,230
Financial assets pertaining to insurance companies measured at amortised cost	5	5	2	2	5
Financial assets pertaining to insurance companies measured at fair value through profit or loss	101,980	104,344	103,872	101,961	103,265
Financial assets pertaining to insurance companies measured at fair value through other comprehensive income	70,518	72,973	72,797	69,150	70,928
Investments in associates and companies subject to joint control	2,970	3,036	2,799	2,621	2,495
Property, equipment and intangible assets	18,497	18,884	18,542	18,611	18,651
Assets owned	17,419	17,655	17,285	17,276	17,257
Rights of use acquired under leases	1,078	1,229	1,257	1,335	1,394
Tax assets	12,462	12,916	13,150	14,095	14,470
Non-current assets held for sale and discontinued operations	907	667	1,024	1,139	732
Other assets	34,309	37,299	36,868	36,406	35,936
Total Assets	935,134	933,285	949,186	934,522	933,227
Liabilities	2025		2024
	31/3	31/12	30/9	30/6	31/3
Due to banks at amortised cost	60,107	45,082	51,013	48,176	55,998
Due to customers at amortised cost and securities issued	540,743	552,029	555,320	557,052	545,019
Financial liabilities held for trading	41,513	42,866	44,528	45,078	44,737
Financial liabilities designated at fair value	24,175	23,437	24,088	23,314	23,218
Financial liabilities at amortised cost pertaining to insurance companies	1,971	1,412	2,247	2,185	2,222
Financial liabilities held for trading pertaining to insurance companies	100	63	64	107	67
Financial liabilities designated at fair value pertaining to insurance companies	48,136	50,646	50,685	50,775	51,748
Tax liabilities	2,614	2,097	2,467	2,700	2,672
Liabilities associated with non-current assets held for sale and discontinued operations	249	5	7	17	5
Other liabilities	19,208	18,655	21,716	15,513	15,690
of which lease payables	1,105	1,097	1,117	1,185	1,245
Insurance liabilities	124,195	126,081	125,232	119,676	120,561
Allowances for risks and charges	5,356	5,591	4,589	4,520	5,161
of which allowances for commitments and financial guarantees given	585	601	536	495	496
Share capital	10,369	10,369	10,369	10,369	10,369
Reserves	51,315	42,789	42,953	43,933	50,153
Valuation reserves	-1,849	-2,035	-1,805	-2,079	-1,977
Valuation reserves pertaining to insurance companies	-367	-297	-278	-366	-302
Interim dividend	-3,022	-3,022	-	-	-2,629
Equity instruments	7,572	8,706	8,682	8,652	7,889
Minority interests	134	145	142	134	325
Net income (loss)	2,615	8,666	7,167	4,766	2,301

Figures restated, where necessary and material, considering the changes in the scope of consolidation and discontinued operations.

BANKING BUSINESS

Loans to customers

Loans to customers: breakdown

					(millions of euro)
	31.03.2025		31.12.2024		Changes
		% breakdown		% breakdown	amount	%
Current accounts	21,306	5.1	21,188	5.0	118	0.6
Mortgages	215,396	51.6	214,980	51.0	416	0.2
Advances and other loans	150,393	36.1	156,145	37.0	-5,752	-3.7
Commercial banking loans	387,095	92.8	392,313	93.0	-5,218	-1.3
Repurchase agreements	17,405	4.2	17,991	4.3	-586	-3.3
Loans represented by securities	7,332	1.8	6,288	1.5	1,044	16.6
Non-performing loans	4,965	1.2	4,920	1.2	45	0.9
Loans to customers	416,797	100.0	421,512	100.0	-4,715	-1.1

Figures restated, where necessary and material, considering the changes in the scope of consolidation and discontinued operations.

As at 31 March 2025, loans to customers of the Group totalled 416.8 billion euro, recording a decrease (-1.1%, or -4.7 billion euro) from the end of 2024. This performance was driven by commercial banking loans (-1.3%, or -5.2 billion euro), specifically regarding short-term loans: the slight growth in current accounts (+0.6%, +0.1 billion euro) was offset by the decrease in loans and advances (-3.7%, or -5.8 billion euro), mainly attributable to ordinary forms of advances, including factoring, in an uncertain international political context, with demand for loans from businesses remaining weak. Conversely, in the area of commercial banking loans, medium-long-term loans represented by mortgage loans showed resilience (+0.4 billion euro). Among the other components, which represent a less significant proportion of the total aggregate, there was an increase in loans

represented by securities (+16.6%, or +1 billion euro), mainly due to the Parent Company's subscription of securities from Large Corporate issuers, while repurchase agreements decreased (-3.3%, or -0.6 billion euro). Lastly, non-performing loans remained at levels similar to the end of 2024.

In the first three months of 2025, the Group made total medium/long-term disbursements of 20.9 billion euro, consisting of 14.8 billion euro for Italy and 6.1 billion euro for the international operations.

In the domestic market, the Banca dei Territori recorded loans of 10.2 billion euro, of which 5.3 billion euro to households (retail and exclusive segments), 4.1 billion euro to SMEs (companies with a turnover of up to 350 million euro), 0.6 billion euro to agribusiness, and 0.2 billion euro to the non-profit sector, third party networks, Prestitalia and Isybank. In addition, disbursements of the IMI Corporate & Investment Banking Division amounted to 4.5 billion euro and Originate to Share (OTS) operations totalled 0.1 billion euro.

For the international operations, the loans included IMI C&IB international, for 3 billion euro, and the International Banks Division, for 3.1 billion euro.

As at 31 March 2025, the Intesa Sanpaolo Group's share of the Italian domestic market was estimated at 17.7% for total loans to customers. This estimate was based on the sample deriving from the ten-day report of the Bank of Italy for March, as the global banking system figures were not yet available.

With regard to the specific measures to support the production system, established in response to the COVID-19 pandemic, Intesa Sanpaolo was the first Bank in Italy to sign the collaboration protocol with SACE. Overall, Intesa Sanpaolo provided a plafond of 50 billion euro dedicated to loans in favour of companies under which, also through the SME Fund, a total of 49 billion euro⁷ in loans backed by government guarantee were disbursed from the start of the pandemic (in application of the "Liquidità" Decree Law no. 23 of 8 April 2020): 13.4 billion euro backed by SACE guarantee and around 35.6 billion euro backed by SME Fund guarantee. The data regarding the monitoring of the guarantees from the "Fondo Centrale di Garanzia" (Central Guarantee Fund), despite showing higher impairment rates than the rest of the loans, do not identify significant risks, thanks to the focused and timely management.

At consolidated level, also considering the operations in the other countries where the Group has a presence, as at the end of March 2025 the residual debt of exposures subject to government guarantee schemes totalled 13.6 billion euro, compared to 15.4 billion euro in December 2024. The decrease, essentially attributable to the Parent Company, was correlated with the redemptions and partial extinguishments during the period.

Under the Bank's initiatives related to the measures established by the "Rilancio" Decree (Decree Law 34/2020) for the relaunch of the construction sector, Intesa Sanpaolo – through the Banca dei Territori and IMI Corporate & Investment Banking Divisions – has purchased tax credits of 37.9 billion euro from the start of the operations through to 31 March 2025 (37.5 billion euro as at 31 December 2024). In addition, there is an amount of 1 billion euro total of contracts signed and applications received, which will be assessed in light of the changed regulatory framework introduced by Decree Law no. 39 of 29 March 2024 converted into Law no. 67 of 23 May 2024.

Net of the overall decreases of around 17.1 billion euro (attributable to offsetting carried out during the year, deferrals recognised, resales carried out and fair value adjustments, where required by the business model of reference), as at 31 March 2025 tax credits of 20.8 billion euro (22.5 billion euro at the end of 2024) were recognised in the financial statements under caption 130 Other assets of the Consolidated balance sheet, which in the Reclassified consolidated balance sheet converge in the caption Other assets.

			(millions of euro)
	31.03.2025	31.12.2024		Changes
			amount	%
Banca dei Territori	221,625	221,231	394	0.2
IMI Corporate & Investment Banking	122,745	126,059	-3,314	-2.6
International Banks	45,713	45,255	458	1.0
Private Banking	13,834	14,022	-188	-1.3
Asset Management	273	254	19	7.5
Insurance	-	-	-	-
Total business areas	404,190	406,821	-2,631	-0.6
Corporate Centre	12,607	14,691	-2,084	-14.2
Intesa Sanpaolo Group	416,797	421,512	-4,715	-1.1

Figures restated, where necessary and material, considering the changes in the scope of consolidation and in business unit constituents and discontinued operations.

In the analysis of operations by sector, the Banca dei Territori Division, which represents 54.8% of the aggregate attributable to the Group's operating business areas, showed substantial stability since the end of 2024 (+0.2%, or +0.4 billion euro), attributable to the positive trend in loans to individuals, against a slight downturn in loans to businesses. Conversely, loans of the IMI Corporate & Investment Banking Division decreased (-2.6%, or -3.3 billion euro), mainly due to the declining trend in the Global Corporate segment, as well as in the Private Banking Division (-1.3%, or -0.2 billion euro), due to the decrease in current account facilities and other loans. Loans of the International Banks Division reported growth (+1%, or +0.5 billion euro), mainly attributable to the larger contribution from the subsidiaries operating in Croatia, Hungary and Slovenia.

The loans of the Asset Management Division, which are relatively modest in scope owing to its line of business, increased by 7.5%. Lastly, loans on central assets of the Corporate Centre decreased

by 14.2% (-2.1 billion euro) partly in relation to repurchase agreements.

⁷ Including the former UBI Banca Group and considering the sale of branches carried out in the first half of 2021.

Loans to customers: credit quality

					(millions of euro)
	31.03.2025		31.12.2024		Change
	Net %		Net	%	Net
	exposure	breakdown	exposure	breakdown	exposure
Bad loans	1,237	0.3	1,120	0.3	117
Unlikely to pay	3,385	0.8	3,438	0.8	-53
Past due loans	343	0.1	362	0.1	-19
Non-Performing Loans	4,965	1.2	4,920	1.2	45
Non-performing loans in Stage 3 (subject to impairment)	4,932	1.2	4,889	1.2	43
Non-performing loans measured at fair value through profit or loss	33	-	31	-	2
Performing loans	404,487	97.0	410,230	97.3	-5,743
Stage 2	32,323	7.7	33,422	7.9	-1,099
Stage 1	371,332	89.1	376,051	89.2	-4,719
Performing loans measured at fair value through profit or loss	832	0.2	757	0.2	75
Performing loans represented by securities	7,332	1.8	6,288	1.5	1,044
Stage 2	233	0.1	188	-	45
Stage 1	7,099	1.7	6,100	1.5	999
Loans held for trading	13	-	74	-	-61
Total loans to customers	416,797	100.0	421,512	100.0	-4,715
of which forborne performing	4,230		4,168		62
of which forborne non-performing	1,709		1,691		18
Loans to customers classified as non-current assets held for sale	8		39		-31

Figures restated, where necessary and material, considering the changes in the scope of consolidation and discontinued operations.

As at 31 March 2025, the Group's net non-performing loans amounted to 4,965 million euro, substantially in line with the figure recorded as at 31 December 2024 (4,920 million euro), confirming the virtuous trend already seen in previous quarters, consistent with the status of Zero NPL Bank declared in the 2022-2025 Business Plan. The ratio of non-performing loans to total net loans to customers came to 1.2% (1% according to the EBA definition) with the coverage ratio for non-performing loans increasing to 50.1% from 49.5% at the end of 2024.

In further detail, in March 2025 bad loans amounted to 1,237 million euro (+10.4% from 31 December 2024), net of adjustments, representing 0.3% of total net loans with a coverage ratio of 67.3%. Loans included in the unlikely-to-pay category amounted to 3,385 million euro, down by 1.5%, accounting for 0.8% of total net loans to customers, with a coverage ratio of 40.2%. Past due loans amounted to 343 million euro (-5.2% from the end of 2024), with a coverage ratio of 31%. Within the non-performing loan category, forborne exposures, generated by forbearance measures for borrowers experiencing difficulty in meeting their financial obligations, amounted to 1.7 billion euro, with a coverage ratio of 44.9%. Forborne exposures in the performing loan category amounted to 4.2 billion euro.

At the end of March 2025, net performing loans amounted to 404.5 billion euro, down by 5.7 billion euro (-1.4%) on the end of 2024, with an overall coverage ratio of 0.52%, of which 4.64% (from 4.60% at the end of 2024) for Stage 2 loans and 0.15% (same ratio at the end of December 2024) for Stage 1 loans. In terms of stock, net loans in Stage 1 decreased by 1.3% to 371.3 billion euro and those in Stage 2 fell by 3.3% to 32.3 billion euro.

Report on operations – Balance sheet aggregates

Other banking business financial assets and liabilities: breakdown

					(millions of euro)
Type of financial instruments	Financial assets measured at fair value through profit or loss	Financial assets measured at fair value through other comprehensive income	Instruments measured at amortised cost which do not constitute loans	TOTAL Banking business financial assets	Banking business financial liabilities held for trading (*)
Debt securities issued by Governments
31.03.2025	7,808	59,730	45,134	112,672	X
31.12.2024	3,505	51,576	42,966	98,047	X
Changes amount	4,303	8,154	2,168	14,625	X
Changes %		15.8	5.0	14.9	X
Other debt securities
31.03.2025	5,269	27,285	19,990	52,544	X
31.12.2024	4,724	23,422	20,013	48,159	X
Changes amount	545	3,863	-23	4,385	X
Changes %	11.5	16.5	-0.1	9.1	X
Equities
31.03.2025	5,408	1,308	X	6,716	X
31.12.2024	8,070	1,305	X	9,375	X
Changes amount	-2,662	3	X	-2,659	X
Changes %	-33.0	0.2	X	-28.4	X
Quotas of UCI
31.03.2025	4,260	X	X	4,260	X
31.12.2024	4,272	X	X	4,272	X
Changes amount	-12	X	X	-12	X
Changes %	-0.3	X	X	-0.3	X
Due to banks and to customers
31.03.2025	X	X	X	X	-7,564
31.12.2024	X	X	X	X	-7,264
Changes amount	X	X	X	X	300
Changes %	X	X	X	X	4.1
Financial derivatives
31.03.2025	21,883	X	X	21,883	-20,659
31.12.2024	22,083	X	X	22,083	-23,507
Changes amount	-200	X	X	-200	-2,848
Changes %	-0.9	X	X	-0.9	-12.1
Credit derivatives
31.03.2025	4,234	X	X	4,234	-4,297
31.12.2024	3,052	X	X	3,052	-3,053
Changes amount	1,182	X	X	1,182	1,244
Changes %	38.7	X	X	38.7	40.7
TOTAL 31.03.2025	48,862	88,323	65,124	202,309	-32,520
TOTAL 31.12.2024	45,706	76,303	62,979	184,988	-33,824
Changes amount	3,156	12,020	2,145	17,321	-1,304
Changes %	6.9	15.8	3.4	9.4	-3.9

Figures restated, where necessary and material, considering the changes in the scope of consolidation and discontinued operations.

(*) The amount of the item does not include certificates which are included in the direct deposits from banking business table.

The table above shows the breakdown of other financial assets and liabilities, excluding those pertaining to insurance companies. Financial liabilities held for trading do not include certificates, which are included in the direct deposits from banking business aggregates.

The Intesa Sanpaolo Group's other financial assets amounted to 202.3 billion euro, up by 17.3 billion euro compared to the end of the year (+9.4%). Financial liabilities held for trading decreased by 3.9% to 32.5 billion euro.

The increase in total financial assets was essentially due to the performance of debt securities (+19 billion euro), mainly government securities and, to a lesser extent, derivatives (+1 billion euro), only partially offset by the decrease in equity instruments (-2.7 billion euro).

Financial assets measured at fair value through profit or loss amounted to 48.9 billion euro, up by 3.2 billion euro from the end of 2024. The change was attributable to an increase in debt securities (+4.8 billion euro), specifically those issued by governments, and in derivatives (+1 billion euro), only partially offset by the reduction in equity instruments (-2.7 billion euro).

Instruments measured at amortised cost which do not constitute loans amounted to 65.1 billion euro, up by 3.4%, due to the performance of government debt securities (+2.2 billion euro). Debt securities at amortised cost have primarily been classified to Stage 1 (92%).

Financial assets at fair value through other comprehensive income, which reached 88.3 billion euro, also increased from the end of 2024 (+15.8%), essentially due to the performance of debt securities. Debt securities measured at fair value through other comprehensive income were almost fully classified in Stage 1 (98%).

Debt securities: stage allocation

			(millions of euro)
Debt securities: stage allocation	Financial assets measured at fair value through other comprehensive income	Instruments measured at amortised cost which do not constitute loans	TOTAL
Stage 1
31.03.2025	85,607	60,052	145,659
31.12.2024	73,608	57,590	131,198
Changes amount	11,999	2,462	14,461
Changes %	16.3	4.3	11.0
Stage 2
31.03.2025	1,408	4,854	6,262
31.12.2024	1,390	5,381	6,771
Changes amount	18	-527	-509
Changes %	1.3	-9.8	-7.5
Stage 3
31.03.2025	-	218	218
31.12.2024	-	8	8
Changes amount	-	210	210
Changes %	-
TOTAL 31.03.2025	87,015	65,124	152,139
TOTAL 31.12.2024	74,998	62,979	137,977
Changes amount	12,017	2,145	14,162
Changes %	16.0	3.4	10.3

Figures restated, where necessary and material, considering the changes in the scope of consolidation and discontinued operations.

The decrease in securities classified in Stage 2, for a total of -0.5 billion euro compared to December 2024, was fully attributable to the component of securities measured at amortised cost which do not constitute loans.

Customer financial assets

					(millions of euro)
	31.03.2025		31.12.2024		Changes
		% breakdown		% breakdown	amount	%
Direct deposits from banking business	573,911	41.6	584,508	42.3	-10,597	-1.8
Direct deposits from insurance business	173,536	12.6	177,430	12.8	-3,894	-2.2
Indirect customer deposits	796,043	57.7	788,399	57.1	7,644	1.0
Netting (a)	-164,795	-11.9	-168,163	-12.2	-3,368	-2.0
Customer financial assets	1,378,695	100.0	1,382,174	100.0	-3,479	-0.3

Figures restated, where necessary and material, considering the changes in the scope of consolidation and discontinued operations.

(a) The netting relates to components of indirect customer deposits that also constitute types of direct deposits (financial liabilities of the insurance segment measured at fair value and insurance liabilities).

As at 31 March 2025 customer financial assets, after netting, reached 1,379 billion euro, slightly down on the end of the year (-0.3%, or -3.5 billion euro) due to direct deposits from banking business (-1.8%, or -10.6 billion euro) and, to a lesser extent, direct deposits from insurance business (-2.2%, or -3.9 billion euro), partly offset by the positive trend in indirect customer deposits (+1%, or +7.6 billion euro).

Direct deposits from banking business

The table below sets out amounts due to customers, securities issued, including those measured at fair value, and certificates, which represent an alternative form of funding to bonds.

					(millions of euro)
	31.03.2025		31.12.2024		Changes
		% breakdown		% breakdown	amount	%
Current accounts and deposits	401,121	69.9	409,039	70.0	-7,918	-1.9
Repurchase agreements and securities lending	16,432	2.9	15,642	2.7	790	5.1
Bonds	76,186	13.3	80,414	13.8	-4,228	-5.3
Certificates of deposit	2,808	0.5	2,648	0.4	160	6.0
Subordinated liabilities	11,662	2.0	11,791	2.0	-129	-1.1
Other deposits	65,702	11.4	64,974	11.1	728	1.1
of which measured at fair value (*)	33,168	5.8	32,479	5.6	689	2.1
Direct deposits from banking business	573,911	100.0	584,508	100.0	-10,597	-1.8

Figures restated, where necessary and material, considering the changes in the scope of consolidation and discontinued operations.

(*) Figures relating to investment certificates and other forms of funding included in the Balance sheet under "Financial liabilities held for trading" and "Financial liabilities designated at fair value". Specifically:

• as at 31 March 2025, this caption consisted of 8,993 million euro of certificates classified under "Financial liabilities held for trading" and 24,175 million euro of certificates (24,170 million euro) and other forms of funding (5 million euro) classified under "Liabilities designated at fair value"; - as at 31 December 2024, this caption consisted of 9,042 million euro of certificates classified under "Financial liabilities held for trading" and 23,437 million euro of certificates (23,432 million euro) and other forms of funding (5 million euro) classified under "Liabilities designated at fair value";

Bearer instruments issued are conventionally fully attributed to funding from customers.

The Group's direct deposits from banking business amounted to 573.9 billion euro, down on the end of 2024 (-1.8%, or -10.6 billion euro), essentially due to a drop in current accounts and deposits (-1.9%, or -7.9 billion euro) and bonds (-5.3%, or -4.2 billion euro), partially offset by the positive trend in repurchase agreements and securities lending (+0.8 billion euro) and in other deposits (+0.7 billion euro), due to the development of certificates.

The evolution of direct deposits should be viewed in a scenario where companies continued to use their liquidity to reduce their use of bank loans, and retail customers redirected a portion of their available funds held on current accounts to more remunerative investment products, such as certificates and asset under management products, as well as government and corporate bond issues, which increased the dossiers of assets under administration (+11 billion euro).

As at 31 March 2025, the Intesa Sanpaolo Group's direct deposits (deposits and bonds) represented an estimated share of the domestic market of 21.3%. As described above with reference to loans, this estimate is based on the sample deriving from the tenday report produced by the Bank of Italy.

	31.03.2025	31.12.2024	(millions of euro) Changes
			amount	%
Banca dei Territori	254,289	258,772	-4,483	-1.7
IMI Corporate & Investment Banking	123,380	125,194	-1,814	-1.4
International Banks	61,047	60,922	125	0.2
Private Banking	45,921	47,921	-2,000	-4.2
Asset Management	21	15	6	40.0
Insurance	-	-	-	-
Total business areas	484,658	492,824	-8,166	-1.7
Corporate Centre	89,253	91,684	-2,431	-2.7
Intesa Sanpaolo Group	573,911	584,508	-10,597	-1.8

Figures restated, where necessary and material, considering the changes in the scope of consolidation and in business unit constituents and discontinued operations.

In the analysis of funding by sector, the Banca dei Territori Division, which accounts for 52.4% of the aggregate attributable to the Group's operating business areas, came in below the levels of the end of the previous year (-1.7%, or -4.5 billion euro), in view of the decrease in amounts due to retail and business customers.

Direct deposits of the IMI Corporate & Investment Banking Division also decreased (-1.4%, or -1.8 billion euro), as a result of the decline in Global Corporate and Global Markets operations, partially offset by the development of operations in certificates, as well as the Private Banking Division (-4.2%, or -2 billion euro), mainly due to the decrease in time deposits. Deposits of the International Banks Division were substantially stable in relation to the end of December 2024 (+0.2%, or +0.1 billion euro), mainly as a result of the increases recorded on subsidiaries operating in Hungary and Egypt, against a declining trend in Slovakia and Romania.

The decline in Corporate Centre funding (-2.4 billion euro) was mainly attributable to transactions in wholesale securities.

Report on operations – Balance sheet aggregates

Indirect customer deposits

					(millions of euro)
	31.03.2025		31.12.2024		Changes
		% breakdown		% breakdown	amount	%
Mutual funds (a)	166,793	20.9	167,249	21.2	-456	-0.3
Open-ended pension funds and individual pension plans	17,188	2.2	17,215	2.2	-27	-0.2
Portfolio management	90,206	11.3	90,704	11.5	-498	-0.5
Insurance liabilities and insurance financial liabilities	164,795	20.7	168,163	21.3	-3,368	-2.0
Relations with institutional customers	30,802	3.9	29,798	3.8	1,004	3.4
Assets under management	469,784	59.0	473,129	60.0	-3,345	-0.7
Assets under administration and in custody	326,259	41.0	315,270	40.0	10,989	3.5
Indirect customer deposits	796,043	100.0	788,399	100.0	7,644	1.0

Figures restated, where necessary and material, considering the changes in the scope of consolidation and discontinued operations.

(a) This caption does not include funds held by Group insurance companies and managed by the Group's asset management companies, whose values are included in the insurance liabilities and insurance financial liabilities, and the funds established by third parties and managed by Group companies, whose values are included in assets under administration and in custody.

As at 31 March 2025, indirect customer deposits exceeded 796 billion euro and were up by 1% from the end of 2024. The positive trend was attributable to assets under administration, amounting to 326.3 billion euro, which increased (+3.5%, or +11 billion euro). This growth was concentrated in securities and third-party products in custody, to which investors have transferred part of their liquidity in order to benefit from higher yields.

In contrast, assets under management, which, amounting to 469.8 billion euro, accounted for 59% of the total aggregate, decreased slightly (-0.7%, or -3.3 billion euro), as it was impacted by a negative market effect deriving from the trend in prices. This decrease was mainly attributable to insurance liabilities and insurance financial liabilities (-3.4 billion euro) and, to a lesser extent, to mutual funds (-0.5 billion euro) and portfolio management schemes (-0.5 billion euro), only partially offset by the increase in relations with institutional customers (+1 billion euro). Open pension funds and individual pension policies remained substantially stable. In the first three months of 2025, the new life business of the insurance companies of the Intesa Sanpaolo Group, including pension products and those of a predominantly financial nature, amounted to 4.1 billion euro.

Amounts due from and to banks - net interbank position

			(millions of euro)
	31.03.2025	31.12.2024	Changes
			amount	%
Cash and cash equivalents	34,428	36,651	-2,223	-6.1
- Current accounts and on demand deposits with Central Banks (*)	30,215	32,531	-2,316	-7.1
- Current accounts and on demand deposits with banks	4,213	4,120	93	2.3
Due from banks	36,933	36,128	805	2.2
- Reserve requirement (**)	7,240	7,740	-500	-6.5
- Time deposits	3,104	3,719	-615	-16.5
- Repurchase agreements	16,502	14,316	2,186	15.3
- Other	10,087	10,353	-266	-2.6
Total due from banks	71,361	72,779	-1,418	-1.9
- Demand deposits and time deposits	6,669	7,672	-1,003	-13.1
- Repurchase agreements	36,415	23,067	13,348	57.9
- Other debts	17,023	14,343	2,680	18.7
Total due to banks	60,107	45,082	15,025	33.3
NET INTERBANK POSITION	11,254	27,697	-16,443	-59.4

Figures restated, where necessary and material, considering the changes in the scope of consolidation and discontinued operations.

(*) Of which with European Central Bank: 22,336 million euro as at 31 March 2025 and 26,496 million euro as at 31 December 2024.

(**) Of which with European Central Bank: 3,831 million euro as at 31 March 2025 and 4,018 million euro as at 31 December 2024.

As at 31 March 2025, the Group's net interbank position – calculated considering all the on-demand liquidity, both at Central Banks and at other banks, recognised under "Cash and cash equivalents", and no longer just that with the ECB – presented a positive imbalance of 11.3 billion euro, a decrease compared to 27.7 billion euro at the end of 2024.

This evolution reflects the growth in liabilities (+33.3%, or +15 billion euro), essentially attributable to operations in repurchase agreements supporting the purchase of financial assets during the quarter.

On the side of assets held at banks, there was a slight decrease (-1.9%, or -1.4 billion euro), due to liquidity in on-demand deposits with central banks (-2.3 billion euro), and in particular with the ECB (-4.2 billion euro). The amounts due from banks increased by 2.2% overall, driven by operations in repurchase agreements which more than offset the decreases in other technical forms.

INSURANCE BUSINESS

Financial assets and liabilities pertaining to insurance companies

(millions of euro)
Type of financial instruments	Financial assets pertaining to insurance companies measured at fair value through profit or loss and Hedging derivatives	Financial assets pertaining to insurance companies measured at fair value through other comprehensive income	Financial assets pertaining to insurance companies measured at amortised cost	TOTAL Financial assets pertaining to insurance companies	Due to Banks and Financial Derivatives pertaining to insurance companies (*)
Debt securities issued by Governments
31.03.2025	5,735	52,538	-	58,273	X
31.12.2024	5,749	54,685	-	60,434	X
Changes amount	-14	-2,147	-	-2,161	X
Changes %	-0.2	-3.9	-	-3.6	X
Other debt securities
31.03.2025	3,592	17,973	-	21,565	X
31.12.2024	3,593	18,281	-	21,874	X
Changes amount	-1	-308	-	-309	X
Changes %	-	-1.7	-	-1.4	X
Equities
31.03.2025	6,078	7	-	6,085	X
31.12.2024	6,009	7	-	6,016	X
Changes amount	69	-	-	69	X
Changes %	1.1	-	-	1.1	X
Quotas of UCI
31.03.2025	85,842	-	-	85,842	X
31.12.2024	88,526	-	-	88,526	X
Changes amount	-2,684	-	-	-2,684	X
Changes %	-3.0	-	-	-3.0	X
Due from banks and loans to customers
31.03.2025	684	-	5	689	X
31.12.2024	393	-	5	398	X
Changes amount	291	-	-	291	X
Changes %	74.0	-	-	73.1	X
Due to banks
31.03.2025	X	X	X	X	766	(**)
31.12.2024	X	X	X	X	709	(**)
Changes amount	X	X	X	X	57
Changes %	X	X	X	X	8.0
Financial derivatives
31.03.2025	49	-	-	49	100	(***)
31.12.2024	74	-	-	74	63	(***)
Changes amount	-25	-	-	-25	37
Changes %	-33.8	-	-	-33.8	58.7
Credit derivatives
31.03.2025	-	-	-	-	-	(***)
31.12.2024	-	-	-	-	-	(***)
Changes amount	-	-	-	-	-
Changes %	-	-	-	-	-
TOTAL 31.03.2025	101,980	70,518	5	172,503	866
TOTAL 31.12.2024	104,344	72,973	5	177,322	772
Changes amount	-2,364	-2,455	-	-4,819	94
Changes %	-2.3	-3.4	-	-2.7	12.2

Figures restated, where necessary and material, considering the changes in the scope of consolidation and discontinued operations.

(*) This amount does not include "Financial liabilities designated at fair value pertaining to insurance companies" included in the table on direct deposits from insurance business.

(**) Value included in the Balance sheet under "Financial liabilities at amortised cost pertaining to insurance companies".

(***) Value included in the Balance Sheet under "Financial liabilities held for trading pertaining to insurance companies".

Financial assets and amounts due to banks, and financial derivatives pertaining to insurance companies, summarised in the table above, amounted to 172.5 billion euro and 866 million euro, respectively. Financial assets decreased on the figure at the end of 2024 (-2.7%), mainly due to the declining trend in UCI units (-2.7 billion euro) and in debt securities (-2.5 billion euro). The amounts due from banks and customers grew (+0.3 billion euro), while the other captions did not show significant changes.

Direct deposits from insurance business

									(millions of euro)
	31.03.2025			31.12.2024				Changes
	Life	Non life	Total	% breakdown	Life	Non life	Total	% breakdown	amount	%
Liabilities for remaining coverage (*)	121,780	1,064	122,844	70.8	123,568	1,015	124,583	70.2	-1,739	-1.4
of which: Present value of cash flows	112,928	189	113,117	65.2	114,624	181	114,805	64.7	-1,688	-1.5
of which: Adjustment for non financial risks	442	18	460	0.3	464	17	481	0.3	-21	-4.4
of which: Contractual service margin	8,410	321	8,731	5.0	8,480	321	8,801	5.0	-70	-0.8
Liabilities for incurred claims	662	689	1,351	0.8	821	677	1,498	0.8	-147	-9.8
Total Insurance liabilities	122,442	1,753	124,195	71.6	124,389	1,692	126,081	71.0	-1,886	-1.5
Investment contracts
Unit linked (**)	48,136	-	48,136	27.7	50,646	-	50,646	28.6	-2,510	-5.0
Total Financial liabilities	48,136	-	48,136	27.7	50,646	-	50,646	28.6	-2,510	-5.0
Other insurance deposits (***)	1,205	-	1,205	0.7	703	-	703	0.4	502	71.4
Direct deposits from insurance business	171,783	1,753	173,536	100.0	175,738	1,692	177,430	100.0	-3,894	-2.2

Figures restated, where necessary and material, considering the changes in the scope of consolidation and discontinued operations.

(*) The value of the Liabilities for remaining coverage in the Non-Life columns also includes the liabilities measured using the simplified Premium Allocation Approach, which does not require the opening in the individual breakdown captions.

(**) Values included in the Balance Sheet under "Financial liabilities designated at fair value pertaining to insurance companies".

(***) Values included in the Balance Sheet under "Financial liabilities at amortised cost pertaining to insurance companies". The caption includes subordinated liabilities.

Direct deposits from insurance business stood at 173.5 billion euro as at 31 March 2025, down (-2.2%, or -3.9 billion euro) compared to the end of 2024. The performance was attributable to both financial liabilities of the life business (-5%, or -2.5 billion euro), consisting of unit-linked products, and to insurance liabilities (-1.5%, or -1.9 billion euro), in particular for liabilities for residual hedging. Other insurance deposits, which represent a marginal component of the total aggregate and include subordinated liabilities, increased by 0.5 billion euro compared to December 2024, relating to a Tier 2 issue placed on the institutional market by Intesa Sanpaolo Assicurazioni at the beginning of March.

Report on operations – Balance sheet aggregates

NON-CURRENT ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS AND RELATED LIABILITIES

This caption contains assets and related liabilities which no longer refer to continuing operations as they are being disposed of.

As at 31 March 2025, assets held for sale amounted to 907 million euro – mainly consisting of: (i) the investment in Cronos Vita Assicurazioni, acquired as part of the system-wide transaction aimed at protecting the underwriters of Eurovita policies, for which there was - from the outset - a clear intention by the shareholder companies to hold the investment for a limited period (classified among assets held for sale back in December 2023, and confirmed also at the end of 2024). The effectiveness of the total non proportional demerger of Cronos Vita is expected in the fourth quarter of 2025; (ii) properties, including those, valued at around 0.5 billion euro, which are part of the transfer set out in the agreement signed between Intesa Sanpaolo and COIMA, due to be completed in the second quarter of 2025; and (iii) the assets and liabilities of Intesa Sanpaolo Rent Foryou, which will be contributed to Grenke Locazione S.r.l. during 2025, as part of the industrial partnership in operational leasing of capital goods with Grenke AG. In terms of non-performing loans, only marginal exposures remained, which were reclassified as part of the de-risking operation finalised in April 2024, which will be contributed to a fund during 2025.

At the end of the first quarter of 2025 the associated liabilities amounted to 249 million euro.

As at 31 December 2024, assets held for sale amounted to 667 million euro. They comprised the above mentioned investment in Cronos Vita Assicurazioni and properties, including those related to the transaction with COIMA, as well as nonperforming loans for a total gross amount of 0.3 billion euro, whose disposal was finalised in March 2025. The associated liabilities amounted to 5 million euro.

SHAREHOLDERS' EQUITY

As at 31 March 2025, the Group's shareholders' equity amounted to 66,633 million euro compared to the 65,176 million euro as at 31 December 2024. This aggregate included the net income earned in the first three months of the year (2,615 million euro).

The Group assigned net income of 8,666 million euro for the year 2024 to reserves, pending distribution in May 2025 of the remaining cash amount to shareholders (3 billion euro), for a total payout ratio - interim dividend and remaining dividend - of 70% of 2024 consolidated net income.

Valuation reserves

			(millions of euro)
	Reserve	Change	Reserve
	31.12.2024	of the period	31.03.2025
Financial assets measured at fair value through other comprehensive income (debt instruments)	-1,972	109	-1,863
Financial assets measured at fair value through other comprehensive income (equities)	-270	28	-242
Property and equipment	1,847	-1	1,846
Foreign investment hedges	-10	-5	-15
Cash flow hedges	-119	22	-97
Foreign exchange differences	-1,490	-9	-1,499
Non-current assets held for sale and discontinued operations	-	-	-
Financial liabilities designated at fair value through profit or loss (change in its creditworthiness)	-190	51	-139
Actuarial profits (losses) on defined benefit pension plans	-178	6	-172
Portion of the valuation reserves connected with investments carried at equity	35	-15	20
Legally-required revaluations	312	-	312
Valuation reserves (excluding valuation reserves pertaining to insurance companies)	-2,035	186	-1,849
Valuation reserves pertaining to insurance companies	-297	-70	-367

Bank valuation reserves (excluding those pertaining to insurance companies) were negative (-1,849 million euro), down by 186 million euro compared to 31 December 2024 (-2,035 million euro). An improvement was seen mainly in reserves on debt securities and financial liabilities designated at fair value through profit or loss. The valuation reserves of the insurance companies, amounting to -367 million euro, increased by 70 million euro compared to the figure at the end of 2024.

OWN FUNDS AND CAPITAL RATIOS

		(millions of euro)
Own funds and capital ratios	31.03.2025	31.12.2024
Own funds
Common Equity Tier 1 capital (CET1) net of regulatory adjustments	39,634	39,307
Additional Tier 1 capital (AT1) net of regulatory adjustments	7,551	7,551
TIER 1 CAPITAL	47,185	46,858
Tier 2 capital net of regulatory adjustments	9,185	9,539
TOTAL OWN FUNDS	56,370	56,397
Risk-weighted assets
Credit and counterparty risks	240,495	252,395
Market and settlement risks	13,654	12,690
Operational risks	50,262	31,098
Other specific risks (a)	225	183
RISK-WEIGHTED ASSETS	304,636	296,366
% Capital ratios
Common Equity Tier 1 capital ratio	13.0%	13.3%
Tier 1 capital ratio	15.5%	15.8%
Total capital ratio	18.5%	19.0%

(a) The caption includes all other elements not contemplated in the foregoing captions that are considered when calculating total capital requirements.

Own Funds, risk-weighted assets and the capital ratios as at 31 march 2025 were calculated according to the harmonised rules and regulations for banks and investment firms contained in Directive 2013/36/EU (CRD) and in Regulation (EU) 575/2013 (CRR) as amended, which transpose into the European Union the standards defined by the Basel Committee on Banking Supervision (the Basel Framework), and on the basis of the related Bank of Italy Circulars.

As described in the following chapter "Risk management", from 1 January 2025 Regulation (EU) 2024/1623 (CRR3) entered into force, which transposes the principles of Basel 4 into European law. The first-time adoption of Basel 4 generated an impact of slightly more than 40 basis points on the CET 1 ratio.

Own funds

As at 31 March 2025, Own funds amounted to 56,370 million euro.

Even if the transitional period of IFRS 9 has ended, own funds take account of the provisions of the 2019 Budget Act, which temporarily called for - up to 2028 - the adjustments upon first-time adoption of the Standard to be applied in instalments for tax purposes, with the recognition of the resulting DTAs. These DTAs were fully included in the calculation of the thresholds established in Article 48 CRR, over the same time period.

Own Funds also take into account the applicable amount, object of deduction from CET1, related to the minimum coverage of losses on non-performing exposures, known as Minimum Loss Coverage, based on the provisions of Regulation (EU) 630/2019 of 17 April 2019.

The total of the programme of purchase of own shares for annulment (buyback), amounting to 2 billion euro, authorised by the Supervisory Authority and approved by the Shareholders' Meeting on 29 April 2025 was deducted from the amount of own funds.

Moreover, in compliance with Article 3 of the CRR ("Application of stricter requirements by institutions"), the calculation of the own funds as at 31 March 2025 included the voluntary deduction of around 29 basis points from the CET 1 of the calendar provisioning⁸ on exposures within the scope of Pillar 2.

Since 30 June 2023, the Intesa Sanpaolo Group has been complying with EBA Q&A 2021_6211, which clarifies that the amount of goodwill to deduct from an institution's CET 1 must be that relating to directly controlled insurance companies, recognised at the date of acquisition of the significant investment in those companies, without considering the goodwill referring to subsequent acquisitions made. The latter amount was included in the calculation of risk-weighted assets (RWA), thus falling under the ordinary treatment that the Group reserves for equity investments in insurance companies.

In the calculation of own funds as at 31 March 2025, foreseeable charges9 were considered, while it was not included any net income of the first quarter of 2025, in compliance with the ECB's guidance, which specifically states that a supervised entity is not allowed to include any interim or year-end profits in CET1 capital in case it adopts a distribution policy that does not specify any upper limit for cash dividends and any share buybacks, and it does not commit not to distribute neither via cash dividends nor via share buybacks the profits that it wants to include in CET1.

⁸ The addendum to ECB Guidance on non-performing loans of 2018 contemplates the possibility that banks "deduce" on their own initiative specific amounts from CET 1, to anticipate supervisory requests, in the event of divergence between the prudential framework, which expects adjustments not based on credit risk measurement criteria, and the accounting framework.

⁹ Coupons accrued on the Additional Tier 1 issues (105 million euro).

As at 31 March 2025, risk-weighted assets came to 304,636 million euro, resulting primarily from credit and counterparty risk and, to a lesser extent, operational and market risks.

Common Equity Tier 1 Capital and risk-weighted assets as at 31 March 2025 take account of the impact of the application of the "Danish Compromise" (Art. 49.1 of Regulation (EU) no. 575/2013), as per the specific authorisation received from the ECB in 2019, according to which insurance investments are treated as risk-weighted assets instead of being deducted from capital.

Capital ratios

On the basis of the foregoing, capital ratios as at 31 March 2025 amounted to the following: Common Equity ratio of 13.0% (including the previously-mentioned impact of the first-time adoption of CRR3/Basel 4, equal to slightly more than 40 basis points), Tier 1 ratio of 15.5% and Total capital ratio of 18.5%.

Finally, on 10 December 2024, Intesa Sanpaolo announced that it had received notification of the ECB's final decision concerning the capital requirement that the Bank has to meet, on a consolidated basis, as of 1 January 2025, following the results of the Supervisory Review and Evaluation Process (SREP).

The overall requirement to be met in terms of Common Equity Tier 1 ratio is currently 9.84%, inclusive of the Capital Conservation Buffer, O-SII Buffer and Countercyclical Capital Buffer10 and Systemic Risk Buffer11 requirements.

Reconciliation of Shareholders' equity and Common Equity Tier 1 capital

		(millions of euro)
	31.03.2025	31.12.2024
Group Shareholders' equity	66,633	65,176
Minority interests	134	145
Shareholders' equity as per the Balance Sheet	66,767	65,321
Interim dividend (a)	3,022	3,022
Adjustments for instruments eligible for inclusion in AT1 or T2 and net income for the period
- Other equity instruments eligible for inclusion in AT1	-7,551	-7,551
- Minority interests eligible for inclusion in AT1	-	-
- Minority interests eligible for inclusion in T2	-	-
- Ineligible minority interests on full phase-in	-134	-145
- Ineligible net income for the period (b)	-2,615	-6,217
- Own shares included under regulatory adjustments (c)	2,178	2,176
- Buyback of own shares (d)	-2,000	-2,000
- Other ineligible components on full phase-in (e)	-6,229	-1,247
Common Equity Tier 1 capital (CET1) before regulatory adjustments	53,438	53,359
Regulatory adjustments (f)	-13,804	-14,052
Common Equity Tier 1 capital (CET1) net of regulatory adjustments	39,634	39,307

(a) As at 31 March 2025 and 31 December 2024, Shareholders' Equity as per the Balance Sheet does not include the interim dividend, amounting to 3,022 million euro (net of the amount not distributed in respect of own shares held at the record date).

(b) The Common Equity Tier 1 capital as at 31 March 2025 does not include any net income accrued in the quarter, in accordance with the ECB guidance, which specifically states that a supervised entity is not allowed to include any interim or year-end profits in CET1 capital in case it adopts a distribution policy that does not specify any upper limit for cash dividends and any share buybacks, and it does not commit not to distribute neither via cash dividends nor via share buybacks the profits that it wants to include in CET1.

(c) The amount includes, in addition to the book value of own shares, the unused portion of the ceiling for which the bank has received buyback authorisations.

(d) The amount refers to the total of the own programme of purchase of own shares for annulment (buyback), amounting to 2 billion euro, authorised on 31 January 2025 by the Supervisory Authority and on 29 April 2025 by the Shareholders' Meeting.

(e) The amount as at 31 March 2025 mainly includes the dividend and the amount allocated to charitable donations from the 2024 net income, approved by the Shareholders' Meeting of 29 April 2025.

(f) Regulatory adjustments include, among other items, the book value of own shares and those for which the Group has already received buyback authorisations, as well as an additional deduction of 877 million euro pursuant to Article 3 of the CRR (relating to the voluntary deduction of calendar provisioning on exposures included in the scope of Pillar 2).

¹⁰ The Countercyclical Capital Buffer is calculated taking into account the exposure as at 31 March 2025 in the various countries where the Group has a presence, as well as the respective requirements set by the competent national authorities and relating to 2026, where available, or the most recent update of the reference period (requirement was set at zero per cent in Italy for the first half of 2025).

¹¹ Phased-in, calculated considering the domestic exposures in March 2025. On 26 April 2024, the Bank of Italy announced the introduction of the new Systemic Risk Buffer (SyRB) amounting to 1% of the risk-weighted exposures to credit and counterparty risks for residents in Italy. The target rate must be reached gradually by establishing a reserve equal to 0.5% of the relevant exposures by 31 December 2024 and the remaining 0.5% by 30 June 2025.

Breakdown of consolidated results by business area

The Intesa Sanpaolo Group organisational structure is based on six Business Units. In addition, there is the Corporate Centre, which is charged with providing guidance, coordination and control for the entire Group.

The Intesa Sanpaolo Group
Banca dei Territori	IMI Corporate & Investment Banking	International Banks	Private Banking	Asset Management	Insurance	Corporate Centre (*)
	(*) Includes Group Treasury & Capital Management and the NPE Head Office Department

The Intesa Sanpaolo Group's segment reporting is based on the elements that management uses to make its own operating decisions (the "management approach") and is therefore consistent with the disclosure requirements of IFRS 8. In addition to reflecting the operating responsibilities assigned in accordance with the Group's organisational structure, the business areas are an aggregation of business lines similar in the type of products and services they sell.

The table below shows the main data summarising the trend of the business areas of the Intesa Sanpaolo Group in the first quarter of 2025 compared to the like-for-like comparison data.

The following itemised analysis of the business areas illustrates the income statement figures and the main balance sheet aggregates. Finally, for each business area, the capital absorbed based on Risk Weighted Assets (RWAs) was also calculated. RWAs were determined in accordance with the provisions in force (Circular 285) issued by the Bank of Italy following the implementation of Directive 2013/36/EU (CRD) and Regulation (EU) 575/2013 (CRR) of 26 June 2013, amended by Regulation (EU) 876/2019 of 20 May 2019, known as CRR 2, which transpose the banking supervision standards defined by the Basel Committee (the Basel 3 Framework) to European Union laws. Moreover, on 19 June 2024, Regulation (EU) 2024/1623 (also known as CRR3) which, in transposing the principles of Basel IV into European law, amending Regulation (EU) 575/2013 as regards requirements for credit risk, credit valuation adjustment risk, operational risk, market risk and the output floor was published in the Official Journal of the European Union. The most significant amendments introduced by the new regulatory framework came into effect from 1 January 2025. Absorbed capital also takes account of the regulatory changes introduced by the ECB with effect from 12 March 2020, allowing the Pillar 2 requirement to be met partially using equity instruments not classified as Common Equity Tier 1. For each Division, the absorbed capital is supplemented, where necessary, with management data on "economic" capital to take into account the risks not covered by the regulatory metric.

Division figures for the comparative periods have been restated to reflect the changes in scope of the Business Units, where necessary and if they are material. In particular:

• the entry into the scope of consolidation of the Romanian bank First Bank S.A. (International Banks Division, formerly International Subsidiary Banks Division), acquired on 31 May 2024;
• the line-by-line consolidation of Alpian S.A. (Private Banking Division), previously consolidated using the equity method, following the capital increase finalised in the third quarter of 2024, which brought the percentage of the Group's stake in the company to 61.599% (of which 51.141% held by Fideuram - Intesa Sanpaolo Private Banking and 10.458% by Reyl & Cie).

Report on operations – Breakdown of consolidated results by business area

Summary figures by business area

	Banca	IMI	International	Private	Asset	Insurance	Corporate	(millions of euro) Total
	dei	Corporate	Banks	Banking	Management		Centre
	Territori	& Investment
		Banking
Operating income
31.03.2025	3,057	1,228	799	847	239	460	162	6,792
31.03.2024	2,980	1,009	809	860	240	441	417	6,756
% change	2.6	21.7	-1.2	-1.5	-0.4	4.3	-61.2	0.5
Operating costs
31.03.2025	-1,450	-339	-328	-251	-53	-84	-73	-2,578
31.03.2024	-1,476	-348	-313	-246	-54	-86	-68	-2,591
% change	-1.8	-2.6	4.8	2.0	-1.9	-2.3	7.4	-0.5
Operating margin
31.03.2025	1,607	889	471	596	186	376	89	4,214
31.03.2024	1,504	661	496	614	186	355	349	4,165
% change	6.8	34.5	-5.0	-2.9	-	5.9	-74.5	1.2
Net income (loss)
31.03.2025	850	606	319	409	136	251	44	2,615
31.03.2024	614	468	318	409	163	241	88	2,301
% change	38.4	29.5	0.3	-	-16.6	4.1	-50.0	13.6

						(millions of euro)
	Banca dei Territori	IMI Corporate & Investment Banking	International Banks	Private Banking	Asset Management	Insurance	Corporate Centre	Total
Loans to customers
31.03.2025	221,625	122,745	45,713	13,834	273	-	12,607	416,797
31.12.2024	221,231	126,059	45,255	14,022	254	-	14,691	421,512
% change	0.2	-2.6	1.0	-1.3	7.5	-	-14.2	-1.1
Direct deposits from banking business
31.03.2025	254,289	123,380	61,047	45,921	21	-	89,253	573,911
31.12.2024	258,772	125,194	60,922	47,921	15	-	91,684	584,508
% change	-1.7	-1.4	0.2	-4.2	40.0	-	-2.7	-1.8
Risk-weighted assets
31.03.2025	86,488	109,314	40,366	15,150	2,924	-	50,394	304,636
31.12.2024	76,385	106,967	38,271	12,388	2,027	-	60,328	296,366
% change	13.2	2.2	5.5	22.3	44.3	-	-16.5	2.8
Absorbed capital
31.03.2025	8,303	10,522	4,592	1,548	318	4,757	3,361	33,401
31.12.2024	6,943	9,748	4,311	1,193	219	4,419	3,201	30,034
% change	19.6	7.9	6.5	29.8	45.2	7.6	5.0	11.2

Figures restated, where necessary and material, considering the changes in the scope of consolidation and in business unit constituents and discontinued operations.

BUSINESS AREAS

Banca dei Territori

			(millions of euro)
Income statement	31.03.2025	31.03.2024		changes
			amount	%
Net interest income	1,745	1,739	6	0.3
Net fee and commission income	1,278	1,207	71	5.9
Income from insurance business	-	-	-	-
Profits (Losses) on financial assets and liabilities at fair value	31	29	2	6.9
Other operating income (expenses)	3	5	-2	-40.0
Operating income	3,057	2,980	77	2.6
Personnel expenses	-820	-787	33	4.2
Administrative expenses	-629	-688	-59	-8.6
Adjustments to property, equipment and intangible assets	-1	-1	-	-
Operating costs	-1,450	-1,476	-26	-1.8
Operating margin	1,607	1,504	103	6.8
Net adjustments to loans	-279	-257	22	8.6
Other net provisions and net impairment losses on other assets	-17	-10	7	70.0
Other income (expenses)	-	-	-	-
Income (Loss) from discontinued operations	-	-	-	-
Gross income (loss)	1,311	1,237	74	6.0
Taxes on income	-429	-407	22	5.4
Charges (net of tax) for integration and exit incentives	-26	-22	4	18.2
Effect of purchase price allocation (net of tax)	-6	-6	-	-
Levies and other charges concerning the banking and insurance industry (net of tax)	-	-188	-188
Impairment (net of tax) of goodwill and other intangible assets	-	-	-	-
Minority interests	-	-	-	-
Net income (loss)	850	614	236	38.4
			(millions of euro)
	31.03.2025	31.12.2024	changes
			amount	%
Loans to customers	221,625	221,231	394	0.2
Direct deposits from banking business	254,289	258,772	-4,483	-1.7
Risk-weighted assets	86,488	76,385	10,103	13.2
Absorbed capital	8,303	6,943	1,360	19.6

Figures restated, where necessary and material, considering the changes in the scope of consolidation and in business unit constituents and discontinued operations.

The Banca dei Territori Division oversees the traditional lending and deposit collection operations in Italy and associated financial services, targeted to Retail, Exclusive and SMEs, including Agribusiness and non-profits.

This Division also includes leasing, factoring and subsidised finance activities, as well as the digital bank Isybank (which also operates in instant banking through Mooney, in partnership with Enel) and Prestitalia (operating in the consumer credit segment).

Banca dei Territori's operating income in the first quarter of 2025 amounted to 3,057 million euro, representing 45% of the Group's consolidated revenues, and was up (+2.6%) on the same period of the previous year.

In detail, net interest income showed resilience (+0.3%), despite the declining trend in market interest rates. Net fee and commission income increased (+5.9%), largely driven by the assets under management segment, bolstered by higher placement levels than in the same period of 2024, by the higher contribution from advisory services and the non-life insurance segment. Within the commercial banking fees, fees and commissions on cards and other payment services decreased. Among the other revenue components, which provide a marginal contribution to the Division's operating income, the profits (losses) on financial assets and liabilities at fair value came to 31 million euro (+2 million euro) and other net operating income amounted to 3 million euro (5 million euro in the same period of the previous year). Operating costs, amounting to 1,450 million euro, decreased by 1.8%, due to the reduction in administrative expenses. As a result of the above, the operating margin rose to 1,607 million euro compared to 1,504 million euro in the first three months of 2024 (+6.8%) and the gross income came to 1,311 million euro, up 6%. Lastly, after allocation to the Division of taxes of 429 million euro, charges for integration of 26 million euro, the effects of purchase price allocation of 6 million euro, net income came to 850 million euro compared to 614 million euro in the same period of 2024, which included levies and other charges concerning the banking and insurance industry of 188 million euro, whose accrual for all of 2024 was recorded in the first quarter.

In terms of quarterly development, there was an increase in the operating margin on the fourth quarter of 2024, attributable to the decrease in operating costs, which were impacted by the usual seasonal effects, and the growth in revenues. Increasing trends were also seen in gross and net income, which in the last quarter of 2024 was impacted by high charges for exit incentives.

The balance sheet figures at the end of March 2025 showed a decline in total intermediated volumes of loans and deposits from the end of December 2024 (-0.9%). In detail, loans to customers, amounting to 221,625 million euro, were substantially stable (+0.2%, or +0.4 billion euro) attributable to the positive evolution of loans to retail customers, against a slight decrease in loans to businesses. Direct deposits from banking business, amounting to 254,289 million euro, stood at lower levels than the end of 2024 (-1.7%, equal to -4.5 billion euro) in relation to the decrease in amounts due to retail and business customers. Businesses continued to draw on their liquidity to reduce their use of bank loans, and retail customers redirected a portion of their available funds on current accounts to more remunerative investment products, such as Intesa Sanpaolo certificates structured by the IMI Corporate & Investment Banking Division and asset management products, as well as government and corporate bond issuances, which increased the dossiers of the assets under administration.

IMI Corporate & Investment Banking

		(millions of euro)
Income statement	31.03.2025	31.03.2024		changes
			amount	%
Net interest income	722	758	-36	-4.7
Net fee and commission income	312	283	29	10.2
Income from insurance business	-	-	-	-
Profits (Losses) on financial assets and liabilities at fair value	194	-32	226
Other operating income (expenses)	-	-	-	-
Operating income	1,228	1,009	219	21.7
Personnel expenses	-128	-128	-	-
Administrative expenses	-207	-216	-9	-4.2
Adjustments to property, equipment and intangible assets	-4	-4	-	-
Operating costs	-339	-348	-9	-2.6
Operating margin	889	661	228	34.5
Net adjustments to loans	19	39	-20	-51.3
Other net provisions and net impairment losses on other assets	-3	-2	1	50.0
Other income (expenses)	-1	-	1	-
Income (Loss) from discontinued operations	-	-	-	-
Gross income (loss)	904	698	206	29.5
Taxes on income	-292	-224	68	30.4
Charges (net of tax) for integration and exit incentives	-6	-6	-	-
Effect of purchase price allocation (net of tax)	-	-	-	-
Levies and other charges concerning the banking and insurance industry (net of tax)	-	-	-	-
Impairment (net of tax) of goodwill and other intangible assets	-	-	-	-
Minority interests	-	-	-	-
Net income (loss)	606	468	138	29.5
			(millions of euro)
	31.03.2025	31.12.2024	changes
			amount	%
Loans to customers	122,745	126,059	-3,314	-2.6
Direct deposits from banking business (1)	123,380	125,194	-1,814	-1.4
Risk-weighted assets	109,314	106,967	2,347	2.2
Absorbed capital	10,522	9,748	774	7.9

(1) The item includes certificates.

Figures restated, where necessary and material, considering the changes in the scope of consolidation and in business unit constituents and discontinued operations.

The IMI Corporate & Investment Banking Division oversees corporate and transaction banking, investment banking, public finance and capital markets activities, in Italy and abroad.

In the first quarter of 2025, the Division recorded operating income of 1,228 million euro (representing 18% of the Group's consolidated total), up by 21.7% compared to the same period of last year.

In detail, net interest income, amounting to 722 million euro, was down 4.7%, due to the operations of Global Markets. Net fee and commission income, amounting to 312 million euro, increased by 10.2%, essentially due to the performance of the structured finance and investment banking segments. The profits (losses) on financial assets and liabilities at fair value, which amounted to profit of 194 million euro, showed a sharp increase compared to the loss of -32 million euro in the same period of 2024, attributable to the results of trading activities in the Global Markets area. The management of financial risks related to funding in certificates, also as a result of market rate trends, as well as the positive contribution of Own Credit Risk (OCR) of the certificates had a positive impact on this segment.

Operating costs amounted to 339 million euro, a decrease of 2.6%, attributable to administrative expenses. As a result of the above revenue and cost trends, the operating margin came to 889 million euro, up by 34.5% compared to the value recorded in the first quarter of the previous year. The performance of gross income was similar, rising to 904 million euro (+29.5%), despite the lower net recoveries on loans and higher provisions and adjustments to other assets. Lastly, net income reached 606 million euro, above the 468 million euro realised in the first three months of 2024 (+29.5%).

In the first quarter of 2025, the IMI Corporate & Investment Banking Division reported a sharp increase in the operating margin compared to the fourth quarter of 2024, attributable to the increase in revenues and the decrease in operating costs. Gross income and net income were also up, benefiting from the recoveries on loans during the quarter compared to adjustments recognised in the previous quarter.

The Division's intermediated volumes decreased on the end of 2024 (-2%). Specifically, direct deposits from banking business, amounting to 123,380 million euro, were down (-1.4%, or -1.8 billion euro), mainly attributable to the decrease in Global Corporate and Global Markets operations, partially offset by the growth in operations in certificates. Loans to customers, amounting to 122,745 million euro, also decreased (-2.6%, or -3.3 billion euro), essentially due to the declining trend in Global Corporate and, to a lesser extent, in institutional customers, only partially offset by the positive performance of loans to international customers.

International Banks

	(millions of euro)
Income statement	31.03.2025	31.03.2024		changes
			amount	%
Net interest income	613	655	-42	-6.4
Net fee and commission income	168	150	18	12.0
Income from insurance business	-	-	-	-
Profits (Losses) on financial assets and liabilities at fair value	32	19	13	68.4
Other operating income (expenses)	-14	-15	-1	-6.7
Operating income	799	809	-10	-1.2
Personnel expenses	-174	-163	11	6.7
Administrative expenses	-122	-119	3	2.5
Adjustments to property, equipment and intangible assets	-32	-31	1	3.2
Operating costs	-328	-313	15	4.8
Operating margin	471	496	-25	-5.0
Net adjustments to loans	17	-17	34
Other net provisions and net impairment losses on other assets	-5	-	5	-
Other income (expenses)	-	2	-2
Income (Loss) from discontinued operations	-	-	-	-
Gross income (loss)	483	481	2	0.4
Taxes on income	-143	-139	4	2.9
Charges (net of tax) for integration and exit incentives	-9	-11	-2	-18.2
Effect of purchase price allocation (net of tax)	-1	-1	-	-
Levies and other charges concerning the banking and insurance industry (net of tax)	-10	-5	5
Impairment (net of tax) of goodwill and other intangible assets	-	-	-	-
Minority interests	-1	-7	-6	-85.7
Net income (loss)	319	318	1	0.3
			(millions of euro)
	31.03.2025 31.12.2024			changes
			amount	%
Loans to customers	45,713	45,255	458	1.0
Direct deposits from banking business	61,047	60,922	125	0.2
Risk-weighted assets	40,366	38,271	2,095	5.5
Absorbed capital	4,592	4,311	281	6.5

Figures restated, where necessary and material, considering the changes in the scope of consolidation and in business unit constituents and discontinued operations.

The International Banks Division is responsible for the Group's activities in foreign markets through commercial banking subsidiaries and associates, mainly active in retail banking.

In the first quarter of 2025, the Division's operating income came to 799 million euro, down on the same period of the previous year (-1.2%, +4.6% at constant exchange rates). A detailed analysis shows that net interest income came to 613 million euro (-6.4%), mainly due to the performance of CIB Bank (-24 million euro), PBZ – including Intesa Sanpaolo Bank (Slovenia) and Intesa Sanpaolo Banka Bosna i Hercegovina (-20 million euro) – and Bank of Alexandria (-3 million euro), only partly offset by the increase recorded by VUB Banka (+8 million euro). Net fee and commission income, amounting to 168 million euro, was up (+12%), mainly due to VUB Banka (+8 million euro), PBZ – including Intesa Sanpaolo Bank (Slovenia) and Intesa Sanpaolo Banka Bosna i Hercegovina (+6 million euro) – and CIB Bank and Bank of Alexandria (+2 million euro each). Within the other comprehensive income, there was an increase in profits (losses) on financial assets and liabilities at fair value (+13 million euro), essentially attributable to the Egyptian subsidiary, and a reduction in other operating expenses (-1 million euro). Operating costs, amounting to 328 million euro, were up (+4.8%; +8.8% at constant exchange rates), mainly due to personnel expenses.

As a result of the above revenue and cost trends, the operating margin decreased by 5%, amounting to 471 million euro. Gross income, amounting to 483 million euro, grew slightly (+0.4%) due to recoveries recorded during the quarter, and net income amounted to 319 million euro compared to 318 million euro in the same period of the previous year (+0.3%).

At the quarterly level, the first three months of 2025 showed positive performance for the operating margin compared to the fourth quarter of 2024, attributable to the decrease in operating costs and to higher revenues. Gross income and net income were significantly higher than the previous quarter, also benefiting from the recording of recoveries on loans and lower provisions and net impairment losses on other assets.

At the end of March 2025, the Division's intermediated volumes showed a slight increase (+0.5%) compared to the end of 2024, attributable to the increase in loans to customers (+1%) against substantial stability in direct deposits from banking business (+0.2%). The performance of loans is essentially attributable to the development of the subsidiaries operating in Croatia, Hungary and Slovenia, while the trend in deposits is mainly related to the increase recorded in Hungary and Egypt, against a declining trend in the subsidiaries operating in Slovakia and Romania.

Private Banking

			(millions of euro)
Income statement	31.03.2025	31.03.2024		changes
			amount	%
Net interest income	260	313	-53	-16.9
Net fee and commission income	562	533	29	5.4
Income from insurance business	-	-	-	-
Profits (Losses) on financial assets and liabilities at fair value	20	7	13
Other operating income (expenses)	5	7	-2	-28.6
Operating income	847	860	-13	-1.5
Personnel expenses	-123	-123	-	-
Administrative expenses	-100	-97	3	3.1
Adjustments to property, equipment and intangible assets	-28	-26	2	7.7
Operating costs	-251	-246	5	2.0
Operating margin	596	614	-18	-2.9
Net adjustments to loans	-3	2	-5
Other net provisions and net impairment losses on other assets	-4	-7	-3	-42.9
Other income (expenses)	-	20	-20
Income (Loss) from discontinued operations	-	-	-	-
Gross income (loss)	589	629	-40	-6.4
Taxes on income	-173	-194	-21	-10.8
Charges (net of tax) for integration and exit incentives	-5	-6	-1	-16.7
Effect of purchase price allocation (net of tax)	-5	-5	-	-
Levies and other charges concerning the banking and insurance industry (net of tax)	-	-18	-18
Impairment (net of tax) of goodwill and other intangible assets	-	-	-	-
Minority interests	3	3	-	-
Net income (loss)	409	409	-	-
			(millions of euro)
	31.03.2025	31.12.2024		changes
			amount	%
Assets under management (1)	170,893	171,385	-492	-0.3

Risk-weighted assets 15,150 12,388 2,762 22.3 Absorbed capital 1,548 1,193 355 29.8

(1) Figures restated in line with consolidated reporting criteria of indirect customer deposits.

Figures restated, where necessary and material, considering the changes in the scope of consolidation and in business unit constituents and discontinued operations.

The Private Banking Division serves the top customer segment (Private and High Net Worth Individuals), creating value by offering top products and services.

The Division coordinates the operations of Fideuram - Intesa Sanpaolo Private Banking, Intesa Sanpaolo Private Banking, Fideuram - Intesa Sanpaolo Private Banking Asset Management SGR, SIREF Fiduciaria, Fideuram Asset Management (Ireland), Fideuram Asset Management UK, the Swiss banking group Reyl (present in Switzerland, the United Kingdom, Singapore, the United Arab Emirates and Malta) and Intesa Sanpaolo Wealth Management, a Luxembourg private bank with branches also in Belgium and, from August 2024, of Alpian S.A., a Swiss digital bank in the start-up phase. Moreover, with the goal of offering a large, dedicated range of products, using digital solutions that will be expanded over time, the Fideuram Direct business line, created in 2023, meets the needs of customers that want to independently handle their investments and online trading. Note that at the beginning of December 2024, the merger by incorporation of IW Private Investments SIM into Fideuram - Intesa Sanpaolo Private Banking was finalised.

In the first quarter of 2025, the Division achieved gross income of 589 million euro, down by 40 million euro (-6.4%) compared to the amount in the first three months of 2024. The operating margin reported a decrease (-18 million euro), attributable to lower operating income (-13 million euro) and an increase in operating costs (+5 million euro). The performance of revenues is essentially attributable to the reduction in net interest income (-53 million euro), related to the declining trend in market interest rates. In contrast, there was an increase in net fee and commission income, which amounted to 562 million euro (+29 million euro), specifically for the recurring component, mainly relating to the increase in average assets under management. Among the other revenue components, profits (losses) on financial assets and liabilities at fair value were up (+13 million euro), while other net operating income was down (-2 million euro). For operating costs, there was an increase in administrative expenses, specifically IT expenses, for info providers and services rendered by third parties, and in amortisation for software. The Division closed the first quarter of 2025 with net income of 409 million euro, stable compared to the same period of 2024.

The values of assets under management and administration have been presented in accordance with the reporting criteria for indirect customer deposits used in the Intesa Sanpaolo Group's consolidated financial statements, specifically eliminating customer current accounts correlated with investment transactions, bonds and certificates that, despite being part of customers' assets, are already included in direct deposits. Moreover, third party products are reallocated from assets under management to assets under administration.

As at 31 March 2025, assets under management and administration, which also include the contribution of the trust mandates for SIREF Fiduciaria, amounted to 339.3 billion euro (+4.3 billion euro from the end of 2024). This trend was due to positive net inflows, which were partially offset by the market performance, which had an adverse impact on assets. The assets under management component amounted to 170.9 billion euro (-0.5 billion euro).

Asset Management

			(millions of euro)
Income statement	31.03.2025	31.03.2024		Changes
			amount	%
Net interest income	11	14	-3	-21.4
Net fee and commission income	215	214	1	0.5
Income from insurance business	-	-	-	-
Profits (Losses) on financial assets and liabilities at fair value	-	1	-1
Other operating income (expenses)	13	11	2	18.2
Operating income	239	240	-1	-0.4
Personnel expenses	-23	-24	-1	-4.2
Administrative expenses	-28	-28	-	-
Adjustments to property, equipment and intangible assets	-2	-2	-	-
Operating costs	-53	-54	-1	-1.9
Operating margin	186	186	-	-
Net adjustments to loans	2	-	2	-
Other net provisions and net impairment losses on other assets	-	-	-	-
Other income (expenses)	-	30	-30
Income (Loss) from discontinued operations	-	-	-	-
Gross income (loss)	188	216	-28	-13.0
Taxes on income	-50	-52	-2	-3.8
Charges (net of tax) for integration and exit incentives	-1	-	1	-
Effect of purchase price allocation (net of tax)	-1	-1	-	-
Levies and other charges concerning the banking and insurance industry (net of tax)	-	-	-	-
Impairment (net of tax) of goodwill and other intangible assets	-	-	-	-
Minority interests	-	-	-	-
Net income (loss)	136	163	-27	-16.6
			(millions of euro)
	31.03.2025	31.12.2024		changes
			amount	%
Assets under management	331,237	333,070	-1,833	-0.6
Risk-weighted assets	2,924	2,027	897	44.3
Absorbed capital	318	219	99	45.2
Figures restated, where necessary and material, considering the changes in the scope of consolidation and in business unit constituents and discontinued

The Asset Management Division pursues the mission of developing the best asset management solutions aimed at the Group's customers and its presence on the open market segment through the subsidiary Eurizon Capital SGR and its subsidiaries.

Operating income in the first quarter of 2025, amounting to 239 million euro, decreased slightly on the same period of the previous year (-0.4%), attributable to the performance of net interest income (-3 million euro), which was impacted by the declining trend in market interest rates, against a slight increase in net fee and commission income (+1 million euro). The latter benefited from the growth in placement fees on mutual funds, offset by the decrease in incentive fees. Within the other revenue components, the Chinese subsidiary Penghua, consolidated at equity, made a positive contribution of 13 million euro to operating income, up on that of the same period of the previous year. Operating costs decreased (-1.9%) due to personnel expenses. As a result of the above revenue and cost trends, the operating margin came to 186 million euro, stable on the first three months of 2024. The Division closed the first quarter of 2025 with net income of 136 million euro (-16.6%).

As at 31 March 2025, assets under management of the Asset Management Division came to 331.2 billion euro, down by 1.8 billion euro (-0.6%) compared to the end of 2024. That trend is attributable to the impairment of assets under management related to the negative performance of the markets, only partially offset by the positive net inflows (+0.5 billion euro). The net inflows were attributable to mutual funds (+2.1 billion euro), institutional mandates from non-captive customers (+0.8 billion euro) and portfolio management schemes for retail and private customers (+0.2 billion euro), offset by outflows on mandates received from Group counterparties on insurance and pension products (-2.6 billion euro).

As at 31 March 2025, Eurizon Capital's Italian market share of assets under management was 15.4% (gross of duplications). Excluding the closed-end funds segment, in which the company has a limited presence, the share of assets under management at the end of March rose to 15.8%.

operations.

Insurance

			(millions of euro)
Income statement	31.03.2025	31.03.2024		Changes
			amount	%
Net interest income	-	-	-	-
Net fee and commission income	1	1	-	-
Income from insurance business	461	447	14	3.1
Profits (Losses) on financial assets and liabilities at fair value	-	-	-	-
Other operating income (expenses)	-2	-7	-5	-71.4
Operating income	460	441	19	4.3
Personnel expenses	-37	-38	-1	-2.6
Administrative expenses	-37	-39	-2	-5.1
Adjustments to property, equipment and intangible assets	-10	-9	1	11.1
Operating costs	-84	-86	-2	-2.3
Operating margin	376	355	21	5.9
Net adjustments to loans	-	-	-	-
Other net provisions and net impairment losses on other assets	-	1	-1
Other income (expenses)	-	-	-	-
Income (Loss) from discontinued operations	-	-	-	-
Gross income (loss)	376	356	20	5.6
Taxes on income	-120	-110	10	9.1
Charges (net of tax) for integration and exit incentives	-4	-3	1	33.3
Effect of purchase price allocation (net of tax)	-1	-2	-1	-50.0
Levies and other charges concerning the banking and insurance industry (net of tax)	-	-	-	-
Impairment (net of tax) of goodwill and other intangible assets	-	-	-	-
Minority interests	-	-	-	-
Net income (loss)	251	241	10	4.1
			(millions of euro)
	31.03.2025	31.12.2024	changes
			amount	%
Direct deposits from insurance business (1)	173,552	177,448	-3,896	-2.2
Risk-weighted assets	-	-	-	-
Absorbed capital	4,757	4,419	338	7.6

(1) Including the subordinated securities issued by the companies.

Figures restated, where necessary and material, considering the changes in the scope of consolidation and in business unit constituents and discontinued operations.

The Insurance Division includes Intesa Sanpaolo Assicurazioni, Fideuram Vita and Intesa Sanpaolo Protezione, with the mission of synergically developing the insurance product mix targeting Group customers. The scope of the Division also includes Intesa Sanpaolo Insurance Agency and InSalute Servizi.

Starting on 1 December 2024, Intesa Sanpaolo Vita took on the new name Intesa Sanpaolo Assicurazioni, the company that leads the Intesa Sanpaolo Assicurazioni Insurance Group. At the same time, the name of the Dublin branch, established on 1 December 2023, specialising in managing unit-linked policies, was changed to Intesa Sanpaolo Assicurazioni Dublin Branch. Intesa Sanpaolo Protezione, born from the merger of Intesa Sanpaolo RBM Salute into Intesa Sanpaolo Assicura, and 100%-controlled by Intesa Sanpaolo Assicurazioni was established, becoming a single company for the non-life and health classes.

In the first quarter of 2025, the Division reported income from insurance business of 461 million euro, up (+3.1%, or +14 million euro) compared to the same period of 2024, mainly as a result of the positive trend in the non-life business, which benefited from the positive performance of the technical margin.

Gross income, amounting to 376 million euro, improved (+5.6%) due to higher operating income (+4.3%) and a decrease in operating costs (-2.3%), specifically in administrative and personnel expenses.

The cost/income ratio, at 18.3%, remained at very good levels, lower than those recorded in the first quarter of 2024.

Lastly, net income came to 251 million euro (+4.1%) after the attribution of taxes of 120 million euro, charges for integration and exit incentives of 4 million euro and the effects of purchase price allocation of 1 million euro.

Direct deposits from insurance business, amounting to 173,552 million euro, were down (-2.2%, or -3.9 billion euro) compared to the end of 2024, attributable to the financial and insurance liabilities.

The Division's collected premiums for life policies (including financial products) and pension products, equal to 4.2 billion euro, increased by 13.2% on the same period of 2024, mainly attributable to the growth in inflows on unit-linked products (+62.2%) and on pension funds (+8.1%). Instead, inflows on traditional products decreased (-10%).

Collected premiums for the protection business totalled 0.5 billion euro, up by 13.3% on the same period of 2024. Premiums in the non-motor business (excluding CPI – Credit Protection Insurance) rose by 13.1%, mainly driven by the SMEs, Home and Family, and Health and Accident Lines of Business (LoBs). The motor component (+5.6%) and credit-related products (+25.5%) also increased.

Corporate Centre

The Corporate Centre is responsible for guidance, coordination and control of the whole Group, as well as for the NPE Department, Treasury and Strategic ALM.

The Corporate Centre Structures generated an operating margin of 89 million euro in the first three months of 2025, compared to 349 million euro in the same period of the previous year. This performance was mainly attributable to the decline in operating income, mainly due to the performance of net interest income, which was impacted by the declining trend in market interest rates, and profits (losses) on financial assets and liabilities at fair value. Operating costs increased due to lower charge backs by the Corporate Centre to the business units for pure services and steering and control services and higher amortisation of intangible assets correlated with technological investments, partially offset by the decrease in personnel expenses. Gross income amounted to 112 million euro compared to 319 million euro in the same period of 2024. The first quarter of 2025 closed with a net income of 44 million euro, compared to 88 million euro in the same period of the previous year.

Treasury and Funding activities

In the first quarter of 2025, Intesa Sanpaolo confirmed its role as a systemic bank and its status as a T2 Critical Participant within the cash (T2) and securities (T2S) settlement systems of the Eurosystem, keeping its market shares stable at national and international levels.

In the payments area, we note the European Collateral Management System (ECMS) project, the new centralised system for collateral management in the Eurosystem, whose start date is set for June. The developments and alignment of systems to the new European Instant Payments Regulation also continued. The Regulation aims to make most payments in the Eurosystem available 24-7, reaching full implementation in October.

In the first quarter of the year, the ECB continued the reduction, which began in June 2024, of the three official rates of the Eurosystem, bringing the Central Bank deposit rate to 2.50% in March, to gradually ease the level of restriction of monetary policy. In April a further cut was made, which brought the Central Bank deposit rate to 2.25%. The future actions of the ECB will depend on how macroeconomic data evolves, with the goal of ensuring that inflation returns to 2% in the medium term. Market interest rates incorporate the changes in monetary policy measures adopted and the expectations of additional official cuts, with a neutral interest rate which, based on research published by the Central Bank, could stand at around 1.75% to 2.25%.

With regard to the US dollar, following the gradual reduction in interest rates in September, in the Fed's first two meetings in 2025, interest rates remained unchanged in the range of 4.25%-4.50%. At its last meeting, the Fed announced that future changes in interest rates will depend on the economic data and the impacts of the political decisions taken by the new administration on the US economy.

Intesa Sanpaolo's liquidity position remained robust and very stable over the first quarter, and funding in euro and US dollars on the wholesale market did not report stressed situations.

Outstandings for short-term securities funding in the first quarter consolidated the levels recorded at the end of 2024, confirming investors' interest in the Bank's issues.

During the period, the total amount of the Group's medium/long-term issues placed on the domestic market, through own networks and direct listing, came to 3,633 million euro, of which 3,273 million euro in certificates, 330 million euro in issues placed through the Private Banking Division and 30 million euro in securities traded on the MOT and/or EuroTLX markets of Borsa Italiana (direct listing).

The bonds placed through the Private Banking Division reserved for professional customers and qualified investors broken down as follows: 223 million euro of senior non preferred fixed-rate bonds with a 7-year term and 107 million euro of private placement senior preferred bonds with fixed and floating rates and 2-, 3- and 5-year terms.

Among the securities placed, there was a predominance of structured financial instruments made up of 42% of index-linked structures, 35% of equity-linked structures and 13% of interest rate-linked structures, while the plain vanilla issuance component accounted for 10%. A breakdown by average maturity shows that 37% are comprised of instruments with 2- and 4-year maturities, 52% of 5- and 7-year maturities, and the remaining 11% with maturities over 7 years.

Report on operations – Breakdown of consolidated results by business area

During the quarter, a total of 910 million euro in institutional unsecured funding transactions were placed, of which 500 million euro in subordinated T2 bonds with 10-year terms issued by Intesa Sanpaolo Assicurazioni and 410 million euro of bonds and issued certificates placed by the IMI Corporate & Investment Banking Division on third-party networks.

With regard to the Covered Bond issuance programmes, under the Covered Bond issuance programme guaranteed by ISP CB Ipotecario, two retained issues of floating-rate Covered Bonds were carried out in January, of 1.5 billion euro each: the 39th series with 6-year maturity and the 40th series with 11-year maturity. The 14th series also matured in January, for an amount of 1 billion euro.

Under the Covered Bond programme guaranteed by ISP OBG, the 25th retained series matured in February for the remaining amount of 500 million euro. In March the 22nd retained series was subject to early redemption, for the total amount of 1.75 billion euro. In the same month the following were subject to partial redemption: the 33rd retained series for 185 million euro (therefore, the residual amount is 1.465 billion euro), the 36th retained series for 1.3 billion euro (residual amount of 500 million euro), the 37ths retained series for 250 million euro (residual amount of 1 billion euro) and the 38th retained series for 250 million euro (residual amount of 1.5 billion euro).

In March, the 48th retained series was issued for 3 billion euro, with a fixed rate and an 8-year maturity.

Within the covered bond programme guaranteed by UBI Finance, the 17th series matured in February for an amount of 1 billion euro.

For the management of collateral, Intesa Sanpaolo also uses the A.Ba.Co. (Collateralised Bank Assets) procedure, which allows bank loans disbursed to non-financial companies to be used to secure loan transactions with the Bank of Italy: at 31 March 2025 the amount outstanding, gross of the haircuts applicable to loans lodged as pledge by the Group, amounted to 15.8 billion euro.

During the quarter, the markets were subject to opposing tensions: on one side, the solidity of the US economy, the persistence of several inflationary components and the surprising expansive approach taken by German fiscal policy generated a sound steepening trend in the interest rate curves; on the other, in March, the growing concerns that harsh customs tariffs could be introduced by the US administration brought the level of interest rates into the previous year's range. On conclusion of the long phase of repricing of Core Europe bonds (in France specifically), the ratio of spread to current volatility reached the highest levels of recent years. Therefore, the exposure to those issuers was increased, while interest rate risk on the portfolio was expanded to improve diversification and potentially combat the risk of an additional adverse trend in credit spreads.

With reference to the repo market, volumes of Italian government bonds traded increased significantly compared to the previous year and interest rates reached higher levels than the deposit facility.

The spread between the rates of the government securities of the core countries and Italian government securities narrowed compared to the first quarter of 2024, while there was no significant change in rates or spreads near the end of the quarter.

Outstanding amounts of securities financing transactions with underlyings mainly composed of self-retained bonds came to around 17 billion euro as at 31 March 2025.

Strategic ALM

With regard to the Group's Asset & Liability Management (ALM), operational management of the financial risks of the Group's banking book is carried out by the Group Treasury & Capital Management area under the supervision of the CRO Area. Interest rate risk is monitored and managed by examining the sensitivity of the market value of the various positions in the banking book to parallel shifts in the interest rate curve and the sensitivity of net interest income to the market views; moreover, specific scenario analysis techniques on rate developments are used, as well as behavioural scenarios for specific positions. The strategic choices on interest rate risk are made by the Group Financial Risk Committee, Asset & Liability Committee - ALCO session, within the limits established by the Board of Directors and, regarding tasks not delegated to risk takers: Group Treasury & Capital Management performs an active role in the dynamic management of interest rate risk within the limits assigned and supports the Committee's decision-making activity by formulating analyses and proposals. The structural component of liquidity risk is managed, based on the liquidity policies defined at Group level, as part of the funding plan, which is used to monitor the current and future short and long-term liquidity balances, defining the funding plan on the various channels and instruments (domestic/international, retail/corporate, secured/unsecured, preferred/non preferred/subordinate). The funding plan optimises the various forms of funding in compliance with the liquidity indicators (LCR, NSFR and the other indicators of the Risk Appetite Framework), the rating targets, the various regulatory capital buckets and the MREL buffers, in line with the loan-deposit targets of the Business Units. The structural component of foreign exchange risk is managed, based on the related policies established at Group level, by monitoring the Group's overall position, also with a view to optimising the capital ratios.

Risk management

THE CORE PRINCIPLES OF RISK MANAGEMENT

The policies relating to risk taking and the processes for the management of the risks to which the Intesa Sanpaolo Group is or could be exposed are approved by the Board of Directors of Intesa Sanpaolo as the Parent Company, with the support of the Risks and Sustainability Committee. The Management Control Committee, which is the body with control functions, supervises the adequacy, efficiency, functionality and reliability of the risk management process and of the Risk Appetite Framework (RAF).

The Managing Director and CEO has the power to submit proposals for the adoption of resolutions concerning the risk system and implements all the resolutions of the Board of Directors, with particular reference to the implementation of the strategic guidelines, the RAF and the risk governance policies.

The Corporate Bodies also benefit from the action of some managerial committees on risk management. These committees, which include the Steering Committee, operate in compliance with the primary responsibilities of the Corporate Bodies regarding the internal control system and the prerogatives of corporate control functions, and in particular the risk control function.

The Chief Risk Officer Governance Area, directly reporting to the Managing Director and CEO, in which the risk management functions are concentrated, including the controls on the risk management and internal validation process, represents a relevant component of the "second line of defence" of the internal control system that is separate and independent from the business supporting functions. This Area is responsible for: i) governing the macro process of definition, approval, control and implementation of the Group's Risk Appetite Framework with the support of the other corporate functions involved; ii) assisting the Corporate Bodies in setting and implementing the Group's risk management guidelines and policies, in accordance with the company's strategies and objectives; iii) coordinating and verifying their implementation by the responsible units of the Group, also within the various corporate areas; iv) guaranteeing the measurement and control of the Group's exposure to various types of risk and v) implementing the second level controls on credit and other risks, in addition to ensuring the validation of internal risk measurement and management systems.

The Parent Company performs a guidance and coordination role with respect to the Group companies12, aimed at ensuring effective and efficient risk management at Group level, exercising responsibility in setting the guidelines and methodological rules for the risk management process, and pursuing, in particular, integrated information at Group level to the Bodies of the Parent Company, with regard to the completeness, adequacy, functioning and reliability of internal control system. For the corporate control functions in particular, there are two different types of models within the Group based on the specific characteristics of the subsidiaries and the local regulatory constraints: i) the centralised management model based on the centralisation of the activities at the Parent Company and ii) the decentralised management model that involves the presence of locally established corporate control functions that conduct their activities under the direction and coordination of the same corporate control functions of the Parent Company, to which they report in functional terms.

Irrespective of the control model adopted within their company, the Corporate Bodies of the Group companies are aware of the choices made by the Parent Company and are responsible for the implementation, within their respective organisations, of the control strategies and policies pursued and promoting their integration within the Group controls.

The risk measurement and management tools contribute to defining a risk-monitoring framework at Group level, capable of assessing the risks assumed by the Group from a regulatory and economic point of view. The level of absorption of economic capital, defined as the maximum "unexpected" loss the Group might incur over a year, at a given confidence level, is a key measure for determining the Group's financial structure, risk appetite and for guiding operations, ensuring a balance between risks assumed and shareholder returns. It is estimated on the basis of the current situation and also at a forecast level, in line with the Group Risk Appetite Framework approved by the Board of Directors of the Parent Company, based on the budget assumptions and the forecast macroeconomic scenario, and in relation to stress scenarios. The economic capital together with the risk capital calculated on a regulatory basis is a fundamental element in the assessment of the Group's capital adequacy within the ICAAP.

The assessment of capital is included in business reporting and is submitted quarterly to the Steering Committee, the Risks and Sustainability Committee and the Board of Directors of the Parent Company, as part of the Tableau de Bord of Group Risks. Risk hedging, given the nature, frequency and potential impact of the risk, is based on a constant balance between mitigation/hedging action, control procedures/processes and capital protection measures.

In its risk management, the Group also pays close attention to the geopolitical context, the issues arising from it and their developments, in order to identify the main phenomena that could have an impact on an international scale and could significantly alter its risk profile and influence its operations.

The Group therefore conducts specific scenario and stress analyses to assess the potential impacts in terms of profitability and capital adequacy. Although the geopolitical situation is constantly evolving, leaving aside extreme scenarios of escalation that could lead to outcomes that are difficult to assess, these analyses confirm the Group's ability to ensure compliance – also through the implementation of specific actions – with the regulatory requirements and the stricter limits set internally.

With specific regard to the management of risks deriving from the Russian-Ukrainian conflict, details concerning credit risk are provided in the paragraph "The valuation impacts for the Intesa Sanpaolo Group of the military conflict between Russia and Ukraine", and there continue to be no significant impacts of the conflict on the metrics for measuring the counterparty risks

¹² In this regard, it is specified that Intesa Sanpaolo does not exercise management and coordination over Risanamento S.p.A. or its subsidiaries pursuant to Articles 2497 et seq. of the Italian Civil Code.

and market risks in the Group's trading book and banking book. Likewise, in light of the low exposure to Russian and Ukrainian counterparties, there were no significant impacts on the Group's consolidated liquidity position. With regard to foreign exchange risk, there continue to be no significant impacts due to the low exposures. With regard to operational risks, the additional costs incurred for business continuity and any losses resulting from physical damage to premises/branches located in the conflict zone form part of the monitoring of the exposure to the risk, including that relating to the Risk Appetite Framework. Lastly, with regard to the monitoring of insurance risks, the focus remains on exposures to countries involved in the conflict, which are still entirely residual in nature compared to the total assets.

BASEL REGULATION AND THE INTERNAL PROJECT

To ensure ongoing compliance with the Basel Committee agreements, in 2024 the Intesa Sanpaolo Group implemented appropriate project initiatives to improve the measurement systems and the related risk management systems.

With regard to credit risk, in February 2025 the ECB granted authorisation for regulatory purposes for the new Large Corporate model.

The periodic updating and alignment to changes in regulations governing IRB systems and their extension continue in accordance with the Regulatory Roadmap agreed with the Supervisory Authorities.

With regard to counterparty risk, there were no changes in the scope of application compared to 31 December 2024.

The Basel 4 reform project resulted in a major overhaul of the prudential framework, which came into effect on 1 January 2025, with the first regulatory reporting on the reporting date of March 202513 .

In accordance with the principles and guidelines formalised by the Basel Committee, in 2021 the European Commission put forward a legislative proposal (the CRR3/CRD4 package) to implement the standards set by the new Basel 4 framework, taking into account the specific features of the European banking sector and harmonising the supervisory regimes adopted by the Member States. The directive seeks to strengthen confidence in the representativeness of capital ratios and the resilience of the banking sector, also through measures aimed at reducing the volatility of the results of the internal models used by institutions. The final text was issued on 6 December 2023, following the completion of the negotiation in the trilogue between the European Commission, Parliament and Council, with the subsequent publication of Regulation (EU) 2024/1623 in the Official Journal of the European Union in June 2024.

The Intesa Sanpaolo Group has set up the compliance initiatives for the adoption of the regulatory provisions through a dedicated project (Basel 4 Project) in which procedural implementations have been developed for the management of the information required by the measurement system, with adaptations aligned to the governance processes.

Intesa Sanpaolo has implemented a multi-year work programme based on a specific project roadmap, launched in the second half of 2023, starting with an assessment to identify the main changes introduced by the regulatory provisions and develop coherent methodological, organisational and architectural approaches to adopt going forward. The activities continued steadily throughout 2024, including through systematic dialogue with the regulators, industry associations, recognised ECAIs (External Credit Assessment Institutions), peers and consultancy firms, to organically introduce the required system of rules and measurement criteria, with modifications to IT architectures, application procedures, organisational processes, internal regulations and contractual relationships with customers. The work programme, which is constantly monitored with regular updates submitted to the Project Management, Control Functions and Management Bodies, is progressing smoothly in line with the scheduled timelines.

The new directive has reconfigured the calculation of the capital requirements for all the main types of risk (credit risk, market and counterparty risk, operational risk), as well as the regulatory reporting processes, also introducing the concept of "Output Floor", common to all the risk types, which involves applying a minimum threshold to RWA values calculated using internal models, to limit the potential deviation of these values to 72.5% (fully phased in) of the RWAs that would be determined using the standard approach.

With regard to the provisions concerning the determination of capital requirements for credit risk, the main amendments introduced involve the:

• − discontinuation of the option of using the:
  • o Advanced Internal Ratings-Based (AIRB) approach for the Large Corporate, Financial Institutions and Other Financial Sector Entities portfolios;
  • o Internal Ratings-Based (IRB) approach for the Equity portfolio, which must now be treated according to the Standardised Approach (SA-CR);
• − revision of the measurement criteria based on IRB approaches, with the:
  • o introduction/recalibration of floors for some internally estimated risk parameters (i.e. PD, LGD, Credit Conversion Factor – CCF);
  • o elimination of the multiplier factor (of 1.06) in the formula used to determine the risk weight;
• − revision of the measurement criteria based on the standardised approach with substantial modifications applied to the:
  • o risk weights assignment to Real Estate portfolio exposures;
  • o introduction of sub-categories for Retail and Specialised Lending portfolios;
  • o determination of CCF values for off-balance sheet exposures;
  • o valuation process for unrated Banks exposures;

¹³ Transitional provisions have also been established with a phased introduction over time through to 2033.

• o validation, through internal due diligence, of the ratings obtained from ECAIs, for Corporate, Institutions and Covered Bond portfolios.
• With regard to the regulatory developments, the work programme involved modifications to the:
• − input systems and application procedures, for the recovery of certain information attributes relating to the stock of existing exposures, in order to adapt the information necessary for valuations to the regulatory requirements;
• − calculation systems for determining the capital requirements, to incorporate the new computation criteria, adapting the approaches, calculation algorithms and risk weights allocation criteria;
• − reporting systems, to reflect the changes in the reporting templates and methods of consolidation.

Regarding compliance with Basel 4 regulation, counterparty risk has been affected by changes related to the credit risk weights applied to counterparties in derivative and SFTs (Securities Financing Transactions) operations. Additionally, the necessary developments for implementing the new CVA risk framework established by the regulation have been completed.

For operational risks, the Group used the internal AMA model (in partial use together with the standardised and basic approaches) for determining the capital requirement up to 31 December 2024.

The new CRR3/Basel 4 regulatory framework has fundamentally altered the methodology for calculating the prudential capital requirement, eliminating the possibility of using internal models and introducing a new, single standardised calculation method, referred to as the Standardised Approach (SA). This methodology requires the determination of the capital requirement in line with the size of business activities (Business Indicator – BI), primarily using FINREP items (averaged over the previous three years), weighted with regulatory coefficients by band. The methodology also requires the inclusion of the duly reconciled accounting impact of the operational losses over the three-year period. The new regulatory framework therefore maintains the importance of high-quality operational loss data collection, in addition to the requirement for an effective, properly structured overall operational risk governance framework, supported by suitable infrastructure and verified by an independent function.

However, the regulations permit the use of the Advanced Measurement Approach (AMA), based on internal models, for the calculation of economic capital for Pillar 2 management purposes.

The regulatory amendments also affect the Pillar 3 disclosure requirements, introducing the obligation to report a ten-year trend of net operational loss data.

With regard to the new developments in the regulatory framework for the calculation of own funds requirements for market risk (Fundamental Review of the Trading Book – FRTB), these will become applicable from 1 January 2026, unless there are further postponements to the regulations.

The annual Internal Capital Adequacy Assessment Process (ICAAP) Report, based on the extensive use of internal risk measurement methodologies, internal capital and total capital available, was approved and sent to the ECB in March 2025.

As part of its adoption of the Basel regulations, the Group publishes information on capital adequacy, exposure to risks and the general characteristics of the systems aimed at identifying, monitoring and managing them in a document entitled Basel 3 Pillar 3 disclosure or simply "Pillar 3". The document is published on the website (group.intesasanpaolo.com) on a quarterly basis.

With regard to this disclosure, in line with the new regulatory framework described above introduced by CRR3, Commission Implementing Regulation (EU) 2024/3172 was published on 31 December 2024 in the Official Journal of the European Union, laying down implementing technical standards for the application of the provisions regarding the disclosure of information referred to in Titles II and III of Part Eight of the CRR, and repealing Regulation (EU) 2021/637. This implementing regulation, applicable from 1 January 2025, amends certain disclosure templates to reflect the regulatory changes introduced by CRR3.

Report on operations – Risk management

THE VALUATION IMPACTS FOR THE INTESA SANPAOLO GROUP OF THE MILITARY CONFLICT BETWEEN RUSSIA AND UKRAINE

Details are provided below of the qualitative and quantitative aspects relating to credit exposures to counterparties resident in the countries in conflict, held in the portfolio of the two subsidiaries resident in Russia and Ukraine, Banca Intesa Russia and Pravex Bank (Ukrainian bank), or credit disbursed by other entities of the Group (cross-border exposures), with particular regard to their valuation.

As at 31 March 2025, the Group had the following on-balance sheet exposures to counterparties resident in Russia and Ukraine (net of ECA guarantees and gross/net of value adjustments carried out).

								(millions of euro)
		31.03.2025 (*)					31.12.2024 (**)
		Gross exposure		Net exposure		Gross exposure		Net exposure
	Russia	Ukraine	Russia	Ukraine	Russia	Ukraine	Russia	Ukraine
Loans to customers	502	190	346	134	547	193	409	138
Banca Intesa Russia	123	-	48	-	126	-	71	-
Pravex	-	55	-	-	-	54	-	-
Cross-border exposures	379	135	298	134	421	139	338	138
Due from banks	50	48	41	48	759	72	751	72
Banca Intesa Russia	35	-	27	-	744	-	737	-
Pravex	-	48	-	48	-	72	-	72
Cross-border exposures	15	-	14	-	15	-	14	-
Securities	1	125	-	121	1	53	-	51
Banca Intesa Russia	-	-	-	-	-	-	-	-
Pravex	-	119	-	117	-	46	-	46
IMI C&IB Division	-	-	-	-	-	-	-	-
Insurance Division	1	6	-	4	1	7	-	5

(*) In addition to the on-balance sheet exposures shown in the table, there are off-balance sheet exposures to customers for 33 million euro (28 million euro net) at Banca Intesa Russia, and 26 million euro (gross and net value) at Pravex, in addition to 20 million euro (book value nil in net terms) in crossborder off-balance sheet exposures to resident customers in Russia, net of ECA, and 8 million euro (8 million euro net) to customers resident in Ukraine. There is also 20 million euro (gross and net value) in cross-border off-balance sheet exposures to banks resident in Russia and 9 million euro (gross and net value) in cross-border off-balance sheet exposures to banks resident in Ukraine.

Lastly, the cross-border exposures to customers resident in Ukraine are, for the corporate part, backed by guarantees provided by European and US persons, while, for the household part, the amounts as at 31 March 2025 and the increase of around 4 million euro compared to 31 December 2024 mainly relate to exposures disbursed by the subsidiary VUB to households with permanent residence in Slovakia.

(**) In addition to the on-balance sheet exposures shown in the table, there are off-balance sheet exposures to customers for 29 million euro (25 million euro net) at Banca Intesa Russia, and 33 million euro (gross and net value) at Pravex, in addition to 20 million euro (book value nil in net terms) in crossborder off-balance sheet exposures to resident customers in Russia, net of ECA, and 8 million euro (8 million euro net) to customers resident in Ukraine. There is also 27 million euro (gross and net value) in cross-border off-balance sheet exposures to banks resident in Russia and 9 million euro (gross and net value) in cross-border off-balance sheet exposures to banks resident in Ukraine.

Lastly, the cross-border exposures to customers resident in Ukraine are, for the corporate part, backed by guarantees provided by European and US persons, while, for the household part, mainly relate to exposures disbursed by the subsidiary VUB to households with permanent residence in Slovakia.

Starting in March 2022, among the areas receiving the greatest attention in terms of credit assessments in the emergency triggered by the conflict in Ukraine, a specific focus was dedicated to the Group's exposure to counterparties resident in Russia and Ukraine. Specifically, customised measures were implemented to strengthen the oversight of credit risk, also by updating the assessment of creditworthiness, of counterparties with residency or parent companies in the Russian Federation, Belarus14 or Ukraine.

As shown in the table, at the end of the first quarter of 2025 the remaining on-balance sheet exposures to the total counterparties resident in Russia and Ukraine amounted, in terms of gross values, to 123 million euro (48 million euro net) for Banca Intesa Russia and 379 million euro (298 million euro net) for cross-border exposures to customers resident in Russia (net of ECA guarantees). These were accompanied by exposures to banks and debt securities totalling 51 million euro (41 million euro net). Exposures to customers resident in Ukraine amounted to 190 million euro (134 million euro net), of which 55 million euro (book value nil in net terms) related to the subsidiary Pravex Bank. There were also exposures to banks of 48 million euro (48 million euro net) and in securities totalling 125 million euro (121 million euro net).

During the first quarter of 2025, gross on-balance sheet exposures to all counterparties resident in Russia and Ukraine (customers, banks, and securities) decreased by 709 million euro (-44%) compared with 1,625 million euro at the end of 2024. This reduction mainly concerned amounts due from banks of the subsidiary Banca Intesa Russia, primarily attributable to the conversion of term deposits with Central Banks into liquid assets (cash and on-demand deposits). Gross exposures to cross border customers resident in Russia also decreased by 42 million euro, mainly due to repayments.

¹⁴ For these purposes, the small exposures to Belarusian counterparties have for simplicity been treated and disclosed together with the exposures to the Russian Federation.

The overall net exposure (customers, banks, and securities) to counterparties resident in Russia and Ukraine, amounting to 690 million euro, decreased by 731 million euro (-51%) from 1,421 million euro on 31 December 2024.

For the Interim Statement as at 31 March 2025, the key choices have been maintained regarding staging assignment and ECL calculation adopted by the Group for performing loans in the period 2022–2024, based on an approach strongly driven by the emergence of geopolitical risk.

In particular, with regard to the methodological aspects for determining the Expected Credit Loss (ECL) of cross-border exposures to residents in Russia within the Core scope, as at 31 March 2025 the following have been maintained: the classification to Stage 2 of in-scope counterparties, the decision to adopt the through-the-cycle PD associated with the assigned rating for the ECL calculation on the Core scope, without forward-looking conditioning, and the application of a prudential buffer to the Loss Given Default (LGD), in order to achieve equivalence with the use of a loss rate estimated using a methodology based on the transfer of the risk of the country of residence under Pillar 2 modelling (fixed LGD from transfer risk model set at 55%, not subject to conditioning). Lastly, adjustments have been applied to a counterparty (increases in the ECL as calculated above) to capture potential expected losses not adequately measured by the estimates. The banks of the International Banks Division adopt the ratings of the Parent Company and the centrally determined "transfer risk" parameter of LGD on the Group's common cross-border customers. For the other exposures, the ratings are determined by local models, in line with the instructions received from the Parent Company's Group Rating Desk.

For specific positions, the Group has recognised the related impairment, classifying them as non-performing loans and subjecting them to individual assessment. As at 31 March 2025, there were remaining positions of 9 million euro gross (4 million euro net), in line with 31 December 2024.

With reference to loans to customers disbursed by Pravex Bank, the choice adopted starting from the 2022 Financial Statements to classify loans to customers of the Ukrainian subsidiary as non-performing loans (bad loans), with full writedown of the on-balance sheet component (55 million euro gross as at 31 March 2025 and 54 million euro gross as at 31 December 2024), has been maintained.

For Banca Intesa Russia, in line with previous years, an approach to classifying and measuring performing loans has been adopted that strongly considers the geopolitical risk deriving from the ongoing crisis and the effects on macroeconomic prospects. With regard to the valuation of loans, the approaches already adopted have been maintained through the application of prudential adjustments. In summary, therefore:

• − for exposures to counterparties in common with the Group, the principle of substantial consistency with the approach adopted for the Core scope has been maintained (Stage 2 classification, and ECL consistent with the assigned rating and the loss rate adopted by the Parent Company);
• − for the remaining portfolio, based on the initial valuation criteria adopted by the bank, a significant and broader prudence factor has been applied, covering all segments (Corporate, SME Corporate, Retail) and set with a particularly high average coverage by the CRO Area, further strengthened in the first quarter of 2025 to reflect the continued conflict.

As a result of the provisions made, the total coverage of performing loans of the Russian subsidiary amounted to around 45.5% of their gross value (36.3% in December 2024).

With regard to gross non-performing loans, these amounted to 35 million euro (35 million euro as at 31 December 2024) and have been fully written down, on a prudential basis, from 31 March 2025.

The Parent Company and two subsidiaries had also provided Banca Intesa Russia with loans to support its operations with a gross residual value as at 31 March 2025 of 121 million euro.

With regard to the valuation of the other balance sheet items, the remaining marginal positions in securities have been measured in line with the approach adopted in the 2024 Annual Report. These essentially relate to Pravex, 119 million euro as at 31 March 2025 and 46 million euro as at 31 December 2024, in connection with the purchase of short-term government securities or securities issued by central banks, as an investment of part of the liquidity.

The small real estate portfolio of the two subsidiaries has also been valued using the approach adopted in previous years.

There were no significant profit and loss impacts on the Russian and Ukrainian exposures as at 31 March 2025 (net total recoveries amounting to 19 million euro, before tax). In addition to these profit and loss impacts, the subsidiary Banca Intesa Russia generated positive earnings of 54 million euro, which have been included in the consolidated result from the first quarter of 2025, in consideration of the gradual reduction in the volume of operations and, consequently, the risk profile of Banca Intesa Russia (in compliance with the guidance from the EU Regulators) and its earnings outlook which still remains positive, despite an expected progressive decline. However, in line with the financial statements as at 31 December 2024, the provision made to eliminate the shareholders' equity of the subsidiary on that date has been substantially maintained. This provision, allocated to a specific allowance for risks and charges, amounted to 447 million euro as at 31 March 2025 (382 million euro as at 31 December 2024, with the change mainly linked to the appreciation of the rouble against the euro).

The Intesa Sanpaolo Group has developed a set of techniques and tools for credit risk measurement and management which ensures analytical control over the quality of loans to customers and financial institutions, and exposures subject to country risk.

In particular, with regard to loans to customers, risk measurement is performed by means of different internal rating models according to borrower segment (Corporate, Retail SME, Retail, Sovereigns, Public Sector Entities and Banks). These models make it possible to summarise the counterparty's credit quality in a measure, the rating, which reflects the probability of default over a period of one year, adjusted on the basis of the average level of the economic cycle. These internally calculated ratings are then made comparable with those awarded by rating agencies, by means of a consistent scale of reference.

Ratings and credit-risk mitigating factors (guarantees, loan types and covenants) play a key role in the loan granting and managing process.

Credit quality

							(millions of euro)
		31.03.2025			31.12.2024		Change
	Gross exposure	Total adjustments	Net exposure	Gross exposure	Total adjustments	Net exposure	Net exposure
Bad loans	3,787	-2,550	1,237	3,502	-2,382	1,120	117
Unlikely to pay	5,659	-2,274	3,385	5,715	-2,277	3,438	-53
Past due loans	497	-154	343	516	-154	362	-19
Non-Performing Loans	9,943	-4,978	4,965	9,733	-4,813	4,920	45
Non-performing loans in Stage 3 (subject to impairment)	9,873	-4,941	4,932	9,666	-4,777	4,889	43
Non-performing loans measured at fair value through profit or loss	70	-37	33	67	-36	31	2
Performing loans	406,604	-2,117	404,487	412,397	-2,167	410,230	-5,743
Stage 2	33,894	-1,571	32,323	35,032	-1,610	33,422	-1,099
Stage 1	371,878	-546	371,332	376,608	-557	376,051	-4,719
Performing loans measured at fair value through profit or loss	832	-	832	757	-	757	75
Performing loans represented by securities	7,345	-13	7,332	6,300	-12	6,288	1,044
Stage 2	240	-7	233	195	-7	188	45
Stage 1	7,105	-6	7,099	6,105	-5	6,100	999
Loans held for trading	13	-	13	74	-	74	-61
Total loans to customers	423,905	-7,108	416,797	428,504	-6,992	421,512	-4,715
of which forborne performing	4,494	-264	4,230	4,465	-297	4,168	62
of which forborne non-performing	3,101	-1,392	1,709	3,061	-1,370	1,691	18
Loans to customers classified as non current assets held for sale	11	-3	8	330	-291	39	-31

Figures restated, where necessary and material, considering the changes in the scope of consolidation and discontinued operations.

As at 31 March 2025, the Group's gross non-performing loans amounted to 9.9 billion euro, up by 210 million euro (+2.2%) compared to December 2024. Their ratio to total loans remained stable at 2.3% gross and 1.2% net (2.3% and 1.2% respectively at the end of 2024). According to the EBA methodology, on the same date the NPL ratio stood at 2.0% gross and 1.0% net, stable compared with December 2024 (when it was 2.0% and 1.0% respectively).

The initiatives aimed at containing non-performing loans continue to benefit from new inflows from performing loans which remain at moderate levels due to the performance of the prevention initiatives on non-performing loans.

During the first quarter, gross inflows amounted to 708 million euro. In the comparison period of 2024, gross inflows amounted to 739 million euro. In net terms, namely net of outflows to performing loans, inflows amounted to 606 million euro, compared to 617 million euro in the first three months of 2024.

The table shows that the increase in gross non-performing loans was driven by bad loans in the amount of 285 million euro (+8.1%), against a slight reduction in unlikely-to-pay loans of 56 million euro (-1.0%) and in past-due loans, which were also down by 19 million euro (-3.7%).

The Group's net non-performing loans stood at 4.97 billion euro at the end of the first quarter, slightly up on December 2024 (+45 million euro), with the non-performing loan coverage at 50.1%, up from 49.5% at the end of 2024.

In further detail, in March 2025 bad loans amounted to 1.2 billion euro (+10.4%), net of adjustments, representing 0.3% of total net loans with a coverage ratio of 67.3%. Loans included in the unlikely-to-pay category amounted to 3.4 billion euro,

down by 1.5%, accounting for 0.8% of total net loans to customers, with a coverage ratio of 40.2%. Past-due loans amounted to 343 million euro (-5.2%), with a coverage ratio of 31.0%. Within the non-performing loan category, forborne exposures, generated by forbearance measures for borrowers experiencing difficulty in meeting their financial obligations, amounted to 1.7 billion euro, with a coverage ratio of 44.9%. Forborne exposures in the performing loan category amounted to 4.2 billion euro.

At the end of the first quarter of 2025, net performing loans amounted to 404.5 billion euro, down on December by 5.7 billion euro (-1.4%), with total coverage of 0.5% (stable compared to the end of 2024), of which 4.6% in Stage 2 loans and 0.1% in Stage 1 loans (both stable compared to the end of 2024).

Macroeconomic scenario for forward-looking conditioning

For the purposes of forward-looking conditioning of the ECL estimation parameters, Intesa Sanpaolo's policy involves the use of the macroeconomic scenario produced and updated by the Research Department (CFO Area) on at least a half-yearly basis (June/December). In March 2025, the forecasts were updated and did not differ substantially from the previous forecasts.

As a result, the updating of the scenario would not lead to significant effects on the outcomes of the modelling used for the forward-looking conditioning of the ECL; therefore, in line with the Group policy, the next update will be made at the time of the Half-Yearly Report.

The baseline scenario adopted assumptions of continuity with respect to the conflict areas potentially relevant for the forecast, while incorporating the assumption of a generalised increase in tariff barriers by the United States starting from the second quarter of 2025, with a greater impact on China. The level of the barriers is assumed to subsequently fall during 2026.

Following the closure of the scenarios, the United States Government announced the introduction of a basic tariff of 10% and country-specific tariffs. However, the latter have been suspended for 90 days, except for the additional 125% tariff for China and those already introduced for Mexico and Canada. Compared to the underlying assumptions of the internal scenarios, the regime currently in force is more severe than assumed for China and North America. However, it is more lenient than the baseline assumptions for the European Union. If the suspension of bilateral tariffs is not extended, or a trade agreement is not reached with the EU, the level of the additional tariff applied by the United States to European exports (20%) would be close to the baseline assumptions.

In the Euro Area, only a marginal reduction in the growth estimate is assumed, to 0.8% in 2025 and 1.1% in 2026 (compared to 0.9% and 1.2% forecast in December). The scenario also factors in a looser fiscal policy stance in the Euro Area, mainly attributable to Germany.

In Italy, the annual average growth is forecast at 0.7% for 2025 (revised from 1% in December). This revision reflects assessments of the direct and indirect impact of trade restrictions and increased uncertainty, but also the strategic response by businesses (seeking new markets for production, partial absorption of tariffs within their margins, etc.). In addition to the easing of financial conditions, Italy's economic growth is supported by the increase in household real disposable income and increased expenditure related to the implementation of the NRRP, which are partially offsetting the drag on demand from trade restrictions and uncertainty.

The moderate level of real economic growth in Europe is accompanied by a decline in inflation, which is expected to fall steadily to the ECB target in the second half of 2025, allowing the European Central Bank to further cut rates.

For long-term interest rates, an increase in the slope of the yield curves is envisaged, also due to a rise in long-term rates and not just a fall in short-term rates. The precautionary forecast of a widening of the BTP-Bund spread over the medium to long term is maintained. With regard to energy prices, the scenario includes more negative changes in the average annual gas price due to the reduction in stocks, while the oil market remains characterised by weak demand.

For the United States, the changes in tariff policy outlined above has led to the incorporation of more adverse assumptions for US trade policies into the new baseline scenario, with structurally higher tariffs, save for possible subsequent reductions following negotiations and negative effects on domestic support. The consequence is an upward revision of inflation forecasts (to 2.8% from 2.3% this year, and to 2.5% from 2.4% next year) and a downward revision of GDP growth estimates (not only due to higher inflation but also increased uncertainty), to 1.7% from a previous 2% in 2025 and to 2% from 2.3% in 2026.

The Research Department produced alternative scenarios (best case and worst case), created according to the standard methodology set out in the Impairment Policy. The methodology adopted by the Group includes taking into account alternative scenarios (best-case/worst-case), which mainly use external information (among others, the minimum and maximum forecasts of a fundamental variable such as GDP based on data from Consensus Economics).

The best-case scenario was constructed using the standard methodology based on the higher GDP growth forecasts reported in the Consensus Economics survey published in March 2025. The worst-case scenario was also developed using this approach (i.e., based on the lower GDP growth forecasts from Consensus Economics). However, additional shocks have been introduced with negative effects on economic growth linked to the possibility of prolonged trade wars by the United States and temporary negative supply shocks due to subsequently emerging tensions in the Taiwan Strait. In addition to the internal demand shock, the worst-case scenario assumes a more aggressive implementation of the Trump agenda, with greater negative repercussions for the US economy.

With regard to the best-case scenario, the assumptions adopted yield a scenario with higher real growth rates (the distance of the growth rates from the baseline scenario is moderate, at +0.4% for Italy, but stably positive), moderately higher inflation, and lower unemployment rates.

Interest rates are higher across all maturities: higher growth is expected to lead the ECB to suspend the cuts to 2.25% and to begin its tightening phase earlier than in the baseline scenario. The Fed reduces rates to a lesser extent, resuming the rate hike cycle as early as 2026. Long-term rates are higher than in the baseline scenario, with a widening differential through to 2027.

With regard to the adverse scenario, the assumptions described above result in GDP growth below that of the baseline scenario over the entire forecast horizon. In the Euro Area, growth is lower by half a percentage point over the 2025-27 three-year period. Italy has an average annual growth rate of half a percentage point, with a greater deviation from the baseline scenario in 2026. Inflation falls marginally below the ECB's price stability definition during the period from 2026 to 2028, prompting the Central Bank to keep official interest rates in slightly accommodative territory (1.75%) throughout the forecast horizon, with a significant deviation from the baseline scenario, particularly towards the end of the forecasting period. The more accommodative monetary conditions are partially passed on to long-term rates: the 10-year IRS rate is 10-30 basis points lower than in the baseline scenario over the 2026-28 period. The euro/dollar exchange rate is 2% weaker than in the baseline scenario in 2026-27. The gap reverses in the following two years. The modest growth in economic activity is reflected in lower commodity prices than in the baseline scenario, particularly for oil.

Managerial adjustments to the results of the models (in-model and post-model)

As at 31 March 2025, there were no changes with respect to the methodological approaches adopted in the 2024 Financial Statements. The planned reassessment of the assumptions (such as emerging risks identified and associated sector-specific vulnerabilities) were carried out and did not result in substantial changes. The estimates were revised, along with the evidence updated to 31 March.

Starting from the 2023 Financial Statements and with subsequent refinements in December 2024, approaches based on two complementary elements have been introduced:

• − the adjustment to the outcomes of the forward-looking conditioning model, due to the introduction of a factor derived from "extreme scenarios", aimed at capturing the impacts of increased uncertainty in the macroeconomic conditions (due, for example, to geopolitical risks or repercussions connected to the higher-than-expected inflation) not captured by the current methodology based on the most-likely and alternative scenarios;
• − the risk-sensitive post-model adjustments, aimed at reinforcing the provisioning on selected portfolios in relation to potential vulnerabilities and credit risk divergences not captured by the models used, especially in the current economic environment often characterised by crises that affect individual product sectors asymmetrically.

Given the above, adjustment allowances for performing exposures as at 31 March 2025 included prudential elements of 0.9 billion euro relating to both on-balance and off-balance sheet exposures, substantially unchanged from December 2024.

MARKET RISKS

TRADING BOOK

Below is a summary of the daily managerial VaR for the trading book only, showing the overall exposure of the main risktaking centres.

Daily managerial VaR of the trading book

							(millions of euro)
		2025			2024
	average 1st quarter	minimum 1st quarter	maximum 1st quarter	average 4th quarter	average 3rd quarter	average 2nd quarter	average 1st quarter
Total Group Trading Book (a)	26.8	19.6	42.0	27.8	24.0	30.9	31.9
of which: Group Treasury & Capital Management	11.8	9.1	12.6	14.4	12.1	13.1	6.2
of which: IMI C&IB Division	15.0	11.4	25.5	15.3	14.7	20.3	23.3

Each line in the table shows the historical variability of the daily managerial VaR calculated on the quarterly time series of the Intesa Sanpaolo Group (including the other subsidiaries), the Group Treasury & Capital Management and the IMI C&IB Division respectively. The values calculated on the Group perimeter (average, minimum and maximum) do not correspond to the sum of the values of the individual columns, because they are recalculated on the aggregate time series which also includes the perimeter of the other subsidiaries.

(a) The Group Trading Book figure includes the managerial VaR of the Group Treasury & Capital Management, the IMI C&IB Division (Trading Book perimeter) and the other subsidiaries.

In the first quarter of 2025, as shown in the table above, compared to the averages for the fourth quarter of 2024, trading managerial risks remained substantially stable, with a marginal decrease from 27.8 million euro (average value in the fourth quarter of 2024) to 26.8 million euro (average value in the first quarter of 2025).

Compared to the first quarter of 2024, as reported in the table below, the average for the first quarter of 2025 shows a reduction in trading managerial risks of around -5 million euro, attributable to lower exposure and lower volatility arising from both interest rate risk and credit spread risk factors.

						(millions of euro)
		2025		2024
	average 1 st quarter	minimum 1 st quarter	maximum 1 st quarter	average 1 st quarter	minimum 1 st quarter	maximum 1 st quarter
Total Group Trading Book (a)	26.8	19.6	42.0	31.9	19.9	42.2
of which: Group Treasury & Capital Management	11.8	9.1	12.6	6.2	2.8	9.7
of which: IMI C&IB Division	15.0	11.4	25.5	23.3	14.9	32.6

Each line in the table shows the historical variability of the daily managerial VaR calculated on the quarterly time series of the Intesa Sanpaolo Group (including the other subsidiaries), the Group Treasury & Capital Management and the IMI C&IB Division respectively. The values calculated on the Group perimeter (average, minimum and maximum) do not correspond to the sum of the values of the individual columns, because they are recalculated on the aggregate time series which also includes the perimeter of the other subsidiaries.

(a) The Group Trading Book figure includes the managerial VaR of the Group Treasury & Capital Management, the IMI C&IB Division (Trading Book perimeter) and the other subsidiaries.

In addition, as shown in the graph below, the main contribution to the movements in the Trading VaR continues to be the trading conducted by the IMI C&IB Division.

Contribution of risk factors to total managerial VaR(a)

The breakdown of the Group's risk profile in the trading book in the first quarter of 2025 shows a prevalence of interest rate risk and credit spread risk, accounting for 47% and 24% respectively, of the Group's total managerial VaR. The individual risktaking centres, on the other hand, show a prevalence of interest rate risk and exchange rate risk for the Group Treasury & Capital Management (71% and 25%, respectively) and of credit spread and interest rate risk for the IMI C&IB Division (35% and 31%, respectively).

1st quarter 2025	Shares	Interest rates	Credit spreads	Foreign exchange rates	Other parameters	Commodities
Group Treasury & Capital Management	3%	71%	1%	25%	0%	0%
IMI C&IB Division	18%	31%	35%	8%	4%	4%
Total	12%	47%	24%	12%	3%	2%

(a) Each line in the table sets out the contribution of risk factors considering 100% the overall capital at risk, calculated as the average of daily estimates in the first quarter of 2025, broken down between Group Treasury & Capital Management and IMI C&IB Division and indicating the distribution of the Group's overall capital at risk.

Risk control with regard to the activity of the Intesa Sanpaolo Group also uses scenario analyses and stress tests. The impact of selected scenarios relating to the evolution of stock prices, interest rates, credit spreads, foreign exchange rates, commodity prices and inflation at the end of March is summarised in the following table:

	EQUITY		RATES	INTEREST		CREDIT SPREADS		FOREIGN EXCHANGE RATES		COMMODITIES		(millions of euro) INFLATION
	Crash	Bullish	+40bp	lower rate	-25bp	+25bp	-5%	+5%	Crash	Bullish	Up	Down
Total Trading Book	3	83	-35	48	-25	29	34	-13	-15	9	0	0

In particular:

• for stock market positions, there would not be potential losses either in the case of sudden increases in stock prices or in the case of sharp decreases therein;
• for positions in interest rates, there would be potential losses of 35 million euro in the event of a 40 basis point rise in interest rates;
• for positions in credit spreads, a tightening of credit spreads of 25 basis points would result in an overall loss of 25 million euro;
• for positions in exchange rates, there would be potential losses of 13 million euro in the event of a 5% appreciation of the Euro against the other currencies;
• for positions in commodities, there would be a loss of 15 million euro in the event of a fall in prices of commodities other than precious metals;
• lastly, for positions indexed to inflation, there would be no material impacts.

With regard to the use of the overall limit relating to trading and the hold to collect and sell (HTCS) business model, there was an increase in market managerial VaR in the first quarter of 2025 from 155 million euro (average managerial VaR fourth quarter of 2024) to 175 million euro (average managerial VaR first quarter of 2025).

Backtesting

The soundness of the VaR calculation methods must be monitored daily via backtesting which, for the regulatory backtesting, compares:

• the daily estimates of value at risk;
• the daily profits/losses based on backtesting which are determined using actual daily profits and losses achieved by individual desks, net of components which are not considered in backtesting: these include, for example, fees and financial costs of managing the positions that are regularly reported within the managerial area.

Backtesting allows verification of the model's capability of correctly seizing, from a statistical viewpoint, the variability in the daily valuation of trading positions, covering an observation period of one year (approximately 250 estimates). Any critical situations relative to the adequacy of the internal model are represented by situations in which daily profits/losses based on backtesting highlight more than four occasions, in the year of observation, in which the daily loss is higher than the value at risk estimate. Current regulations require that backtesting is performed by taking into consideration both the actual and hypothetical P&L series.

During the last twelve months a backtesting overshooting15 occurred for the regulatory VaR measure.

¹⁵ In the last 250 observations, the Bank has recorded an Actual P&L exception and/or a Hypothetical P&L exception. For the total calculation, in accordance with the applicable regulations, the maximum between Actual P&L and Hypothetical P&L exceptions is counted.

Report on operations – Risk management

BANKING BOOK

At the end of March 2025, interest rate risk generated by the Intesa Sanpaolo Group's banking book, measured through shift sensitivity of the economic value, amounted to -2,664 million euro.

The sensitivity of net interest income – assuming a +50, -50 and +100 basis point change in interest rates – amounted to 73 million euro, -12 million euro and 108 million euro, respectively, at the end of March 2025.

Interest rate risk, measured in terms of VaR, recorded a value of 782 million euro at the end of March 2025.

The table below shows the changes in the main risk measures during the first quarter of 2025, with regard to the Group's banking book.

	(millions of euro)
		1st quarter 2025		31.12.2024
	average	minimum	maximum
Sensitivity of the Economic Value +100 bp	-2,681	-2,662	-2,716	-2,664	-2,565
Sensitivity of Net Interest Income -50 bp	1	9	-12	-12	-69
Sensitivity of Net Interest Income +50 bp	35	-13	73	73	13
Sensitivity of Net Interest Income +100 bp	33	-61	108	108	-24
Value at Risk - Interest Rate	678	617	782	782	600

Lastly, the table below shows a sensitivity analysis of the banking book to price risk, measuring the impact on shareholders' equity of a price shock of ±10% for the minority interests, mainly held under the HTCS business model. This risk amounted to +/-83 million euro at the end of March 2025.

Price risk: impact on Shareholders' Equity

			(millions of euro)
		Impact on shareholders' equity at 31.03.2025	Impact on shareholders' equity at 31.12.2024
Price shock	10%	83	74
Price shock	-10%	-83	-74

LIQUIDITY RISK

The Group's liquidity position, supported by suitable high-quality liquid assets (HQLA) and the significant contribution from stable customer deposits, remained within the risk limits set out in the current Group Liquidity Policy in the first quarter of 2025.

The levels for both the regulatory indicators – Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) – are above the minimum regulatory requirements.

Over the last 12 months, the Liquidity Coverage Ratio of the Intesa Sanpaolo Group, measured according to Delegated Regulation (EU) 2015/61, has amounted to an average of 147.4% (154.8% in December 2024).

At the end of March 2025, the value of the total unencumbered HQLA reserves, at the various Treasury Departments of the Group, amounted to 127.1 billion euro (127.4 billion euro at the end of 2024). Adding the other marketable reserves and/or eligible Central Bank reserves, including retained self-securitisations, the Group's total unencumbered liquidity reserves amounted to 206.9 billion euro (207 billion euro at the end of 2024).

The Group's total available reserves were substantially stable compared to the previous quarter.

	(millions of euro)
	Unencumbered (net of haircut)
	31.03.2025	31.12.2024
HQLA Liquidity Reserves	127,067	127,378
Cash and Deposits held with Central Banks (HQLA)	31,146	35,446
Highly liquid securities (HQLA)	84,713	81,064
Other HQLA reserves not included in LCR	11,208	10,868
Other eligible and/or marketable reserves	79,832	79,621
Total Group's Liquidity Buffer	206,899	206,999

As already mentioned above, The NSFR remained above the minimum regulatory requirement of 100%, supported by a solid base of stable deposits from customers, in addition to adequate wholesale medium/long-term securitised funding. As at 31 March 2025, the Intesa Sanpaolo Group's NSFR, measured in accordance with regulatory instructions, was 121.1% (121.4% at the end of 2024).

The stress tests, in view of the high liquidity reserves, yielded results in excess of the target threshold for the Intesa Sanpaolo Group, with a liquidity surplus capable of meeting extraordinary cash outflows for a period longer than 3 months.

Adequate and timely information regarding the development of market conditions and the position of the Bank and/or Group was regularly provided to the corporate bodies and internal committees in order to ensure full awareness and manageability of the main risk factors.

INFORMATION ON FINANCIAL PRODUCTS

FAIR VALUE MEASUREMENT OF FINANCIAL ASSETS AND LIABILITIES

Fair value hierarchy – Assets and liabilities measured at fair value on a recurring basis: fair value by level

	(millions of euro)
Assets / liabilities at fair value	31.03.2025			31.12.2024
	Level 1	Level 2	Level 3	Level 1	Level 2	Level 3
1. Financial assets measured at fair value through profit or loss	111,986	29,403	10,393	112,812	28,322	9,809
a) Financial assets held for trading	16,858	27,389	216	14,948	26,337	154
of which: Equities	4,842	-	1	7,588	-	1
of which: quotas of UCI	424	-	37	440	-	37
b) Financial assets designated at fair value	-	2	4	-	2	4
c) Other financial assets mandatorily measured at fair value of which: Equities	95,128 6,204	2,012 337	10,173 102	97,864 6,090	1,983 296	9,651 104
of which: quotas of UCI 2. Financial assets measured at fair value through other comprehensive income of which: Equities	81,124 149,417 590	198 10,494 114	8,319 793 611	83,884 139,665 542	201 9,792 122	8,236 812 648
3. Hedging derivatives	-	6,723	-	-	6,505	-
4. Property and equipment	-	-	6,569	-	-	6,607
5. Intangible assets	-	-	-	-	-	-
Total	261,403	46,620	17,755	252,477	44,619	17,228
1. Financial liabilities held for trading	7,568	33,949	8	6,890	35,982	10
2. Financial liabilities designated at fair value	4,909	67,224	178	1,488	72,519	76
3. Hedging derivatives	-	3,569	-	-	4,410	-
Total	12,477	104,742	186	8,378	112,911	86

The above table shows the figures for the entire Group, including the insurance companies.

With regard to assets, level 3 instruments, which allow for more discretion in fair value measurement, represent a small portion of the portfolio, with an impact of 5.5% on total assets (5.5% also as at 31 December 2024). Level 3 financial assets refer mainly to UCI units under Financial assets mandatorily measured at fair value, and are mainly attributable to equity and bond funds of insurance companies. With regard to the banking segment, the UCI units under Financial assets mandatorily measured at fair value are mainly attributable to the Parent Company and in terms of composition they relate, in order of significance, to real estate funds, private equity funds, private debt funds, infrastructure funds, hedge funds, and venture capital funds.

The caption also includes 182 million euro relating to interests held by the bank in the Atlante Fund and in the Italian Recovery Fund (formerly Atlante Fund II), alternative investment funds to support Italian banks in their recapitalisation transactions and in the management of the bad loans in the sector.

Property and equipment measured at level 3 fair value includes real estate assets and valuable art assets, which represent 37% of the balance sheet assets at level 3 fair value.

A total of 80.2% of assets measured at fair value are determined based on market prices (level 1), and therefore without any discretion by the valuator.

A total of 89.2% of the liabilities at fair value are attributable to Level 2, primarily to Financial liabilities designated at fair value.

Fair value hierarchy – Assets and liabilities measured at fair value on a recurring basis: fair value by level (of which: Banking Group and Other companies)

	(millions of euro)
Assets / liabilities at fair value	31.03.2025 31.12.2024
	Level 1	Level 2	Level 3	Level 1	Level 2	Level 3
1. Financial assets measured at fair value through profit
or loss	17,099	28,397	4,323	15,136	27,244	4,255
a) Financial assets held for trading	16,828	27,387	216	14,910	26,337	154
of which: Equities	4,842	-	1	7,588	-	1
of which: quotas of UCI	424	-	37	440	-	37
b) Financial assets designated at fair value	-	2	4	-	2	4
c) Other financial assets mandatorily measured at fair
value	271	1,008	4,103	226	905	4,097
of which: Equities	215	337	13	172	296	13
of which: quotas of UCI	56	198	3,545	54	201	3,540
2. Financial assets measured at fair value through other
comprehensive income	81,543	7,952	691	69,754	6,810	732
of which: Equities	590	114	604	542	122	641
3. Hedging derivatives	-	6,706	-	-	6,469	-
4. Property and equipment	-	-	6,562	-	-	6,600
5. Intangible assets	-	-	-	-	-	-
Total	98,642	43,055	11,576	84,890	40,523	11,587
1. Financial liabilities held for trading	7,558	33,947	8	6,882	35,974	10
2. Financial liabilities designated at fair value	4,909	19,088	178	1,488	21,873	76
3. Hedging derivatives	-	3,481	-	-	4,363	-
Total	12,467	56,516	186	8,370	62,210	86

Exclusively with regard to the assets of the Banking Group and Other Companies, level 3 instruments, which allow for more discretion in fair value measurement, account for a limited portion of the portfolio, with an impact of 7.6% on total assets (8.5% as at 31 December 2024).

A total of 64.4% of assets measured at fair value are determined based on market prices (level 1), and therefore without any discretion by the valuator.

Property and equipment measured at level 3 fair value includes real estate assets and valuable art assets, which represent 56.7% of the balance sheet assets at level 3 fair value.

With regard to these liabilities, 81.7% are classified in level 2, and the share of level 3 instruments is less than 1% of the total. Lastly, the caption "Other assets", not directly included in the table above, comprised tax credits recognised and measured at fair value for 10.4 billion euro as at 31 March 2025, of which 3.2 billion euro held under the Hold to Collect and Sell business model and 7.2 billion euro held under the Other/Trading business model. The fair value of those credits was determined with reference to the changes in interest rates. Given the specific characteristics of the credits in question, they have been assigned to level 3, also in line with the considerations set out in the clarification note issued by the Bank of Italy on 24 July 2023 ("Clarification Note on credit risk").

Report on operations – Risk management

Fair value hierarchy – Assets and liabilities measured at fair value on a recurring basis: fair value by level (of which Insurance Companies)

	(millions of euro)
Assets / liabilities at fair value	31.03.2025 31.12.2024
	Level 1	Level 2	Level 3	Level 1	Level 2	Level 3
1. Financial assets measured at fair value through profit
or loss	94,887	1,006	6,070	97,676	1,078	5,554
a) Financial assets held for trading	30	2	-	38	-	-
of which: Equities	-	-	-	-	-	-
of which: quotas of UCI	-	-	-	-	-	-
b) Financial assets designated at fair value	-	-	-	-	-	-
c) Other financial assets mandatorily measured at fair
value	94,857	1,004	6,070	97,638	1,078	5,554
of which: Equities	5,989	-	89	5,918	-	91
of which: quotas of UCI	81,068	-	4,774	83,830	-	4,696
2. Financial assets measured at fair value through other
comprehensive income	67,874	2,542	102	69,911	2,982	80
of which: Equities	-	-	7	-	-	7
3. Hedging derivatives	-	17	-	-	36	-
4. Property and equipment	-	-	7	-	-	7
5. Intangible assets	-	-	-	-	-	-
Total	162,761	3,565	6,179	167,587	4,096	5,641
1. Financial liabilities held for trading	10	2	-	8	8	-
2. Financial liabilities designated at fair value	-	48,136	-	-	50,646	-
3. Hedging derivatives	-	88	-	-	47	-
Total	10	48,226	-	8	50,701	-

With regard to the assets of Insurance Companies, level 3 instruments, which allow for more discretion in fair value measurement, account for a small portion of the portfolio, with an impact of 3.6% on total assets (3.2% as at 31 December 2024).

94.4% of financial assets measured at fair value in the insurance segment are determined based on market prices (level 1), and therefore without any discretion by the valuator.

Liabilities at fair value were almost entirely measured using level 2 inputs and attributable to Financial liabilities designated at fair value.

INFORMATION ON STRUCTURED CREDIT PRODUCTS

The risk exposure in structured credit products, came to 6,128 million euro as at 31 March 2025, a net increase of 28 million euro compared to the stock of 6,100 million euro as at 31 December 2024. The exposure includes investments in CLOs (Collateralised Loan Obligations) of 3,059 million euro, in ABSs (Asset-Backed Securities) of 2,999 million euro and in CDOs (Collateralised Debt Obligations) of 70 million euro, which continued to be a marginal activity also in 2025.

							(millions of euro)
Accounting categories	31.03.2025				31.12.2024		Changes
	Collateralized Loan Obligations	Asset Backed Securities	Collateralized Debt Obligations	Total		absolute	%
Financial assets held for sale	358	651	-	1,009	961	48	5.0
Financial assets mandatorily measured at fair value	-	-	-	-	-	-	-
Financial assets measured at fair value through other comprehensive income	1,624	582	-	2,206	2,204	2	0.1
Financial assets measured at amortised cost	1,077	1,766	70	2,913	2,935	-22	-0.7
Total	3,059	2,999	70	6,128	6,100	28	0.5

In this disclosure, structured credit products include debt securities held by the Group divided into tranches upon issuance consisting of various degrees of subordination and not issued within transactions originated by entities of the Intesa Sanpaolo Group or by public entities, in addition to those issued within transactions where the Group finances its corporate and financial institution customers16 .

The performance of the portfolio in the first quarter of 2025 shows higher overall investments than disposals and redemptions, with a total increase of 28 million euro, mainly attributable to the operations of the IMI Corporate & Investment Banking Division.

Exposures measured at fair value (CLO and ABS debt securities) increased by 50 million euro, from 3,165 million euro in December 2024 to 3,215 million euro in March 2025. The net increase was attributable to higher investments totalling 520 million euro, of which 413 million euro relating to financial assets held for trading and 107 million euro to financial assets measured at fair value through other comprehensive income, offset by redemptions and disposals totalling 470 million euro, of which 365 million euro relating to the first component and 105 million euro to the second component.

Exposures classified among assets measured at amortised cost (CLO, ABS and CDO debt securities) amounted to 2,913 million euro in March 2025, compared with a balance of 2,935 million euro in December 2024, a net decrease of 22 million euro, generated by disposals and reimbursements totalling 299 million euro, only partially offset by investments totalling 277 million euro.

From the perspective of the income statement, the overall profit of +3 million euro in the first quarter of 2025 compares with a profit of +8 million euro in the same period of 2024.

The performance for the first quarter of 2025 of +3 million euro, entirely attributable to assets held for trading, relates to exposures in CLOs and exposures in ABSs, of which +2 million euro resulting from realisations and +1 million euro from valuations. As at 31 March 2024, the result for these exposures was +6 million euro, consisting of +4 million euro from realisations and +2 million euro from valuations.

The exposures to debt securities classified as assets measured at fair value through other comprehensive income recorded a net increase in fair value of +3 million euro in 2025 through a shareholders' equity reserve (from a reserve of -9 million euro in December 2024 to -6 million euro in March 2025), while there were no impacts from sales in the first quarter of 2025, compared to +2 million euro in the first quarter of the previous year.

For debt securities classified as financial assets measured at amortised cost, the result as at 31 March 2025 was nil, unchanged from 31 March 2024.

							(millions of euro)
Income statement results		31.03.2025			31.03.2024		Changes
broken down by accounting category	Collateralized Loan Obligations	Asset Backed Securities	Collateralized Debt Obligations	Total		absolute	%
Financial assets held for sale	1	2	-	3	6	-3	-50.0
Financial assets mandatorily measured at fair value	-	-	-	-	-	-	-
Financial assets measured at fair value through other comprehensive income	-	-	-	-	2	-2
Financial assets measured at amortised cost	-	-	-	-	-	-	-
Total	1	2	-	3	8	-5	-62.5

¹⁶ This is implemented by the Group through its subsidiary Duomo Funding Plc.

INFORMATION ON ACTIVITIES PERFORMED THROUGH SPECIAL PURPOSE ENTITIES (SPES)

For the purpose of this analysis, legal entities established to pursue a specific, clearly defined and limited objective (raising funds on the market, acquiring/selling/managing assets both for asset securitisations, acquisition of funding through selfsecuritisations and the issuance of covered bonds, developing and/or financing specific business initiatives, undertaking leveraged buy-out transactions, or managing credit risk inherent in an entity's portfolio) are considered Special Purpose Entities (SPEs).

The sponsor of the transaction is normally an entity which requests the structuring of a transaction that involves the SPE for the purpose of achieving certain objectives. In some cases, the sponsor may be the Bank itself, which establishes a SPE to achieve one of the aims mentioned above.

For the SPE categories identified as non-consolidated structured entities, no changes have been made to the criteria applied by the Intesa Sanpaolo Group to decide whether to include said entities in the scope of consolidation, compared to the information provided in 2024 Annual Report.

With regard to the Covered Bond issuance programmes, under the Covered Bond issuance programme guaranteed by ISP CB Ipotecario, two retained issues of Covered Bonds were carried out in January, listed on the Luxembourg Stock Exchange with a Moody's rating of Aa3: the 39th series for 1.5 billion euro, with floating rate and 6-year maturity and the 40th series for 1.5 billion euro, with floating rate and 11-year maturity. The 14th series also matured in January, for an amount of 1 billion euro.

Under the Covered Bond programme guaranteed by ISP OBG, the 25th retained series matured in February for the remaining amount of 500 million euro. In March, the following retained series were redeemed early:

• 22nd, for the total amount of 1.75 billion euro;
• 33rd, for the amount of 185 million euro (with a consequent remaining amount of 1.465 billion euro);
• 36th, for the amount of 1.3 billion euro (with a consequent remaining amount of 500 million euro);
• 37th, for the amount of 250 million euro (with a consequent remaining amount of 1 billion euro);
• 38th, for the amount of 250 million euro (with a consequent remaining amount of 1.5 billion euro).

In March, the 48th retained series was issued for 3 billion euro, with a fixed rate and an 8-year maturity.

Within the covered bond programme guaranteed by UBI Finance, the 17th series matured in February for an amount of 1 billion euro.

With regard to self-securitisations, for Brera Sec (SEC 2), the second Residential Mortgage Backed Security ("RMBS") transaction in the Brera series, the loan portfolio was fully repurchased in the last ten days of January, with payment of the corresponding price at the end of the same month for an amount of 4.4 billion euro. The transaction was closed with full early redemption of the securities on the final payment date of 17 March 2025.

INFORMATION ON LEVERAGED TRANSACTIONS

In line with the ECB reference regulations, "Guidance on Leveraged Transactions", the scope of leveraged transactions includes exposures in which the borrower's level of leverage, measured as the ratio of total financial debt to EBITDA, is greater than 4, as well as exposures where the borrower is owned by one or more financial sponsors. Moreover, counterparties with Investment Grade ratings, private individuals, credit institutions, financial institutions and companies in the financial sector in general, public entities, non-profit entities, as well as counterparties with credit facilities below a certain materiality threshold (5 million euro), Retail SME counterparties and Corporate SME counterparties (the latter if not owned by financial sponsors) are explicitly excluded from that scope. Specialised lending transactions (project finance, real estate and asset financing) and certain other types of credit facilities, such as trade finance transactions, are also excluded.

As at 31 March 2025, for the Intesa Sanpaolo Group, transactions that meet the definition of "Leveraged Transactions" according to the ECB Guidance amounted to 29.1 billion euro, relating to 2,275 credit lines. The geographical distribution shows that more than half of the transactions, in terms of volume, were with domestic counterparties (56%). The main economic macro-sectors of the counterparties concerned were the industrial, services and financial sectors.

In accordance with the requirements of the ECB Guidance, within the Credit Risk Appetite, specific limits for the outstanding stock of leveraged transactions, limits on new transaction flows, and early warning thresholds on concentration have been approved by the Parent Company's Board of Directors, in line with the Group's risk appetite for these types of operations.

INFORMATION ON INVESTMENTS IN HEDGE FUNDS

The Parent Company's hedge fund portfolio as at 31 march 2025 amounted to 244 million euro for the trading book and 200 million euro for the banking book for a total of 444 million euro, compared to 245 million euro and 204 million euro, respectively, for a total of 449 million euro as at 31 December 2024.

The investments in the banking book are recognised under financial assets mandatorily measured at fair value and pertain to funds that adopt medium- to long-term investment strategies and average redemption times that are longer than those of UCITS (Undertakings for Collective Investment Schemes in Transferable Securities) funds.

In 2025 there was a slight decrease in the balances, compared to the end of the previous year, of -5 million euro, which included disposals of -2 million euro, fair value measurements of -1 million euro and foreign exchange revaluations of -2 million euro.

Specifically, the disposals and foreign exchange revaluations related to the banking book, while the fair value measurements related to the trading book. In the latter, although no new positions were recorded in the first quarter of 2025, the due diligence continues to be implemented, aimed at prioritising trading investments in UCITS hedge funds that best meet the capital absorption requirements, in line with the CRR2 provisions effective from 30 June 2021.

In terms of effects on the income statement, the overall result for the first quarter of 2025 was nil (+1 million euro from the banking book and -1 million euro from the trading book), whereas in the first quarter of 2024 the income statement result was positive at +13 million euro, attributable to the measurement of financial assets mandatorily measured at fair value (+6 million euro) and financial assets held for trading (+7 million euro).

Within the Intesa Sanpaolo Group, as at 31 March 2025 Eurizon Capital SGR held hedge funds for a total of 14 million euro (exposure unchanged compared to 31 December 2024), at fair value through profit or loss of +0.2 million euro from valuation effects (+0.4 million euro also from valuations as at 31 March 2024). Hedge funds are held according to a seeding approach that involves setting up a service portfolio consisting of shares of mutual funds for which marketing has begun in support of the funds.

INFORMATION ON TRADING TRANSACTIONS IN DERIVATIVES WITH CUSTOMERS

Considering relations with customers only, as at 31 March 2025, the Intesa Sanpaolo Group, in relation to derivatives trading with retail customers, non-financial companies and public entities (therefore excluding banks, financial and insurance companies), presented a positive fair value, not having applied netting agreements, of 2,558 million euro (3,039 million euro as at 31 December 2024). The notional value of these derivatives totalled 46,934 million euro (47,654 million euro as at 31 December 2024).

The positive fair value of contracts outstanding with the 10 customers with the highest exposures was 1,388 million euro (1,544 million euro as at 31 December 2024).

Conversely, the negative fair value referring to total contracts outstanding, determined with the same criteria, for the same types of contracts and with the same counterparties, totalled 2,206 million euro as at 31 March 2025 (2,417 million euro as at 31 December 2024). The notional value of these derivatives totalled 50,124 million euro (52,267 million euro as at 31 December 2024).

The fair value of derivative financial instruments entered into with customers was determined considering, as for all other OTC derivatives, the creditworthiness of the single counterparty ("Bilateral Credit Value Adjustment"). With regard to contracts outstanding as at 31 March 2025, these led to a negative impact of 10 million euro under "Profits (Losses) on trading in the income statement" (negative impact of 1 million euro as at 31 March 2024).

For details of the methodologies used in determining the fair value of financial instruments, see the paragraphs specifically dedicated to this subject in the 2024 Annual Report.

Please note that the figures reported above do not include fair value of derivatives embedded in structured bond issues as well as the related hedges taken out by the Group.

OPERATIONAL RISKS

Operational risk is the risk of incurring losses resulting from inadequate or failed internal processes, people and systems or from external events17 .

The Intesa Sanpaolo Group has been using for some time a specific framework for the governance of operational, ICT and security risks, recently updated to incorporate the regulatory changes introduced by CRR3 – as reported in detail in the section "Basel regulation and the internal project" of this Report – effective from January 2025, which in turn incorporated the changes contained in the final Basel 4 reform, promoted internationally by the Basel Committee.

The new CRR3/Basel 4 regulatory framework has fundamentally altered the methodology for calculating the prudential capital requirement, eliminating the possibility of using internal models (the Group used the AMA internal model – in partial use with the Standardised and Basic approaches – to determine the capital requirement until 31 December 2024) and introducing a single standardised calculation method, referred to as the Standardised Approach (SA).

Under the new rules, the capital requirement is determined in line with the size of business activities (Business Indicator – BI), primarily using FINREP items (averaged over the previous three years), weighted with regulatory coefficients by band. The methodology also requires the inclusion of the duly reconciled accounting impact of the operational losses over the three-year period. The new regulatory framework therefore confirms the importance of high-quality operational loss data collection, in addition to the requirement for an effective, properly structured overall operational risk governance framework, supported by suitable infrastructure and verified by an independent function.

For the first report in March 2025, to be sent to the Regulator by June 2025, the average of the FINREP entries for the threeyear period 2022-2024 will be used. Thereafter, the reporting will be done quarterly, and capital requirement calculation will be updated annually, with reference to 31 December of each year, subject to any changes in the scope of consolidation that may have occurred during the quarter.

Legal risks

Legal risks are thoroughly analysed by the Parent Company and Group companies. Provisions are made to the allowances for risks and charges in the event of disputes for which it is probable that funds will be disbursed and where the amount of the disbursement may be reliably estimated. For the main pending disputes, the significant developments in the quarter are described below. For information on past disputes and for a detailed description of individual significant disputes, see the Notes to the 2024 Annual Report of the Intesa Sanpaolo Group.

Transfer of business units to Isybank – Proceedings of the Italian Personal Data Protection Authority

By order of 3 January 2025, the Italian Personal Data Protection Authority - after having carried out a preliminary investigation in the context of which it had made a number of requests for information to the Bank, which were duly fulfilled - informed Intesa Sanpaolo that its conduct in the context of the transfer of the business lines to Isybank was in breach of certain provisions of the General Data Protection Regulation (GDPR), with regard to the identification of the legal basis for the processing of data aimed at identifying the "mainly digital" customers included in the branches being contributed and to the information provided to such customers.

With the same measure, the Data Protection Authority announced the start of a procedure for the adoption of corrective measures and – if deemed applicable – the administrative penalties provided for by the GDPR.

On 3 March 2025, the Bank filed its defence submissions with the Data Protection Authority.

Unauthorised access to personal data - current judicial and administrative proceedings

In July 2024, the Bank notified the Italian Personal Data Protection Authority of certain accesses to customer data by an employee apparently not justified by service reasons and detected by the Bank's alert systems.

As a result of the investigations carried out, the employee was first suspended from duty and then dismissed for cause. The Bank also lodged a complaint with the Public Prosecutor's Office at the Court of Bari against the former employee for unauthorised access to a computer system. In the criminal proceedings against the former employee, the Bank, in addition to being the plaintiff and injured party, is under investigation as an entity pursuant to Legislative Decree no. 231/2001, even though, as things stand, the acts attributed to the former employee appear to have been committed to the detriment of the Bank and not for its benefit. The Bank received a number of requests for information and documents from the Public Prosecutor's Office, to which it responded providing full cooperation.

The Bank notified the customers whose data was accessed by the former employee of the data breach where such access could not be attributed with certainty to service needs, as required by the Italian Personal Data Protection Authority by measure of 2 November 2024.

In that measure, the Authority reserved "any other decision at the end of its investigation into the case". Once the Authority has communicated the outcome of its investigation, a clearer picture of possible developments of the proceedings will be available.

¹⁷ As far as the financial losses component is concerned, operational risk also includes the following risks: legal, conduct, compliance, financial crime, fiscal, technological, cybersecurity, physical security, third-party, data quality, fraud, process and employer risk. Strategic and reputational risk are not included.

Dispute regarding financial derivative instruments

With regard to derivative transactions, the legal risks linked to legal proceedings with local authorities, their subsidiaries and individuals continue to be subject to careful monitoring.

Specifically, 15 disputes are pending with local authorities, with possible or likely risk, for total claims of 77 million euro, and 5 disputes with subsidiaries of public entities, with total claims of 19 million euro. Disputes with individuals, assessed as having possible or likely risk, total 153, and of these, 42 positions also regard requests for refunds of amounts on other accounts held with the Bank. Net of those latter positions, the total value of the claims lodged in the proceedings regarding only derivatives amounts to around 83 million euro.

Dispute regarding Euribor Manipulation

By two decisions, in 2013 and 2016, the European Commission established the existence of a cartel between a number of European banking groups (Barclays, Deutsche Bank, Société Générale, The Royal Bank of Scotland, Crédit Agricole, HSBC and JPMorgan Chase) in the period between 29 September 2005 and 30 May 2008 aimed at manipulating Euribor.

In Italy, a dispute has arisen in which customers – in addition to making general claims concerning loan agreement – claim the nullity of the Euribor indexation clause included in the contracts, even where, as in the case of Intesa Sanpaolo, the lending bank did not participate in the cartel. To date, this phenomenon has had a limited impact in terms of volume; the lower courts have mainly ruled in the Banks' favour.

In July 2024, in the context of a dispute brought against a credit intermediary, the matter was referred to the Joint Divisions to resolve the conflict that had emerged between the First and Third Divisions of the Court on the perimeter of the contracts potentially affected by the cartel ("downstream contracts") and on the potential remedies available to clients to challenge their validity.

In his conclusions in the proceedings before the Joint Divisions, the Pubblic Prosecutor's Office requested the rejection of the clients' claim, noting the absence of an objective connection between the cartel and the "downstream" mortgage loan contracts at issue in the dispute.

In the first quarter of 2025, as part of a dispute brought against Intesa Sanpaolo on a securitised bad loan deriving from a mortgage loan contract, the Cagliari Court of Appeal made a reference for a preliminary ruling to the European Court of Justice (CJEU) to verify the possible impact of Euribor manipulations on "downstream" contracts concluded between banks and their clients.

The questions put to the Court was:

− whether the evidence of manipulation established by the European Commission is binding on national courts;

− whether the anti-competitive cartel constitutes a prohibited agreement solely in the derivatives market (where it took place) or in any market which used the manipulated Euribor benchmark, such as the mortgage loan market.

In the light of the reference for a preliminary ruling made by the Court of Cagliari, the Joint Divisions of the Court of Cassation decided to handle the action brought against another intermediary as a new case.

Reference for a preliminary ruling to the Court of Cassation on the legitimacy of the fixed instalment repayment plan

On 29 May 2024 the Joint Divisions of the Court of Cassation (by ruling no. 15130) ruled on an important issue for banking operations: specifically, whether the failure to indicate in a fixed-rate mortgage loan agreement the fixed instalment repayment method (called French amortization method) and the compound capitalisation regime makes the purpose of the contract vague or impossible to determine.

The Joint Divisions set out the following approach to interpretation, also applicable beyond the case submitted to their examination (as per the role as guarantor of the uniform interpretation of the law): "Regarding fixed-rate bank mortgages with repayment of the loan in instalments governed by a standardised, traditional repayment plan, the failure to indicate the repayment method and compound capitalization of debt interest regime cannot give rise to partial nullity of the contract, either due to vagueness of or the inability to determine the purpose of the contract, or due to breach of the regulations on transparency of contractual conditions and relations between credit institutions and their customers".

This ruling will make it possible to significantly limit the risk of proliferation of disputes regarding objections to fixed instalment repayment methods.

The Court of Cassation issued a further ruling on the matter by Order no. 7382 of 19 March 2025. It found that the principles upheld by the Joint Divisions in their judgment of May 2024 with regard to fixed-rate mortgage loans should also be extended to floating-rate mortgage loans having an annexed amortisation plan.

Italian Antitrust Authority (AGCM) proceedings against Intesa Sanpaolo RBM Salute – now Intesa Sanpaolo Protezione.

In November 2020, the AGCM had initiated proceedings against Intesa Sanpaolo RBM Salute for unfair business practices, which concluded in July 2021 with a fine of 5 million euro and a warning to cease the unfair practice. Intesa Sanpaolo RBM Salute appealed the AGCM's decision before the Lazio Regional Administrative Court, which, in November 2022, after having considered the complaint made regarding the lateness of the Authority's intervention to be valid, upheld the appeal and annulled the penalty measure in full. The AGCM appealed the judgement of the Regional Administrative Court before the Council of State, which suspended the judgement in January 2024, pending the ruling of the Court of Justice of the European Union on a number of preliminary questions relevant to the judgement. Following the Lazio Regional Administrative Court's judgement, the Italian Antitrust Authority issued an order of "no grounds for further action" in the non-compliance proceedings, which it had initiated on the grounds that Intesa Sanpaolo RBM Salute was not complying with the warning contained in the penalty measure. However, the Authority has reserved the right to defer any decisions until the outcome of the proceedings before the Council of State.

In its judgments of 30 January 2025, the Court of Justice of the European Union issued its preliminary ruling, where it held that the peremptory 90-day time limit, under Law no. 689/1981, by which the Authority must notify the company concerned of the proceedings against it, is incompatible with EU consumer law. The breach of said time limit was one of the grounds for the Lazio Regional Administrative Court's decision to annul the AGCM's measure.

On 28 February 2025, the AGCM filed a petition for the resumption of the suspended case before the Council of State, which set the hearing for 25 September 2025.

Report on operations – Risk management

Reyl & Cie (Switzerland) – Proceedings pursuant to Legislative Decree no. 231/2001 of the Public Prosecutor's Office at the Court of Milan

The Public Prosecutor's Office of Milan initiated criminal proceedings pursuant to Legislative Decree no. 231/2001 against Reyl & Cie (a Swiss subsidiary of Fideuram – Intesa Sanpaolo Private Banking) for the predicate offence of money laundering, allegedly committed by one of its former employees (dismissed in 2020), and ordered the seizure of securities owned by Reyl & Cie for around 1.1 million euro. The proceedings also involve the Swiss bank Cramer & Cie. Neither Fideuram Intesa Private Banking nor Intesa Sanpaolo were involved in the proceedings. The circumstances alleged relate to events that took place in 2018, before Reyl & Cie joined the Intesa Sanpaolo Group in May 2021. According to the prosecution, the former employee, together with his brother, an employee of the bank Cramer & Cie, and an external advisor, allegedly engaged in practices aimed at facilitating tax evasion by Italian customers through the transfer of accounts from Switzerland to branches located in the Bahamas, in order to allow those customers to withdraw money from those accounts without the possibility of being traced by the Italian authorities. Within the criminal proceedings pursuant to Legislative Decree 231/01 pending before the Court of Milan for alleged money laundering offences, in February 2024 Reyl & Cie was notified of the indictment of the former employee and his brother, as well as Cramer & Cie and Reyl & Cie. The preliminary hearing was consequently set by the preliminary investigation judge (GIP) for 3 July 2024. On conclusion of discussion between Reyl & Cie's defence counsel and the Public Prosecutor at the hearing of 3 July 2024, with the view to avoiding a drawn out dispute, and without recognising any liability for the circumstances alleged, the bank filed a petition to apply a financial penalty (plea bargain), which was accepted by the Public Prosecutor.

By judgement of 13 March 2025, the preliminary investigation judge (GIP) of the Court of Milan, accepting the plea bargain request submitted by Reyl & Cie, imposed a fine of 267,000 euro and ordered the confiscation of 723,000 euro. At the same time, the judge ordered the release of 1.1 million euro previously seized from Reyl & Cie.

Labour litigation

In line with the situation as at 31 December 2024, as at 31 March 2025 there were no significant cases of labour litigation from either a qualitative or quantitative standpoint. In general, all labour litigation is covered by specific provisions adequate to meet any outlays.

Tax litigation

The tax litigation risks of the Group (considering the subsidiaries subject to line-by-line consolidation) are covered by adequate provisions for risks and charges.

With regard to Intesa Sanpaolo, as at 31 March 2025, the claims decreased by 0.2 million euro, while provisions increased by 0.2 million euro. There are 448 pending litigation proceedings (429 as at 31 December 2024) for a total amount claimed (taxes, penalties and interest) of 107.7 million euro (107.9 million euro as at 31 December 2024), considering both administrative and judicial proceedings at various instances.

In relation to these proceedings, the actual risks were quantified at 40.6 million euro as at 31 March 2025 (40.4 million euro as at 31 December 2024).

Compared to 31 December 2024, for the Parent Company, the main events that gave rise to significant changes in the amounts claimed (-0.2 million euro) include:

• − an increase (1.8 million euro), due to: i) new claims of 0.6 million euro for municipal property tax (IMU) on terminated lease contracts; ii) new claims of 0.4 million euro for registration tax, almost entirely concerning registration tax on judicial documents; iii) new claims of 0.6 million euro for mortgage and land registry taxes; and iv) accrued interest expenses of 0.2 million euro;
• − a decrease (2 million euro) due to: i) closures of claims concerning registration tax for 1.6 million euro, of which: 0.8 million euro on judicial documents, 0.6 million euro on real estate sales, and 0.2 million euro on the reclassification into business sale of a business contribution followed by the sale of the equity investment; ii) closures of disputes for municipal property tax (IMU) on real estate from both terminated and current lease contracts for 0.4 million euro.

Also compared to 31 December 2024, for the Parent Company, the main changes in provisions (0.2 million euro) consisted of:

• − an increase (0.9 million euro), due to: i) new municipal property tax (IMU) claims on terminated lease contracts amounting to 0.2 million euro; ii) new claims of 0.6 million euro for mortgage and land registry taxes; and iii) legal fees and interest expenses on pending disputes amounting to 0.1 million euro;
• − a decrease (0.7 million euro) attributable to:
  • o use (0.1 million euro) for legal expenses;
    • o releases to the income statement (0.6 million euro) referring to: i) the closure of municipal property tax (IMU) disputes on real estate from terminated lease contracts (0.3 million euro); ii) registration tax on real estate sales (0.1 million euro), as well as registration tax on the reclassification into business sale of a business contribution followed by the sale of the equity investment (0.2 million euro).

For details of the main outstanding claims, see the Notes to the consolidated financial statements as at 31 December 2024, except for the following.

Former Medioleasing – Registration tax on Ancona Civil Court judgment

On 18 October 2023, the Italian Revenue Agency – Provincial Directorate I of Ancona served a notice of assessment for registration tax of 0.5 million euro relating to a 2021 judgment of the Civil Court of Ancona which ordered a real estate company, the lessee of a hotel complex, to pay Medioleasing (merged by incorporation into Nuova Banca Marche, in turn merged into the former UBI Banca) 11.1 million euro for overdue pre-lease fees, sums paid in relation to work-in-progress and interest on arrears, following the declared termination of the lease contract due to non-performance by the lessee.

Intesa Sanpaolo challenged the notice by filing an action in December 2023 with the Ancona Tax Court of first instance, claiming that the 3% proportional registration tax on the lease payment order was unlawful, and thus the tax was unlawful as to 0.3 million euro. In the course of the proceedings, the Revenue Agency issued on 24 March 2024 a new notice replacing the challenged notice, of substantially the same amount but with a different reason, which was also challenged by the Bank. By judgment filed on 25 March 2024, the Tax Court of first instance of Ancona declared the matter of the dispute in relation to the first notice to have ceased, ordering the Revenue Agency to pay the costs of the proceedings. In a subsequent judgment filed on 5 November 2024, the Court upheld the action against the second notice, holding that the fixed registration tax and not the proportional tax was applicable, since the payment concerned the refund of sums as a consequence of the termination of a contract. The Revenue Agency appealed the judgment before the second instance Tax Court of Marche region on 10 January 2025; Intesa Sanpaolo filed its counter-arguments in the appeal on 11 March 2025. We are awaiting the date for the court hearing to examine the case.

Intesa Sanpaolo – Registration tax on the judgment of the Civil Court of Lecco

On 4 December 2023, the Italian Revenue Agency – Provincial Directorate of Lecco issued a notice of assessment for registration tax of 0.5 million euro relating to a 2022 injunction issued by the Civil Court of Lecco ordering an industrial company to pay Intesa Sanpaolo – as assignee of the receivable for (non-financial) lease payments on the building where the company has its production plant – a total of 13.2 million euro plus VAT and interest on arrears. The notice was challenged within the legal deadlines by objecting, inter alia, with regard to the proportional 3% registration tax on the lease payment order (0.4 million euro), infringement of the principle that VAT and registration tax are mutually alternative taxes.

By judgment filed on 14 June 2024, the first instance Tax Court of Lecco upheld Intesa Sanpaolo's action, annulling the challenged notice and ordering the Revenue Agency to pay the costs. The Agency appealed to the Lombardy Tax Court of second instance, and Intesa Sanpaolo filed its own counter-arguments in the appeal. By judgment filed on 31 March 2025, the Court rejected the Revenue Agency's appeal, upholding the first instance decision.

Former Banca Apulia – Registration tax on ruling of the Civil Court of Bari

On 15 July 2024, the Italian Revenue Agency – Provincial Directorate of Bari issued a notice of assessment for registration tax of 1.1 million euro related to a 2023 ruling by the Court of Bari. This ruling ordered Intesa Sanpaolo, as the successor of Banca Apulia, to pay the Municipality of Bari 18 million euro, including 1 million euro in interest (based on a guarantee provided by the Bank in favour of the consortium that carried out the contract for the construction of the San Nicola Stadium in Bari), and also ordered the consortium to indemnify Intesa Sanpaolo with respect to the ruling. This notice was annulled by way of internal review and replaced by a new notice, with amended grounds, served on 8 August 2024 for an almost identical amount (difference of a few thousand euro). Intesa Sanpaolo filed an action against the latter notice and subsequently accepted a settlement proposal from the Revenue Agency, which recognised the amount of 262,000 euro as not due. As a result, the proceedings were discontinued by judgment of the Bari Tax Court of first instance on 11 February 2025.

With regard to the disputes settled during the period, one of the main ones concerned the registration charged on the 2021 judgment of the Court of Rome. On 13 February 2022, the Italian Revenue Agency – Provincial Directorate I of Rome issued an assessment notice for 0.7 million euro, which Intesa Sanpaolo challenged in court, requesting its full cancellation and, in the alternative, the cancellation of 0.2 million euro. The Revenue Agency, following internal review partially cancelled notice as to 0.2 million euro – thus accepting Intesa Sanpaolo's alternative claim. This was acknowledged by the judgment of the Tax Court of first instance of Rome filed on 18 March 2024, which Intesa Sanpaolo decided not to appeal. The judgment has become final and, as a result, this dispute is closed.

* * *

With regard to Intesa Sanpaolo's international branches, please see the Notes to the Consolidated Financial Statements as at 31 December 2024; new events are reported below.

* * *

The tax audit on the Munich branch of the former UBI Banca for the years 2015 to 2018, which started in 2021, was closed without any findings for the years 2015 to 2017. In March 2025, the Munich Tax Office requested details and documentation on VAT for the year 2018, which the Bank delivered via local consultants. There are currently no findings.

The tax audit of the Frankfurt branch for the year 2019, concerning income tax, which started in June 2024, was closed without any findings in February 2025.

The audit of the London branch – started with a questionnaire dated 4 January 2023 from the UK tax authority (HMRC) with regard to the year 2020, extended in December 2024 to the year 2022 and continued with the delivery of a substantial amount of documentation in 2023 and 2024 in response to questions from the HMRC (mainly on international transfer pricing) – continued in February 2025 with a further communication from the authority restricting the investigations to the provision of services/transfers of goods between Intesa Sanpaolo's London branch and other Group entities as well as to the branch's own funds. The additional information requested was duly provided.

* * *

With regard to the whole amount of the tax disputes pending as at 31 March 2025, Intesa Sanpaolo's provisional tax payment assets amounted to 13.7 million euro (13.2 million euro as at 31 December 2024). The increase of 0.5 million euro was due to new payments made during the quarter. The provisional payments in question were made in compliance with specific legal provisions, which provide for the mandatory payment based on an automatic mechanism totally independent of whether the related tax claims are actually founded and, thus, irrespective of the higher or lower level of risk of a negative outcome in the related proceedings. Thus, these payments were made solely because the administrative acts containing the tax claim are enforceable even in the event of an appeal, which has no suspensive effect. Provisional tax payments do not affect assessments of the actual risk of loss, which is measured in accordance with IAS 37 for liabilities.

INSURANCE RISKS

Investment portfolios

The investments of the insurance companies of the Intesa Sanpaolo Group (Intesa Sanpaolo Assicurazioni, Intesa Sanpaolo Protezione and Fideuram Vita) are made with their shareholders' fund and to cover contractual obligations with customers. These refer to traditional revaluable life insurance policies, unit-linked policies, pension funds and non-life policies.

As at 31 March 2025, the investment portfolios of Group companies, recorded at book value, amounted to 175,874 million euro. Of these, a part amounting to 91,400 million euro relates to traditional revaluable life policies (the financial risk of which is shared with the policyholders by virtue of the mechanism whereby the returns on assets subject to segregated management are determined), non-life policies and shareholders' fund. The other component, whose risk is borne solely by the policyholders, consists of investments related to Unit-linked policies and pension funds and amounted to 84,474 million euro.

Considering the various types of risks, the analysis of investment portfolios, described below, concentrates on the assets held to cover traditional revaluable life policies, non-life policies and shareholders' fund.

In terms of breakdown by asset class, net of derivative financial instruments, 83.6% of assets, i.e. 76,428 million euro, were bonds, whereas assets subject to equity risk represented 2.4% of the total and amounted to 2,236 million euro. The remainder, amounting to 12,787 million euro (14%) consisted of investments relating to UCI, Private Equity and Hedge Funds. The carrying value of derivatives came to around -51 million euro, of which around 21 million euro relating to effective management derivatives, and the remaining portion (around -70 million euro) is attributable to hedging derivatives.

At the end of the first three months of 2025, investments made with the shareholders' fund of Intesa Sanpaolo Assicurazioni and Fideuram Vita amounted to around 1,301 million euro at market value, and presented a risk in terms of VaR (99% confidence level, 10-day holding period) of around 16 million euro.

The breakdown of the bond portfolio in terms of fair value sensitivity to interest rate changes showed that a +100 basis points parallel shift in the curve leads to a decrease of around -4,378 million euro.

The distribution of the portfolio by rating class was as follows: AAA/AA bonds represented 4.7% of total investments and A bonds 12.7%; low investment grade securities (BBB) represented 79.4% of the total, while the portion of speculative grade or unrated was minimal (3.2%); in the BBB area, a considerable proportion was made up of securities issued by the Italian Republic.

The analysis of the exposure in terms of the issuers/counterparties shows the following components: securities issued by Governments and Central Banks make up 69.7% of the total investments, while financial companies (mostly banks) contribute 20.6% of exposure and industrial securities make up 9.7%.

At the end of the first quarter of 2025, the fair value sensitivity of bonds to a change in issuer credit rating, intended as a market credit spread shock of +100 basis points, was -4,554 million euro, with -3,722 million euro due to government issuers and -832 million euro to corporate issuers (financial institutions and industrial companies).

Accounting policies

Criteria for the preparation of the Interim Statement

General preparation principles

As known, with Legislative Decree 25 of 15 February 2016, Directive 2013/50/EU, amending Directive 2004/109/EC (i.e. "Transparency Directive"), has been transposed into the Italian legal system. By transposing the European regulation, the provisions concerning financial reports were changed, among others, innovating the rules regarding the publication, by the listed issuers with Italy as Member State of origin, of additional periodic information other than the annual report and half-yearly report. The wording of Article 154-ter (Financial reports), paragraphs 5 and 5-bis, of the Consolidated Law on Finance, allows CONSOB to arrange, towards the issuers stated above, the obligation to publish the additional periodic information. However, in exercising its duties – and following a consultation process – CONSOB has given the issuers the choice on publishing the Interim Statements.

In this context, Intesa Sanpaolo publishes – on a voluntary basis – financial information as at 31 March and 30 September of each financial year, in addition to the annual report and half-yearly report. This information consists of interim statements on operations approved by the Board of Directors, basically providing continuity with the interim statements published in the past.

The Interim Statement as at 31 March 2025 has been prepared in consolidated form, in compliance with the recognition and measurement criteria required by the IAS/IFRS issued by the International Accounting Standards Board (IASB) and the relative interpretations of the International Financial Reporting Standards Interpretations Committee (IFRS-IC) and endorsed by the European Commission as provided for by Community Regulation 1606 of 19 July 2002.

The accounting standards adopted in preparation of this Interim Statement, with regard to the classification, recognition, measurement and derecognition of the balance sheet assets and liabilities, and the recognition methods for revenues and costs, have remained unchanged compared to those adopted for the Intesa Sanpaolo Group 2024 Annual Report, which should be consulted for the complete details.

Regulation No. 2862/2024 of 12 November 2024, commented below, applies from 1 January 2025. No aspects of particular significance to the Group have been identified in relation to this regulation.

Regulation no. 2862/2024 of 12 November 2024: Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates - Lack of Exchangeability

Regulation no. 2862/2024 of 12 November 2024 amends IAS 21 specifying when a currency is exchangeable into another currency and how to determine the exchange rate when it is not and the disclosure required. The amendments mainly include the introduction of the definition of "exchangeability"18 and an application guidance to assist entities in determining when a currency is exchangeable (for example, by clarifying how to assess the time frame to obtain the currency).

It should be noted that the amendments do not provide guidance on how to estimate exchange rates when the currency is not exchangeable; instead, detailed disclosure is required to enable readers to understand the methodologies adopted and the impacts on the financial statements.

As also noted by the IASB the cases subject to regulatory intervention are not frequent. Therefore, given the current context, these amendments are not expected to be particularly significant for the Intesa Sanpaolo Group.

The Interim Statement as at 31 March 2025, drawn up in euro as the functional currency, contains the consolidated balance sheet, the consolidated income statement, the statement of consolidated comprehensive income and the changes in consolidated shareholders' equity, prepared in accordance with the 8th update to Circular 262, together with these accounting policies and a report on operations. It also includes information on significant events during the period and the main risks and uncertainties.

The amounts indicated in the consolidated financial statements and explanatory notes are expressed in millions of euro, unless otherwise specified.

In addition to the amounts for the reporting period, the financial statements also indicate the corresponding comparison figures for the period ended 31 March 2024 for the Income statement and as at 31 December 2024 for the Balance sheet.

The main assets held for sale at 31 March 2025 include: (i) the investment in Cronos Vita Assicurazioni, 22.5% owned by Intesa Sanpaolo Assicurazioni (formerly Intesa Sanpaolo Vita) as part of the system-wide transaction aimed at protecting the underwriters of Eurovita policies, which involved five leading Italian insurance companies. From the outset of this transaction, the shareholder companies had the stated intention to hold the investment for a limited period (the investment was classified among assets held for sale back in December 2023, and confirmed also at the end of 2024). The total non-proportional demerger of Cronos Vita is expected to become effective in the fourth quarter of 2025; (ii) properties, including those, valued at around 0.5 billion euro, which are part of the transfer set out in the agreement signed between Intesa Sanpaolo and COIMA on 19 April 2024, due to be completed in the second quarter of 2025; and (iii) the assets and liabilities of Intesa Sanpaolo Rent Foryou, which will be contributed to Grenke Locazione S.r.l. during 2025, as part of the industrial partnership in the

¹⁸ IAS 21.8: "A currency is exchangeable into another currency when an entity is able to obtain the other currency within a time frame that allows for a normal administrative delay and through a market or exchange mechanism in which an exchange transaction would create enforceable rights and obligations."

operational leasing of capital goods with Grenke AG, a company listed on the Frankfurt Stock Exchange and a market leader in Italy.

On the other hand, with regard to the non-performing loans that were classified as assets held for sale as at 31 December 2024, mainly consisting of bad loans with a total gross value of approximately 0.3 billion euro, the sale of the portfolio was finalised on 24 March 2025. Thus, at the end of the first quarter of 2025, the "assets held for sale" caption only comprised residual marginal exposures that had been reclassified as part of the broader de-risking operation finalised in April 2024 and which will be contributed to a fund during 2025.

The Interim Statement as at 31 March 2025 is accompanied by the certification by the Manager responsible for preparing the Company's financial reports, in accordance with Article 154-bis of the Consolidated Law on Finance. The consolidated financial statements are subject to review by the Independent Auditors EY S.p.A. according to the approach required for the issuance of the certification required by Article 26, paragraph 2, of European Union Regulation no. 575/2013 and the European Central Bank Decision no. 2015/656.

With regard to auditing activity, as previously reported, on 30 April 2019 the ordinary shareholders' meeting awarded EY S.p.A. the engagement for the independent audit of the accounts for the financial years 2021 to 2029.

Scope of consolidation and consolidation methods

Scope of consolidation

The Consolidated financial statements include Intesa Sanpaolo and the companies that it directly and indirectly controls and consider in the scope of consolidation – as specifically set out by IAS/IFRS – also the companies operating in dissimilar sectors from the Parent Company as well as private equity investments. Similarly, structured entities are included when the requisite of effective control recurs, even if there is no stake in the company.

Companies are considered subsidiaries where Intesa Sanpaolo is exposed to, or has rights to, variable returns from its involvement with them, and has the ability to affect those returns by exercising its own power over the entity in question. Control only exists if all of the following conditions are met:

• − the power to direct the relevant activities of the subsidiary;
• − the exposure, or rights, to variable returns from the involvement with the investee;

− the ability to use the power over the investee to affect the amount of the investor's returns.

Companies are considered as subject to joint control if control is directly or indirectly contractually shared by the Parent Company with one or more other parties external to the Group, or where the decisions about the relevant activities require the unanimous consent of all the parties sharing control.

Companies are considered associates, that is subject to significant influence, when Intesa Sanpaolo, directly or indirectly, holds 20% or more of the voting rights (including "potential" voting rights) or when the Parent Company – despite a lower percentage of voting rights due to specific legal agreements such as the participation of voting syndicates – has the power of participating in the determination of the financial and operating policies of the company.

Certain companies in which the Parent Company holds an equity stake exceeding 20% of voting share capital are excluded from the scope of consolidation and are classified based on the provisions of IFRS 9, since they are of limited absolute amount, or since Intesa Sanpaolo, directly or indirectly, exclusively holds rights on a portion of the rewards of the investment, and does not have access to management policies and may exercise limited governance rights to safeguard its economic interest.

Equity investments held, directly or through funds, in companies involved in the venture capital business are also excluded from the line-by-line scope of consolidation. These equity investments are included in the category of Financial assets measured at fair value through profit or loss.

Companies for which the shares have been received as pledges with voting rights exceeding 20% are not consolidated, in consideration of the substance underlying the pledge, which has the purpose of guaranteeing loans and not of exercising control and direction over financial and economic policies in order to benefit from the economic return on the shares.

Intesa Sanpaolo does not perform management and coordination activity over Risanamento S.p.A. and its subsidiaries pursuant to Article 2497 et seq. of the Italian Civil Code.

Compared to 31 December 2024, there were no new additions to the line-by-line accounting scope of consolidation, while exits concerned:

− the merger by incorporation of Epsilon SGR S.p.A. into Eurizon Capital SGR S.p.A., with legal effect from 1 March 2025 and accounting and tax effects from 1 January 2025 (being a transaction under common control, there is no impact at consolidated level);

− the reclassification of Intesa Sanpaolo Rent For You S.p.A.'s assets as assets held for sale as of 31 March 2025.

Finally, for the sake of completeness, it should be noted that Private Equity International S.A. – previously a direct subsidiary of Intesa Sanpaolo S.p.A. – is now held through Intesa Sanpaolo Holding International S.A.

Accounting policies – Criteria for the preparation of the Interim Statement

Consolidation methods

The methods used for line-by-line consolidation of subsidiaries and consolidation by the equity method of associates and companies subject to joint control have remained unchanged with respect to those adopted for the 2024 Intesa Sanpaolo Group Annual Report, to which reference should therefore be made.

The financial statements of the Parent Company and of other companies used to prepare the Quarterly Report refer to 31 March 2025.

In certain limited cases, for subsidiaries which are not material, the latest official figures are used.

Where necessary – and only in wholly marginal cases – the financial statements of consolidated companies which are drawn up using different accounting criteria are restated to be compliant with the standards used by the Group.

With regard to the Ukrainian subsidiary Pravex Bank, given the continuing critical situation in the city of Kiev (where the subsidiary is headquartered) it was decided – with a view to containing "operational" risk – that it was best to consolidate the Ukrainian bank's figures by means of the accounting values as at 31 December 2024. In detail, for the Report as at 31 March 2025, the balance sheet results19 of Pravex were included on the basis of a consolidation package, drawn up in compliance with the IAS/IFRSs, as set out in the Group Accounting Policies, related to 31 December 2024, using the exchange rate as at 31 March 2025 for conversion into Euro.

The decision to use the data as at 31 December 2024 for the line-by-line consolidation of Pravex, also taken in light of the slight materiality of the subsidiary, and motivated by objective operational restrictions, is also based on the indications in IFRS 10, though for specific cases.

With regard to the subsidiary Risanamento, over which Intesa Sanpaolo does not exercise the management and coordination referred to in Article 2497 et seq. of the Italian Civil Code, it is recalled that since by the approval date of Intesa Sanpaolo's 2024 Consolidated Financial Statements no board meetings of the company had been held for the approval of the accounting data as at 31 December 2024, it was not possible to include such data in Intesa Sanpaolo's consolidated financial statements. This is because the Group's policy stipulates that the subsidiaries' income statements and balance sheet data must have been approved beforehand by their respective Boards of Directors in order to be included in the Group's consolidated financial statements. Consequently, the data of the Risanamento Group as at 30 September 2024 was used, adjusted prudentially based on the information available at the time, to take account of the uncertainty mainly related to additional costs for the remediation works, without any material effects on Intesa Sanpaolo's consolidated income statement for 2024.

For the purposes of the contribution to the Interim Statement as at 31 March 2025, as the Risanamento Group's figures as at 31 December 2024 have not yet been approved: i) no income contribution of the subsidiary and its parent companies has been recognised and ii) the balance sheet figures as at 30 September 2024 used for the 2024 Consolidated Financial Statements have been maintained.

The Board of Directors

Milan, 6 May 2025

¹⁹ The consolidation of Pravex only included the balance sheet figures, due to the immateriality of income statement items.

Declaration of the Manager responsible for preparing the Company's financial reports

The Manager responsible for preparing the Company's financial reports, Elisabetta Stegher, declares, pursuant to par. 2 of art. 154-bis of the Italian Consolidated Law on Finance, that the accounting information contained in this Interim Statement as at 31 March 2025 corresponds to corporate records, books and accounts.

Milan, 6 May 2025

Elisabetta Stegher Manager responsible for preparing the Company's financial reports

Attachments

Reconciliation between published consolidated financial statements and adjusted consolidated financial statements

Reconciliation between published consolidated balance sheet as at 31 December 2024 and adjusted consolidated balance sheet as at 31 December 2024

Reconciliation between published consolidated income statement for the period ended 31 March 2024 and adjusted consolidated income statement for the period ended 31 March 2024

Reconciliation between adjusted/published consolidated financial statements and restated consolidated financial statements

Reconciliation between published consolidated balance sheet as at 31 December 2024 and restated consolidated balance sheet as at 31 December 2024

Reconciliation between published consolidated income statement for the period ended 31 March 2024 and restated consolidated income statement for the period ended 31 March 2024

Restated consolidated financial statements

Consolidated balance sheet

Restated consolidated income statement

Reconciliation between restated consolidated financial statements and reclassified consolidated financial statements

Reconciliation between consolidated balance sheet and reclassified consolidated balance sheet

Reconciliation between restated consolidated income statement and reclassified consolidated income statement

Reconciliation between published consolidated financial statements and adjusted consolidated financial statements

Attachments

The published consolidated balance sheet as at 31 December 2024 did not require any adjustments.

Reconciliation between published consolidated income statement for the period ended 31 March 2024 and adjusted consolidated income statement for the period ended 31 March 2024

The published consolidated income statement as at 31 March 2024 did not require any adjustments.

Reconciliation between adjusted/published consolidated financial statements and restated consolidated financial statements

Attachments

The published consolidated balance sheet as at 31 December 2024 did not require any restatements.

Reconciliation between published consolidated income statement for the period ended 31 March 2024 and restated consolidated income statement for the period ended 31 March 2024

		31.03.2024	Change in the scope of consolidation (a)	(millions of euro) 31.03.2024 Restated
10.	Interest and similar income	9,109	26	9,135
	of which: interest income calculated using the effective interest rate method	7,684	26	7,710
20.	Interest and similar expense	-4,650	-11	-4,661
30.	Interest margin	4,459	15	4,474
40.	Fee and commission income	2,793	6	2,799
50.	Fee and commission expense	-668	-2	-670
60.	Net fee and commission income	2,125	4	2,129
70.	Dividend and similar income	161	-	161
80.	Profits (Losses) on trading	163	2	165
90.	Fair value adjustments in hedge accounting	2	-	2
100.	Profits (Losses) on disposal or repurchase of: a) financial assets measured at amortised cost	127 48	- -	127 48
	b) financial assets measured at fair value through other comprehensive income	62	-	62
	c) financial liabilities	17	-	17
110.	Profits (Losses) on other financial assets and liabilities measured at fair value through profit or loss	1,154	-	1,154
	a) financial assets and liabilities designated at fair value	-2,429	-	-2,429
	b) other financial assets mandatorily measured at fair value	3,583	-	3,583
120.	Net interest and other banking income	8,191	21	8,212
130.	Net losses/recoveries for credit risk associated with:	-262	2	-260
	a) financial assets measured at amortised cost	-259	2	-257
	b) financial assets measured at fair value through other comprehensive income	-3	-	-3
140.	Profits (Losses) on changes in contracts without derecognition	-	-	-
150.	Net income from banking activities	7,929	23	7,952
160.	Insurance service result	380	-	380
	a) insurance revenue arising from insurance contracts issued b) insurance service expenses arising from insurance contracts issued	771 -364	- -	771 -364
	c) insurance revenue arising from reinsurance contracts held	19	-	19
	d) insurance service expenses arising from reinsurance contracts held	-46	-	-46
170.	Balance of financial income and expenses related to insurance operations	-1,934	-	-1,934
	a) net financial expenses/revenue related to insurance contracts issued	-1,932	-	-1,932
	b) net financial expenses/revenue related to reinsurance contracts held	-2	-	-2
180.	Net income from banking and insurance activities	6,375	23	6,398
190.	Administrative expenses:	-2,829	-18	-2,847
	a) personnel expenses	-1,550	-10	-1,560
	b) other administrative expenses	-1,279	-8	-1,287
200.	Net provisions for risks and charges a) commitments and guarantees given	-58 28	1 -	-57 28
	b) other net provisions	-86	1	-85
210.	Net adjustments to / recoveries on property and equipment	-162	-2	-164
220.	Net adjustments to / recoveries on intangible assets	-269	-2	-271
230.	Other operating expenses (income)	284	-	284
240.	Operating expenses	-3,034	-21	-3,055
250.	Profits (Losses) on investments in associates and companies subject to joint control	45	3	48
260.	Valuation differences on property, equipment and intangible assets measured at fair value	-	-	-
270.	Goodwill impairment	-	-	-
280.	Profits (Losses) on disposal of investments	1	-	1
290.	Income (Loss) before tax from continuing operations	3,387	5	3,392
300.	Taxes on income from continuing operations	-1,077	-1	-1,078
310.	Income (Loss) after tax from continuing operations	2,310	4	2,314
320.	Income (Loss) after tax from discontinued operations	-	-	-
330.	Net income (loss)	2,310	4	2,314
340.	Minority interests	-9	-4	-13
350.	Parent Company's net income (loss)	2,301	-	2,301
	(a) The restatement refers to the economic results of the first 3 months of 2024 of First Bank and Alpian.

Restated consolidated financial statements

Consolidated balance sheet

				(millions of euro)
Assets		31.03.2025	31.12.2024	Changes
				amount	%
10.	Cash and cash equivalents	37,447	40,533	-3,086	-7.6
20.	Financial assets measured at fair value through profit or loss	151,782	150,943	839	0.6
	a) financial assets held for trading	44,463	41,439	3,024	7.3
	b) financial assets designated at fair value	6	6	-	-
	c) other financial assets mandatorily measured at fair value	107,313	109,498	-2,185	-2.0
30.	Financial assets measured at fair value through other comprehensive income	160,704	150,269	10,435	6.9
40.	Financial assets measured at amortised cost	516,039	518,702	-2,663	-0.5
	a) due from banks	39,239	38,460	779	2.0
	b) loans to customers	476,800	480,242	-3,442	-0.7
	50. Hedging derivatives	6,723	6,505	218	3.4
60.	Fair value change of financial assets in hedged portfolios (+/-)	-5,056	-3,602	1,454	40.4
70.	Investments in associates and companies subject to joint control	2,970	3,036	-66	-2.2
80.	Insurance assets	764	693	71	10.2
	a) insurance contracts issued that are assets	536	444	92	20.7
	b) reinsurance contracts held that are assets	228	249	-21	-8.4
90.	Property and equipment	8,772	9,024	-252	-2.8
100.	Intangible assets	9,725	9,860	-135	-1.4
	of which:
	- goodwill	3,694	3,697	-3	-0.1
110.	Tax assets	12,462	12,916	-454	-3.5
	a) current	1,608	1,650	-42	-2.5
	b) deferred	10,854	11,266	-412	-3.7
120.	Non-current assets held for sale and discontinued operations	907	667	240	36.0
130.	Other assets	31,895	33,739	-1,844	-5.5
	Total assets	935,134	933,285	1,849	0.2

Attachments

Liabilities and Shareholders' Equity		31.03.2025	31.12.2024	(millions of euro) Changes
				amount	%
10.	Financial liabilities measured at amortised cost	603,926	599,620	4,306	0.7
	a) due to banks	60,876	45,794	15,082	32.9
	b) due to customers c) securities issued	436,347 106,703	443,457 110,369	-7,110 -3,666	-1.6 -3.3
20.	Financial liabilities held for trading	41,525	42,882	-1,357	-3.2
30.	Financial liabilities designated at fair value	72,311	74,083	-1,772	-2.4
40.	Hedging derivatives	3,569	4,410	-841	-19.1
50.	Fair value change of financial liabilities in hedged portfolios (+/-)	-2,492	-1,819	673	37.0
60.	Tax liabilities	2,614	2,097	517	24.7
	a) current	630	383	247	64.5
	b) deferred	1,984	1,714	270	15.8
70.	Liabilities associated with non-current assets held for sale and discontinued operations	249	5	244
80.	Other liabilities	17,114	15,014	2,100	14.0
90.	Employee termination indemnities	656	706	-50	-7.1
100.	Allowances for risks and charges	4,700	4,885	-185	-3.8
	a) commitments and guarantees given	585	601	-16	-2.7
	b) post-employment benefits	98	98	-	-
	c) other allowances for risks and charges	4,017	4,186	-169	-4.0
110.	Insurance liabilities	124,195	126,081	-1,886	-1.5
	a) insurance contracts issued that are liabilities	124,144	126,013	-1,869	-1.5
	b) reinsurance contracts held that are liabilities	51	68	-17	-25.0
120.	Valuation reserves	-2,216	-2,332	-116	-5.0
130.	Redeemable shares	-	-	-
140.	Equity instruments	7,572	8,706	-1,134	-13.0
150.	Reserves	23,878	15,367	8,511	55.4
155.	Interim dividend (-)	-3,022	-3,022	-	-
160.	Share premium reserve	27,605	27,601	4	0.0
170.	Share capital	10,369	10,369	-	-
180.	Treasury shares (-)	-168	-179	-11	-6.1
190.	Minority interests (+/-)	134	145	-11	-7.6
200.	Net income (loss) (+/-)	2,615	8,666	-6,051	-69.8
	Total liabilities and shareholders' equity	935,134	933,285	1,849	0.2

Restated consolidated income statement

		31.03.2025	31.03.2024	Changes	(millions of euro)
			Restated	amount	%
10.	Interest and similar income	7,351	9,135	-1,784	-19.5
	of which: interest income calculated using the effective interest rate method	6,428	7,710	-1,282	-16.6
20.	Interest and similar expense	-3,120	-4,661	-1,541	-33.1
30.	Interest margin	4,231	4,474	-243	-5.4
40.	Fee and commission income	2,966	2,799	167	6.0
50.	Fee and commission expense	-709	-670	39	5.8
60.	Net fee and commission income	2,257	2,129	128	6.0
70.	Dividend and similar income	182	161	21	13.0
80.	Profits (Losses) on trading	432	165	267
90.	Fair value adjustments in hedge accounting	-14	2	-16
100.	Profits (Losses) on disposal or repurchase of:	-14	127	-141
	a) financial assets measured at amortised cost	50	48	2	4.2
	b) financial assets measured at fair value through other comprehensive income	-32	62	-94
	c) financial liabilities	-32	17	-49
110.	Profits (Losses) on other financial assets and liabilities measured at fair value through profit or loss	-599	1,154	-1,753
	a) financial assets and liabilities designated at fair value	864	-2,429	3,293
	b) other financial assets mandatorily measured at fair value	-1,463	3,583	-5,046
120.	Net interest and other banking income	6,475	8,212	-1,737	-21.2
130.	Net losses/recoveries for credit risk associated with:	-272	-260	12	4.6
	a) financial assets measured at amortised cost	-251	-257	-6	-2.3
	b) financial assets measured at fair value through other comprehensive income	-21	-3	18
140.	Profits (Losses) on changes in contracts without derecognition	-7	-	7
150.	Net income from banking activities	6,196	7,952	-1,756	-22.1
160.	Insurance service result	410	380	30	7.9
	a) insurance revenue arising from insurance contracts issued	828	771	57	7.4
	b) insurance service expenses arising from insurance contracts issued	-399	-364	35	9.6
	c) insurance revenue arising from reinsurance contracts held	21	19	2	10.5
	d) insurance service expenses arising from reinsurance contracts held	-40	-46	-6	-13.0
170.	Balance of financial income and expenses related to insurance operations	-198	-1,934	-1,736	-89.8
	a) net financial expenses/revenue related to insurance contracts issued	-198	-1,932	-1,734	-89.8
	b) net financial expenses/revenue related to reinsurance contracts held	-	-2	-2
180.	Net income from banking and insurance activities	6,408	6,398	10	0.2
190.	Administrative expenses:	-2,497	-2,847	-350	-12.3
	a) personnel expenses	-1,529	-1,560	-31	-2.0
	b) other administrative expenses	-968	-1,287	-319	-24.8
200.	Net provisions for risks and charges	38	-57	95
	a) commitments and guarantees given	17	28	-11	-39.3
	b) other net provisions	21	-85	106
210.	Net adjustments to / recoveries on property and equipment	-159	-164	-5	-3.0
220.	Net adjustments to / recoveries on intangible assets	-299	-271	28	10.3
230.	Other operating expenses (income)	306	284	22	7.7
240.	Operating expenses	-2,611	-3,055	-444	-14.5
250.	Profits (Losses) on investments in associates and companies subject to joint control	4	48	-44	-91.7
260.	Valuation differences on property, equipment and intangible assets measured at fair value	1	-	1
270.	Goodwill impairment	-	-	-
280.	Profits (Losses) on disposal of investments	-3	1	-4
290.	Income (Loss) before tax from continuing operations	3,799	3,392	407	12.0
300.	Taxes on income from continuing operations	-1,176	-1,078	98	9.1
310.	Income (Loss) after tax from continuing operations	2,623	2,314	309	13.4
320.	Income (Loss) after tax from discontinued operations	-	-	-
330.	Net income (loss)	2,623	2,314	309	13.4
340.	Minority interests	-8	-13	-5	-38.5
350.	Parent Company's net income (loss)	2,615	2,301	314	13.6

Reconciliation between restated consolidated financial statements and reclassified consolidated financial statements

Reconciliation between consolidated balance sheet and reclassified consolidated balance sheet

Assets		31.03.2025	(millions of euro) 31.12.2024
Cash and cash equivalents		37,447	40,533
Caption 10	Cash and cash equivalents	37,447	40,533
Due from banks		36,933	36,128
Caption 40a (partial)	Financial assets measured at amortised cost - Loans to Banks (Contribution of banking business)	36,099	36,060
Caption 20a (partial)	Financial assets held for trading - Due from banks (Contribution of banking business)	-	-
Caption 20b (partial)	Financial assets designated at fair value - Due from banks (Contribution of banking business)	3	3
Caption 20c (partial)	Other financial assets mandatorily measured at fair value - Due from banks (Contribution of banking business)	76	65
Caption 30 (partial)	Financial assets measured at fair value through other comprehensive income - Due from banks (Contribution of banking business)	755	-
Loans to customers		416,797	421,512
Loans to customers measured at amortised cost		414,811	419,658
Caption 40b (partial)	Financial assets measured at amortised cost - Loans to customers (Contribution of banking business)	407,461	413,348
Caption 40b (partial)	Financial assets measured at amortised cost - Debt securities (public entities, non-financial companies and others) (Contribution of banking business) Loans to customers measured at fair value through other comprehensive income and through profit or loss	7,350 1,986	6,310 1,854
Caption 20a (partial)	Financial assets held for trading - Loans to customers (Contribution of banking business)	13	73
Caption 20b (partial)	Financial assets designated at fair value - Loans to customers (Contribution of banking business)	-	-
Caption 20c (partial)	Other financial assets mandatorily measured at fair value - Loans to customers (Contribution of banking business)	865	788
	Financial assets measured at fair value through other comprehensive income - Loans to customers
Caption 30 (partial)	(Contribution of banking business)	1,108	993
	Financial assets measured at amortised cost which do not constitute loans	65,124	62,979
Caption 40a (partial)	Financial assets measured at amortised cost - Debt securities (banks) (Contribution of banking business) Financial assets measured at amortised cost - Debt securities (Governments, financial and insurance	3,140	2,400
Caption 40b (partial)	companies) (Contribution of banking business)	61,984	60,579
Financial assets measured at fair value through profit or loss		48,862	45,706
Caption 20a (partial)	Financial assets held for trading (Contribution of banking business)	44,418	41,328
Caption 20b (partial)	Financial assets designated at fair value - Debt securities (Contribution of banking business)	3	3
Caption 20c (partial)	Other financial assets mandatorily measured at fair value (Contribution of banking business) Financial assets measured at fair value through other comprehensive income	4,441 88,323	4,375 76,303
Caption 30 (partial)	Financial assets measured at fair value through other comprehensive income (Contribution of banking business)	88,323	76,303
	Financial assets pertaining to insurance companies measured at amortised cost	5	5
Caption 40a (partial)	Financial assets measured at amortised cost - Loans to Banks (Contribution of insurance business)	-	-
Caption 40b (partial)	Financial assets measured at amortised cost - Loans to customers (Contribution of insurance business)	5	5
	Financial assets pertaining to insurance companies measured at fair value through profit or loss	101,980	104,344
Caption 20a (partial)	Financial assets held for trading (Contribution of insurance business)	32	38
Caption 20b (partial)	Financial assets designated at fair value (Contribution of insurance business)	-	-
Caption 20c (partial)	Other financial assets mandatorily measured at fair value (Contribution of insurance business)	101,931	104,270
Caption 50 (partial)	Hedging derivatives (Contribution of insurance business)	17	36
	Financial assets pertaining to insurance companies measured at fair value through other comprehensive income	70,518	72,973
Caption 30 (partial)	Financial assets measured at fair value through other comprehensive income (Contribution of insurance business)	70,518	72,973
Equity investments		2,970	3,036
	Caption 70 Investments in associates and companies subject to joint control	2,970	3,036
Property, equipment and intangible assets Assets owned		18,497 17,419	18,884 17,655
Caption 90 (partial)	Property and equipment	7,694	7,795
	Caption 100 Intangible assets	9,725	9,860
Rights of use acquired under leases		1,078	1,229
Caption 90 (partial)	Property and equipment	1,078	1,229
Tax assets		12,462	12,916
Caption 110	Tax assets	12,462	12,916
Non-current assets held for sale and discontinued operations		907	667
Caption 120 Other assets	Non-current assets held for sale and discontinued operations	907 34,309	667 37,299
Caption 50	Hedging derivatives (Contribution of banking business)	6,706	6,469
Caption 60	Fair value change of financial assets in hedged portfolios (+/-)	-5,056	-3,602
Caption 80	Insurance assets	764	693
Caption 130	Other assets	31,895	33,739
Total Assets		935,134	933,285

Attachments

Liabilities		31.03.2025	(millions of euro) 31.12.2024
Due to banks at amortised cost		60,107	45,082
Caption 10 a)	Financial liabilities measured at amortised cost - Due to banks (Contribution of banking business)	60,110	45,084
	Financial liabilities measured at amortised cost - Due to banks (of which lease payables) (Contribution of
- Caption 10 a) (partial)	banking business)	-3	-2
Due to customers at amortised cost and securities issued		540,743	552,029
Caption 10 b)	Financial liabilities measured at amortised cost - Due to customers (Contribution of banking business)	436,228	443,339
Caption 10 c)	Financial liabilities measured at amortised cost - Securities issued (Contribution of banking business) Financial liabilities measured at amortised cost - Due to customers (of which lease payables) (Contribution	105,616	109,782
- Caption 10 b) (partial)	of banking business)	-1,101	-1,092
Financial liabilities held for trading		41,513	42,866
Caption 20	Financial liabilities held for trading (Contribution of banking business)	41,513	42,866
Financial liabilities designated at fair value		24,175	23,437
Caption 30	Financial liabilities designated at fair value (Contribution of banking business) Financial liabilities at amortised cost pertaining to insurance companies	24,175 1,971	23,437 1,412
Caption 10 a) (partial)	Financial liabilities measured at amortised cost - Due to banks (Contribution of insurance business)	766	710
Caption 10 b) (partial)	Financial liabilities measured at amortised cost - Due to customers (Contribution of insurance business)	119	118
Caption 10 c) (partial)	Financial liabilities measured at amortised cost - Securities issued (Contribution of insurance business)	1,087	587
	Financial liabilities measured at amortised cost - Due to banks (of which lease payables) (Contribution of
- Caption 10 a) (partial)	insurance business)	-	-1
- Caption 10 b) (partial)	Financial liabilities measured at amortised cost - Due to customers (of which lease payables) (Contribution of insurance business)	-1	-2
	Financial liabilities held for trading pertaining to insurance companies	100	63
Caption 20 (partial)	Financial liabilities held for trading (Contribution of insurance business)	12	16
Caption 40 (partial)	Hedging derivatives (Contribution of insurance business)	88	47
	Financial liabilities designated at fair value pertaining to insurance companies	48,136	50,646
Caption 30 (partial)	Financial liabilities designated at fair value (Contribution of insurance business)	48,136	50,646
Tax liabilities		2,614	2,097
Caption 60	Tax liabilities	2,614	2,097
	Liabilities associated with non-current assets held for sale and discontinued operations	249	5
Caption 70 Other liabilities	Liabilities associated with non-current assets held for sale and discontinued operations	249 19,208	5 18,655
Caption 40	Hedging derivatives (Contribution of banking business)	3,481	4,363
Caption 50	Fair value change of financial liabilities in hedged portfolios (+/-)	-2,492	-1,819
Caption 80	Other liabilities	17,114	15,014
	Financial liabilities measured at amortised cost - Due to banks (of which lease payables) (Contribution of
+Caption 10 a) (partial)	banking business)	3	2
Caption 10 a) (partial)	Financial liabilities measured at amortised cost - Due to banks (of which lease payables) (Contribution of insurance business)	-	1
+Caption 10 b) (partial)	Financial liabilities measured at amortised cost - Due to customers (of which lease payables) (Contribution of banking business)	1,101	1,092
	Financial liabilities measured at amortised cost - Due to customers (of which lease payables) (Contribution
+Caption 10 b) (partial) Insurance liabilities	of insurance business)	1 124,195	2 126,081
Caption 110	Insurance liabilities	124,195	126,081
Allowances for risks and charges		5,356	5,591
Caption 90	Employee termination indemnities	656	706
Caption 100 a)	Allowances for risks and charges - Loan commitments and guarantees given	585	601
Caption 100 b)	Allowances for risks and charges - Post-employment benefits	98	98
Caption 100 c)	Allowances for risks and charges - Other allowances for risks and charges	4,017	4,186
Share capital		10,369	10,369
Caption 170	Share capital	10,369	10,369
Reserves		51,315	42,789
Caption 130	Redeemable shares	-	-
Caption 150	Reserves	23,878	15,367
Caption 160	Share premium reserve	27,605	27,601
- Caption 180 Valuation reserves	Treasury shares (-)	-168 -1,849	-179 -2,035
	Valuation reserves (Contribution of banking business and including IAS19 Reserves pertaining to
Caption 120 Valuation reserves pertaining to insurance companies	insurance business)	-1,849 -367	-2,035 -297
Caption 120	Valuation reserves (Contribution of insurance business)	-367	-297
Interim dividend		-3,022	-3,022
Caption 155	Interim dividend (-)	-3,022	-3,022
Equity instruments		7,572	8,706
Caption 140	Equity instruments	7,572	8,706
Minority interests		134	145
Caption 190	Minority interests	134	145
Net income (loss)		2,615	8,666
Caption 200	Net income (loss) (+/-)	2,615	8,666
Total Liabilities and Shareholders' Equity		935,134	933,285

Reconciliation between restated consolidated income statement and reclassified consolidated income statement

Captions		31.03.2025	(millions of euro) 31.03.2024
Net interest income		3,632	Restated 3,947
Caption 30	Interest margin	4,231	4,474
- Caption 30 (partial)	Net interest income (Contribution of insurance business)	-554	-496
- Caption 30 (partial)	Interest margin - Reclassification of operations of entities not subject to management and coordination	-	-
- Caption 30 (partial)	Interest margin (Effect of purchase price allocation)	14	15
+ Caption 60 (partial)	Net fee and commission income (Periodic fees and commissions on current accounts with positive balances (negative rates)	-	-
- Caption 30 (partial)	Components of net interest income relating to Profits (losses) on trading (Dividends received and paid within securities lending operations)	-1	-
+ Caption 80 (partial)	Hedging swap differentials	-47	-30
+ Caption 190 a) (partial)	Personnel expenses (Time value employee termination indemnities and other)	-7	-10
+ Caption 200 b) (partial)	Net provisions for risks and charges (Time value allowances for risks and charges)	-4	-6
Net fee and commission income		2,435	2,276
Caption 60	Net fee and commission income	2,257	2,129
- Caption 60 (partial)	Net fee and commission income - Insurance segment	158	124
- Caption 60 (partial)	Net fee and commission income - Reclassification of operations of entities not subject to management and coordination	-	1
- Caption 60 (partial)	Net fee and commission income (Periodic fees and commissions on current accounts with positive balances (negative rates)	-	-
+ Caption 80 (partial)	Profits (Losses) on trading (Placement of Certificates)	23	22
+ Caption 110 a) (partial)	Profits (Losses) on other financial assets and liabilities measured at fair value through profit or loss (a) financial assets and liabilities designated at fair value (Placement of Certificates)	69	47
+ Caption 110 b) (partial)	Profits (Losses) on other financial assets and liabilities measured at fair value through profit or loss (b) other financial assets mandatorily measured at fair value (Return components of insurance policies taken out for the benefit of financial advisor networks)	-1	2
+ Caption 160b) (partial)	Insurance service expenses arising from insurance contracts issued (Contribution of banking business) Fee and commission income Private Banking Division financial advisors	-15	-13
+ Caption 190 a) (partial)	Personnel expenses (Charges for incentive systems for employees of the distribution networks)	-25	-19
+ Caption 190 b) (partial)	Other administrative expenses (Recovery of expenses)	-31	-17
Income from insurance business		462	455
Caption 160	Insurance service result	410	380
Caption 170	Balance of financial income and expenses related to insurance operations	-198	-1,934
+ Caption 30 (partial)	Net interest income (Contribution of insurance business)	554	496
+ Caption 60 (partial)	Net fee and commission income (Contribution of insurance business)	-158	-124
+ Caption 70 (partial)	Dividend and similar income on equity instruments held for trading, measured at fair value through profit or loss or for which the option has been exercised of their designation at fair value through other comprehensive income (including dividends on UCIs) (Contribution of insurance business)	113	98
+ Caption 80 (partial)	Profits (Losses) on trading (Contribution of insurance business)	-11	-19
	+ Caption 90 (partial) Fair value adjustments in hedge accounting (Contribution of insurance business)	-	-
+ Caption 100 b) (partial)	Profits (Losses) on disposal or repurchase of financial assets measured at fair value through other comprehensive income - Contribution of insurance business	-61	-53
+ Caption 110 a) (partial)	Profits (Losses) on other financial assets and liabilities measured at fair value through profit or loss - Contribution of insurance business	1,243	-2,071
+ Caption 110 b) (partial)	Profits (Losses) on other financial assets and liabilities measured at fair value through profit or loss (b) other financial assets mandatorily measured at fair value (Contribution of insurance business)	-1,571	3,540
+ Caption 130 b) (partial)	Net losses/recoveries for credit risk associated with financial assets measured at fair value through other comprehensive income (Contribution of insurance business)	-10	-5
- Caption 160 b) (partial)	Insurance service expenses arising from insurance contracts issued - Personnel expenses	86	81
- Caption 160 b) (partial)	Insurance service expenses arising from insurance contracts issued - Other Administrative Expenses	34	37
- Caption 160 b) (partial)	Insurance service expenses arising from insurance contracts issued - Depreciation Property and Equipment	4	4
- Caption 160 b) (partial)	Insurance service expenses arising from insurance contracts issued - Amortisation of Intangible Assets	12	12
- Caption 160 b) (partial)	Insurance service expenses arising from insurance contracts issued (Contribution of banking business) Fee and commission income Private Banking Division financial advisors	15	13
- Caption 160 b) (partial)	Costs for insurance services deriving from insurance contracts issued - release of insurance liabilities	-	-
+ Caption 210 (partial)	Net adjustments to / recoveries on property and equipment of insurance business	-	-

Captions		31.03.2025	(millions of euro) 31.03.2024
			Restated
	Profits (Losses) on financial assets and liabilities at fair value	265	81
Caption 80	Profits (Losses) on trading	432	165
Caption 90	Fair value adjustments in hedge accounting	-14	2
Caption 110 a)	Profits (Losses) on other financial assets and liabilities measured at fair value through profit or loss (a) financial assets and liabilities designated at fair value	864	-2,429
Caption 110 b)	Profits (Losses) on other financial assets and liabilities measured at fair value through profit or loss (b) other financial assets mandatorily measured at fair value	-1,463	3,583
Caption 100 b)	Profits (Losses) on disposal or repurchase of financial assets measured at fair value through other comprehensive income	-32	62
Caption 100 c)	Profits (Losses) on disposal or repurchase of financial liabilities	-32	17
+ Caption 70 (partial)	Dividend and similar income on equity instruments held for trading, measured at fair value through profit or loss or for which the option has been exercised of their designation at fair value through other comprehensive income (including dividends on UCIs) (Contribution of banking business)	69	63
+ Caption 30 (partial)	Components of net interest income relating to Profits (losses) on trading (Dividends received and paid within securities lending operations)	1	-
- Caption 80 (partial)	Profits (Losses) on trading (Placement of Certificates)	-23	-22
- Caption 80 (partial)	Profits (Losses) on trading (Contribution of insurance business)	11	19
- Caption 80 (partial)	Hedging swap differentials	47	30
	- Caption 90 (partial) Fair value adjustments in hedge accounting (Contribution of insurance business)	-	-
- Caption 100 b) (partial)	Profits (Losses) on disposal or repurchase of financial assets measured at fair value through other comprehensive income (Contribution of insurance business)	61	53
+ Caption 100 a) (partial)	Profits (Losses) on disposal or repurchase of financial assets measured at amortised cost - Debt securities (governments, financial and insurance companies) - Effect associated with profits (losses) on trading	48	63
+ Caption 100 a) (partial)	Profits (Losses) on disposal or repurchase of financial assets measured at amortised cost - Debt securities (Banks) (Contribution of banking business) - Effect associated with profits (losses) on trading	6	2
- Caption 110 a) (partial)	Profits (Losses) on other financial assets and liabilities measured at fair value through profit or loss (a) financial assets and liabilities designated at fair value (Placement of Certificates)	-69	-47
- Caption 110 a) (partial)	Profits (Losses) on other financial assets and liabilities measured at fair value through profit or loss (a) financial assets and liabilities designated at fair value (Contribution of insurance business)	-1,243	2,071
- Caption 110 b) (partial)	Profits (Losses) on other financial assets and liabilities measured at fair value through profit or loss (b) other financial assets mandatorily measured at fair value (Contribution of insurance business)	1,571	-3,540
- Caption 110 b) (partial)	Profits (Losses) on other financial assets and liabilities measured at fair value through profit or loss (b) other financial assets mandatorily measured at fair value (Return components of insurance policies taken out for the benefit of financial advisor networks)	25	-32
- Caption 110 b) (partial)	Profits (Losses) on other financial assets and liabilities measured at fair value through profit or loss (b) other financial assets mandatorily measured at fair value (Charges concerning the banking industry)	-3	15
+ Caption 230 (partial)	Other operating expenses (income) (Trading and valuation of other assets)	9	6

Captions		31.03.2025	(millions of euro) 31.03.2024
Other operating income (expenses)		-2	Restated -3
Caption 70	Dividend and similar income	182	161
Caption 230	Other operating expenses (income)	306	284
+ Caption 30 (partial)	Interest margin - Reclassification of operations of entities not subject to management and coordination	-	-
+ Caption 60 (partial)	Net fee and commission income - Reclassification of operations of entities not subject to management and coordination	-	-1
+ Caption 110 b) (partial)	Profits (Losses) on other financial assets and liabilities measured at fair value through profit or loss (b) other financial assets mandatorily measured at fair value (Return components of insurance policies taken out for the benefit of financial advisor networks)	-1	4
- Caption 70 (partial)	Dividend and similar income on equity instruments held for trading, designated at fair value through profit or loss or for which the option has been exercised of their designation at fair value through other comprehensive income (including dividends on UCIs) (Contribution of banking business)	-69	-63
- Caption 70 (partial)	Dividend and similar income on equity instruments held for trading, designated at fair value through profit or loss or for which the option has been exercised of their designation at fair value through other comprehensive income (including dividends on UCIs) (Contribution of insurance business)	-113	-98
- Caption 230 (partial)	Other operating expenses (income) (Recovery of expenses)	-4	-4
- Caption 230 (partial)	Other operating expenses (income) (Recovery of indirect taxes)	-283	-256
- Caption 230 (partial)	Other operating expenses/(income) (Non-recurring income/expenses or income/expenses not linked to continuing operations)	-3	-18
- Caption 230 (partial)	Other operating expenses (income) (Valuation effects of other assets)	-	2
- Caption 230 (partial)	Other operating expenses (income) (Impairment losses on repurchased property and equipment)	-	-
- Caption 230 (partial)	Other operating expenses (income) (Charges/revenues from integration)	2	1
- Caption 230 (partial)	Other operating expenses (income) (Trading and valuation of other assets)	-9	-6
- Caption 230 (partial)	Other operating expenses (income) (Effect of purchase price allocation) (Contribution of banking business)	-	-
+ Caption 190 b) (partial)	Other administrative expenses (Reconciliation of non-banking, financial and insurance entity operations - operating leases)	-2	-2
+ Caption 210 (partial)	Net adjustments to / recoveries on property and equipment (Reconciliation of non-banking, financial and insurance entity operations - operating leases)	-15	-16
+ Caption 220 (partial)	Net adjustments to / recoveries on intangible assets (Reconciliation of non-banking, financial and insurance entity operations - operating leases)	-1	-1
+ Caption 250 (partial)	Profits (losses) on investments in associates and companies subject to joint control (carried at equity)	8	10
Operating income		6,792	6,756
Personnel expenses		-1,583	-1,602
Caption 190 a)	Personnel expenses	-1,529	-1,560
- Caption 190 a) (partial)	Personnel expenses (Charges for integration and exit incentives)	-	10
- Caption 190 a) (partial)	Personnel expenses (Time value employee termination indemnities and other)	7	10
- Caption 190 a) (partial)	Personnel expenses (Charges for incentive systems for employees of the distribution networks)	25	19
+ Caption 160 b) (partial)	Insurance service expenses arising from insurance contracts issued - Personnel expenses	-86	-81
+ Caption 230 (partial)	Other operating expenses (income) (Recovery of expenses)	-	-
Other administrative expenses		-623	-630
Caption 190 b)	Other administrative expenses	-968	-1,287
- Caption 190 b) (partial)	Other administrative expenses (Charges for integration)	8	8
- Caption 190 b) (partial)	Other administrative expenses (Resolution fund and deposit guarantee scheme)	13	366
- Caption 190 b) (partial)	Other administrative expenses (Recovery of expenses)	31	17
- Caption 190 b) (partial)	Other administrative expenses (Reconciliation of non-banking, financial and insurance entity operations - operating leases)	2	2
- Caption 190 b) (partial)	Other administrative expenses (extraordinary taxes on international subsidiaries)	38	41
+ Caption 160 b) (partial)	Insurance service expenses arising from insurance contracts issued - Other Administrative Expenses	-34	-37
+ Caption 230 (partial)	Other operating expenses (income) (Recovery of indirect taxes)	283	256
+ Caption 230 (partial)	Other operating expenses (income) (Recovery of expenses)	4	4
Adjustments to property, equipment and intangible assets		-372	-359
Caption 210	Net adjustments to / recoveries on property and equipment	-159	-164
Caption 220	Net adjustments to / recoveries on intangible assets	-299	-271
- Caption 210 (partial)	Net adjustments to / recoveries on property and equipment of insurance business	-	-
- Caption 210 (partial)	Net adjustments to / recoveries on property and equipment (Charges for integration)	12	13
- Caption 210 (partial)	Net adjustments to / recoveries on property and equipment (Impairment)	2	1
- Caption 210 (partial)	Net adjustments to / recoveries on property and equipment (Reconciliation of non-banking, financial and insurance entity operations - operating leases)	15	16
+ Caption 160 b) (partial)	Insurance service expenses arising from insurance contracts issued - Depreciation Property and Equipment	-4	-4
+ Caption 160 b) (partial)	Insurance service expenses arising from insurance contracts issued - Amortisation of Intangible Assets	-12	-12
- Caption 220 (partial)	Net adjustments to / recoveries on intangible assets (Charges for integration)	59	47
- Caption 220 (partial)	Net adjustments to / recoveries on intangible assets (Impairment)	-	-
- Caption 220 (partial)	Net adjustments to/recoveries on intangible assets (Effect of purchase price allocation)	13	14
- Caption 220 (partial)	Net adjustments to / recoveries on intangible assets (Reconciliation of non-banking, financial and insurance entity operations - operating leases)	1	1
Operating costs		-2,578	-2,591

Captions		31.03.2025	(millions of euro) 31.03.2024
			Restated
Net adjustments to loans		-224	-234
	Caption 140 Profits/losses from changes in contracts without derecognition	-7	-
	Caption 200 a) Net provisions for risks and charges for credit risk related to commitments and guarantees given	17	28
+ Caption 100 a) (partial)	Profits (losses) on disposal or repurchase of financial assets at amortised cost - Loans (Contribution of banking business)	-5	-22
+ Caption 100 a) (partial)	Profits (losses) on disposal or repurchase of financial assets at amortised cost - Debt securities (public entities, non-financial companies and others) (Contribution of banking business)	1	5
- Caption 100 a) (partial)	Profits (Losses) on disposal or repurchase of financial assets measured at amortised cost - Loans (Effect of purchase price allocation) (Contribution of banking business)	8	14
+ Caption 130 a) (partial)	Net losses/recoveries for credit risk associated with financial assets measured at amortised cost - Loans (Contribution of banking business)	-235	-264
+ Caption 130 a) (partial)	Net losses/recoveries for credit risk associated with financial assets measured at amortised cost - Debt securities (public entities, non-financial companies and others) (Contribution of banking business)	-2	1
+ Caption 130 b) (partial)	Net losses/recoveries for credit risk associated with financial assets designated at fair value through other comprehensive income - Loans (Contribution of banking business)	-1	4
	+ Caption 200 b) (partial) Net provisions for risks and charges (Provisions for non-recurring expenses)	-	-
	Other net provisions and net impairment losses on other assets	-23	-52
	Caption 260 Valuation differences on property, equipment and intangible assets measured at fair value	1	-
	Caption 200 b) Net provisions for risks and charges - Other net provisions	21	-85
+ Caption 110 b) (partial)	Profits (Losses) on other financial assets and liabilities measured at fair value through profit or loss (b) other financial assets mandatorily measured at fair value (Return components of insurance policies taken out for the benefit of financial advisor networks)	-23	26
+ Caption 130 a) (partial)	Net losses/recoveries for credit risk associated with financial assets measured at amortised cost - Debt securities (Governments, financial and insurance companies) (Contribution of banking business)	-15	5
+ Caption 130 a) (partial)	Net losses/recoveries for credit risk associated with financial assets measured at amortised cost - Debt securities due to Banks (Contribution of banking business)	1	1
+ Caption 130 b) (partial)	Net losses/recoveries for credit risk associated with financial assets designated at fair value through other comprehensive income - Debt securities (Contribution of banking business)	-10	-2
- Caption 200 b) (partial)	Net provisions for risks and charges - Other net provisions (Contribution to the Life Insurance Guarantee Fund)	-	-
	- Caption 200 b) (partial) Net provisions for risks and charges (Charges for integration)	-	-
	- Caption 200 b) (partial) Net provisions for risks and charges (Time value allowances for risks and charges)	4	6
	- Caption 200 b) (partial) Net provisions for risks and charges (Effect of purchase price allocation)	-	-
	+ Caption 160 b) (partial) Costs for insurance services deriving from insurance contracts issued - release of insurance liabilities	-	-
	- Caption 260 (partial) Valuation differences on property, equipment and intangible assets measured at fair value	-	-
	+ Caption 210 (partial) Net adjustments to / recoveries on property and equipment (Impairment)	-2	-1
	+ Caption 220 (partial) Net adjustments to / recoveries on intangible assets (Impairment)	-	-
	+ Caption 230 (partial) Other operating expenses (income) (Impairment losses on repurchased property and equipment)	-	-
	+ Caption 230 (partial) Other operating expenses (income) (Valuation effects of other assets) Profits (Losses) on investments in associates and companies subject to joint control	-	-2
+ Caption 250 (partial)	(Adjustments/recoveries due to impairment of associates)	-	-
Other income (expenses)	Caption 250 Profits (Losses) on investments in associates and companies subject to joint control	-4 4	57 48
	Caption 280 Profits (Losses) on disposal of investments	-3	1
Caption 100 a) (partial)	Profits (losses) on disposal or repurchase of financial assets at amortised cost - Debt securities (Governments, financial and insurance companies) (Contribution of banking business)	48	61
Caption 100 a) (partial)	Profits (Losses) on disposal or repurchase of financial assets measured at amortised cost - Debt securities (Banks) (Contribution of banking business)	6	4
- Caption 100 a) (partial)	Profits (Losses) on disposal or repurchase of financial assets measured at amortised cost - Debt securities (governments, financial and insurance companies) - Effect associated with profits (losses) on trading	-48	-63
- Caption 100 a) (partial)	Profits (Losses) on disposal or repurchase of financial assets measured at amortised cost - Debt securities (Banks) (Contribution of banking business) - Effect associated with profits (losses) on trading	-6	-2
+ Caption 230 (partial)	Other operating expenses/(income) (Non-recurring income/expenses or income/expenses not linked to continuing operations)	3	18
	+ Caption 260 (partial) Valuation differences on property, equipment and intangible assets measured at fair value	-	-
	- Caption 250 (partial) Profits (Losses) on investments in associates and companies subject to joint control (carried at equity)	-8	-10
- Caption 250 (partial)	Profits (Losses) on investments in associates and companies subject to joint control (Adjustments/recoveries due to impairment of associates)	-	-
Income (Loss) from discontinued operations		-	-
	Caption 320 Income (Loss) after tax from discontinued operations	-	-
	+ Caption 320 (partial) Income (Loss) after tax from discontinued operations (Tax)	-	-
Gross income (loss)		3,963	3,936

Captions		31.03.2025	(millions of euro) 31.03.2024
			Restated
Taxes on income		-1,250	-1,280
Caption 300	Taxes on income from continuing operations	-1,176	-1,078
+ Caption 190 b) (partial)	Other administrative expenses (extraordinary taxes on international subsidiaries)	-38	-41
- Caption 300 (partial)	Taxes on income from continuing operations (Charges for integration)	-24	-23
- Caption 300 (partial)	Taxes on income from continuing operations (Effect of purchase price allocation)	-11	-14
- Caption 300 (partial)	Taxes on income from continuing operations (Resolution fund and deposit guarantee scheme)	-1	-124
- Caption 300 (partial)	Taxes on income from continuing operations (Impairment of goodwill and other intangible assets)	-	-
- Caption 320 (partial)	Income (Loss) after tax from discontinued operations (Tax)	-	-
Charges (net of tax) for integration and exit incentives		-57	-56
+ Caption 190 a) (partial)	Personnel expenses (Charges for integration and exit incentives)	-	-10
+ Caption 190 b) (partial)	Other administrative expenses (Charges for integration)	-8	-8
+ Caption 200 b) (partial)	Net provisions for risks and charges (Charges for integration)	-	-
+ Caption 210 (partial)	Net adjustments to / recoveries on property and equipment (Charges for integration)	-12	-13
+ Caption 220 (partial)	Net adjustments to / recoveries on intangible assets (Charges for integration)	-59	-47
+ Caption 230 (partial)	Other operating expenses (income) (Charges/revenues from integration)	-2	-1
+ Caption 300 (partial)	Taxes on income from continuing operations (Charges for integration)	24	23
Effect of purchase price allocation (net of tax)		-24	-29
+ Caption 30 (partial)	Interest margin (Effect of purchase price allocation)	-14	-15
+ Caption 100 a) (partial)	Profits (Losses) on disposal or repurchase of financial assets measured at amortised cost - Loans (Effect of purchase price allocation) - (Contribution of banking business)	-8	-14
+ Caption 220 (partial)	Net adjustments to/recoveries on intangible assets (Effect of purchase price allocation)	-13	-14
+ Caption 230 (partial)	Other operating expenses (income) (Effect of purchase price allocation) (Contribution of banking business)	-	-
+ Caption 300 (partial)	Taxes on income from continuing operations (Effect of purchase price allocation)	11	14
Levies and other charges concerning the banking and insurance industry (net of tax)		-9	-257
+ Caption 110 b) (partial)	Profits (Losses) on other financial assets and liabilities measured at fair value through profit or loss (b) other financial assets mandatorily measured at fair value (Charges concerning the banking industry)	3	-15
+ Caption 200 b) (partial)	Net provisions for risks and charges - Other net provisions (Contribution to the Life Insurance Guarantee Fund)	-	-
+ Caption 190 b) (partial)	Other administrative expenses (Resolution fund and deposit guarantee scheme)	-13	-366
+ Caption 300 (partial)	Taxes on income from continuing operations (Resolution fund and deposit guarantee scheme)	1	124
Impairment (net of tax) of goodwill and other intangible assets		-	-
Caption 270	Goodwill impairment	-	-
+ Caption 300 (partial)	Taxes on income from continuing operations (Impairment of goodwill and other intangible assets)	-	-
Minority interests		-8	-13
Caption 340	Minority interests	-8	-13
Net income (loss)		2,615	2,301

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Contacts

Intesa Sanpaolo S.p.A.

Registered office

Piazza San Carlo, 156 10121 Turin Telephone: +39 011 5551

Secondary registered office

Via Monte di Pietà, 8 20121 Milan Telephone: +39 02 87911

Investor Relations & Price-Sensitive Communication

Telephone: +39 02 8794 3180 Fax: +39 02 8794 3123 E-mail investor.relations@intesasanpaolo.com

Media Relations

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