A bank of excellence in support of the real economy

Figures as at 31 December 2024

The results for 2024 highlight that Intesa Sanpaolo is able to generate solid sustainable profitability, with a net income of €8.7bn against around €0.9bn allocated out of the 2024 pre-tax profit through managerial actions aimed at further strengthening the future sustainability of the Group’s results, which contribute to the outlook for 2025 net income raised to well above €9bn.

Intesa Sanpaolo is fully equipped to continue operating successfully in the future thanks to:

• the Group’s key strengths, notably resilient profitability, a solid capital position, the zero-NPL bank status, significant investment in technology and high flexibility in managing operating costs (9,000 people leaving the Group by 2027, with around €500m savings in personnel expenses on a fully operational basis starting from 2028), also due to acceleration in technological transformation (62% of applications already cloud-based);
• its leadership in Wealth Management, Protection & Advisory with €900bn in customers’ direct deposits and assets under administration to fuel growth in assets under management.

Technology is a further key factor to succeed, generating additional contribution to 2025 gross income of around €500m not envisaged in the 2022-2025 Business Plan⁽¹⁾:

• new cloud-native technological platform (isytech), already available to mass market retail customers with the new digital bank, Isybank, and to be progressively extended to the entire Group: €4.2bn in IT investments already deployed and around 2,320 IT specialists already hired, with an additional contribution to 2025 gross income of around €150m not envisaged in the Business Plan;
  
• new digital channels:
  • Isybank, the Group’s digital bank with a lower-than-30% cost/income business model and around one million new customers by 2025 - with an additional contribution to gross income of around €200m by 2025 - not envisaged in the Business Plan: over 530,000 accounts already opened by new non-Intesa Sanpaolo customers and around 350,000 Intesa Sanpaolo customers already migrated;
  • Fideuram Direct, the digital Wealth Management platform for Private Banking, with around 150,000 customers in 2025 (around 20% of the current customer base of Fideuram): already around 77,000 customers and €2.9bn in customer financial assets as at 31 December 2024; collaboration with BlackRock to extend the platform to European Private and Affluent customers, starting with Belgium and Luxembourg;
• artificial intelligence, with around 150 Apps and 300 specialists in 2025 (already 104 Apps and around 215 specialists as at 31 December 2024) and an additional contribution to 2025 gross income of around €100m not envisaged in the Business Plan, not including further potential upside from the adoption of Generative AI solutions.

As regards the leadership in Wealth Management, Protection & Advisory, Intesa Sanpaolo can leverage on a unique set of enablers for revenue growth deriving from this business:

• top-notch digital tools;
• distinctive advisory networks, with around 17,000 people dedicated⁽²⁾ expected to grow to around 20,000 by 2027;
• fully owned insurance and asset management product factories;
• around €1,400bn in the Group’s customer financial assets;
• customer financial assets, managed through the 360-degree advisory services provided by the Banca dei Territori Division and the Private Banking Division, which amounted to €139bn as at 31 December 2024 and increased by €23bn compared with 31 December 2023;
• the Wealth Management Divisions structure, established in Q1 2024, to which the pre-existing Private Banking, Asset Management and Insurance divisions report, providing a single unit overseeing the wealth management activities, with the aim of accelerating growth and increasing the integration of product factories;
• the “Fees & Commissions” Steering Committee, also established in Q1 2024, chaired directly by the Managing Director and CEO, focused on monitoring, overseeing and coordinating strategies to increase revenues from commissions across all the Group’s Divisions.

The solid performance of income statement and balance sheet in 2024 translated into significant value creation for all stakeholders, which is also grounded in the Group’s strong ESG commitment. Specifically:

• significant cash return to shareholders: proposal to be submitted to the Shareholders’ Meeting for total dividends of €6.1bn (€3bn interim dividends for 2024 paid in November 2024 and €3.1bn proposed remaining dividends for 2024 to be paid in May 2025) and for a buyback of €2bn to be launched in June 2025 (authorised by the ECB);
• €5.3bn taxes generated and increased by €0.7bn on 2023;
• expansion of the food and shelter programme for people in need (54.1 million interventions in the period 2022-2024);
• enhancement of initiatives to fight inequalities and foster financial, social, educational and cultural inclusion (€20.4bn of social lending and urban regeneration in the period 2022-2024);
• an amount equal to around €1.5bn total costs to be contributed in the five-year period 2023-2027 to support initiatives addressing social needs (€0.7bn of which already included in the results for 2023 and 2024 and the remaining portion included, on a pro-rata basis, in the outlook for 2025 net income), with around 1,000 people devoted to supporting these initiatives.

Significant ESG commitment, with also a world-class position in social impact and a strong focus on climate and reinforcement of the ESG governance with:

• the Risks Committee which in April 2022 became the Risks Sustainability Committee with enhanced ESG responsibilities;
• the appointment, in April 2024, of a Chief Sustainability Officer to head a governance area created to consolidate ESG activities and enhance ESG business steering, with a strong commitment to social matters and the fight against inequalities, a continuous support for culture and a significant contribution to sustainability through innovation projects and investment in start-ups.

Intesa Sanpaolo is the only Italian bank listed in the Dow Jones Sustainability Indices, and the only Italian bank, the first bank in Europe and the second worldwide in the 2025 Corporate Knights “Global 100 Most Sustainable Corporations in the World Index” and ranks first among the banks of the peer group by Sustainalytics. Furthermore, Intesa Sanpaolo:

• has been recognized in the FTSE Diversity & Inclusion Index - Top 100 as first bank and seventh company in the world and the only bank in Italy among the 100 most inclusive and diversity-conscious workplaces;
• has ranked first in the global ESG Corporate Award ranking, in the Best Company for Diversity Equity & Inclusion category, among large cap companies;
• has been the first major Italian banking group to obtain the certification for gender parity “Prassi di Riferimento (PDR) 125:2022” envisaged by the National Recovery and Resilience Plan, thanks to its commitment to diversity and inclusion;
• has been the first bank in Italy and among the first banks in Europe to obtain the Gender Equality European & International Standard (GEEIS) - Diversity certification.

Intesa Sanpaolo has a strong liquidity position and funding capability, with liquid assets of €264bn and high available unencumbered liquid assets of €207bn at end of December 2024. Regulatory requirements for the Liquidity Coverage Ratio (at 155%⁽³⁾) and the Net Stable Funding Ratio (at 122%⁽⁴⁾) have been comfortably complied with.

Minimum Requirement for own funds and Eligible Liabilities (MREL) comfortably complied with: at end of December 2024⁽⁴⁾, calculated on risk-weighted assets, the total MREL ratio was 40.8% and the subordination component was 23.8% (40.1% and 23.1%, respectively, deducting from capital also €2bn of buyback authorised by the ECB⁽⁵⁾), compared with requirements of 26.2% and 18.6%, respectively, comprising a Combined Buffer Requirement of 4.5%.

Intesa Sanpaolo continues to operate as a growth accelerator in the real economy: with around €70bn of medium/long-term new lending in 2024. Loans amounting to around €43bn were granted in Italy, of which around €38bn was granted to households and SMEs. In 2024, the Group facilitated the return from non-performing to performing status of around 3,100 Italian companies thus safeguarding around 15,500 jobs. This brought the total to around 144,000 companies since 2014, thus safeguarding around 720,000 jobs over the same period.

⁽¹⁾ Additional contribution to 2025 gross income from isytech, Isybank, Fideuram Direct and Artificial Intelligence, which offsets the impact from higher inflation and the renewal of the labour contract
⁽²⁾ Financial advisors, Private Bankers, Global Advisors (with hybrid contract, employed with part-time indefinite-term contract and on a self-employed basis), relationship managers for Exclusive customers, relationship managers for Affluent customers and Digital Branch relationship managers
⁽³⁾ Average for the last twelve months
⁽⁴⁾ Preliminary management figures
⁽⁵⁾ To be launched in June 2025, subject to the approval from the Shareholders’ Meeting