Figures as at 31 March 2023
A great Group for a great impact
We are the leading banking group in Italy in financial services for households and businesses, ranking among the top five groups in the euro area
Million customers in Italy and abroad
Branches in Italy and abroad
Billion euro of loans to customers
Figures as at 31 March 2023
The results for the first quarter 2023 confirm that the Intesa Sanpaolo Group is able to generate sustainable profitability even in complex contexts thanks to its well-diversified and resilient business model, with net income of nearly €2bn driven by net interest income.
Intesa Sanpaolo is fully equipped to continue operating successfully in the future given the Group’s key strengths, notably resilient profitability, a solid capital position, the “zero-NPL” Bank status and high flexibility in managing operating costs.
The exposure to Russia was further reduced and was down by around 70% (over €2.5bn) on end of June 2022 to 0.2% of the Group’s total customer loans.
The solid performance of income statement and balance sheet in the quarter translated into significant value creation for all stakeholders, also grounded in the Group’s strong ESG commitment: specifically, €1.4bn dividends accrued, €1.4bn taxes generated and increased by around €300m on Q1 2022 as a consequence of the net interest income growth which has driven the increase of around €900m in net income, expanding the food and shelter programme for people in need (around 24.3m interventions in the period 2022 - Q1 2023), enhancing initiatives to fight inequalities and favour financial, social, educational and cultural inclusion (€10.5bn of social lending and urban regeneration in the period 2022 - Q1 2023).
Significant ESG commitment, with a world-class position in social impact and strong focus on climate and reinforcement of the ESG governance, with the Risks Committee which in April 2022 became the Risks and Sustainability Committee with enhanced ESG responsibilities.
Intesa Sanpaolo is the only Italian bank listed in the Dow Jones Sustainability Indices, in the CDP Climate A List 2022 and in the 2023 Corporate Knights “Global 100 Most Sustainable Corporations in the World Index” and ranks first among the banks of the peer group by Sustainalytics and Bloomberg (ESG Disclosure Score) international assessments. Furthermore, Intesa Sanpaolo has been:
The formula of the 2022-2025 Business Plan is confirmed, with a clear and strong upside for the €6.5bn net income target in 2025 deriving from the interest rate increase. The implementation of the Plan is proceeding at full speed, with the key industrial initiatives well underway.
Intesa Sanpaolo continues to operate as a growth accelerator in the real economy: with around €15bn of medium/long-term new lending in Q1 2023. Loans amounting to around €10bn were granted in Italy, of which around €9bn was granted to households and SMEs. In Q1 2023, the Group facilitated the return from non-performing to performing status of around 900 companies thus safeguarding around 4,500 jobs. This brought the total to over 138,000 companies since 2014, thus safeguarding around 691,000 jobs over the same period.
The formula of the 2022-2025 Business Plan is confirmed and the related industrial initiatives are well underway, with a clear and strong upside for the €6.5bn net income target in 2025 deriving from the interest rate increase.
For 2023, operating margin is expected to significantly increase, as a result of solid revenue growth driven by net interest income (2023 net interest income expected to exceed €13bn) coupled with a continuous focus on cost management, and net adjustments to loans are expected to strongly decrease, triggering net income growth to around €7bn.
A strong value distribution is envisaged:
- a cash payout ratio of 70% of the consolidated net income for each year of the Business Plan;
- any additional distribution to be evaluated on a yearly basis.
A solid capital position is envisaged, with the fully loaded 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 in 2025 at around 14.5% pre Basel 4, around 14% post Basel 4 and around 15% post Basel 4 including the absorption of DTAs (the vast majority of which will be absorbed by 2028), taking into account the above-mentioned payout ratio envisaged for the years covered by the Business Plan and not considering any additional distribution.
We endeavour to guarantee our sound capital base and the sustainability of results over time, striving to create a relationship of trust with our customers, our shareholders and the territories in which we operate. In Italy, where we have the largest network of bank branches in the country, we aim to act as the driver of the real economy and make our contribution to community development. We also operate in 37 countries.
Conscious of the value of our activity in Italy and abroad in Europe, Egypt and Brazil we promote a style of growth that is attentive to financial strength and capital solidity, sustainable results and the creation of a process based on the trust deriving from customer and shareholder satisfaction, a sense of belonging on the part of our employees and close monitoring of the needs of the community and the local area. We compete on the market with a sense of fair play and are ready to cooperate with other economic entities - both private and public - whenever necessary to reinforce the overall capacity for growth of the economies of the countries in which we operate.
Our organisational structure includes six divisions operating in Italy and abroad
Focus on the market and the territory for stronger relations with individuals, SMEs and non-profit entities
A global partner supporting corporates, financial institutions and public administration in Italy and in 25 countries
Includes the commercial banking subsidiaries with a strategic presence in Central Eastern Europe, the Middle East and North Africa
Serves the customer segment consisting of Private clients and High Net Worth Individuals with tailored products and services
Asset management solutions targeted at the Group’s customers, commercial networks outside the Group, and institutional clientele
Insurance and pension products tailored for the Group’s clients
A leader in Italy operating on a European scale, we offer our customers a strategic presence in markets with a high growth potential.
Not just bankers: our people have a wide range of talents but are united by the commitment to ensuring the group's growth. We want to help them fulfil their professional and personal ambitions: we invest in training to develop skills, we work to create a context that enhances diversity and promotes well-being.