A great Group
for a great impact
A bank of excellence in support of the real economy
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
~21
Million customers in Italy and abroad
4,291
Branches in Italy and abroad
422
Billion euro of loans to customers
934,422
Milion euro in total assets
93,832
Employees in Italy and abroad
Figures as at 30 June 2024
Intesa Sanpaolo: results as at 30 June 2024
The results for the first half of 2024 highlight that the Intesa Sanpaolo Group is able to generate solid sustainable profitability, with net income of €4.8bn and expected to exceed €8.5bn in full-year 2024.
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;
- its leadership in Wealth Management, Protection & Advisory with around €100bn in customer financial assets identified(1) to fuel growth.
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(2):
- 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: €3.2bn in IT investments already deployed and around 2,100 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 100,000 new non-Intesa Sanpaolo customers already acquired 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 74,000 customers and over €2.75bn in customer financial assets as at 30 June 2024;
- artificial intelligence, with around 150 Apps and 300 specialists in 2025 (already 80 Apps and around 170 specialists as at 30 June 2024) and an additional contribution to 2025 gross income of around €100m not envisaged in the Business Plan, not including potential upside from the adoption of Generative AI solutions.
As regards the leadership in Wealth Management, Protection & Advisory:
- top-notch digital tools, distinctive advisory networks with over 16,000 people dedicated(3), fully owned product factories (asset management and insurance) and over €1,350bn in the Group’s customer financial assets empower Intesa Sanpaolo with a unique set of enablers for revenue growth from Wealth Management, Protection & Advisory;
- customer financial assets, managed through the 360-degree advisory services provided by the Banca dei Territori Division and the Private Banking Division, amounted to €128bn as at 30 June 2024, increasing by €23bn compared with 30 June 2023;
- in the first quarter of 2024, a Wealth Management Divisions structure was established, 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;
- furthermore, in the first quarter of 2024, a “Fees & Commissions” Steering Committee was established, 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 the first half of the year 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: €3.3bn of dividends accrued in H1 2024 (in addition to the buyback of €1.7bn launched in June 2024);
- €3.1bn taxes generated and increased by €0.5bn on H1 2023 as a consequence of the growth in net interest income which drove the increase of €1bn in gross income;
- expansion of the food and shelter programme for people in need (over 41.8 million interventions in the period 2022 - H1 2024);
- enhancement of initiatives to fight inequalities and foster financial, social, educational and cultural inclusion (€17.2bn of social lending and urban regeneration in the period 2022 - H1 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 (around €0.5bn already included in the results for 2023 and H1 2024 and the remaining portion included, on a pro-rata basis, in the outlook for net income for full-year 2024 and for 2025), with around 1,000 people devoted to supporting these initiatives.
Significant ESG commitment, with 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 startups.
Intesa Sanpaolo is the only Italian bank listed in the Dow Jones Sustainability Indices, ranks first bank in Europe and second worldwide in the 2024 Corporate Knights “Global 100 Most Sustainable Corporations in the World Index” and first among the banks of the peer group by Sustainalytics. Furthermore, Intesa Sanpaolo:
- has been included for the sixth consecutive year in the Bloomberg Gender-Equality Index 2023, obtaining a score well above the average of the global financial sector and of Italian companies;
- has been recognised in the Refinitiv Global Diversity and Inclusion Index 2023 as the first bank in Europe, and the only one in Italy among the top 100 companies for diversity and inclusion;
- 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 €280bn and high available unencumbered liquid assets of €210bn at end of June 2024. Regulatory requirements for the Liquidity Coverage Ratio (at 163%(4)) and the Net Stable Funding Ratio (at 124%) have been comfortably complied with.
Minimum Requirement for own funds and Eligible Liabilities (MREL) comfortably complied with: at end of June 2024(5), calculated on risk-weighted assets, the total MREL ratio was 41.1% and the subordination component was 22.8%, compared with requirements of 25.7% and 18%, respectively, comprising a Combined Buffer Requirement of 4%.
Intesa Sanpaolo continues to operate as a growth accelerator in the real economy: with around €31bn of medium/long-term new lending in H1 2024. Loans amounting to around €20bn were granted in Italy, of which around €18bn was granted to households and SMEs. In H1 2024, the Group facilitated the return from non-performing to performing status of around 1,500 Italian companies thus safeguarding around 7,300 jobs. This brought the total to around 142,000 companies since 2014, thus safeguarding around 711,000 jobs over the same period.
(1) Out of direct deposits and assets held under administration
(2) 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
(3) Digital branch relationship managers, relationship managers for Exclusive and Affluent customers, private bankers and financial advisors
(4) Average for the last twelve months
(5) Preliminary management figures
The implementation of the 2022-2025 Business Plan is proceeding at full speed, with the prospect of a net income of over €8.5bn for 2024 and 2025.
For 2024 it is envisaged:
- - solid revenue growth, driven by a further increase in net interest income (expected to be at around €15.5bn) and growth in net fee and commission income and income from insurance business which leverages on the Group’s leadership in Wealth Management, Protection & Advisory;
- - stable operating costs, despite investment in technology, mainly attributable to lower personnel expenses;
- - low cost of risk deriving from the zero-NPL bank status and the high-quality loan portfolio;
- - lower levies and other charges concerning the banking and insurance industry due to no further contribution to the resolution fund.
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 2024 and 2025 (*) versus the dividend per share for 2023;
- - buyback of €1.7bn launched in June 2024;
- - the Board of Directors envisaged the distribution of a cash interim dividend of around €3bn on the 2024 results. The Board will discuss the resolution regarding the interim dividend on 31 October 2024, when it meets to approve the consolidated results as at 30 September 2024, in relation to both the results of the third quarter 2024 and those foreseeable for the fourth quarter 2024;
- - additional distribution for 2024 to be quantified when full-year results are approved;
- - additional future distributions to be evaluated year by year.
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 in 2025 at well above 14.5% pre Basel 4, at well above 14% post 2025 Basel 4 impact of around 40 basis points, and at well above 15% post overall Basel 4 impact of around 60 basis points (of which around 20 in 2026-2033, including around 10 in 2026 relating to FRTB) and including the absorption of DTAs of around 120 basis points (of which around 25 in the period Q3 2024 - 2025 and the remaining basis points mostly by 2028), taking into account the above-mentioned payout ratio envisaged for the years covered by the Business Plan and the buyback launched in June 2024 and not considering any additional distribution.
(*) Subject to the approval from the Shareholders’ Meeting
A solid bank at the service of the country’s development
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.
Our business model
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.
A leader in Italy operating on a European scale, we offer our customers a strategic presence in markets with a high growth potential.
People are the key to our success
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.
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