Our strategy
In February 2018, we presented our 2018-2021 Business Plan, in which solid, sustainable creation and distribution of value for all stakeholders remains a priority, confirming our Group’s position as the Italian market leader and its role as a real-economy bank devoted to helping households and businesses. Having already achieved Corporate Social Responsibility leadership, we are now focused on becoming the world’s first Impact Bank with a series of social and cultural initiatives that will make us a benchmark for society.
Our Plan entails maintaining a very solid capital position and strong growth in sustainable profitability as we continue de-risking and increasing revenues. We also aim to contribute to global development by supporting our customers, promoting the development and well-being of people and communities and protecting the environment, which includes combating climate change.
In a highly digitalised, fiercely competitive world, we will continue to achieve our objectives by leveraging our values and our mission and harnessing the proven track record of our results-based delivery machine.
We are capable of effectively meeting the complex challenges of the post-COVID-19 environment thanks to our solid capital base and significant liquidity, a resilient, well-diversified business model focused on Wealth Management & Protection, strategic flexibility in the management of operating costs and the pro-active management of non-performing loans. In the face of the dramatic health and social emergency that unfolded, we have continued to demonstrate the Group’s support for Italy .
Our strategic choices have also confirmed our position as one of the most solid banks in the world.
The 2018-2021 Business Plan Formula |
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De-risking |
Cost Reduction |
Revenue Growth |
Significant de-risking at no cost to shareholders |
Cost reduction through further simplification of the operating model |
Revenue growth capturing new business opportunities |
| #1 Bank in Europe for risk profile (CET1 Ratio, illiquid assets(*)) |
#1 Bank in Europe for efficiency (Cost/Income ratio) |
#1 Bank in Italy for all banking products European leader in Wealth Management & Protection |
Many projects and initiatives for the: • Establishment of a cutting-edge credit collection company • Significant increase in the coverage of non-performing loans • Creation of “Pulse”, essential to the management of retail loans initially classified as non-performing • Pro-active credit portfolio management |
Many projects and initiatives for the:
• Voluntary exits and reskilling of resources
• Optimisation of the distribution strategy
• Optimisation of the real estate portfolio
• Reduction of legal entities
• Reduction in administrative costs
• Creation of the Chief Cost Management Officer
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Many projects and initiatives for the: • Strong development of P&C insurance business, creating the #1 non-motor retail insurer in Italy • Consolidation of private banking leadership in Italy • Strengthening of product factories and wealth management distribution network for the retail and personal banking segments • Distinctive offer to drive the growth and profitability of SMEs and help Italian mid-corporate “champions” succeed internationally • Increasing focus on global corporates and international investors
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(*) Net NPL, Net repossessed assets, Level 2 assets and Level 3 assets
New Business Plan by the end of 2021, as soon as the macroeconomic scenario becomes clearer
People and Digital as key enablers
- People remain Intesa Sanpaolo’s most important resource. We work to strengthen employee engagement, and this includes initiatives to promote diversity and inclusion and develop talent through an international program. We will invest €1 billion in training over the Plan horizon.
- To complete the digital transformation, we will invest €2.8 billion over the course of the Plan. In particular, the initiatives cover the expansion of the the multi-channel customer platform, completely digitalising key processes, launching new products and digital services, data management, cyber security and advanced analytics.
Find out more about the 2018-2021 Business Plan
Reference should be made to the presentation of the 2019 results for information on the Business Plan initiatives implemented in 2019.
Creating value for all stakeholders
The Business Plan focuses on creating value for all stakeholders, contributing over €300 billion to the real economy.
The table below summarises the expected benefits for our stakeholders over the plan horizon and the objectives achieved in 2018 and 2019.
BENEFITS |
PLAN OBJECTIVES TO 20212018-2021 cumulative value (€ billion, %) |
2019 RESULTS |
| Shareholders | ||
| Cash payout ratio |
85% in 2018 80% in 2019 75% in 2020 70% in 2021 |
€3,362m Net income(*) |
| Households and businesses |
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| New medium/long-term lending to the real economy |
~€250bn |
~€58bn (~€118bn since the beginning of 2018) |
| Employees |
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| Personnel expenses |
~€24bn |
~€5.7bn (~€11.5bn since the beginning of 2018) |
| Training |
~46m training hours ~5,000 excess capacity redeployed to priority initiatives |
~10.8m hours (~20m since 2018) ~2,039 resources redeployed (~3,028 since 2018) |
| Suppliers | ||
| Purchases and investments |
~€11bn More than 40,000 households |
~€2.8bn (~€5.5bn since 2018) |
| Public Sector |
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| Direct and indirect taxes |
~€13bn Comparable in size to an Italian annual Budget Law (“Legge di Stabilità”) |
~€2.7bn (~€5.3bn since 2018) |
| Social Sector |
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| New medium/long-term lending to support social ventures |
~€0.7bn Intesa Sanpaolo: the largest Social Sector Lender in Italy |
More than €200m (~€ 450m since 2018) |
| Categories with restricted credit access |
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| Impact lending |
Fund for Impact: enabling lending of ~€1.25bn to categories that, despite their potential, have difficulty accessing credit Intesa Sanpaolo: the first Impact Bank worldwide |
Per Merito: €28m granted in the first 10 months |
(*) Following the ECB recommendation due to the COVID-19 emergency, on 31 March 2020, Intesa Sanpaolo decided to suspend distribution of the 2019 dividend and proposed allocating the 2019 profit to reserves, which the shareholders approved on 27 April 2020, with the intention of convening the shareholders’ meeting after 1 October to distribute a portion of reserves to the shareholders by the end of 2020.
Even taking the UBI Banca acquisition into account, the Group’s dividend policy is confirmed. It envisages the distribution of cash dividends corresponding to a payout ratio of 75% and 70% for 2020 (excluding the contribution of the negative goodwill not allocated to cover integration charges and reduce risk profile from net income. The actual determination of the negative goodwill will result following the outcome of the PPA procedure provided for under IFRS 3, at the time of preparation of the 2020 financial statements, through the exact calculation, as at the date of acquisition, of the fair value of identifiable assets acquired and liabilities assumed of the UBI Banca Group) and 2021 respectively. This is subject to ECB indications which will be announced in respect of dividend distribution after 1 January 2021, the deadline for the recommendation of 28 July 2020.
In addition to the envisaged distribution of cash dividends from the 2020 net income, Intesa Sanpaolo intends to obtain approval from the ECB to distribute cash from reserves in 2021 in light of the allocation of the 2019 net income to reserves in 2020.
Positive, tangible impact on society
With the 2018-2021 Business Plan, we intend to set the social and cultural responsibility benchmark for society, by specifically:
- becoming the world’s first Impact Bank, allocating 0.5% of shareholders’ equity by 2021 (an estimated €250 million) to a specific fund that will guarantee approximately €1.25 billion in lending to categories that would otherwise have difficulty accessing credit despite their potential, like young families, university students, researchers and start-ups;
- expanding the “Food and shelter for people in need” initiative, with the allocation of funds to cover the cost of 10,000 meals per day, 6,000 beds per month and 3,000 medicines and items of clothing per month;
- driving the Circular Economy by setting a specific credit ceiling and launching a Circular Economy Investment Fund;
- setting up a unit to develop and pro-actively manage the Group’s artistic, cultural and historical assets (approximately 20,000 works of art).
Many initiatives are already underway.
Intesa sanpaolo as the driver of sustainable and inclusive development |
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| Find out about our research and innovation projects |
Find out about our projects for people in need |
Find out about our social projects |
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Approximately 600 start-ups were analysed in the first half of 2020 (over 1,800 since 2018) as part of two acceleration programs, with 37 coached start-ups (~270 since 2018) introducing them to selected investors and ecosystem players (~5,500 to date) Circular Economy credit Plafond totalling €5bn: €1,237m already disbursed, 343 products analysed and 119 already financed Launched the first Sustainability Bond focused on the Circular Economy (amount €750m) S-Loans – Launched an innovative solution for SMEs to finance and promote sustainable growth projects. The loans will have a reduced interest rate, subject to the annual monitoring of 2 ESG KPIs, which must be reported in the company’s annual report. Intesa Sanpaolo allocated a €2bn plafond for S-Loans as part of the €50bn dedicated to the Green Economy
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Initiatives to alleviate child poverty and support people facing hardships, ahead of the Business Plan target and since 2018 have delivered:
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Support was provided to families affected by earthquakes and natural disasters by forgiving mortgages or granting moratoria of mortgages on properties that were destroyed, and subsidised loans (~130 moratoria in the first half of 2020 for €700m in outstanding loans) and ~€97m in subsidised loans in the first half of 2020 (∼€431m since the beginning of 2018) Intesa Sanpaolo has developed many initiatives following the COVID-19 emergency to actively support society and the real economy, including:
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| Find out about our education projects |
Find out about our right of access to study projects |
Find out about our culture projects |
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Intesa Sanpaolo's “Giovani e Lavoro” program is underway, in partnership with Generation, to train and place 5,000 young people in the Italian job market over the next three years:
The P-Tech initiative was launched in partnership with IBM to prepare young professionals in the field of new digital jobs:
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Intesa Sanpaolo Fund for Impact launched in 4Q18 (~€1.25bn lending capacity). "Per Merito" is the first line of credit without collateral dedicated to all Italian university students, studying in Italy or abroad; €21m was granted in the first half of 2020 (€60m since the beginning of 2019) MAMMA@WORK is a loan with highly subsidised terms to help women balance motherhood and work in the early years of their children’s lives. Launched in July 2020 as a Fund for Impact initiative Two new initiatives were announced in January 2020 to support working mothers in India and people over the age of 50 who have lost their jobs or have difficulty accessing pension schemes |
Piazza San Carlo in Turin was announced as the fourth location of the "Gallerie d'Italia" museums, for a total of 6,000 square metres dedicated to photography, digital creativity and contemporary art The Canova / Thorvaldsen exhibition at the Gallerie d'Italia in Milan in partnership with St Petersburg State Hermitage Museum and Copenhagen’s Thorvaldsens Museum, is one of the most visited exhibitions in Italy and visits continued during the lockdown with virtual tours garnering over 8m views During the lockdown, a large number of national cultural initiatives were produced and broadcasted in digital editions. For example, COVID-19 Visual Project-Cortona On the Move is a permanent multi-media archive of 40 visual projects created by 40 photographers from the around the world (602,500 views of Freeda’s and Intesa Sanpaolo’s Instagram Stories) |
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| Find out more |
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Results for the first nine months of 2020 confirm Intesa Sanpaolo’s ability to effectively face the challenging aftermath of the COVID-19 epidemic
Results for the first nine months of 2020 confirm Intesa Sanpaolo’s ability to effectively face the challenging aftermath of the COVID-19 epidemic. They reflect the Group’s sustainable profitability, which derives from a solid capital base and a strong liquidity position, a resilient and well-diversified business model and the strategic flexibility in managing operating costs. The results also reflect the support provided to Italy by the Group, which is also committed to becoming a reference model in terms of sustainability and social and cultural responsibility.
Sustainable value generation for all stakeholders will be accreted by the combination with UBI Banca following the acquisition of control on 5.8.20, which is well underway and has low execution risk also due to Intesa Sanpaolo’s proven track record in managing integrations, enhancing local economies and UBI Banca people and achieving further reduction of risk profile and significant synergies with no social costs. The merger by incorporation into Intesa Sanpaolo is expected to take place by April 2021.
| Emerging Trends | Competitive advantages of the Group |
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| Increase in demand for health, wealth and business protection |
Intesa Sanpaolo’s leadership in Wealth Management & Protection
Expansion of the health insurance area with the acquisition of RBM Assicurazione Salute |
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| Riskier environment |
Effective pro-active credit management and strategic partnerships with major industry players active in the management of non-performing loans |
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| Customer digitalisation |
Top position in Europe for mobile App functions
Strong digital offer, with roughly 10.1m multi-channel clients (more than 12m including UBI Banca) and around 6.2m clients using the App (more than 7m including the UBI Banca App)
Strategic payment systems partnership with Nexi |
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| Digitalisation at Intesa Sanpaolo |
Already more than 63,000 Group resources working remotely (around 77,000 including UBI Banca)
Optimisation of the distribution model with the reduction of branches following the strategic partnership with Banca 5® - SisalPay and the excellent digital channels, to continue serving the majority of those customers who changed their habits during the COVID-19 emergency |
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| Growing importance of Environmental, Social and Governance (ESG) |
The only Italian bank included in the top sustainability indices: Dow Jones Sustainability Indices, CDP Climate Change A List 2019 and 2020 Corporate Knights “Global 100 Most Sustainable Corporations in the World Index”
Intesa Sanpaolo ranked first among its competitors in MSCI and CDP, two of the main international ESG indices/rankings |
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| Find out about our many initiatives to mitigate the social and economic impacts of COVID-19 |
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Last updated 12 November 2020 at 10:32:40
