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:
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Many projects and initiatives for the:
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Many projects and initiatives for the:
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(*) Net NPL, Net repossessed assets, Level 2 assets and Level 3 assets
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
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:
- driving the Circular Economy by setting a specific credit ceiling and launching a Circular Economy Investment Fund;
- 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 €1.5 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;
- 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 and attention to ESG issues |
Find out about our projects for people in need |
Find out about our social projects |
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Approximately 175 start-ups were analysed in 1Q21 (over 2,800 since 2018) in 2 acceleration programmes (activities switched online due to COVID-19) with 22 coached start-ups (over 410 since 2018), introducing them to selected investors and ecosystem players (~5,600 to date)) €6bn Circular Economy credit Plafond: ~€3.4bn already disbursed (~€1.2bn in 1Q21) Green Bond issued in March 2021 for €1.25bn focused on green mortgages granted for the construction or the purchase of energy efficient properties (energy classification A and B); the order book exceeded €3.5bn Two other Green Bonds issued in 2019 and 2017 for a total amount of €1.25bn (€750m Circular and €500m renewables and energy efficiency) 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: ~€390m granted in 1Q21 (~€520m since the launch of the initiative)
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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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Donated €100m to strengthen the National Health System through the Civil Protection Department across Italy
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| Find out about our training projects for young people |
Find out about our projects for inclusion |
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:
P-Tech initiative, in partnership with IBM, aimed at training young professional in new digital skills: mentoring activities with 20 ISP “mentors” for 40 young professionals |
Intesa Sanpaolo Fund for Impact launched in 4Q18 (~€1.5bn lending capacity). "Per Merito", the first line of credit without collateral dedicated to university students residing in Italy, studying in Italy or abroad; €16.3m granted in 1Q21 (~€107m since beginning of 2019) MAMMA@WORK: a highly subsidised loan launched in July 2020 to balance motherhood and work in their children’s early years of life (~€0.3m granted since the launch) Two other initiatives to support working mothers in India and people over 50 who have lost their jobs or have difficulty accessing pension schemes XME StudioStation launched in August 2020: loans to families to support distance learning (~€0.4m granted in 1Q21; ~€1.6m granted since the launch) |
The Advanced "Management of Artistic-Cultural Heritage and Corporate Collections" Training Course, first edition of Gallerie d’Italia Academy, training program in heritage management addressed to young professionals, under the patronage of the Ministry of Culture. 900 applications, 36 students, more than 60 teachers Digital promotion of Tiepolo exhibition (Gallerie d’Italia Milan). Tiepolo becomes a virtual tour and an innovative immersive experience. Sotto un unico cielo: 7 videos on Tiepolo's masterpieces in Veneto and Friuli regions. From 30 October 2020 to 31 March 2021, the digital initiatives dedicated to Tiepolo on Gallerie d'Italia, ISP and Progetto Cultura websites recorded a total of 133,000 page views The international edition of National Geographic magazine published 2 images (among a selection of 54 photos of the year from 1.7 million photos worldwide) part of "The COVID-19 Visual Project", the permanent archive that collects projects of important photographers, created by Cortona On the Move in collaboration with ISP. 95,000 views on Gallerie d’Italia social media channels and on LinkedIn and Amplify ISP |
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| Find out more |
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(*) Where not expressly indicated the data are for the first quarter of 2021.
The results for the first half of 2021 confirm Intesa Sanpaolo’s ability to effectively face the challenging aftermath of the COVID-19 epidemic and are fully on track to deliver a full-year net income of minimum €4 billion
The results for the first half of 2021 confirm Intesa Sanpaolo’s ability to effectively face the challenging aftermath of the COVID-19 epidemic and are fully on track to deliver a full-year net income of minimum €4 billion.
The results reflect Intesa Sanpaolo’s sustainable profitability deriving from a solid capital base and liquidity position, a resilient and well-diversified business model, strategic flexibility in managing operating costs and asset quality. These features have made it possible to effectively mitigate the impact of the adverse scenario of the 2021 EBA/ECB stress test and are reflected in a low risk profile bolstering 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.
Value generation for all stakeholders will be accreted by synergies estimated at over €1bn deriving from the merger of UBI Banca, successfully completed with no social costs, and by over €6bn in 2020 and over €300m in H1 2021, both out of pre-tax profit, devoted by the Group to further strengthening the sustainability of results.
As regards the Group’s dividend policy, in addition to €694 million in cash dividends for 2020 paid out in May 2021, in line with the 2018-2021 Business Plan it is envisaged:
- for the 2020 results, a cash distribution from reserves that, in addition to the aforementioned dividends, leads to the payment of a total amount corresponding to a payout ratio of 75% of the €3,505 million adjusted net income (excluding from the stated net income the items related to the acquisition of UBI Banca consisting of the effect of the purchase price allocation, including negative goodwill, and integration charges, as well as the write-off of goodwill of the Banca dei Territori Division);
- for the 2021 results, the payment of an amount of cash dividends corresponding to a payout ratio of 70%, to be partially distributed as interim dividend this year.
| 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
For the second consecutive year, the Bank has ranked first, among Italian corporates, in the “Cyber Resilience amid a Global Pandemic” competition organised by AIPSA (Italian Association of Corporate Security Professionals) |
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| Customer digitalisation |
Top position in Europe for mobile App functions
Strong digital offer, with roughly 12.1m multi-channel clients and around 7.5m clients using the Intesa Sanpaolo App
Strategic payment systems partnership with Nexi |
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| Digitalisation at Intesa Sanpaolo |
Around 79,000 Group resources working remotely
Successful evolution towards a “light” distribution model with significant room for further branch reduction following the acquisition of UBI Banca, the Banca 5 - SisalPay (Mooney) strategic partnership, and changes in the behaviour of customers brought about by COVID-19 with most of them who will continue to be served by the Group via its high-quality alternative channels |
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| Growing importance of Environmental, Social and Governance (ESG) |
The only Italian bank listed in the Dow Jones Sustainability Indices and in the Corporate Knights - 2021 Global 100 Most Sustainable Corporations in the World Index
Ranking first among European banks by MSCI and Bloomberg ESG Disclosure Score, two of the top ESG international assessments
Included in the Bloomberg Gender-Equality Index (GEI), recording for 2021 a score well above the average of the global financial sector and that of Italian companies
The only Italian bank included in the Refinitiv Diversity & Inclusion Index, which selects the world’s top 100 listed companies in terms of diversity and inclusion |
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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 6 August 2021 at 20:36:34
