First quarter 2024 results: statement by CEO Carlo Messina

“The solidity of the results achieved in the first quarter of 2024 reaffirms Intesa Sanpaolo's position as a European leader for high and sustainable profitability, capital strength and low risk profile; with a unique role in supporting Italy’s real and social economies.

“Intesa Sanpaolo's consolidated commercial leadership across its divisions catering to families and businesses, coupled with its substantial Wealth Management and Protection offerings, technologically advanced digital services, efficient international operations, our “Zero NPL” status, and robust ESG profile, position the Group as a distinct model in Europe.

“In May, we will distribute dividends totaling €2.8 billion, the balance for the 2023 financial year.

“We also confirm our objective of achieving a 2024 net income exceeding €8 billion.

“In the first quarter of 2024, net income reached €2.3 billion, an 18% increase versus the same period in 2023. This growth enables us to accrue €1.6 billion for dividends.

“Operating income grew by 11%, with a strong acceleration in commissions and insurance income.

“Savings entrusted to us by families and businesses grew by €8 billion in the quarter, surpassing €1.3 trillion. Our effective cost management – while strongly investing in technology – has enabled us to achieve our best-ever cost/income ratio.

“The historically low inflow of non-performing loans has reduced the annualized cost of risk to 22 basis points, supported by an increase in coverage.

“Furthermore, our robust capital generation continues to bolster our position, with the CET 1 Ratio exceeding 13.30%, even after factoring in the €1.7 billion buyback set to commence in early June.

“Direct and indirect taxes incurred in the first quarter of 2024 total €1.6 billion, while new medium and long-term lending in Italy approached €9 billion.

“Intesa Sanpaolo is uniquely positioned to drive revenue growth in its Wealth Management, Protection & Advisory business, especially in the context of declining interest rates. With over €1.3 trillion in customer financial assets, a network of over 16,000 dedicated advisors, cutting-edge digital offerings, and fully-owned insurance and asset management companies, our bank stands at the forefront.

“We've identified €100 billion in client financial assets to fuel the expansion of our Group's asset management business. The recently announced consolidation of wealth management activities into a unified unit aims to accelerate growth and foster greater integration of product factories.

“At the core of our strategies and growth initiatives lie our customers, their trust in the bank's solidity and technological leadership, and the strong relationships fostered with professionals dedicated to serving them for credit and consultancy. Our priority is listening to their needs.

“isybank, the Group's digital bank which will bring around one million new customers by 2025; Fideuram Direct, the digital Wealth Management platform for Private Banking, which will count 150,000 customers in 2025; artificial intelligence, with around 150 apps and 300 specialists at the end of the Business Plan.

“Technological innovation is a key element of our success. We are a European leader, thanks to the €3 billion already invested in IT and the recruitment of around 1,800 IT specialists. Initiatives like isybank, our digital bank, set to attract around one million customers by 2025; Fideuram Direct, our digital Wealth Management platform for Private Banking expected to serve 150,000 customers by 2025; and artificial intelligence, with approximately 150 use cases and 300 specialists by the end of our business plan, underscore our commitment to innovation.

“The creation of a new governance area dedicated to ESG issues will drive our sustainable development strategies forward, with a particular focus on addressing social issues and combating inequalities.

“Intesa Sanpaolo is an institution dedicated to serving our country. We are spearheading Italy’s primary social cohesion project, with a commitment of €1.5 billion by 2027, in addition to the previous one billion allocated between 2018 and 2021, and with the support of 1,000 dedicated professionals from within the bank. Our aim is to promote a more equitable society in a tangible and structural manner.

“We are deeply committed to combatting climate change. From 2021 to March 31, 2024, our new lending to support the Green Economy and ecological transition exceeded €47 billion, with approximately €9.5 billion allocated to support the circular economy. Furthermore, our own use of renewable energy sources currently stands at 90%.

“These efforts position Intesa Sanpaolo at the forefront of the sector in Europe, with a uniquely significant role in our country. Our contributions benefit not only economic growth but also foster a more inclusive society.

“The professional excellence of our People is a vital component in achieving solid and sustainable results for all stakeholders: our thanks go to them.”

3 May 2024