Intesa Sanpaolo’s 2026–2029 Business Plan: scaling a proven model

The Plan is anchored in a business model that is distinctive in the European banking landscape. Intesa Sanpaolo operates an integrated Wealth Management, Protection and Advisory platform, built on fully owned product factories and distribution networks working under full strategic control. This model has delivered results over many years and is now being taken to the next level.

A central element of the Business Plan is the expansion of advisory capabilities. A detailed roadmap foresees the growth of advisory networks in Italy and abroad, including the scale-up of the Global Advisors network within the domestic Banca dei Territori Division, which is set to become Italy’s third-largest financial advisory network, while the Group’s Fideuram unit will remain the market leader. On top of that, we will set up a “Fideuram-style” network in the International Banks Division.

The 2026-2029 Business Plan is built around a simple and clearly defined business formula, supported by strengths already embedded across the Group. This combination underpins Intesa Sanpaolo’s ability to deliver the Plan with no execution risk.

The formula is based on three core levers:

• Cost reduction, with absolute costs declining by 1.8% between 2025 and 2029, supported by a proven track record in cost management, technology investments already deployed, the roll-out of the cloud-based isytech platform and an effective generational transition.
• Revenue growth, with revenues growing at around 3% per year over the 2025–2029 period, in line with nominal GDP growth. This is driven by fully owned and long-established product factories, distinctive and expanding advisory networks, a comprehensive digital offering through isybank and Fideuram Direct, and a capital-light origination model with an international footprint.
• Low cost of risk, maintained at 25–30 basis points throughout the Business Plan horizon. This reflects a bad loan stock already reset, structurally low NPL ratios, high-quality loan origination and a strong track record in managing emerging risks.

These elements reinforce each other and are supported by a cohesive management team able to fully leverage Group synergies. Together, they underpin Intesa Sanpaolo’s positioning as Europe’s most resilient bank, as demonstrated by the EBA stress test, and provide a robust foundation for predictable and disciplined execution.

The 2026-2029 Business Plan positions the International Banks Division as an important driver of the Group’s growth strategy outside Italy, leveraging a business model that has already been successfully deployed domestically.

Growth in the International Banks is expected to translate into a significantly higher contribution to Group net income over the plan period, supported by the evolution of the operating model and enhanced advisory capabilities. This growth will also be driven by deeper synergies with other Group Divisions, leveraging the extension of the isytech platform and the Group’s fully owned product factories.

By 2029, a Fideuram-style advisory network will be established within the International Banks Division, comprising around 1,200 Advisors to support growth in Wealth Management and Protection.

This will be complemented by a strong focus on digital transformation, including the adoption of cloud-native isytech capabilities and the launch of new digital payment and lending solutions.

isywealth Europe represents an entirely new strategic option to extend the Group’s successful Wealth Management model to major European countries where it is already present, including France, Germany and Spain.

This opportunity builds on Intesa Sanpaolo’s leadership in Wealth Management, the significant technology investments already deployed across the Group, the extension of the isytech platform and an existing branch presence in these markets.

Digital capabilities will be combined with the development of a sizeable advisory network, while leveraging the Group’s fully owned product factories and selected partnerships with global leaders.

The 2026-2029 Business Plan assumes zero revenues from these initiatives over the plan period, while including approximately €200 million of investments, reflecting a disciplined approach to this option for mid-term growth.

People are a central enabler of Intesa Sanpaolo’sBusiness Plan execution. Employee engagement and satisfaction have increased steadily over time, reflecting a sustained focus on skills, inclusion and professional development. The Group continues to invest in talent as a long-term asset supporting delivery and resilience.

Alongside talent development, the Business Plan foresees a further enhancement of welfare at Group level, building on a strong existing framework. This includes the continued evolution of work-life balance through more flexible ways of working, supported by digital tools, as well as the progressive extension of welfare and wellbeing solutions across international geographies.

This is complemented by a strong, cohesive and long-standing management team, providing continuity and accountability as the Plan is implemented.

Technology is positioned as a major enabler of the 2026-2029 Business Plan, supporting efficiency, risk management and scalability. isytech is Intesa Sanpaolo’s cloud-native technology architecture and set of digital capabilities, designed to support scalability, efficiency and innovation across the Group.

isytech has already been deployed successfully in the Italian retail segment and is being progressively rolled out across the Group. By 2029, 100% of applications are expected to operate in the cloud.

Artificial Intelligence is a key accelerator of this transformation. AI is being embedded across core processes, supporting productivity gains, operational efficiency, risk management and internal controls. These applications are designed to increase productivity at scale, improve service quality and reinforce the robustness of the Group’s control framework, while supporting the evolution of the service model across retail, wealth management and corporate activities.

The expansion of Digital Branch capabilities, leveraging Artificial Intelligence, will increase productivity and commercial activation, transform the service model, enhance operational efficiency and strengthen oversight of risks and controls.

Intesa Sanpaolo’s 2026-2029 Business Plan envisages substantial growth in new clients, Customer Financial Assets and lending, while maintaining high-quality origination standards. In Italy, total new lending over the plan period is expected to exceed the scale of the country’s Recovery Plan. This growth is expected to be supported by a net increase of around 2.5 million customers, mainly through isybank and the International Banks.

Resilience remains a defining feature of the strategy. The Group intends to maintain its Zero-NPL Bank status and continues to be recognised as the most resilient bank in Europe.

The Business Plan sets out a clear set of financial and strategic targets for 2029, reflecting a combination of profitability, efficiency, resilience and social impact.

• Best-in-class profitability:
  Net income above €11.5 billion by 2029, with a Return on Equity (ROE) of 22% and a Return on Tangible Equity (ROTE) of 27%.

• Cost reduction:
  Absolute costs down by 1.8% between 2025 and 2029, benefiting from technology investments already deployed, with the cost/income ratio declining to 36.8% in 2029 while continuing to invest in technology and growth.

• Conservative revenue growth:
  Revenues growing at 3% CAGR over the 2025–2029 period, in line with nominal GDP growth, mainly driven by commissions, with Customer Financial Assets reaching approximately €1.7 trillion.

• Zero-NPL Bank and low cost of risk:
  Net NPL ratio below 1%, combined with a structurally low cost of risk in the range of 25–30 basis points throughout the Business Plan horizon, supported by high-quality loan origination.

• Rock-solid capital position:
  Common Equity Tier 1 ratio maintained above 12.5% over the entire plan period.

• World-class social impact:
  An additional contribution of around €1 billion to support people in need, fight poverty and reduce inequalities over the 2026–2029 period.

Together, these targets define a Business Plan focused on strong value creation, delivered with discipline and resilience.

The Business Plan includes a clear and substantial framework for shareholder distributions over the 2025–2029 period, fully supported by strong profitability, capital generation and a low-risk profile.

• Capital return of approximately €50 billion over the 2025–2029 period.
• Cash dividend payout ratio of 75% for the 2026–2029 Business Plan period.
• Share buybacks of 20% over the same period.

The Plan also envisages strong growth in earnings per share (EPS) and dividends per share (DPS), with additional distributions to be evaluated on a year-by-year basis starting from 2027.

Throughout the Business Plan horizon, the Group expects to maintain a rock-solid capital position, with a Common Equity Tier 1 ratio comfortably above the 12.5% target level.

The new Business Plan is designed to generate benefits across all stakeholder groups. Over the four-year plan period, Intesa Sanpaolo expects to contribute approximately €500 billion to the real economy, reflecting the scale of its economic and social footprint.

This includes substantial capital returns to shareholders, more than €370 billion in new medium- to long-term lending to households and businesses, and a continued focus on sustainable value creation. To support the social and environmental transition, 30% of total new lending will be allocated to sustainable financing.

The Group will also continue to be the number one bank in the world for social impact, with an additional €1 billion to support people in need, fight poverty and reduce inequalities. In parallel, Intesa Sanpaolo confirms its climate commitments, including decarbonisation objectives already in place.

1.   Cost reduction
Costs are expected to decrease by approximately €200 million in absolute terms, driven by around €1.6 billion in gross cost savings, while continuing to invest in technology and growth. By 2029, more than 12,000 exits are expected at no social cost, alongside the hiring of over 6,000 young people in Italy, largely Global Advisors, generating around €570 million in run-rate savings.

2.   Conservative revenue growth
Revenue growth will be driven by strong internal growth potential and Group synergies, without relying on interest rate increases. The focus is on Wealth Management, Protection and Advisory, with commissions as the main growth driver, supported by fully owned product factories, expanded advisory networks in Italy and abroad, Consumer Finance growth, scaling in Corporate & Investment Banking, and a growing contribution from the Group’s International Banks.

3.   Low cost of risk
As a Zero-NPL Bank, Intesa Sanpaolo will keep NPL inflows low through high-quality origination and optimised credit portfolio management, delivering a structurally low cost of risk throughout the plan period without relying on overlays.