Intesa Sanpaolo S.p.a. · MIL:ISP
Intesa Sanpaolo — Intesa Sanpaolo Spa Ord — 9M 2023 Earnings Presentation
105 slides from Intesa Sanpaolo's earnings presentation, Nov 3, 2023
Slide 1: 9M23 Results
9M23 Results The best nine months ever, with significant tech investments already deployed Further strengthening our world-class position in Social Impact A strong bank for a sustainable world November 3, 2023
Slide 2: ISP delivered the best 9M ever, with €6.1bn Net income
MIL-BVA362-03032014-90141/VR ISP delivered the best 9M ever, with €6.1bn Net income €6.1bn Net income in 9M (+85% vs 9M22(1)), the best 9M since 2007 (€6.3bn when excluding the final Resolution Fund contribution) €1.9bn Net income in Q3 (+99% vs 3Q22(1)), the best Q3 ever Best 9M ever for Operating
Slide 3: The best 9M Net income since 2007
MIL-BVA362-03032014-90141/VR The best 9M Net income since 2007… Net income €m Net impact of provisions/writedowns for Russia-Ukraine exposure 6,122 4,386 +85% 4,006 3,781 3,310 3,012 3,112 2,726 2,262 2,335 2,388 2,200 1,929 1,688 1,203 3,303 640 9M08 9M09 9M10 9M11 9M12 9M13 9M14 9M15 9M16 9M17 9M1
Slide 4: Driving improved Net income guidance for 2023
MIL-BVA362-03032014-90141/VR …driving improved Net income guidance for 2023… The best 9M ever… … driving improved Net income guidance for 2023 Net income, € m 2023 Net income Above Well above €7.5bn ~€7bn €7bn Well above 6,122 €5.5bn +85% 3,303 9M22(1) 9M23 Guidance Guidance Guidance Guidance in Feb
Slide 5: 2024-2025 Net income to exceed 2023 Net income
MIL-BVA362-03032014-90141/VR … with 2024-2025 Net income to exceed 2023 Net income 2024-2025 Net income to exceed 2023 Net income Net income Above 2023 Above Net income ▪ Fully phased-in CET1 ratio post Basel 4 at >14% as €7.5bn at 31.12.25 (>15% including DTA) ▪ 70% cash payout ratio ▪ Additional d
Slide 6: Our solid performance benefits all our stakeholders
MIL-BVA362-03032014-90141/VR Our solid performance benefits all our stakeholders… Shareholders Employees Net income, € bn 2023 dividend yield: >11.5%(1); ~40% of cash dividends Personnel expenses, € bn go directly to Italian households and to foundations 6.1 4.8 9M23 9M23 €4.3bn dividends already ac
Slide 7: Social Impact ~€1.5bn contribution through selected initiatives
MIL-BVA362-03032014-90141/VR ... and allows us to further strengthen our world-class position in Social Impact ~€1.5bn contribution through selected initiatives … unparalleled and projects in the 2023-2027 period(1), addressing social needs, contribution fighting inequalities and promoting financial
Slide 8: Contents
MIL-BVA362-03032014-90141/VR Contents 9M23: the best 9M ever Significant tech investments and strengthened ESG commitment ISP is fully equipped for further success Appendix: 2022-2025 Business Plan proceeding at full speed 7
Slide 9: 9M: €6.1bn Net income, the best 9M since 2007
MIL-BVA362-03032014-90141/VR 9M: €6.1bn Net income, the best 9M since 2007 9M23 P&L; € m €6,625m Non-motor P&C revenues at €389m (+15% vs Including €503m excluding Levies 9M22(1)), €455m including credit-linked products Levies and other and other charges concerning charges 18,765 the banking industr
Slide 10: Q3: €1.9bn Net income, the best Q3 ever
MIL-BVA362-03032014-90141/VR Q3: €1.9bn Net income, the best Q3 ever 3Q23 P&L; € m Including €264m 6,367 Levies and other 419 52 (12) charges concerning (1,612) the banking industry 2,095 (net of tax(3)) (710) 3,717 (328) 3,328 (357) (32) (1,066) 1,900 3,813 (362) income/expenses charges/gains(2) Ot
Slide 11: Further strong acceleration in Net interest income in Q3
MIL-BVA362-03032014-90141/VR Further strong acceleration in Net interest income in Q3… Net interest income €m % Euribor 1M(2) 3,813 3,584 3,254 3,064 2,387 2,000 1,957 2,092 1,955 Euribor 3Q21(1) 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 1M as at 30.9.23: -0.56 -0.57 -0.55 -0.54 +0.10 +1.36 +2.36 +3.1
Slide 12: Commercial component continues to fuel NII growth
MIL-BVA362-03032014-90141/VR … thanks to the commercial component that will continue to fuel growth Net interest income – Quarterly comparison Net interest income – Yearly comparison € m, 3Q23 vs 2Q23 % Euribor 1M (average data) € m, 9M23 vs 9M22 % Euribor 1M (average data) 190 49 3,813 4,211 52
Slide 13: More than €1.2 trillion in Customer financial assets
MIL-BVA362-03032014-90141/VR More than €1.2 trillion in Customer financial assets, with a €3.5bn increase in Direct deposits in Q3 Customer financial assets(1) Δ +€3.5bn € bn 545.4 554.4 557.9 Direct deposits Δ +€39.5bn 31.12.22 30.6.23 30.9.23 1,203.8 1,251.9 1,243.3 430.2 437.8 428.6 Assets under
Slide 14: Lowest-ever 9M Cost/Income ratio with stable Operating costs
MIL-BVA362-03032014-90141/VR Lowest-ever 9M Cost/Income ratio with Operating costs essentially stable despite inflation and while strongly investing in technology and growth Operating costs €m x Cost/Income ratio, % 4,821 4,797 -0.8% excluding -0.5% Total Operating costs Depreciation and Personnel i
Slide 15: Best-in-class Cost/Income ratio in Europe
MIL-BVA362-03032014-90141/VR Best-in-class Cost/Income ratio in Europe Cost/Income ratio(1) % 76.4 66.3 66.7 60.4 60.6 61.5 Peer average: 53.2% 50.6 50.7 51.1 44.7 45.3 43.7 40.6 41.9 39.1 39.9 Peer 11 Peer 12 Peer 14 Peer 15 Peer 10 Peer 13 Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Pe
Slide 16: Zero-NPL Bank status and NPL inflow at historical low
MIL-BVA362-03032014-90141/VR Zero-NPL Bank status and NPL inflow at historical low… NPL stock NPL inflow(2) from Performing loans NPL inflow(2) from Performing loans € bn Net NPL x Gross NPL ratio(1), % € bn Net inflow(4) € bn Net inflow(4) x Net NPL ratio(1), % 1.9 1.9 1.9 1.0 1.0 1.0 11.4 12.2 0.9
Slide 17: ISP among the best in Europe for NPL stock and ratios
MIL-BVA362-03032014-90141/VR … with ISP among the best in Europe for NPL stock and ratios… Net NPL stock for the main European banks(1) € bn x Net NPL ratio(2) x Gross NPL ratio(2) 34.2 20.1 12.8 12.5 8.8 8.8 8.1 6.8 6.2 5.2 3.3 1.7 1.7% 0.8% 1.0% 1.0% 1.0% 0.9% 1.6% 1.0% 1.0% 0.5% 0.5% 2.8% 1.6% 2.
Slide 18: Among the best for Stage 2 loans
MIL-BVA362-03032014-90141/VR … as well as for Stage 2 loans… Net Stage 2 loans(1) € bn x Stage 2 in % of Net loans(1) 106 75 69 67 52 52 35 35 30 14 9% 17% 8% 6% 11% 8% 8% 7% 8% 4% 30.9.23 Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 (1) Including only banks in the EBA Transparency
Slide 19: Cost of risk at historical low with coverage increasing
MIL-BVA362-03032014-90141/VR … driving Cost of risk to historical low with coverage increasing further Loan loss provisions (LLP) Cost of risk NPL Coverage ratio €m Provisions for Russia-Ukraine exposure (net of release of part of generic provisions bps; annualised Provisions for Russia-Ukraine expo
Slide 20: Russia exposure reduced to below 0.2% of customer loans
MIL-BVA362-03032014-90141/VR Russia exposure reduced to below 0.2% of Group customer loans Cross-border exposure to Russia Local presence in Russia Loans to customers net of ECA(1) guarantees and provisions, € bn Loans to customers net of provisions – Banca Intesa, € bn 3.2 -81% 1.1 0.9 0.7 0.6 0.4
Slide 21: Rock-solid and increased capital base
MIL-BVA362-03032014-90141/VR Rock-solid and increased capital base despite absorbing in 9M the vast majority of expected regulatory headwinds Fully phased-in CET1 ratio CET1 ratio projections ISP 2023 fully loaded requirements SREP + combined buffer 2022-2025 Business Plan target (confirmed) % x Ful
Slide 22: Well-balanced model reduces impact from EBA adverse scenario
MIL-BVA362-03032014-90141/VR Our well-balanced model reduces impact from the EBA adverse scenario… Adverse scenario impact on Fully phased-in(1) CET1 ratio(2) in worst year of EBA stress test bps 731 554 535 513 464 Peer average: 440bps 398 403 341 317 295 170 Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer
Slide 23: ISP one of the clear winners of the EBA stress test
MIL-BVA362-03032014-90141/VR … positioning ISP as one of the clear winners of the EBA stress test Fully phased-in(1) CET1 ratio buffer in worst year of EBA stress test adverse scenario vs requirements SREP + Combined Buffer(2) bps x Fully phased-in CET1 ratio(1) in worst year of EBA stress test adve
Slide 24: Sound liquidity position with LCR and NSFR well above requirements
MIL-BVA362-03032014-90141/VR Sound liquidity position with LCR and NSFR well above regulatory requirements and Business Plan targets… Retail funding represents 80% of Direct Liquidity ratios well above regulatory Loan to Deposit ratio deposits from banking business requirements and Business Plan tar
Slide 25: High liquidity reserves
MIL-BVA362-03032014-90141/VR … with high liquidity reserves Unencumbered eligible assets with Central Liquid assets(1) Cash and deposits with ECB vs TLTRO Banks(2) (net of haircuts) € bn Other reserves HQLA € bn Other reserves HQLA € bn, 30.9.23 284 280 +€8bn 183 182 +€16bn 72 272 166 18 43 39 113 1
Slide 26: Contents
MIL-BVA362-03032014-90141/VR Contents 9M23: the best 9M ever Significant tech investments and strengthened ESG commitment ISP is fully equipped for further success Appendix: 2022-2025 Business Plan proceeding at full speed 25
Slide 27: Business Plan execution at full speed with tech investments and ESG
MIL-BVA362-03032014-90141/VR Execution of the 2022-2025 Business Plan proceeding at full speed with significant tech investments and strengthened ESG commitment Chapter focus Our People are our most important asset Massive upfront Structural Cost reduction, Growth in Commissions, Significant ESG com
Slide 28: Significant investments in technology already deployed
MIL-BVA362-03032014-90141/VR Significant tech investments Significant investments in technology already deployed to succeed now and in the future 1 isytech: ISP cloud-based digital banking platform New technology backbone already available to mass market retail clients through , to be progressively
Slide 29: isytech: cloud-native tech backbone
MIL-BVA362-03032014-90141/VR Significant tech investments Mooney Enel New technology backbone (isytech) already available to mass market retail clients through 1 to be progressively extended to the entire Group isytech: our cloud-native … already successfully … to be progressively tech backbone… dep
Slide 30: isytech: Group cloud-based digital platform
MIL-BVA362-03032014-90141/VR Significant tech investments 1 isytech: Group cloud-based digital platform Key elements of our cloud-based digital platform Cloud-native Modular Secure Scalable Always-on ▪ Scalable hybrid ▪ API-based ▪ Enhanced cyber- ▪ Across segments ▪ 24/7/365 cloud technology archit
Slide 31: A new digital bank delivered in less than 12 months
MIL-BVA362-03032014-90141/VR Significant tech investments 2 A new digital bank with an innovative customer experience delivered in less than 12 months Unique digital customer experience… … already appreciated by the market <3 minutes ~300,000 migrated average onboarding time customers <30 clicks req
Slide 32: First group of customers successfully migrated
MIL-BVA362-03032014-90141/VR Significant tech investments 2 Planned activities for the migration of the first group of customers successfully completed Migration activities successfully completed... ... with excellent performance Successfully completed Family&Friends Excellent performance of the tes
Slide 33: AI program at scale with strong benefits for the Group
MIL-BVA362-03032014-90141/VR Significant tech investments 3 AI program at scale with strong benefits for the Group Dedicated program to adopt AI at scale… … with strong benefits for the Group ▪ Group-wide adoption of AI through the development of AI use cases favouring: AI use cases, # x Dedicated A
Slide 34: Strengthened ESG commitment with world-class position in Social Impact
MIL-BVA362-03032014-90141/VR Strengthened ESG commitment Strengthened ESG commitment with a world-class position in Social Impact… NOT EXHAUSTIVE x Result achieved vs BP target Results achieved as 2022-2025 Business Plan 2022-2025 Business Plan main ESG initiatives at 30.9.23 (2022-9M23) targets Unp
Slide 35: A strong focus on climate
MIL-BVA362-03032014-90141/VR Strengthened ESG commitment … and a strong focus on climate NOT EXHAUSTIVE x Result achieved vs BP target Results achieved as 2022-2025 Business Plan 2022-2025 Business Plan main ESG initiatives at 30.9.23 (2022-9M23) targets New lending to support the green economy, cir
Slide 36: Leading ESG position in sustainability indexes and rankings
MIL-BVA362-03032014-90141/VR Strengthened ESG commitment Leading ESG position in the main sustainability indexes and rankings Top ranking(1) for Sustainability The only Italian bank included in the Dow Jones Sustainability (2) Indices, the CDP Climate A List 86 74 A AAA 12.2 2022 and 2023 Corporate
Slide 37: Contents
MIL-BVA362-03032014-90141/VR Contents 9M23: the best 9M ever Significant tech investments and strengthened ESG commitment ISP is fully equipped for further success Appendix: 2022-2025 Business Plan proceeding at full speed 36
Slide 38: Italy's solid fundamentals support the resilience of the economy
MIL-BVA362-03032014-90141/VR Italy’s solid fundamentals support the resilience of the economy % Italian GDP YoY evolution The Italian economy is resilient thanks to solid fundamentals ▪ Strong Italian household gross wealth at more than €11,400bn, of which €5,200bn in financial assets, coupled with
Slide 39: ISP far better equipped than peers
MIL-BVA362-03032014-90141/VR ISP is far better equipped than its peers thanks to a best-in-class risk profile, rock-solid capital position and a well-diversified and resilient business model Buffer vs requirements SREP + combined Contribution of Net fees and commissions Cost/Income ratio buffer(1) a
Slide 40: Delivering on our commitments and fully equipped for further success
MIL-BVA362-03032014-90141/VR Delivering on our commitments and fully equipped for further success Fully equipped for further success thanks to a well-diversified The best 9M ever and resilient business model ▪ €6.1bn Net income in 9M, the best nine months since 2007 ▪ Resilient profitability, rock-s
Slide 41: Improved outlook for 2023: Net income above €7.5bn
MIL-BVA362-03032014-90141/VR Improved outlook for 2023: Net income above €7.5bn ▪ Strong and sustainable value creation and distribution: 70% cash payout ratio Solid growth in Revenues driven by Net interest income, … leading to significant ▪ €4.3bn dividends already accrued in 9M, of which €2.6bn c
Slide 42: Contents
MIL-BVA362-03032014-90141/VR Contents 9M23: the best 9M ever Significant tech investments and strengthened ESG commitment ISP is fully equipped for further success Appendix: 2022-2025 Business Plan proceeding at full speed 41
Slide 43: 2022-2025 Business Plan proceeding at full speed
MIL-BVA362-03032014-90141/VR 2022-2025 Business Plan proceeding at full speed Our People are our most important asset Massive upfront Structural Cost reduction, Growth in Commissions, Significant ESG commitment, de-risking, slashing enabled by technology driven by Wealth Management, with a world-cla
Slide 44: Massive upfront de-risking, slashing Cost of risk
MIL-BVA362-03032014-90141/VR 2022-2025 Business Plan proceeding at full speed Massive upfront de-risking, slashing Cost of risk Key highlights ▪ Massive deleveraging with €4.8bn gross NPL stock reduction in 2022-3Q23, reducing Net NPL ratio to 1%(1) and anticipating Business Plan target ▪ Focus on m
Slide 45: Structural Cost reduction, enabled by technology (1/3)
MIL-BVA362-03032014-90141/VR 2022-2025 Business Plan proceeding at full speed Structural Cost reduction, enabled by technology (1/3) Key highlights ▪ isytech already operational with ~465 dedicated specialists, contract with Thought Machine finalised and technological masterplan defined. Defined the
Slide 46: Structural Cost reduction, enabled by technology (2/3)
MIL-BVA362-03032014-90141/VR 2022-2025 Business Plan proceeding at full speed Structural Cost reduction, enabled by technology: (2/3) product offering broader than digital challengers(1)… clients Fully accessible product catalogue, m, by 2025 Additional vs in continuous evolution(2) Peer 1 Peer 2 Pe
Slide 47: Digital bank business model with <30% Cost/Income
MIL-BVA362-03032014-90141/VR 2022-2025 Business Plan proceeding at full speed Structural Cost reduction, enabled by technology: (3/3) A unique approach coupling digital with the human touch of Intesa Sanpaolo’s Digital Branch A digital service … through ISP’s A digital bank … with innovative model w
Slide 48: Growth in Commissions (1/5)
MIL-BVA362-03032014-90141/VR 2022-2025 Business Plan proceeding at full speed Growth in Commissions, driven by Wealth Management, Protection & Advisory (1/5) Key highlights ▪ Direct Advisory as part of our digital offering up and running, allowing customers to build investment portfolios with the ad
Slide 49: Growth in Commissions (2/5)
MIL-BVA362-03032014-90141/VR 2022-2025 Business Plan proceeding at full speed Growth in Commissions, driven by Wealth Management, Protection & Advisory (2/5) Key highlights ▪ On 1.1.23 completed the merger of the two Private Banks in Luxembourg with the new Intesa Sanpaolo Wealth Management (ISWM) f
Slide 50: Growth in Commissions (3/5)
MIL-BVA362-03032014-90141/VR 2022-2025 Business Plan proceeding at full speed Growth in Commissions, driven by Wealth Management, Protection & Advisory (3/5) Key highlights ▪ Developed commercial initiatives to support clients in different sectors (e.g. Energy, TMT, Infrastructure) to optimise the i
Slide 51: Growth in Commissions (4/5)
MIL-BVA362-03032014-90141/VR 2022-2025 Business Plan proceeding at full speed Growth in Commissions, driven by Wealth Management, Protection & Advisory (4/5) A unique Digital Wealth Platform for customers seeking to invest remotely in listed markets and asset management products… Advanced Trading In
Slide 52: Fideuram Direct: a new business line
MIL-BVA362-03032014-90141/VR 2022-2025 Business Plan proceeding at full speed Growth in Commissions, driven by Wealth Management, Protection & Advisory (5/5) … to further increase Private Fideuram Direct: a new business line… Banking Division customer base Clients, k ▪ >1,000 private banking custome
Slide 53: Significant ESG commitment (1/4)
MIL-BVA362-03032014-90141/VR 2022-2025 Business Plan proceeding at full speed Significant ESG commitment, with a world-class position in Social Impact and strong focus on climate (1/4) ▪ Expanding food and shelter program for people in need to counter poverty by providing concrete aid throughout the
Slide 54: Significant ESG commitment (2/4)
MIL-BVA362-03032014-90141/VR 2022-2025 Business Plan proceeding at full speed Significant ESG commitment, with a world-class position in Social Impact and strong focus on climate (2/4) ▪ Gallerie d’Italia, the 4 venues of Intesa Sanpaolo's museum, in Milan, Naples, Turin and Vicenza. In 9M23: ‒ over
Slide 55: Significant ESG commitment (3/4)
MIL-BVA362-03032014-90141/VR 2022-2025 Business Plan proceeding at full speed Significant ESG commitment, with a world-class position in Social Impact and strong focus on climate (3/4) ‒ In Action ESG Climate: completed the 2nd edition of the initiative developed by the Insurance Division with the s
Slide 56: Significant ESG commitment (4/4)
MIL-BVA362-03032014-90141/VR 2022-2025 Business Plan proceeding at full speed Significant ESG commitment, with a world-class position in Social Impact and strong focus on climate (4/4) ▪ ~€41bn disbursed in the period 2021-9M23 out of the €76bn in new lending available for the green economy, circula
Slide 57: Our People are our most important asset
MIL-BVA362-03032014-90141/VR 2022-2025 Business Plan proceeding at full speed Our People are our most important asset Key highlights ▪ ~2,600 professionals hired since 2021 ▪ ~3,350 people reskilled in 2022 and 9M23 ▪ ~20.5m training hours delivered since 2022 ▪ More than 230 talents have completed
Slide 58: 9M23 Results: Detailed information
9M23 Results Detailed information
Slide 59: Key P&L and Balance sheet figures
MIL-BVA362-03032014-90141/VR Key P&L and Balance sheet figures €m 9M23 30.9.23 Operating income 18,765 Loans to customers 433,710 Operating costs (7,861) Customer financial assets(1) 1,243,324 Cost/Income ratio 41.9% of which Direct deposits from banking business 557,884 Operating margin 10,904 of w
Slide 60: Contents
MIL-BVA362-03032014-90141/VR Contents Detailed consolidated P&L results Liquidity, Funding and capital base Asset quality Divisional results and other information 59
Slide 61: 9M23 vs 9M22: €6.1bn Net income
MIL-BVA362-03032014-90141/VR 9M23 vs 9M22: €6.1bn Net income, the best 9M since 2007 €m 9M22(1) 9M23 % Net interest income 6,436 10,651 65.5 Net fee and commission income 6,697 6,448 (3.7) Income from insurance business 1,280 1,275 (0.4) Profits on financial assets and liabilities at fair value 1,3
Slide 62: Q3 vs Q2: €1.9bn Net income
MIL-BVA362-03032014-90141/VR Q3 vs Q2: €1.9bn Net income, the best Q3 ever €m 2Q23 3Q23 % Net interest income 3,584 3,813 6.4 Net fee and commission income 2,216 2,095 (5.5) Income from insurance business 459 419 (8.7) Profits on financial assets and liabilities at fair value 75 52 (30.7) Other ope
Slide 63: Quarterly P&L
MIL-BVA362-03032014-90141/VR Quarterly P&L €m 1Q22(1) 2Q22(1) 3Q22(1) 4Q22(1) 1Q23 2Q23 3Q23 Net interest income 1,957 2,092 2,387 3,064 3,254 3,584 3,813 Net fee and commission income 2,289 2,255 2,153 2,222 2,137 2,216 2,095 Income from insurance business 392 449 439 395 397 459 419 Profits on fin
Slide 64: Net interest income
MIL-BVA362-03032014-90141/VR Net interest income Quarterly analysis Yearly analysis €m % Euribor 1M (average data) €m % Euribor 1M (average data) +65.5% 4,211 52 10,651 +6.4% 6,436 (48) 3,584 190 49 3,813 (10) Commercial component Commercial component 2Q23 Volumes Spread(1) Financial 3Q23 9M22 Volum
Slide 65: Net fee and commission income
MIL-BVA362-03032014-90141/VR Net fee and commission income Quarterly analysis Yearly analysis €m % 3Q23 vs 3Q22 and 2Q23 €m % 9M23 vs 9M22 6,697 6,448 2,153 2,216 2,095 3Q22 2Q23 3Q23 9M22 9M23 (2.7) (5.5) (3.7) ▪ Decline vs Q2 mainly due to the usual seasonal business ▪ Decline largely due to C
Slide 66: Net fee and commission income: quarterly breakdown
MIL-BVA362-03032014-90141/VR Net fee and commission income: quarterly development breakdown €m Net fee and commission income 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 Guarantees given / received 47 54 86 59 34 41 41 Collection and payment services 139 164 156 164 156 164 169 Current accounts 346 348 348 34
Slide 67: Income from insurance business
MIL-BVA362-03032014-90141/VR Income from insurance business Quarterly analysis Yearly analysis €m % 3Q23 vs 3Q22 and 2Q23 €m % 9M23 vs 9M22 1,280 1,275 439 459 419 3Q22 2Q23 3Q23 9M22 9M23 (4.6) (8.7) (0.4) ▪ Non-motor P&C revenues(1) up 15% to €125m vs 3Q22, €148m ▪ Non-motor P&C revenues(1) up
Slide 68: Profits on financial assets and liabilities at fair value
MIL-BVA362-03032014-90141/VR Profits on financial assets and liabilities at fair value Quarterly analysis Yearly analysis €m % 3Q23 vs 3Q22 and 2Q23 €m % 9M23 vs 9M22 1,380 389 51 75 52 3Q22 2Q23 3Q23 9M22 9M23 +2.0 (30.7) (71.8) Contributions by activity 3Q22 2Q23 3Q23 9M22 9M23 Customers 105 8
Slide 69: Operating costs
MIL-BVA362-03032014-90141/VR Operating costs Quarterly analysis Yearly analysis % 3Q23 vs 3Q22 and 2Q23 % 9M23 vs 9M22 Operating costs Personnel expenses Operating costs Personnel expenses €m €m €m €m 7,804 7,861 4,821 4,797 2,640 2,675 2,650 1,632 1,625 1,612 3Q22 2Q23 3Q23 3Q22 2Q23 3Q23 9M22
Slide 70: Net adjustments to loans
MIL-BVA362-03032014-90141/VR Net adjustments to loans Quarterly analysis Yearly analysis €m % 3Q23 vs 3Q22 and 2Q23 €m % 9M23 vs 9M22 Provisions for Russia-Ukraine Provisions for Russia-Ukraine exposure (net of release of part of exposure (net of release of part of generic provisions booked in 2
Slide 71: Contents
MIL-BVA362-03032014-90141/VR Contents Detailed consolidated P&L results Liquidity, Funding and capital base Asset quality Divisional results and other information 70
Slide 72: More than €1.2 trillion in Customer financial assets
MIL-BVA362-03032014-90141/VR More than €1.2 trillion in Customer financial assets % 30.9.23 vs 31.12.22 and 30.6.23 Customer financial assets(1) Direct deposits from banking business € bn € bn 1,204 1,252 1,243 545 554 558 31.12.22(2) 30.6.23 30.9.23 31.12.22 30.6.23 30.9.23 +3.3 (0.7) +2.3 +0.6 ▪
Slide 73: Funding mix
MIL-BVA362-03032014-90141/VR Funding mix Breakdown of Direct deposits from banking business € bn; 30.9.23 ~70% Households % Percentage of total ~30% Corporates Wholesale Retail 558 Current accounts 11 392 and deposits Repos and 11 - securities lending 449 Senior bonds(1) 36 8 Covered bonds 26 - 109
Slide 74: Strong funding capability: broad access to international markets
MIL-BVA362-03032014-90141/VR Strong funding capability: broad access to international markets 2023 MLT wholesale issues Main wholesale issues € bn ~€6bn 2024 pre-funding 2022 ◼ €1bn AT1, €1bn green senior non-preferred, £400m Tier 2, €750m social senior preferred and ~17.0 dual tranche for a total o
Slide 75: High liquidity: LCR and NSFR well above requirements
MIL-BVA362-03032014-90141/VR High liquidity: LCR and NSFR well above regulatory requirements and Business Plan targets Unencumbered eligible assets Liquid assets(1) Cash and deposits with ECB vs TLTRO with Central Banks(2) (net of haircuts) € bn Other reserves HQLA € bn Other reserves HQLA € bn, 30.
Slide 76: Rock-solid capital base
MIL-BVA362-03032014-90141/VR Rock-solid capital base Fully phased-in Common equity ratio Fully phased-in Tier 1 ratio Fully phased-in Total capital ratio €4.3bn dividends already accrued in 9M(1) €4.3bn dividends already accrued in 9M(1) €4.3bn dividends already accrued in 9M(1) % % % 14.9% fully lo
Slide 77: Contents
MIL-BVA362-03032014-90141/VR Contents Detailed consolidated P&L results Liquidity, Funding and capital base Asset quality Divisional results and other information 76
Slide 78: Non-performing loans: lowest-ever net NPL stock and ratio
MIL-BVA362-03032014-90141/VR Non-performing loans: lowest-ever net NPL stock and ratio x Gross NPL ratio, % x Net NPL ratio, % x Gross and net NPL ratio based on EBA definition, % Gross NPL Net NPL € bn € bn 30.9.22 31.12.22 30.6.23 30.9.23 30.9.22 31.12.22 30.6.23 30.9.23 Bad loans 3.8 3.7 3.7 3.9
Slide 79: Non-performing loans: sizeable and increased coverage
MIL-BVA362-03032014-90141/VR Non-performing loans: sizeable and increased coverage Cash coverage; % Total NPL(1) 46.9 49.0 50.4 30.9.22 30.6.23 30.9.23 Bad loans Unlikely to pay Past due 65.8 68.2 68.7 38.9 40.0 40.8 22.2 23.7 27.1 30.9.22 30.6.23 30.9.23 30.9.22 30.6.23 30.9.23 30.9.22 30.6.23 30.9
Slide 80: Non-performing loans inflow: at historical low
MIL-BVA362-03032014-90141/VR Non-performing loans inflow: at historical low Gross inflow of new NPL(1) from Performing loans Net inflow of new NPL(1) from Performing loans € bn € bn Impact from the acquisition of Impact from the acquisition of the two former Venetian banks the two former Venetian ba
Slide 81: Non-performing loans gross inflow
MIL-BVA362-03032014-90141/VR Non-performing loans gross inflow €m Gross inflow of new NPL(1) from Performing loans 885 793 698 -21% 3Q22 2Q23 3Q23 Bad loans Unlikely to pay Past due 459 373 416 378 284 303 136 10 17 3Q22 2Q23 3Q23 3Q22 2Q23 3Q23 3Q22 2Q23 3Q23 Note: figures may not add up exactly du
Slide 82: Non-performing loans net inflow
MIL-BVA362-03032014-90141/VR Non-performing loans net inflow €m Net inflow of new NPL(1) from Performing loans 688 565 494 -28% 3Q22 2Q23 3Q23 Bad loans Unlikely to pay Past due 423 262 220 225 258 131 214 3 11 3Q22 2Q23 3Q23 3Q22 2Q23 3Q23 3Q22 2Q23 3Q23 Note: figures may not add up exactly due to
Slide 83: Loans to customers: a well-diversified portfolio
MIL-BVA362-03032014-90141/VR Loans to customers: a well-diversified portfolio Non-retail loans of the Italian banks and companies of the Group Breakdown by business area (data as at 30.9.23) Breakdown by economic business sector Repos, Capital markets and 30.9.23 Financial Institutions Global Corpor
Slide 84: Russia exposure reduced to below 0.2% of customer loans
MIL-BVA362-03032014-90141/VR Russia exposure reduced to below 0.2% of Group customer loans € bn, data as at 30.9.23 Local presence Russia Cross-border exposure to Russia(1) Loans to customers (net of ECA guarantees and provisions) 0.1(2) 0.6 ECA(3) guarantees - 0.8(4) Due from banks (net of provisio
Slide 85: Contents
MIL-BVA362-03032014-90141/VR Contents Detailed consolidated P&L results Liquidity, Funding and capital base Asset quality Divisional results and other information 84
Slide 86: Divisional financial highlights
MIL-BVA362-03032014-90141/VR Divisional financial highlights Data as at 30.9.23 Divisions IMI International Corporate Banca dei Corporate & Private Asset Investment Subsidiary Insurance (5) Centre / Total Territori(1) Banking(3) Management(4) Banking Banks(2) Others(6) Operating income (€ m) 8,482 2
Slide 87: Banca dei Territori: 9M23 vs 9M22
MIL-BVA362-03032014-90141/VR Banca dei Territori: 9M23 vs 9M22 €m 9M22 9M23 % Net interest income 2,928 4,919 68.0 Net fee and commission income 3,526 3,482 (1.2) Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 90 84 (6.7) Other operating income (ex
Slide 88: Banca dei Territori: Q3 vs Q2
MIL-BVA362-03032014-90141/VR Banca dei Territori: Q3 vs Q2 €m 2Q23 3Q23 % Net interest income 1,708 1,639 (4.0) Net fee and commission income 1,178 1,122 (4.8) Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 28 25 (12.0) Other operating income (expe
Slide 89: IMI Corporate & Investment Banking: 9M23 vs 9M22
MIL-BVA362-03032014-90141/VR IMI Corporate & Investment Banking: 9M23 vs 9M22 €m 9M22 9M23 % Net interest income 1,508 2,019 33.9 Net fee and commission income 854 829 (2.9) Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 1,064 40 (96.2) Other opera
Slide 90: IMI Corporate & Investment Banking: Q3 vs Q2
MIL-BVA362-03032014-90141/VR IMI Corporate & Investment Banking: Q3 vs Q2 €m 2Q23 3Q23 % Net interest income 696 712 2.2 Net fee and commission income 311 260 (16.4) Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value (17) (46) 165.3 Other operating inc
Slide 91: International Subsidiary Banks: 9M23 vs 9M22
MIL-BVA362-03032014-90141/VR International Subsidiary Banks: 9M23 vs 9M22 €m 9M22 9M23 % Net interest income 1,132 1,705 50.6 Net fee and commission income 436 436 0.0 Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 99 92 (7.1) Other operating incom
Slide 92: International Subsidiary Banks: Q3 vs Q2
MIL-BVA362-03032014-90141/VR International Subsidiary Banks: Q3 vs Q2 €m 2Q23 3Q23 % Net interest income 574 611 6.4 Net fee and commission income 152 146 (4.4) Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 45 26 (43.0) Other operating income (exp
Slide 93: Private Banking: 9M23 vs 9M22
MIL-BVA362-03032014-90141/VR Private Banking: 9M23 vs 9M22 €m 9M22 9M23 % Net interest income 203 933 359.6 Net fee and commission income 1,505 1,385 (8.0) Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 29 41 41.4 Other operating income (expenses)
Slide 94: Private Banking: Q3 vs Q2
MIL-BVA362-03032014-90141/VR Private Banking: Q3 vs Q2 €m 2Q23 3Q23 % Net interest income 322 331 2.5 Net fee and commission income 476 454 (4.6) Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 14 7 (54.5) Other operating income (expenses) 0 6 n.m.
Slide 95: Asset Management: 9M23 vs 9M22
MIL-BVA362-03032014-90141/VR Asset Management: 9M23 vs 9M22 €m 9M22 9M23 % Net interest income 0 6 n.m. Net fee and commission income 690 619 (10.3) Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value (22) 19 n.m. Other operating income (expenses) 56 45
Slide 96: Asset Management: Q3 vs Q2
MIL-BVA362-03032014-90141/VR Asset Management: Q3 vs Q2 €m 2Q23 3Q23 % Net interest income 1 4 435.9 Net fee and commission income 210 201 (4.5) Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 5 6 8.0 Other operating income (expenses) 15 13 (10.5) O
Slide 97: Insurance: 9M23 vs 9M22
MIL-BVA362-03032014-90141/VR Insurance: 9M23 vs 9M22 €m 9M22(1) 9M23 % Net interest income 0 0 n.m. Net fee and commission income 2 2 0.0 Income from insurance business 1,231 1,242 0.9 Profits on financial assets and liabilities at fair value 0 0 n.m. Other operating income (expenses) (9) (11) 22.2
Slide 98: Insurance: Q3 vs Q2
MIL-BVA362-03032014-90141/VR Insurance: Q3 vs Q2 €m 2Q23 3Q23 % Net interest income 0 0 (37.3) Net fee and commission income 1 1 2.7 Income from insurance business 449 408 (9.2) Profits on financial assets and liabilities at fair value (0) (0) (322.0) Other operating income (expenses) (6) (4) (26.5
Slide 99: Market leadership in Italy
MIL-BVA362-03032014-90141/VR Market leadership in Italy 9M23 Operating income breakdown by business area(1) Leader in Italy IMI Corporate & Market share(2) Ranking Investment Banking % 16% 1 Loans 18.7 Insurance 7% 1 Deposits(3) 21.9 Banca 48% dei Territori 13% 1 Pension Funds(4) 24.4 Private Bankin
Slide 100: International Subsidiary Banks by country
MIL-BVA362-03032014-90141/VR International Subsidiary Banks by country Data as at 30.9.23 Total % of the Total CEE Group Hungary Slovakia Slovenia Croatia Bosnia Serbia Albania Romania Moldova Ukraine(*) Egypt Operating income (€ m) 338 518 113 465 37 327 50 37 12 1,898 276 2,174 11.6% Operating cos
Slide 101: Total exposure by main countries
MIL-BVA362-03032014-90141/VR Total exposure(1) by main countries €m DEBT SECURITIES Banking Business LOANS AC FVTOCI FVTPL(2) Total (3) EU Countries 45,645 41,505 2,073 89,223 395,145 Austria 767 694 49 1,510 679 Belgium 4,194 3,122 233 7,549 1,462 Bulgaria 0 0 0 0 12 Croatia 259 582 76 917 8,710 Cy
Slide 102: Exposure to sovereign risks by main countries
MIL-BVA362-03032014-90141/VR Exposure to sovereign risks(1) by main countries €m DEBT SECURITIES Banking Business LOANS AC FVTOCI FVTPL(2) Total (3) EU Countries 35,478 29,243 -1,021 63,700 10,358 Austria 616 458 7 1,081 0 Belgium 3,226 3,019 216 6,461 0 Bulgaria 0 0 0 0 0 Croatia 175 582 76 833 1,6
Slide 103: Exposure to banks by main countries
MIL-BVA362-03032014-90141/VR Exposure to banks by main countries(1) €m DEBT SECURITIES Banking Business LOANS AC FVTOCI FVTPL(2) Total (3) EU Countries 2,009 7,308 1,907 11,224 17,866 Austria 141 225 37 403 333 Belgium 11 93 16 120 313 Bulgaria 0 0 0 0 2 Croatia 0 0 0 0 45 Cyprus 0 0 9 9 0 Czech Rep
Slide 104: Exposure to other customers by main countries
MIL-BVA362-03032014-90141/VR Exposure to other customers by main countries(1) €m DEBT SECURITIES Banking Business LOANS AC FVTOCI FVTPL(2) Total (3) EU Countries 8,158 4,954 1,187 14,299 366,921 Austria 10 11 5 26 346 Belgium 957 10 1 968 1,149 Bulgaria 0 0 0 0 10 Croatia 84 0 0 84 7,038 Cyprus 0 0
Slide 105: Disclaimer
MIL-BVA362-03032014-90141/VR Disclaimer “The manager responsible for preparing the company’s financial reports, Fabrizio Dabbene, declares, pursuant to paragraph 2 of Article 154 bis of the Consolidated Law on Finance, that the accounting information contained in this presentation corresponds to the
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