Intesa Sanpaolo S.p.a. · MIL:ISP
Intesa Sanpaolo — Intesa Sanpaolo Spa Ord — FY2023 Earnings Presentation
108 slides from Intesa Sanpaolo's earnings presentation, Feb 6, 2024
Slide 1: 2023 Results
2023 Results Excellent performance with Balance sheet further strengthened in Q4 Well-diversified business model, ready to leverage on our leadership in Wealth Management, Protection & Advisory A strong bank for a sustainable world February 6, 2024
Slide 2: Best-ever year with €7.7bn Net income
MIL-BVA362-03032014-90141/VR Best-ever year with €7.7bn Net income €7.7bn FY23 Net income (+76% vs FY22(1)), the best year ever (€7.9bn when excluding the final Resolution Fund contribution) €1.6bn Net income in Q4 (+49% vs 4Q22(1)), the best Q4 ever, while strengthening the Balance sheet €5.4bn cas
Slide 3: The best Net income ever
MIL-BVA362-03032014-90141/VR The best Net income ever Net income €m Net impact of provisions/ write-downs for Russia-Ukraine exposure 7,724 5,524 +76% 4,050 4,182 4,185 3,816 3,505 3,111 2,553 2,805 2,705 2,739 2,043 4,379 1,605 1,218 1,251 2008 2009 2010 2011 2012 2013(1) 2014 2015 2016 2017 2018 2
Slide 4: Strong and sustainable value creation and distribution
MIL-BVA362-03032014-90141/VR Strong and sustainable value creation and distribution The best-ever Net income coupled … driving strong and sustainable … with significant increases in EPS, with rock-solid capital position… value distribution… DPS and TBVPS Fully phased-in Buyback(2) EPS(4), € cents Ne
Slide 5: 2023 results above 2022-2025 Business Plan targets
MIL-BVA362-03032014-90141/VR 2023 results above 2022-2025 Business Plan targets 2023 results 2022-2025 Business Plan targets 2023 Net income €7.7bn €6.5bn Business Plan target for 2025 Cash payout ratio 70% 70% €5.4bn cash dividends(1) for 2023 2022-2025 ~55bps buyback intended to be launched in Jun
Slide 6: Ready to leverage on our leadership in Wealth Management, Protection & Advisory
MIL-BVA362-03032014-90141/VR Ready to leverage on our leadership in Wealth Management, Protection & Advisory Fully-owned product factories enabling quick time to market Distinctive advisory networks and top-notch digital tools Commercial organisation dedicated to Exclusive clients(1) Asset ` managem
Slide 7: ~€100bn asset pool identified to fuel AuM growth
MIL-BVA362-03032014-90141/VR ~€100bn asset pool identified to fuel AuM growth with our delivery machine already at work Sizeable amount of Direct deposits and Assets under administration, Unmatched client advisory network further increased in 2023 Direct deposits and Assets ~€100bn asset pool identi
Slide 8: Net income above €8bn in 2024 and 2025
MIL-BVA362-03032014-90141/VR Net income above €8bn in 2024 and 2025 2024-2025 Net income above €8bn Net income >€8bn €7.7bn ▪ Fully phased-in CET1 ratio >14% as at 31.12.25 (taking into account ~55bps buyback(2) impact and not considering ~60bps Basel 4 impact and ~100bps benefit of DTA absorption,
Slide 9: Our excellent performance benefits all our stakeholders
MIL-BVA362-03032014-90141/VR Our excellent performance benefits all our stakeholders… Shareholders Employees Net income, € bn ~40% of cash dividends (~€2.2bn) go directly to Personnel expenses, € bn Italian households and to charitable foundations 7.7 7.0 FY23 FY23 ▪ ISP People satisfaction index co
Slide 10: Strengthening world-class position in Social Impact
MIL-BVA362-03032014-90141/VR ... and allows us to further strengthen our world-class position in Social Impact and improve our People’s quality of life NOT EXHAUSTIVE Further strengthening our world-class position … while improving remuneration and well-being of our People in Social Impact… ~€1.5bn
Slide 11: Strong ESG commitment
MIL-BVA362-03032014-90141/VR Strong ESG commitment… NOT EXHAUSTIVE x Result achieved vs BP target Results achieved as 2022-2025 Business Plan 2022-2025 Business Plan main ESG initiatives at 31.12.23 (2022-2023) targets Unparalleled support to Expanding food and shelter program for address social peo
Slide 12: … with a focus on climate
MIL-BVA362-03032014-90141/VR … with a 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 31.12.23 (2022-2023) targets New lending to support the green economy, circular economy and ecological tran
Slide 13: Contents
MIL-BVA362-03032014-90141/VR Contents FY23: the best year ever ISP is fully equipped for further success Appendix: 2022-2025 Business Plan proceeding at full speed
Slide 14: 2023: €7.7bn Net income, the best year ever
MIL-BVA362-03032014-90141/VR 2023: €7.7bn Net income, the best year ever FY23 P&L; € m €86m write-downs to favour de-risking/strengthen Balance sheet €485m Levies and other charges €8,209m Non-motor P&C revenues at €0.2bn due to national labour excluding Levies €534m (+18% vs FY22(1)), €619m concern
Slide 15: Q4: €1.6bn Net income, the best Q4 ever
MIL-BVA362-03032014-90141/VR Q4: €1.6bn Net income, the best Q4 ever with conservative provisions and Balance sheet further strengthened to succeed in the coming years 4Q23 P&L; € m €73m write-downs to €0.2bn due to national labour favour de-risking/ contract renewal and €0.3bn to strengthen Balance
Slide 16: Further growth in Net interest income in Q4
MIL-BVA362-03032014-90141/VR Further growth in Net interest income in Q4… Net interest income €m % Euribor 1M(1) 3,995 3,813 3,584 3,254 3,064 2,387 1,957 2,092 Average 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 Euribor 1M 2023: -0.55 -0.54 +0.10 +1.36 +2.36 +3.16 +3.62 +3.85 +3.24 Further growth expec
Slide 17: … thanks to the commercial component
MIL-BVA362-03032014-90141/VR … thanks to the commercial component Net interest income – Quarterly comparison Net interest income – Yearly comparison € m, 4Q23 vs 3Q23 % Euribor 1M (average data) € m, FY23 vs FY22 % Euribor 1M (average data) 117 3,995 4,946 367 14,646 3,813 89 (24) 9,500 Commerci
Slide 18: €1.3 trillion in Customer financial assets
MIL-BVA362-03032014-90141/VR €1.3 trillion in Customer financial assets, ready to leverage on our leadership in Wealth Management, Protection & Advisory… Customer financial assets(1) € bn +€18.3bn 545.4 557.9 576.1 Direct deposits +€62.2bn 31.12.22 30.9.23 31.12.23 1,203.8 1,243.3 1,305.5 +€15.4bn 4
Slide 19: Well-diversified business model to succeed in any rate scenario
MIL-BVA362-03032014-90141/VR Well-diversified business model to succeed in any rate scenario thanks to a strong contribution from Wealth Management and Protection Strong contribution from Wealth Management and … with growing P&C contribution, driven by Non-motor business Protection… % of 2023 Gross
Slide 20: Lowest Cost/Income ratio ever
MIL-BVA362-03032014-90141/VR Strong growth in revenues and effective Cost management driving the lowest Cost/Income ratio ever Cost/Income ratio % €m +€3.7bn Cost/Income ratio 25,138 -5.9pp 21,440 Operating 51.0 income 45.1 FY22 FY23 f(x) +€0.4bn 10,934 11,329 Operating costs FY22 FY23 FY22 FY23 Bes
Slide 21: Costs increase driven by strong investments in tech
MIL-BVA362-03032014-90141/VR Costs increase driven by strong investments in tech and to trigger growth Operating costs €m -0.8% excluding growth in Depreciation linked -0.9% excluding the impact of national labour to tech investments, increases in energy contract renewal and Q4 non-recurring compone
Slide 22: 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 € bn Net NPL x Gross NPL ratio(1), % € bn Net inflow(3) x Net NPL ratio(1), % 16.4 1.9 1.9 1.8 1.0 1.0 0.9 10.6 10.5 -€0.6bn 9.9 -80% €3.3bn excluding inflow due to Russi
Slide 23: 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 13.1 12.1 9.5 8.8 7.7 7.3 6.2 5.0 3.0 1.8 1.8% 0.9% 1.1% 1.1% 1.1% 0.8% 1.5% 1.1% 0.9% 0.8% 0.4% 2.9% 1.7% 2.
Slide 24: … as well as 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 72 72 67 53 52 37 36 31 16 9% 17% 8% 6% 11% 8% 9% 7% 8% 5% 31.12.23 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 Transparenc
Slide 25: 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, provisions as overlays and bps Provisions for Russia-Ukraine exposure, provisions as overlays a
Slide 26: Russia exposure reduced to 0.1% of Group customer loans
MIL-BVA362-03032014-90141/VR Russia exposure reduced to 0.1% 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 -84% 1.0 0.6 0.5 0.4 0.2 0.1 0.
Slide 27: Rock-solid and increased capital base
MIL-BVA362-03032014-90141/VR Rock-solid and increased capital base thanks to strong organic capital generation, despite all regulatory headwinds Fully phased-in CET1 ratio 2023 evolution x %, bps ISP 2024 fully loaded requirements SREP + combined buffer Q4 evolution 14.5% taking into account ~55bps
Slide 28: Capital will increase in the coming years
MIL-BVA362-03032014-90141/VR Capital will increase in the coming years, allowing flexibility for additional distributions CET1 ratio projections 2022-2025 Business Plan target (confirmed) Fully phased-in CET1 ratio, % The vast majority of DTAs will be absorbed by 2028 >14 >14.5 >13.5 >12% 31.12.25(1
Slide 29: Clear winner of the EBA stress test
MIL-BVA362-03032014-90141/VR Our well-diversified model reduces impact from the EBA adverse scenario, positioning ISP as one of the clear winners of the 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
Slide 30: Best-in-class MREL ratios and 2024 wholesale funding plan
MIL-BVA362-03032014-90141/VR Best-in-class MREL ratios and a very manageable 2024 wholesale funding plan MREL(1) 2024 wholesale funding plan(5) % RWA, 31.12.23 %, requirement 1.1.24 € bn x Buffer vs requirement ~39.3% considering 5 ~55bps buyback(2) 39.8 1.5 ~22.2% considering Buffer: 13.9 ~55bps bu
Slide 31: Sound liquidity position with LCR and NSFR
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 32: High and increased liquidity reserves
MIL-BVA362-03032014-90141/VR High and increased 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, 31.12.23 307 +€27bn 202 +€20bn 75 284 280 183 182 42 11
Slide 33: Contents
MIL-BVA362-03032014-90141/VR Contents FY23: the best year ever ISP is fully equipped for further success Appendix: 2022-2025 Business Plan proceeding at full speed
Slide 34: 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 The Italian economy is resilient thanks to solid fundamentals Italian GDP YoY evolution % ▪ Strong Italian household gross wealth at ~€11,500bn, of which >€5,100bn in financial assets, coupled with low hous
Slide 35: ISP far better equipped than its 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 36: 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 year ever and resilient business model ▪ €7.7bn Net income in 2023, the best year ever ▪ Resilient profitability, rock-solid capi
Slide 37: 2024 outlook: Net income above €8bn
MIL-BVA362-03032014-90141/VR 2024 outlook: Net income above €8bn Solid growth in Revenues driven by further increase in Net interest income (also thanks to higher contribution from core deposits hedging) Revenues and growth in Commissions and Insurance, leveraging on our leadership in Wealth Managem
Slide 38: Contents
MIL-BVA362-03032014-90141/VR Contents FY23: the best year ever ISP is fully equipped for further success Appendix: 2022-2025 Business Plan proceeding at full speed
Slide 39: 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 40: 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 €5.4bn gross NPL stock reduction in 2022-2023, reducing Net NPL ratio to 0.9%(1) and anticipating Business Plan target ▪ Focus on
Slide 41: Structural Cost reduction, enabled by technology
MIL-BVA362-03032014-90141/VR 2022-2025 Business Plan proceeding at full speed Structural Cost reduction, enabled by technology Key highlights ▪ isytech already operational with ~470 dedicated specialists, contract with Thought Machine finalised and technological masterplan defined. Defined the offer
Slide 42: Significant investments in technology: isytech
MIL-BVA362-03032014-90141/VR 2022-2025 Business Plan proceeding at full speed Significant investments in technology already deployed to succeed now and in the future isytech: ISP cloud-based digital banking platform New technology backbone already available to mass market retail clients through , to
Slide 43: isytech technology backbone
MIL-BVA362-03032014-90141/VR 2022-2025 Business Plan proceeding at full speed Mooney Enel New technology backbone (isytech) already available to mass market retail clients through ; started the progressive extension to the entire Group isytech: our cloud-native … already successfully … to be progres
Slide 44: isytech: Group cloud-based digital platform
MIL-BVA362-03032014-90141/VR 2022-2025 Business Plan proceeding at full speed 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
Slide 45: A new digital bank delivered in less than 12 months
MIL-BVA362-03032014-90141/VR 2022-2025 Business Plan proceeding at full speed 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 custom
Slide 46: Product offering broader than digital challengers
MIL-BVA362-03032014-90141/VR 2022-2025 Business Plan proceeding at full speed Product offering broader and more innovative than digital challengers Additional benefits vs Business Plan Product offering broader than digital challengers(1)… from ~1 million new customers Fully accessible product catalo
Slide 47: Accelerated development of isytech digital features
MIL-BVA362-03032014-90141/VR 2022-2025 Business Plan proceeding at full speed Accelerated the development of isytech’s innovative digital features, further enriching the customer experience Enriched digital offering, ahead of schedule ▪ Disposable virtual cards ▪ Installment payments (SpensieRata) D
Slide 48: Digital with the human touch of ISP’s Digital Branch
MIL-BVA362-03032014-90141/VR 2022-2025 Business Plan proceeding at full speed : a unique approach coupling digital with the human touch of ISP’s Digital Branch A digital service … through ISP’s A digital bank … with innovative model with no Digital Branch at scale thanks to technology driving physic
Slide 49: AI program at scale with strong benefits for the Group
MIL-BVA362-03032014-90141/VR 2022-2025 Business Plan proceeding at full speed 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 case
Slide 50: 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 51: 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 52: 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 53: 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 enabled by state-of-
Slide 54: Growth in Commissions (5/5)
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 55: 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 56: 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 2023: ‒ ~680
Slide 57: 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 58: 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) ▪ ~€44.9bn disbursed in the period 2021-2023 out of the €76bn in new lending available for the green economy, circu
Slide 59: Leading ESG position in sustainability indexes and rankings
MIL-BVA362-03032014-90141/VR 2022-2025 Business Plan proceeding at full speed Leading ESG position in the main sustainability indexes and rankings Top ranking(1) for Sustainability The only Italian bank included in the (2) (3) Dow Jones Sustainability Indices First bank in Europe and second 74 A AA
Slide 60: 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 ▪ ~3,000 professionals hired since 2021 ▪ ~3,850 people reskilled since 2022 ▪ ~26.1m training hours delivered since 2022 ▪ More than 240 talents have completed their
Slide 61: 2023 Results: Detailed information
2023 Results Detailed information
Slide 62: Key P&L and Balance sheet figures
MIL-BVA362-03032014-90141/VR Key P&L and Balance sheet figures €m 2023 31.12.23 Operating income 25,138 Loans to customers 429,540 Operating costs (11,329) Customer financial assets(1) 1,305,533 Cost/Income ratio 45.1% of which Direct deposits from banking business 576,136 Operating margin 13,809 of
Slide 63: Contents
MIL-BVA362-03032014-90141/VR Contents Detailed consolidated P&L results Liquidity, Funding and capital base Asset quality Divisional results and other information 62
Slide 64: 2023 vs 2022: €7.7bn Net income
MIL-BVA362-03032014-90141/VR 2023 vs 2022: €7.7bn Net income, the best year ever €m 2022(1) 2023 % Net interest income 9,500 14,646 54.2 Net fee and commission income 8,919 8,558 (4.0) Income from insurance business 1,675 1,666 (0.5) Profits on financial assets and liabilities at fair value 1,378 2
Slide 65: Q4 vs Q3: €1.6bn Net income
MIL-BVA362-03032014-90141/VR Q4 vs Q3: €1.6bn Net income, the best Q4 ever €m 3Q23 4Q23 % Net interest income 3,813 3,995 4.8 Net fee and commission income 2,095 2,110 0.7 Income from insurance business 419 391 (6.7) Profits on financial assets and liabilities at fair value 52 (91) n.m. Other opera
Slide 66: Quarterly P&L
MIL-BVA362-03032014-90141/VR Quarterly P&L €m 1Q22(1) 2Q22(1) 3Q22(1) 4Q22(1) 1Q23 2Q23 3Q23 4Q23 Net interest income 1,957 2,092 2,387 3,064 3,254 3,584 3,813 3,995 Net fee and commission income 2,289 2,255 2,153 2,222 2,137 2,216 2,095 2,110 Income from insurance business 392 449 439 395 397 459 4
Slide 67: 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) +54.2% 4,946 367 14,646 9,500 +4.8% (167) 3,813 89 117 3,995 (24) Commercial component Commercial component 3Q23 Volumes Spread(1) Financial 4Q23 2022 Vol
Slide 68: Net fee and commission income
MIL-BVA362-03032014-90141/VR Net fee and commission income Quarterly analysis Yearly analysis €m % 4Q23 vs 4Q22 and 3Q23 €m % 2023 vs 2022 8,919 8,558 2,222 2,095 2,110 4Q22 3Q23 4Q23 2022 2023 (5.0) +0.7 (4.0) ▪ Increase vs Q3 due to Commissions from Management, ▪ Decline largely due to Commiss
Slide 69: 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 4Q23 2022 2023 Guarantees given / received 47 54 86 59 34 41 41 39 246 155 Collection and payment services 139 164 156 164 156 164 169 180 6
Slide 70: Income from insurance business
MIL-BVA362-03032014-90141/VR Income from insurance business Quarterly analysis Yearly analysis €m % 4Q23 vs 4Q22 and 3Q23 €m % 2023 vs 2022 1,675 1,666 395 419 391 4Q22 3Q23 4Q23 2022 2023 (1.0) (6.7) (0.5) ▪ Non-motor P&C revenues(1) up 16% at €145m vs Q3 (+26% vs ▪ Non-motor P&C revenues(1) up
Slide 71: 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 % 4Q23 vs 4Q22 and 3Q23 €m % 2023 vs 2022 1,378 298 52 (2) (91) 2022 2023 4Q22 3Q23 4Q23 n.m. n.m. (78.4) Contributions by activity 4Q22 3Q23 4Q23 2022 2023 Customers 91 8
Slide 72: Operating costs
MIL-BVA362-03032014-90141/VR Operating costs Quarterly analysis Yearly analysis % 4Q23 vs 4Q22 and 3Q23 % 2023 vs 2022 Operating costs Personnel expenses Operating costs Personnel expenses €m €m €m €m 10,934 11,329 6,742 6,981 3,130 3,468 2,650 1,921 2,184 1,612 4Q22 3Q23 4Q23 4Q22 3Q23 4Q23 202
Slide 73: Net adjustments to loans
MIL-BVA362-03032014-90141/VR Net adjustments to loans Quarterly analysis Yearly analysis €m % 4Q23 vs 4Q22 and 3Q23 €m % 2023 vs 2022 Provisions for Russia-Ukraine exposure, Provisions for Russia-Ukraine exposure, provisions as overlays and additional provisions as overlays and additional provis
Slide 74: Contents
MIL-BVA362-03032014-90141/VR Contents Detailed consolidated P&L results Liquidity, Funding and capital base Asset quality Divisional results and other information 73
Slide 75: €1.3 trillion in Customer financial assets
MIL-BVA362-03032014-90141/VR €1.3 trillion in Customer financial assets % 31.12.23 vs 31.12.22 and 30.9.23 Customer financial assets(1) Direct deposits from banking business € bn € bn 1,204 1,243 1,306 545 558 576 31.12.22(2) 30.9.23 31.12.23 31.12.22 30.9.23 31.12.23 +8.4 +5.0 +5.6 +3.3 ▪ €102bn
Slide 76: Funding mix
MIL-BVA362-03032014-90141/VR Funding mix Breakdown of Direct deposits from banking business € bn; 31.12.23 ~70% Households % Percentage of total ~30% Corporates Wholesale Retail 576 Current accounts 15 393 and deposits Repos and 13 - securities lending 451 Senior bonds(1) 41 8 Covered bonds 29 - 125
Slide 77: Strong funding capability
MIL-BVA362-03032014-90141/VR Strong funding capability: broad access to international markets 2024-2026 MLT maturities Main wholesale issues € bn 23 Wholesale 2022 Retail ◼ €1bn AT1, €1bn green senior non-preferred, £400m Tier 2, €750m social senior preferred and 18 dual tranche for a total of $2bn
Slide 78: High liquidity: LCR and NSFR
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, 31.
Slide 79: Rock-solid and increased capital base
MIL-BVA362-03032014-90141/VR Rock-solid and increased capital base Fully phased-in Common equity ratio Fully phased-in Tier 1 ratio Fully phased-in Total capital ratio After €5.4bn dividends for 2023 After €5.4bn dividends for 2023 After €5.4bn dividends for 2023 % % % 18.6% taking into account ~55b
Slide 80: Contents
MIL-BVA362-03032014-90141/VR Contents Detailed consolidated P&L results Liquidity, Funding and capital base Asset quality Divisional results and other information 79
Slide 81: Non-performing loans: lowest-ever NPL stock and ratio
MIL-BVA362-03032014-90141/VR Non-performing loans: lowest-ever NPL stock and ratio x x Net NPL ratio, % x Gross and net NPL ratio based on EBA definition, % Gross NPL ratio, % Gross NPL Net NPL € bn € bn 30.9.22 31.12.22 30.9.23 31.12.23 30.9.22 31.12.22 30.9.23 31.12.23 Bad loans 3.8 3.7 3.9 3.4 Ba
Slide 82: Non-performing loans: increased coverage
MIL-BVA362-03032014-90141/VR Non-performing loans: sizeable and increased coverage on a yearly basis Cash coverage; % Total NPL(1) 48.4 50.4 49.8 31.12.22 30.9.23 31.12.23 Bad loans Unlikely to pay Past due 69.2 68.7 72.4 38.5 40.8 39.3 25.2 27.1 27.0 31.12.22 30.9.23 31.12.23 31.12.22 30.9.23 31.12
Slide 83: 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 84: 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 1,105 1,100 698 4Q22 3Q23 4Q23 Bad loans Unlikely to pay Past due 800 712 378 378 290 303 15 17 10 4Q22 3Q23 4Q23 4Q22 3Q23 4Q23 4Q22 3Q23 4Q23 Note: figures may not add up exactly due
Slide 85: 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 848 914 494 4Q22 3Q23 4Q23 Bad loans Unlikely to pay Past due 601 581 331 225 238 258 9 11 2 4Q22 3Q23 4Q23 4Q22 3Q23 4Q23 4Q22 3Q23 4Q23 Note: figures may not add up exactly due to roundin
Slide 86: 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 31.12.23) Breakdown by economic business sector Repos, Capital markets and 31.12.23 Financial Institutions Global Corp
Slide 87: Russia exposure reduced to 0.1% of customer loans
MIL-BVA362-03032014-90141/VR Russia exposure reduced to 0.1% of Group customer loans € bn, data as at 31.12.23 Local presence Russia Cross-border exposure to Russia(1) Loans to customers (net of ECA guarantees and provisions) 0.1(2) 0.5 ECA(3) guarantees - 0.7(4) Due from banks (net of provisions) 0
Slide 88: Contents
MIL-BVA362-03032014-90141/VR Contents Detailed consolidated P&L results Liquidity, Funding and capital base Asset quality Divisional results and other information 87
Slide 89: Divisional financial highlights
MIL-BVA362-03032014-90141/VR Divisional financial highlights Data as at 31.12.23 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) 11,285
Slide 90: Banca dei Territori: 2023 vs 2022
MIL-BVA362-03032014-90141/VR Banca dei Territori: 2023 vs 2022 €m 2022 2023 % +76% considering the benefit of Net interest income 3,992 6,549 64.1 actual market rate trends not entirely reflected in the internal fund Net fee and commission income 4,739 4,630 (2.3) transfer price applied to the Divi
Slide 91: Banca dei Territori: Q4 vs Q3
MIL-BVA362-03032014-90141/VR Banca dei Territori: Q4 vs Q3 €m 3Q23 4Q23 % +3% considering the benefit of Net interest income 1,639 1,630 (0.6) actual market rate trends not entirely reflected in the internal fund Net fee and commission income 1,122 1,149 2.4 transfer price applied to the Division I
Slide 92: IMI Corporate & Investment Banking: 2023 vs 2022
MIL-BVA362-03032014-90141/VR IMI Corporate & Investment Banking: 2023 vs 2022 €m 2022 2023 % Net interest income 2,107 2,797 32.7 Net fee and commission income 1,146 1,112 (3.0) Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 1,047 3 (99.7) Other op
Slide 93: IMI Corporate & Investment Banking: Q4 vs Q3
MIL-BVA362-03032014-90141/VR IMI Corporate & Investment Banking: Q4 vs Q3 €m 3Q23 4Q23 % Net interest income 712 777 9.1 Net fee and commission income 260 283 8.9 Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value (46) (37) (19.7) Other operating incom
Slide 94: International Subsidiary Banks: 2023 vs 2022
MIL-BVA362-03032014-90141/VR International Subsidiary Banks: 2023 vs 2022 €m 2022 2023 % Net interest income 1,592 2,332 46.5 Net fee and commission income 574 583 1.6 Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 129 90 (30.2) Other operating inc
Slide 95: International Subsidiary Banks: Q4 vs Q3
MIL-BVA362-03032014-90141/VR International Subsidiary Banks: Q4 vs Q3 €m 3Q23 4Q23 % Net interest income 611 628 2.8 Net fee and commission income 146 147 0.9 Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 26 (2) n.m. Other operating income (expens
Slide 96: Private Banking: 2023 vs 2022
MIL-BVA362-03032014-90141/VR Private Banking: 2023 vs 2022 €m 2022 2023 % Net interest income 419 1,267 202.4 Net fee and commission income 1,980 1,858 (6.2) Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 60 54 (10.0) Other operating income (expens
Slide 97: Private Banking: Q4 vs Q3
MIL-BVA362-03032014-90141/VR Private Banking: Q4 vs Q3 €m 3Q23 4Q23 % Net interest income 331 334 1.1 Net fee and commission income 454 473 4.3 Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 7 13 101.5 Other operating income (expenses) 6 1 (90.5) O
Slide 98: Asset Management: 2023 vs 2022
MIL-BVA362-03032014-90141/VR Asset Management: 2023 vs 2022 €m 2022 2023 % Net interest income 0 18 n.m. Net fee and commission income 913 816 (10.6) Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value (21) 20 n.m. Other operating income (expenses) 70 5
Slide 99: Asset Management: Q4 vs Q3
MIL-BVA362-03032014-90141/VR Asset Management: Q4 vs Q3 €m 3Q23 4Q23 % Net interest income 4 12 238.7 Net fee and commission income 201 197 (1.7) Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 6 1 (84.5) Other operating income (expenses) 13 9 (29.9
Slide 100: Insurance: 2023 vs 2022
MIL-BVA362-03032014-90141/VR Insurance: 2023 vs 2022 €m 2022(1) 2023 % Net interest income 0 0 n.m. Net fee and commission income 3 3 0.0 Income from insurance business 1,598 1,625 1.7 Profits on financial assets and liabilities at fair value 0 0 n.m. Other operating income (expenses) (12) (15) 25.
Slide 101: Insurance: Q4 vs Q3
MIL-BVA362-03032014-90141/VR Insurance: Q4 vs Q3 €m 3Q23 4Q23 % Net interest income 0 0 n.m. Net fee and commission income 1 1 1.1 Income from insurance business 408 383 (6.0) Profits on financial assets and liabilities at fair value (0) 0 n.m. Other operating income (expenses) (4) (4) (15.9) Opera
Slide 102: Market leadership in Italy
MIL-BVA362-03032014-90141/VR Market leadership in Italy 2023 Operating income breakdown by business area(1) Leader in Italy IMI Corporate & Market share(2) Ranking Investment Banking % 16% 1 Loans 18.4 Insurance 7% 1 Deposits(3) 22.1 Banca 47% dei Territori 1 Asset Management(4) 24.0 13% Private Ban
Slide 103: International Subsidiary Banks by country
MIL-BVA362-03032014-90141/VR International Subsidiary Banks by country Data as at 31.12.23 Total % of the Total CEE Group Hungary Slovakia Slovenia Croatia Bosnia Serbia Albania Romania Moldova Ukraine(*) Egypt Operating income (€ m) 425 688 155 632 49 449 70 50 16 12 2,546 387 2,933 11.7% Operating
Slide 104: 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 45,591 45,145 781 91,517 390,748 Austria 674 1,109 39 1,822 504 Belgium 3,239 3,464 102 6,805 1,402 Bulgaria 0 0 0 0 10 Croatia 280 545 51 876 8,608 Cy
Slide 105: 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 35,748 31,896 -2,279 65,365 10,716 Austria 616 834 9 1,459 0 Belgium 3,225 3,284 87 6,596 391 Bulgaria 0 0 0 0 0 Croatia 170 545 51 766 1,
Slide 106: 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 1,892 8,078 1,889 11,859 17,041 Austria 48 263 30 341 190 Belgium 4 163 15 182 119 Bulgaria 0 0 0 0 0 Croatia 0 0 0 0 50 Cyprus 0 0 2 2 0 Czech Repu
Slide 107: 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 7,951 5,171 1,171 14,293 362,991 Austria 10 12 0 22 314 Belgium 10 17 0 27 892 Bulgaria 0 0 0 0 10 Croatia 110 0 0 110 7,139 Cyprus 0 0 0
Slide 108: 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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