Intesa Sanpaolo S.p.a. · MIL:ISP
Intesa Sanpaolo — Intesa Sanpaolo Spa Ord — 1H23 Earnings Presentation
99 slides from Intesa Sanpaolo's earnings presentation, Jul 28, 2023
Slide 1: 1H23 Results
1H23 Results The best six months ever with €4.2bn Net income A leading bank with a fintech approach: significant tech investments already deployed to continue to succeed in the future A strong bank for a sustainable world July 28, 2023
Slide 2: ISP delivered the best six months ever, while making significant tech investments
MIL-BVA362-03032014-90141/VR ISP delivered the best six months ever, while making significant tech investments to continue to succeed in the future €4.2bn Net income in H1 (+80% vs 1H22(1)), the best six months since 2007 (€4.4bn when excluding the final Resolution Fund contribution) €2.3bn Net inco
Slide 3: The best six-month Net income since 2007
MIL-BVA362-03032014-90141/VR The best six-month Net income since 2007… Net income €m Net impact of provisions/writedowns for Russia-Ukraine exposure 4,222 3,268 3,107 3,023 +80% 2,566 2,179 2,266 2,004 1,690 1,707 1,738 1,588 1,402 1,274 2,346 720 422 1H08 1H09 1H10 1H11 1H12 1H13 1H14 1H15 1H16 1H1
Slide 4: Driving improved Net income guidance for 2023
MIL-BVA362-03032014-90141/VR … driving improved Net income guidance for 2023 The best six months ever… … driving improved Net income guidance for 2023 Net income, € m 2023 Net income guidance Well above 4,222 ~€7bn €7bn Well above €5.5bn +80% 2,346 1H22(1) 1H23 Guidance Guidance Guidance in February
Slide 5: Execution of the 2022-2025 Business Plan proceeding at full speed
MIL-BVA362-03032014-90141/VR Execution of the 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
Slide 6: 2024-2025 Net income to exceed 2023 Net income
MIL-BVA362-03032014-90141/VR … with 2024-2025 Net income to exceed 2023 Net income Increase in 2024-2025 profitability vs 2023 ▪ Further Net interest income growth ▪ Recovery in Commissions (well-diversified business model) Revenue increase ▪ Insurance income increase driven by P&C ▪ Rebound in Prof
Slide 7: Contents
MIL-BVA362-03032014-90141/VR Contents 1H23: the best six months ever Strongly investing in technology and digital transformation ISP is fully equipped for further success Appendix: 2022-2025 Business Plan proceeding at full speed 6
Slide 8: H1: €4.2bn Net income, the best six months since 2007
MIL-BVA362-03032014-90141/VR H1: €4.2bn Net income, the best six months since 2007 1H23 P&L; € m €4,461m Non-motor P&C revenues at €264m (+15% vs excluding Levies 1H22(1)), €307m including credit-linked products Including €239m and other Levies and other charges 12,398 charges concerning concerning
Slide 9: Q2: €2.3bn Net income, the best quarter since 2007
MIL-BVA362-03032014-90141/VR Q2: €2.3bn Net income, the best quarter since 2007 2Q23 P&L; € m 6,341 75 7 459 (1,625) 2,216 (731) 3,666 (319) 3,381 (367) 82 (1,000) 2,266 (115) 3,584 income/expenses charges/gains(2) Other operating financial assets and liabilities at Gross income Administrative commi
Slide 10: Further strong acceleration in Net interest income in Q2
MIL-BVA362-03032014-90141/VR Further strong acceleration in Net interest income in Q2… Net interest income €m % Euribor 1M(2) No contribution from TLTRO 3,584 3,254 3,064 +€1,492m 2,387 1,997 2,000 2,092 1,953 1,955 1,957 1Q21(1) 2Q21(1) 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 Euribor 1M as at -0.56
Slide 11: Net interest income growth driven by commercial component
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, 2Q23 vs 1Q23 % Euribor 1M (average data) € m, 1H23 vs 1H22 % Euribor 1M (average data) 281 46 3,584 2,817 6,
Slide 12: ~€1.3 trillion in Customer financial assets, with a €37bn increase in Q2
MIL-BVA362-03032014-90141/VR ~€1.3 trillion in Customer financial assets, with a €37bn increase in Q2 Customer financial assets(1) Δ +€19.9bn € bn 545.4 534.5 554.4 Direct deposits Δ +€36.9bn 31.12.22 31.3.23 30.6.23 Δ +€2.8bn 1,203.8 1,215.0 1,251.9 430.2 435.0 437.8 Assets under management 31.12.2
Slide 13: Recovery in Commissions and further increase in Insurance income in Q2
MIL-BVA362-03032014-90141/VR Recovery in Commissions and further increase in Insurance income in Q2 Net fees and commissions Insurance income €m €m 2,137 2,216 459 +4% 397 +16% 1Q23 2Q23 1Q23 2Q23 A Wealth Management, Protection & Advisory leader, with fully-owned product factories and growing P&C c
Slide 14: Lowest-ever six-month Cost/Income ratio with stable Operating costs
MIL-BVA362-03032014-90141/VR Lowest-ever six-month 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, % 3,189 3,185 -0.6% excluding -0.1% Total Operating costs Depreciation and Pers
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) % 73.0 65.6 62.9 60.7 61.1 59.4 Peer average: 53.6 52.8% 51.6 50.0 45.2 43.6 43.8 42.0 42.0 39.1 40.0 Peer 10 Peer 11 Peer 12 Peer 13 Peer 14 Peer 15 ISP Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer
Slide 16: Zero-NPL Bank status with NPL inflow at historical low
MIL-BVA362-03032014-90141/VR Zero-NPL Bank status with NPL inflow at historical low… NPL stock NPL inflow(2) from Performing loans € bn € Netbn NPL x Gross NPL ratio(1), % € bn Net inflow(4) x Net NPL ratio(1), % 1.8 2.0 1.9 1.0 1.0 1.0 8.5 11.1 10.8 -€0.4bn 10.4 -82% 6.2 2.3 1.9 6.2 1.4 1.5 5.4 5.3
Slide 17: Positioning ISP among the best banks in Europe for NPL stock and ratios
MIL-BVA362-03032014-90141/VR … positioning ISP among the best banks 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 19.4 12.5 12.4 9.2 8.1 7.4 6.3 6.1 5.3 3.2 1.7 1.7 1.0 0.8 1.0 1.0 0.9 1.0 1.6 1.0 0.5 0.5 2.8
Slide 18: Cost of risk at historical low while increasing coverage
MIL-BVA362-03032014-90141/VR … and driving Cost of risk to historical low while increasing coverage Loan loss provisions (LLP) Cost of risk €m x NPL Coverage ratio, % bps; annualised Provisions for Russia-Ukraine exposure, provisions as overlays and additional Provisions for Russia-Ukraine exposure
Slide 19: Russia exposure reduced to 0.2% of Group customer loans
MIL-BVA362-03032014-90141/VR Russia exposure reduced to 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 -77% 1.0 0.9 0.7 0.4 0.2 0.2 0.
Slide 20: Rock-solid and increased capital base
MIL-BVA362-03032014-90141/VR Rock-solid and increased capital base despite absorbing in H1 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 21: 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 22: High and increasing liquidity reserves
MIL-BVA362-03032014-90141/VR … with high and increasing liquidity reserves Unencumbered eligible assets with Central Liquid assets(1) Cash and deposits with ECB vs TLTRO Banks(2) (net of haircut) € bn Other reserves HQLA € bn Other reserves HQLA € bn, 30.6.23 After €31bn reimbursement in Q2 284 +€12
Slide 23: All stakeholders benefit from our solid performance
MIL-BVA362-03032014-90141/VR All stakeholders benefit from our solid performance Shareholders Employees Net income, € bn 2023 dividend yield: at least ~11%(1); ~40% of cash dividends Personnel expenses, € bn go directly to Italian households and to foundations 4.2 3.2 1H23 1H23 €3bn dividends alread
Slide 24: Leading ESG position in the main sustainability indexes and rankings
MIL-BVA362-03032014-90141/VR 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 Indices, the CDP Climate A List 74 A AAA 86 15.4 2022 and 2023 Corporate Knights 67 A AA 84 16.9 ‘‘Global
Slide 25: Contents
MIL-BVA362-03032014-90141/VR Contents 1H23: the best six months ever Strongly investing in technology and digital transformation ISP is fully equipped for further success Appendix: 2022-2025 Business Plan proceeding at full speed 24
Slide 26: Significant investments in technology already deployed
MIL-BVA362-03032014-90141/VR 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 extended to the entire Group
Slide 27: New technology backbone (isytech) available to mass market retail clients
MIL-BVA362-03032014-90141/VR Mooney Enel New technology backbone (isytech) already available to mass market retail clients 1 through , to be progressively extended to the entire Group isytech: our cloud-native … already successfully … to be progressively tech backbone… deployed through … extended to
Slide 28: isytech: Group cloud-based digital platform
MIL-BVA362-03032014-90141/VR 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 architecture security protection ▪
Slide 29: A new digital bank delivered in less than 12 months
MIL-BVA362-03032014-90141/VR A new digital bank with an innovative customer experience delivered in 2 less than 12 months Unique digital customer experience… … already appreciated by the market <3 minutes >10,000 accounts average onboarding time already opened <30 clicks ~4.7 required to open an acc
Slide 30: Broader and more innovative product offering than digital challengers
MIL-BVA362-03032014-90141/VR 2 Broader and more innovative product offering than digital challengers 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 Peer 3 Peer 4 Business Plan ~5 ~4 ~
Slide 31: An innovative digital bank business model with <30% Cost/Income
MIL-BVA362-03032014-90141/VR : a unique approach coupling digital with the human touch of 2 Intesa Sanpaolo’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 physical branches (>2,300 People) strong
Slide 32: Fideuram Direct: the digital wealth platform
MIL-BVA362-03032014-90141/VR Fideuram Direct: the digital wealth platform for customers seeking to 2 invest remotely in listed markets and asset management products A unique Digital Wealth Platform… Advanced Trading In-Self Investments Direct Advisory • Professional platform for heavy- • Access to ~
Slide 33: Fideuram Direct: a new business line for Private Banking Division
MIL-BVA362-03032014-90141/VR Fideuram Direct: a new business line to increase the leadership of the 2 Private Banking Division in a more digital world … to further increase Private Fideuram Direct: a new business line… Banking Division customer base Clients, k ▪ >1,000 private banking customers alre
Slide 34: AI program at scale with strong benefits for the Group
MIL-BVA362-03032014-90141/VR 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 AI use case, # x Dedicated AI specialists use cases favoring: ― Better commerci
Slide 35: Contents
MIL-BVA362-03032014-90141/VR Contents 1H23: the best six months ever Strongly investing in technology and digital transformation ISP is fully equipped for further success Appendix: 2022-2025 Business Plan proceeding at full speed 34
Slide 36: The Italian economy is stronger than in the past
MIL-BVA362-03032014-90141/VR The Italian economy is stronger than in the past and 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,
Slide 37: ISP far better equipped than peers thanks to best-in-class risk profile
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 38: 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 six months ever and resilient business model ▪ €4.2bn Net income in H1, the best six months since 2007 ▪ Resilient profitability,
Slide 39: Improved outlook for 2023: Net income well above €7bn
MIL-BVA362-03032014-90141/VR Improved outlook for 2023: Net income well above €7bn Solid growth in Revenues driven by Net … leading to significant Operating margin interest income, coupled with a continuous growth focus on Cost management… … triggering Net income growth to well Strong decline in Loa
Slide 40: Contents
MIL-BVA362-03032014-90141/VR Contents 1H23: the best six months ever Strongly investing in technology and digital transformation ISP is fully equipped for further success Appendix: 2022-2025 Business Plan proceeding at full speed 39
Slide 41: 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 42: 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 2022-2Q23, reducing Net NPL ratio to 1%(1) and anticipating Business Plan target ▪ Focus on m
Slide 43: 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 ~390 dedicated specialists, contract with Thought Machine finalised and technological masterplan defined. Defined the offer
Slide 44: Growth in Commissions, driven by Wealth Management, Protection & Advisory (1/3)
MIL-BVA362-03032014-90141/VR 2022-2025 Business Plan proceeding at full speed Growth in Commissions, driven by Wealth Management, Protection & Advisory (1/3) Key highlights ▪ Launched Direct Advisory as part of our digital offering, allowing customers to build investment portfolios with the advisory
Slide 45: Growth in Commissions, driven by Wealth Management, Protection & Advisory (2/3)
MIL-BVA362-03032014-90141/VR 2022-2025 Business Plan proceeding at full speed Growth in Commissions, driven by Wealth Management, Protection & Advisory (2/3) 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 46: Growth in Commissions, driven by Wealth Management, Protection & Advisory (3/3)
MIL-BVA362-03032014-90141/VR 2022-2025 Business Plan proceeding at full speed Growth in Commissions, driven by Wealth Management, Protection & Advisory (3/3) Key highlights ▪ Developed commercial initiatives to support clients in different sectors (e.g. Energy, TMT, Infrastructure) to optimise the i
Slide 47: 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 48: 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 1H23: ‒ over
Slide 49: 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) ▪ Development of multi-disciplinary applied research projects: – 10 projects in progress (8 in the neuroscience fie
Slide 50: 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) ▪ ~€37.6bn disbursed in the period 2021-1H23 out of the €76bn in new lending available for the green economy, circu
Slide 51: 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 ▪ ~2,200 professionals hired since 2021 ▪ ~3,000 people reskilled in 2022 and 1H23 ▪ ~16.5m training hours delivered since 2022 ▪ More than 200 talents have completed
Slide 52: 1H23 Results: Detailed information
1H23 Results Detailed information
Slide 53: Key P&L and Balance sheet figures
MIL-BVA362-03032014-90141/VR Key P&L and Balance sheet figures €m 1H23 30.6.23 Operating income 12,398 Loans to customers 437,497 Operating costs (5,211) Customer financial assets(1) 1,251,897 Cost/Income ratio 42.0% of which Direct deposits from banking business 554,407 Operating margin 7,187 of wh
Slide 54: Contents
MIL-BVA362-03032014-90141/VR Contents Detailed consolidated P&L results Liquidity, Funding and capital base Asset quality Divisional results and other information 53
Slide 55: 1H23 vs 1H22: €4.2bn Net income
MIL-BVA362-03032014-90141/VR 1H23 vs 1H22: €4.2bn Net income, the best six months since 2007 €m 1H22(1) 1H23 % Net interest income 4,049 6,838 68.9 Net fee and commission income 4,544 4,353 (4.2) Income from insurance business 841 856 1.8 Profits on financial assets and liabilities at fair value 1,
Slide 56: Q2 vs Q1: €2.3bn Net income
MIL-BVA362-03032014-90141/VR Q2 vs Q1: €2.3bn Net income, the best quarter since 2007 €m 1Q23 2Q23 % Net interest income 3,254 3,584 10.1 Net fee and commission income 2,137 2,216 3.7 Income from insurance business 397 459 15.6 Profits on financial assets and liabilities at fair value 262 75 (71.4)
Slide 57: Quarterly P&L
MIL-BVA362-03032014-90141/VR Quarterly P&L €m 1Q22(1) 2Q22(1) 3Q22(1) 4Q22(1) 1Q23 2Q23 Net interest income 1,957 2,092 2,387 3,064 3,254 3,584 Net fee and commission income 2,289 2,255 2,153 2,222 2,137 2,216 Income from insurance business 392 449 439 395 397 459 Profits on financial assets and lia
Slide 58: Net interest income: significant growth thanks to the commercial component
MIL-BVA362-03032014-90141/VR Net interest income: significant growth thanks to the commercial component Quarterly analysis Yearly analysis €m % Euribor 1M (average data) €m % Euribor 1M (average data) +68.9% 2,817 6,838 (67) +10.1% 4,049 39 3,254 3 281 46 3,584 Commercial component Commercial compon
Slide 59: Net fee and commission income: recovery in Q2
MIL-BVA362-03032014-90141/VR Net fee and commission income: recovery in Q2 Quarterly analysis Yearly analysis €m % 2Q23 vs 2Q22 and 1Q23 €m % 1H23 vs 1H22 4,544 4,353 2,255 2,137 2,216 2Q22 1Q23 2Q23 1H22 1H23 (1.7) +3.7 (4.2) ▪ Commissions from Commercial banking activities up 5.0% ▪ Decline la
Slide 60: Net fee and commission income: quarterly development 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 Guarantees given / received 47 54 86 59 34 41 Collection and payment services 139 164 156 164 156 164 Current accounts 346 348 348 344 341 344 Cr
Slide 61: Income from insurance business: best quarter ever
MIL-BVA362-03032014-90141/VR Income from insurance business: best quarter ever Quarterly analysis Yearly analysis €m % 2Q23 vs 2Q22 and 1Q23 €m % 1H23 vs 1H22 841 856 449 397 459 2Q22 1Q23 2Q23 1H22 1H23 +2.2 +15.6 +1.8 ▪ Non-motor P&C revenues(1) up 16% to €130m vs 2Q22, €152m ▪ Non-motor P&C r
Slide 62: 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 % 2Q23 vs 2Q22 and 1Q23 €m % 1H23 vs 1H22 1,329 337 560 262 75 2Q22 1Q23 2Q23 1H22 1H23 (86.6) (71.4) (74.6) Contributions by activity 2Q22 1Q23 2Q23 1H22 1H23 Customers 8
Slide 63: Operating costs: essentially stable despite inflation
MIL-BVA362-03032014-90141/VR Operating costs: essentially stable despite inflation and while investing in technology and growth Quarterly analysis Yearly analysis % 2Q23 vs 2Q22 and 1Q23 % 1H23 vs 1H22 Operating costs Personnel expenses Operating costs Personnel expenses €m €m €m €m 5,164 5,211
Slide 64: Net adjustments to loans: Cost of risk at historical low
MIL-BVA362-03032014-90141/VR Net adjustments to loans: Cost of risk at historical low coupled with increased NPL coverage Quarterly analysis Yearly analysis €m % 2Q23 vs 2Q22 and 1Q23 €m % 1H23 vs 1H22 Provisions for Russia-Ukraine Provisions for Russia-Ukraine exposure (net of release of part o
Slide 65: Contents
MIL-BVA362-03032014-90141/VR Contents Detailed consolidated P&L results Liquidity, Funding and capital base Asset quality Divisional results and other information 64
Slide 66: ~€1.3 trillion in Customer financial assets
MIL-BVA362-03032014-90141/VR ~€1.3 trillion in Customer financial assets, with a €37bn increase in Q2 % 30.6.23 vs 31.12.22 and 31.3.23 Customer financial assets(1) Direct deposits from banking business € bn € bn 1,204 1,215 1,252 545 534 554 31.12.22(2) 31.3.23(2) 30.6.23 31.12.22 31.3.23 30.6.23
Slide 67: Funding mix
MIL-BVA362-03032014-90141/VR Funding mix Breakdown of Direct deposits from banking business € bn; 30.6.23 ~70% Households % Percentage of total ~30% Corporates Wholesale Retail 554 Current accounts 13 389 and deposits Repos and 15 - securities lending 441 Senior bonds(1) 35 8 Covered bonds 25 - 113
Slide 68: 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 ~€2bn 2024 pre-funding 2022 ~13 ◼ €1bn AT1, €1bn green senior non-preferred, £400m Tier 2, €750m social senior preferred and dual tranche for a total of
Slide 69: 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 € bn € bn, 30.6.23 272 284 After €31bn reimbursement i
Slide 70: Rock-solid capital base, despite regulatory headwinds in H1
MIL-BVA362-03032014-90141/VR Rock-solid capital base, despite ~60bps impact from regulatory headwinds in H1 Fully phased-in Common equity ratio Fully phased-in Tier 1 ratio Fully phased-in Total capital ratio €3bn dividends already accrued in H1 €3bn dividends already accrued in H1 €3bn dividends al
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: Non-performing loans: massive deleveraging
MIL-BVA362-03032014-90141/VR Non-performing loans: massive deleveraging x Gross NPL ratio, % x Net NPL ratio, % x Gross and net NPL ratio based on EBA definition, % Gross NPL Net NPL € bn € bn 30.6.22 31.12.22 31.3.23 30.6.23 30.6.22 31.12.22 31.3.23 30.6.23 Bad loans 3.4 3.7 3.9 3.7 Bad loans 1.2 1
Slide 73: Non-performing loans: sizeable and increased coverage
MIL-BVA362-03032014-90141/VR Non-performing loans: sizeable and increased coverage vs 30.6.22 Cash coverage; % Total NPL(1) +4.2pp 50.0 49.0 44.8 30.6.22 31.3.23 30.6.23 Bad loans Unlikely to pay Past due 63.9 70.0 68.2 37.8 40.0 40.0 21.3 25.8 23.7 30.6.22 31.3.23 30.6.23 30.6.22 31.3.23 30.6.23 30
Slide 74: 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 75: 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 -27.3% 1,218 885 657 2Q22 1Q23 2Q23 Bad loans Unlikely to pay Past due 734 416 339 475 459 308 9 10 10 2Q22 1Q23 2Q23 2Q22 1Q23 2Q23 2Q22 1Q23 2Q23 Note: figures may not add up exactly
Slide 76: 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 -32.6% 1,021 688 427 2Q22 1Q23 2Q23 Bad loans Unlikely to pay Past due 590 262 428 423 158 264 3 5 3 2Q22 1Q23 2Q23 2Q22 1Q23 2Q23 2Q22 1Q23 2Q23 Note: figures may not add up exactly due to
Slide 77: 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 30.6.23) Breakdown by economic business sector Repos, Capital markets and 30.6.23 Financial Institutions Global Corpor
Slide 78: Russia exposure reduced to 0.2% of Group customer loans
MIL-BVA362-03032014-90141/VR Russia exposure reduced to 0.2% of Group customer loans € bn, data as at 30.6.23 Local presence Russia Cross-border exposure to Russia(1) Loans to customers (net of ECA guarantees and provisions) 0.1(2) 0.7 ECA(3) guarantees - 0.8(4) Due from banks (net of provisions) 0.
Slide 79: Contents
MIL-BVA362-03032014-90141/VR Contents Detailed consolidated P&L results Liquidity, Funding and capital base Asset quality Divisional results and other information 78
Slide 80: Divisional financial highlights
MIL-BVA362-03032014-90141/VR Divisional financial highlights Data as at 30.6.23 Divisions IMI International Corporate Banca dei Corporate & Private Asset Investment Subsidiary Insurance (4) Centre / Total Territori Banking(2) Management(3) Banking Banks(1) Others(5) Operating income (€ m) 5,699 1,96
Slide 81: Banca dei Territori: 1H23 vs 1H22
MIL-BVA362-03032014-90141/VR Banca dei Territori: 1H23 vs 1H22 €m 1H22 1H23 % Net interest income 1,947 3,281 68.5 Net fee and commission income 2,375 2,360 (0.6) Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 59 60 1.7 Other operating income (expe
Slide 82: Banca dei Territori: Q2 vs Q1
MIL-BVA362-03032014-90141/VR Banca dei Territori: Q2 vs Q1 €m 1Q23 2Q23 % Net interest income 1,573 1,708 8.6 Net fee and commission income 1,181 1,178 (0.3) Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 32 28 (12.0) Other operating income (expens
Slide 83: IMI Corporate & Investment Banking: 1H23 vs 1H22
MIL-BVA362-03032014-90141/VR IMI Corporate & Investment Banking: 1H23 vs 1H22 €m 1H22 1H23 % Net interest income 956 1,308 36.8 Net fee and commission income 564 569 0.9 Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 1,026 86 (91.6) Other operating
Slide 84: IMI Corporate & Investment Banking: Q2 vs Q1
MIL-BVA362-03032014-90141/VR IMI Corporate & Investment Banking: Q2 vs Q1 €m 1Q23 2Q23 % Net interest income 611 696 14.0 Net fee and commission income 258 311 20.4 Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 103 (17) n.m. Other operating income
Slide 85: International Subsidiary Banks: 1H23 vs 1H22
MIL-BVA362-03032014-90141/VR International Subsidiary Banks: 1H23 vs 1H22 €m 1H22 1H23 % Net interest income 709 1,094 54.3 Net fee and commission income 290 290 0.0 Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 79 66 (16.5) Other operating income
Slide 86: International Subsidiary Banks: Q2 vs Q1
MIL-BVA362-03032014-90141/VR International Subsidiary Banks: Q2 vs Q1 €m 1Q23 2Q23 % Net interest income 520 574 10.5 Net fee and commission income 138 152 10.6 Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 21 45 114.4 Other operating income (expe
Slide 87: Private Banking: 1H23 vs 1H22
MIL-BVA362-03032014-90141/VR Private Banking: 1H23 vs 1H22 €m 1H22 1H23 % Net interest income 101 602 496.0 Net fee and commission income 1,023 931 (9.0) Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 25 34 36.0 Other operating income (expenses) 11
Slide 88: Private Banking: Q2 vs Q1
MIL-BVA362-03032014-90141/VR Private Banking: Q2 vs Q1 €m 1Q23 2Q23 % Net interest income 280 322 15.3 Net fee and commission income 455 476 4.5 Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 20 14 (29.2) Other operating income (expenses) (1) 0 (10
Slide 89: Asset Management: 1H23 vs 1H22
MIL-BVA362-03032014-90141/VR Asset Management: 1H23 vs 1H22 €m 1H22 1H23 % Net interest income 0 2 n.m. Net fee and commission income 472 418 (11.4) Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value (15) 13 n.m. Other operating income (expenses) 38 32
Slide 90: Asset Management: Q2 vs Q1
MIL-BVA362-03032014-90141/VR Asset Management: Q2 vs Q1 €m 1Q23 2Q23 % Net interest income 1 1 (50.8) Net fee and commission income 209 210 0.5 Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 7 5 (27.9) Other operating income (expenses) 17 15 (13.9)
Slide 91: Insurance: 1H23 vs 1H22
MIL-BVA362-03032014-90141/VR Insurance: 1H23 vs 1H22 €m 1H22(1) 1H23 % Net interest income 0 0 n.m. Net fee and commission income 1 1 0.0 Income from insurance business 809 834 3.1 Profits on financial assets and liabilities at fair value 0 0 n.m. Other operating income (expenses) (7) (7) 0.0 Opera
Slide 92: Insurance: Q2 vs Q1
MIL-BVA362-03032014-90141/VR Insurance: Q2 vs Q1 €m 1Q23 2Q23 % Net interest income 0 0 (13.1) Net fee and commission income 1 1 (1.9) Income from insurance business 385 449 16.6 Profits on financial assets and liabilities at fair value 0 (0) n.m. Other operating income (expenses) (1) (6) 303.0 Ope
Slide 93: Market leadership in Italy
MIL-BVA362-03032014-90141/VR Market leadership in Italy 1H23 Operating income breakdown by business area(1) Leader in Italy IMI Corporate & Market share(2) Ranking Investment Banking % 16% 1 Loans 18.6 Insurance 7% 1 Deposits(3) 21.9 Banca 48% dei Territori 13% 1 Pension Funds(4) 24.3 Private Bankin
Slide 94: International Subsidiary Banks by country
MIL-BVA362-03032014-90141/VR International Subsidiary Banks by country Data as at 30.6.23 Total % of the Total CEE Group Hungary Slovakia Slovenia Croatia Bosnia Serbia Albania Romania Moldova Ukraine(*) Egypt Operating income (€ m) 233 336 71 293 25 208 31 24 9 1,228 177 1,405 11.3% Operating costs
Slide 95: 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 46,870 41,962 3,959 92,791 400,860 Austria 765 521 29 1,315 603 Belgium 4,154 3,146 136 7,436 1,448 Bulgaria 0 0 0 0 11 Croatia 277 588 75 940 8,518 Cy
Slide 96: 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 36,471 30,710 381 67,562 10,739 Austria 615 294 -2 907 0 Belgium 3,199 3,056 112 6,367 0 Bulgaria 0 0 0 0 0 Croatia 150 588 75 813 1,559 C
Slide 97: 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 1,941 6,468 2,192 10,601 18,719 Austria 140 216 28 384 311 Belgium 11 80 23 114 303 Bulgaria 0 0 0 0 0 Croatia 0 0 0 0 87 Cyprus 0 0 0 0 0 Czech Rep
Slide 98: 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 8,458 4,784 1,386 14,628 371,402 Austria 10 11 3 24 292 Belgium 944 10 1 955 1,145 Bulgaria 0 0 0 0 11 Croatia 127 0 0 127 6,872 Cyprus 0
Slide 99: 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