Intesa Sanpaolo S.p.a. · MIL:ISP
Intesa Sanpaolo — Intesa Sanpaolo Spa Ord — 1H24 Earnings Presentation
107 slides from Intesa Sanpaolo's earnings presentation, Jul 30, 2024
Slide 1: 1H24 Results
1H24 Results The best six months ever with €4.8bn Net income Best-in-class Wealth Management, Protection & Advisory, Leading in Technology A strong bank for a sustainable world July 30, 2024
Slide 2: 1H24 Results: key achievements
MIL-BVA362-03032014-90141/VR 1H24 Results: key achievements Best-in-class profitability €4.8bn Net income, best six months ever Effective Cost management 38.3% Cost/Income ratio, best-in-class in Europe Zero-NPL Bank 1.0% Net NPL ratio(1), at historical lows Rock-solid capital position >13.5% Fully
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/ write-downs for Russia-Ukraine exposure 4,766 4,222 +13% 3,268 3,107 3,023 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
Slide 4: Strong value creation and rock-solid capital position
MIL-BVA362-03032014-90141/VR … with strong and sustainable value creation and a rock-solid capital position… … coupled with a rock-solid capital … and a significant increase in EPS, The best six months ever… position… DPS and TBVPS Net income, € m x ROTE(1), %; annualised Fully phased-in CET1 ratio,
Slide 5: Improved Net income guidance for 2024 and 2025
MIL-BVA362-03032014-90141/VR … driving improved Net income guidance for 2024 and 2025 As in 2023… … ISP improved Net income guidance 2023 Net income guidance 2024-2025 Net income guidance ▪ Fully phased-in CET1 ratio well >€8.5bn above 14.5% as at 31.12.25 >€8bn (taking into account €1.7bn Well abov
Slide 6: 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 go directly to Italian Personnel expenses, € bn households and to charitable foundations 4.8 3.2 1H24 1H24 ▪ ISP People satisfaction index continues to
Slide 7: Contents
MIL-BVA362-03032014-90141/VR Contents 1H24: the best six months ever ISP is fully equipped for further success Appendix: 2022-2025 Business Plan proceeding at full speed
Slide 8: The best six months ever with €4.8bn Net income
MIL-BVA362-03032014-90141/VR The best six months ever with €4.8bn Net income €4.8bn Net income (+13% vs 1H23), €5.0bn when excluding the final Deposit Guarantee Scheme contribution €2.5bn Net income in Q2 (+9% vs 2Q23, +7% vs 1Q24), the best quarter since 2007 Best six months ever for Operating inco
Slide 9: H1: €4.8bn Net income, the best six months since 2007
MIL-BVA362-03032014-90141/VR H1: €4.8bn Net income, the best six months since 2007 1H24 P&L; € m Non-motor P&C revenues at €309m (+17% vs €5.0bn €165m due to national labour excluding the 1H23), €347m including credit-linked products €293m Levies and contract renewal €90m charges to offset final Dep
Slide 10: 2Q24: €2.5bn Net income, the best quarter since 2007
MIL-BVA362-03032014-90141/VR 2Q24: €2.5bn Net income, the best quarter since 2007 2Q24 P&L; € m Non-motor P&C revenues at €143m (+10% vs €82m due to national labour 2Q23), €160m including credit-linked products contract renewal €56m charges to offset Russian subsidiary Net income 6,856 No overlay 44
Slide 11: €7.9bn Net interest income in H1
MIL-BVA362-03032014-90141/VR €7.9bn Net interest income in H1, of which €4.0bn in Q2… Net interest income grew in H1… … and in Q2 €m % Euribor 1M (average data) €m % Euribor 1M (average data) +€1.1bn +€81m 7,945 3,932 4,013 6,838 3,584 1H23 1H24 Euribor 1M 2Q23 1Q24 2Q24 as at 30.6.24: +2.75 +3.82 +
Slide 12: Net interest income 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, 2Q24 vs 1Q24 % Euribor 1M (average data) € m, 1H24 vs 1H23 % Euribor 1M (average data) 3,932 89 21 4,013 362 7,945 1,024 (29) 6,838 (279) Comm
Slide 13: More than €1.35 trillion in Customer financial assets
MIL-BVA362-03032014-90141/VR More than €1.35 trillion in Customer financial assets, ready to leverage on our leadership in Wealth Management, Protection & Advisory Customer financial assets(1) +€34.1bn € bn 555.7 577.2 589.7 Direct deposits +€102bn 30.6.23 31.3.24 30.6.24 1,353.3 +€19.6bn 1,333.2 1,
Slide 14: Well-diversified business model with Wealth Management
MIL-BVA362-03032014-90141/VR Well-diversified business model to succeed in any rate scenario thanks to a strong contribution from Wealth Management… Strong contribution from Wealth … with an acceleration in Net fees … and in Q2 Management… and commissions in H1… % of 1H24 Gross income(1) €m Commissi
Slide 15: Protection, driven by Non-motor business
MIL-BVA362-03032014-90141/VR … and from Protection, driven by Non-motor business The best six months ever for Insurance income… … with growing P&C contribution, driven by Non-motor business €m €m Non-motor % As a % of Net fees and commissions + Insurance income Motor/Credit-linked products % P&C non
Slide 16: Best-in-class contribution of Commissions and Insurance income
MIL-BVA362-03032014-90141/VR Best-in-class contribution of Commissions and Insurance income to revenues Contribution of Commissions and Insurance income to Operating income(1) % 52 41 33 32 32 30 28 26 26 Peer average: 27% 23 21 19 19 18 13 Peer 10 Peer 11 Peer 12 Peer 13 Peer 14 ISP Peer 1 Peer 2 P
Slide 17: Leveraging 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 under a single … with strong growth in Customer financial assets Distinctive advisory networks and top-notch oversight unit enabling quick time-to-market and man
Slide 18: ~€100bn asset pool to fuel AuM growth
MIL-BVA362-03032014-90141/VR ~€100bn asset pool identified to fuel AuM growth with our delivery machine already at work Unmatched client advisory network through Sizeable amount of Direct deposits and Assets under New Wealth Management Divisions structure Banca dei Territori and Private Banking admi
Slide 19: Lowest-ever Cost/Income ratio while investing in technology
MIL-BVA362-03032014-90141/VR Strong growth in revenues and effective Cost management driving the lowest-ever Cost/Income ratio while strongly investing in technology Cost/Income ratio % €m +€1,190m Cost/Income ratio 13,588 -3.7pp 12,398 Operating 42.0 income 38.3 1H23 1H24 f(x) -€4m 5,211 5,207 Oper
Slide 20: Effective cost management driving lowest Cost/Income ratio
MIL-BVA362-03032014-90141/VR Effective cost management driving the lowest Cost/Income ratio ever Operating costs €m -4.7% excluding the impact of national labour contract renewal Total Operating costs -4.1% excluding growth in Depreciation 3,185 3,200 linked to tech investments and the impact of Per
Slide 21: 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) % 77.8 69.1 65.9 57.5 58.2 58.3 53.6 54.1 Peer average: 52.8% 48.4 48.8 43.3 40.7 41.6 38.3 39.1 36.3 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 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(3) from Performing loans € bn Net NPL x Gross NPL ratio(1), % € bn Net inflow(4) x Net NPL ratio(1), % 8.5 1.9 2.0 1.9 1.0 1.0 1.0 10.4 -€0.8bn 10.1 9.7 -82% 6.2 1.9 1.4 1.5 1.5 5.3 5.0 4.8 0.9 1
Slide 23: 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 19.5 13.5 12.1 10.7 8.6 7.9 7.6 6.2 4.8 2.6 1.9 1.8% 0.9% 1.1% 1.1% 1.1% 0.8% 1.5% 1.1% 1.0% 0.8% 0.4% 2.9% 1.7% 2
Slide 24: 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) 130 85 67 56 54 49 36 36 35 19 11% 8% 8% 9% 11% 11% 8% 9% 8% 5% 30.6.24 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
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 bps; annualised Additional provisions to favour de-risking % 556 554 +1.7pp 36 49.0 50.7 26 32 1H23 1H24 FY23 1H24 30.6.23 30.6.24 Low
Slide 26: Russia exposure reduced to 0.1% of 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 -87% 0.5 <0.5 0.4 0.4 0.1 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 Fully phased-in CET1 ratio evolution x %, bps ISP 2024 fully loaded requirements SREP + combined buffer Q2 evolution Including ~15bps RWA Including ~(10)bps due to optimisation benefit wide
Slide 28: Capital increase allowing flexibility for additional distributions
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 Well above Well above Well abov
Slide 29: Best-in-class MREL and liquidity ratios
MIL-BVA362-03032014-90141/VR Best-in-class MREL and liquidity ratios, with TLTRO reimbursed Cash and deposits with ECB vs MREL(1) Liquidity ratios TLTRO %, % RWA, 30.6.24 31.3.24 %, requirement %, 30.6.24 2025 Business Plan target € bn, 30.6.24 x Buffer vs requirement 163 43 41.1 124 ~125 Buffer: 15
Slide 30: Enhanced ESG commitment
MIL-BVA362-03032014-90141/VR Enhanced 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 30.6.24 (2022-1H24) targets Unparalleled support to Expanding food and shelter program for address social pe
Slide 31: Strong focus on climate
MIL-BVA362-03032014-90141/VR … with 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 30.6.24 (2022-1H24) targets New lending to support the green economy, circular economy and ecologica
Slide 32: Contents
MIL-BVA362-03032014-90141/VR Contents 1H24: the best six months ever ISP is fully equipped for further success Appendix: 2022-2025 Business Plan proceeding at full speed
Slide 33: Italy's solid fundamentals support economic resilience
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 1.2 with low
Slide 34: 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 Fully phased-in CET1(1)/Total illiquid Contribution of Net fees and commissions Cost/Income ratio assets(2) a
Slide 35: Commissions-driven and efficient business model
MIL-BVA362-03032014-90141/VR ISP has a unique Commissions-driven and efficient business model, with strong tech investments Depreciation on Operating costs(3),% <10% 10%-12.5% >12.5% Cost/Income(1) % (reverse scale) Peer average: 27% 30 35 40 Peer 2 Peer 1 Peer 5 Peer 3 45 Peer 4 Peer 6 Peer 7 50 Pe
Slide 36: Delivering on 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 ▪ €4.8bn Net income, the best six months since 2007 ▪ Resilient profitability, rock-
Slide 37: 2024 outlook: improved Net income guidance
MIL-BVA362-03032014-90141/VR 2024 outlook: improved Net income guidance 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
Slide 38: Contents
MIL-BVA362-03032014-90141/VR Contents 1Q24: the best six months 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 €5.6bn gross NPL stock reduction in 2022-2Q24, reducing Net NPL ratio to 1%(1) and anticipating Business Plan target ▪ Focus on m
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 ▪ operational with ~470 dedicated specialists ▪ Commercial launch of on 15.6.23 and release of the App on iOS and Android stores; go live of the new official
Slide 42: Significant investments in technology already deployed
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 : ISP cloud-based digital banking platform New technology backbone already available to mass market retail clients through , to be pro
Slide 43: New technology backbone
MIL-BVA362-03032014-90141/VR 2022-2025 Business Plan proceeding at full speed Mooney Enel New technology backbone ( ) already available to mass market retail clients through ; the progressive extension to the entire Group has begun : our cloud-native … already successfully … to be progressively tech
Slide 44: Cloud-based digital platform
MIL-BVA362-03032014-90141/VR 2022-2025 Business Plan proceeding at full speed : 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 techno
Slide 45: New digital bank with innovative customer experience
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 ~350,000 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 digital features
MIL-BVA362-03032014-90141/VR 2022-2025 Business Plan proceeding at full speed Accelerated the development of ’s innovative digital features, further enriching the customer experience Enriched digital offering, ahead of schedule ▪ Disposable virtual cards ▪ Installment payments (SpensieRata) Developm
Slide 48: Digital with the human touch of 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
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 (1/4)
MIL-BVA362-03032014-90141/VR 2022-2025 Business Plan proceeding at full speed Growth in Commissions, driven by Wealth Management, Protection & Advisory (1/4) 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 (2/4)
MIL-BVA362-03032014-90141/VR 2022-2025 Business Plan proceeding at full speed Growth in Commissions, driven by Wealth Management, Protection & Advisory (2/4) Key highlights ▪ The growth strategy of REYL ISP - the Swiss Hub of the Private Banking Division - is underway, and together with ISP Wealth M
Slide 52: Growth in Commissions (3/4)
MIL-BVA362-03032014-90141/VR 2022-2025 Business Plan proceeding at full speed Growth in Commissions, driven by Wealth Management, Protection & Advisory (3/4) Key highlights ▪ Developed commercial initiatives to support clients in different sectors to optimise the incorporation of European and Italia
Slide 53: Growth in Commissions (4/4)
MIL-BVA362-03032014-90141/VR 2022-2025 Business Plan proceeding at full speed Growth in Commissions, driven by Wealth Management, Protection & Advisory (4/4) A unique Digital Wealth Platform for customers seeking to invest remotely in listed markets and asset management products enabled by state-of-
Slide 54: 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 55: 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, a museum with 4 branches: Milan, Naples, Turin, and Vicenza. 1H24 results: ‒ >385,000 visitors
Slide 56: 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) ‒ Up2Stars: completed the 2nd edition of the initiative developed by Banca dei Territori with the support of ISPIC,
Slide 57: 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) ▪ ~€59bn disbursed in the period 2021-1H24(1) out of the €76bn in new lending available for the green economy, circ
Slide 58: 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) Dow Jones Sustainability Indices First bank in Europe and second 74 A AA 84 9
Slide 59: 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 ▪ ~3,850 professionals hired since 2021 ▪ ~5,350 people reskilled and ~31.3m training hours delivered since 2022 ▪ ~270 talents have completed their development path a
Slide 60: 1H24 Results: Detailed information
1H24 Results Detailed information
Slide 61: Key P&L and Balance sheet figures
MIL-BVA362-03032014-90141/VR Key P&L and Balance sheet figures €m 1H24 30.6.24 Operating income 13,588 Loans to customers 422,214 Operating costs (5,207) Customer financial assets(1) 1,353,324 Cost/Income ratio 38.3% of which Direct deposits from banking business 589,714 Operating margin 8,381 of wh
Slide 62: Contents
MIL-BVA362-03032014-90141/VR Contents Detailed consolidated P&L results Liquidity, Funding and capital base Asset quality Divisional results and other information 61
Slide 63: 1H24 vs 1H23: €4.8bn Net income
MIL-BVA362-03032014-90141/VR 1H24 vs 1H23: €4.8bn Net income, the best six months since 2007 €m 1H23 1H24 % Net interest income 6,838 7,945 16.2 Net fee and commission income 4,353 4,653 6.9 Income from insurance business 856 903 5.5 Profits on financial assets and liabilities at fair value 337 97
Slide 64: Q2 vs Q1: further growth in profitability
MIL-BVA362-03032014-90141/VR Q2 vs Q1: further growth in profitability €m 1Q24 2Q24 % Net interest income 3,932 4,013 2.1 Net fee and commission income 2,272 2,381 4.8 Income from insurance business 455 448 (1.5) Profits on financial assets and liabilities at fair value 79 18 (77.2) Other operating
Slide 65: Quarterly P&L
MIL-BVA362-03032014-90141/VR Quarterly P&L €m 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 Net interest income 3,254 3,584 3,813 3,995 3,932 4,013 Net fee and commission income 2,137 2,216 2,095 2,110 2,272 2,381 Income from insurance business 397 459 419 391 455 448 Profits on financial assets and liabilities at
Slide 66: 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) +16.2% 1,024 362 7,945 +2.1% 6,838 3,932 89 21 4,013 (279) (29) Commercial Commercial component component 1Q24 Volumes Spread(1) Financial 2Q24 1H23 Volum
Slide 67: Net fee and commission income
MIL-BVA362-03032014-90141/VR Net fee and commission income Quarterly analysis Yearly analysis €m % 2Q24 vs 2Q23 and 1Q24 €m % 1H24 vs 1H23 4,353 4,653 2,216 2,272 2,381 2Q23 1Q24 2Q24 1H23 1H24 +7.4 +4.8 +6.9 ▪ Acceleration of Commissions from Management, dealing and ▪ Double-digit increase in C
Slide 68: 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 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 1H23 1H24 Guarantees given / received 34 41 41 39 48 50 75 98 Collection and payment services 156 164 169 180 167 178 320 345 Current accounts 34
Slide 69: Income from insurance business
MIL-BVA362-03032014-90141/VR Income from insurance business Quarterly analysis Yearly analysis €m % 2Q24 vs 2Q23 and 1Q24 €m % 1H24 vs 1H23 856 903 459 455 448 2Q23 1Q24 2Q24 1H23 1H24 (2.4) (1.5) +5.5 ▪ Non-motor P&C revenues(1) at €143m (+10% vs 2Q23), €160m ▪ Non-motor P&C revenues(1) up 17%
Slide 70: 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 % 2Q24 vs 2Q23 and 1Q24 €m % 1H24 vs 1H23 337 75 79 97 18 2Q23 1Q24 2Q24 1H23 1H24 (76.0) (77.2) (71.2) Contributions by activity 2Q23 1Q24 2Q24 1H23 1H24 Customers 80 70
Slide 71: Operating costs
MIL-BVA362-03032014-90141/VR Operating costs Quarterly analysis Yearly analysis % 2Q24 vs 2Q23 and 1Q24 % 1H24 vs 1H23 Operating costs Personnel expenses Operating costs Personnel expenses €m €m €m €m 5,211 5,207 2,675 2,570 2,637 3,185 3,200 1,625 1,592 1,608 2Q23 1Q24 2Q24 2Q23 1Q24 2Q24 1H23
Slide 72: Net adjustments to loans
MIL-BVA362-03032014-90141/VR Net adjustments to loans Quarterly analysis Yearly analysis €m % 2Q24 vs 2Q23 and 1Q24 €m % 1H24 vs 1H23 556 554 367 318 236 2Q23 1Q24 2Q24 1H23 1H24 (13.4) +34.7 (0.4) ▪ NPL inflow at historical low (-11% vs 2Q23) ▪ Annualised Cost of credit at 26bps ▪ €0.9bn as ove
Slide 73: Contents
MIL-BVA362-03032014-90141/VR Contents Detailed consolidated P&L results Liquidity, Funding and capital base Asset quality Divisional results and other information 72
Slide 74: More than €1.35 trillion in Customer financial assets
MIL-BVA362-03032014-90141/VR More than €1.35 trillion in Customer financial assets % 30.6.24 vs 30.6.23 and 31.3.24 Customer financial assets(1) Direct deposits from banking business € bn € bn 1,251 1,333 1,353 556 577 590 30.6.23 31.3.24 30.6.24 30.6.23 31.3.24 30.6.24 +8.1 +1.5 +6.1 +2.2 ▪ €102b
Slide 75: Funding mix
MIL-BVA362-03032014-90141/VR Funding mix Breakdown of Direct deposits from banking business € bn; 30.6.24 ~70% Households % Percentage of total ~30% Corporates Wholesale Retail 590 Current accounts 19 381 and deposits Repos and 27 - securities lending 443 Senior bonds(1) 41 7 147 Covered bonds 35 -
Slide 76: 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 2023 19 Retail ◼ €1bn Tier 2, €2.25bn dual-tranche green senior non-preferred, £600m green senior non-preferred, two floating rate senior pre
Slide 77: 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) Loan to Deposit ratio(3) with Central Banks(2) (net of haircuts) € bn Other reserves HQLA € bn Other reserves HQLA % 284 270 280 210 11
Slide 78: 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 €3.3bn dividends already accrued in H1 €3.3bn dividends already accrued in H1 €3.3bn dividends already accrued in H1 % % % 18.6 18.9
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: Non-performing loans: NPL ratio and NPL stock
MIL-BVA362-03032014-90141/VR Non-performing loans: NPL ratio and NPL stock x x Net NPL ratio, % x Gross and net NPL ratio based on EBA definition, % Gross NPL ratio, % Gross NPL Net NPL € bn € bn 30.6.23 31.12.23 31.3.24 30.6.24 30.6.23 31.12.23 31.3.24 30.6.24 Bad loans 3.7 3.4 3.7 3.6 Bad loans 1.
Slide 81: Non-performing loans: increased coverage in H1
MIL-BVA362-03032014-90141/VR Non-performing loans: sizeable and increased coverage in H1 Cash coverage; % Total NPL(1) 49.0 49.9 50.8 50.7 30.6.23 31.12.23 31.3.24 30.6.24 Bad loans Unlikely to pay Past due 68.2 72.4 72.9 70.8 40.0 39.3 39.1 39.7 25.3 28.4 29.3 31.6 30.6.23 31.12.23 31.3.24 30.6.24
Slide 82: 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 the two former Venetian banks 8.5 Impact from the acquisition of the two former Venetia
Slide 83: 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 885 739 787 2Q23 1Q24 2Q24 Bad loans Unlikely to pay Past due 416 459 411 403 370 312 10 24 6 2Q23 1Q24 2Q24 2Q23 1Q24 2Q24 2Q23 1Q24 2Q24 Note: figures may not add up exactly due to ro
Slide 84: 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 688 661 617 2Q23 1Q24 2Q24 Bad loans Unlikely to pay Past due 423 352 363 306 262 234 20 3 3 2Q23 1Q24 2Q24 2Q23 1Q24 2Q24 2Q23 1Q24 2Q24 Note: figures may not add up exactly due to roundin
Slide 85: 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 30.6.24) Breakdown by economic business sector Repos, Capital markets and 30.6.24 Institutional Clients Public Adminis
Slide 86: 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 30.6.24 Local presence Russia Cross-border exposure to Russia Loans to customers (net of ECA guarantees and provisions) 0.1(1) 0.4 ECA(2) guarantees - 0.8(3) Due from banks (net of provisions) 0.8 0
Slide 87: Contents
MIL-BVA362-03032014-90141/VR Contents Detailed consolidated P&L results Liquidity, Funding and capital base Asset quality Divisional results and other information 86
Slide 88: Divisional financial highlights
MIL-BVA362-03032014-90141/VR Divisional financial highlights Data as at 30.6.24 Divisions IMI International Corporate Banca dei Corporate & Private Asset Territori Investment Subsidiary Banking(2) Management(3) Insurance (4) Centre / Total Banking Banks(1) Others(5) Wealth Management Divisions Opera
Slide 89: Banca dei Territori: 1H24 vs 1H23
MIL-BVA362-03032014-90141/VR Banca dei Territori: 1H24 vs 1H23 €m 1H23 1H24 % +13% considering the benefit of Net interest income 3,274 3,401 3.9 actual market rate trends not entirely reflected in the internal fund Net fee and commission income 2,357 2,429 3.1 transfer price applied to the Divisio
Slide 90: Banca dei Territori: Q2 vs Q1
MIL-BVA362-03032014-90141/VR Banca dei Territori: Q2 vs Q1 €m 1Q24 2Q24 % Net interest income 1,701 1,700 (0.0) Net fee and commission income 1,208 1,221 1.0 Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 29 29 (0.2) Other operating income (expense
Slide 91: IMI Corporate & Investment Banking: 1H24 vs 1H23
MIL-BVA362-03032014-90141/VR IMI Corporate & Investment Banking: 1H24 vs 1H23 €m 1H23 1H24 % Net interest income 1,286 1,553 20.8 Net fee and commission income 560 615 9.8 Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 70 (121) n.m. Other operating
Slide 92: IMI Corporate & Investment Banking: Q2 vs Q1
MIL-BVA362-03032014-90141/VR IMI Corporate & Investment Banking: Q2 vs Q1 €m 1Q24 2Q24 % Net interest income 758 795 5.0 Net fee and commission income 284 332 16.9 Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value (32) (89) 178.3 Other operating incom
Slide 93: International Subsidiary Banks: 1H24 vs 1H23
MIL-BVA362-03032014-90141/VR International Subsidiary Banks: 1H24 vs 1H23 €m 1H23 1H24 % Net interest income 1,094 1,245 13.8 Net fee and commission income 291 320 10.0 Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 66 73 10.6 Other operating incom
Slide 94: International Subsidiary Banks: Q2 vs Q1
MIL-BVA362-03032014-90141/VR International Subsidiary Banks: Q2 vs Q1 €m 1Q24 2Q24 % Net interest income 640 605 (5.5) Net fee and commission income 146 174 18.9 Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 17 56 228.6 Other operating income (exp
Slide 95: Private Banking: 1H24 vs 1H23
MIL-BVA362-03032014-90141/VR Private Banking: 1H24 vs 1H23 €m 1H23 1H24 % Net interest income 602 622 3.3 Net fee and commission income 931 1,055 13.3 Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 34 23 (32.4) Other operating income (expenses) (1)
Slide 96: Private Banking: Q2 vs Q1
MIL-BVA362-03032014-90141/VR Private Banking: Q2 vs Q1 €m 1Q24 2Q24 % Net interest income 313 309 (1.4) Net fee and commission income 534 522 (2.3) Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 7 17 140.0 Other operating income (expenses) 4 3 (23.
Slide 97: Asset Management: 1H24 vs 1H23
MIL-BVA362-03032014-90141/VR Asset Management: 1H24 vs 1H23 €m 1H23 1H24 % Net interest income 2 29 n.m. Net fee and commission income 419 436 4.1 Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 13 1 (92.3) Other operating income (expenses) 31 24 (2
Slide 98: Asset Management: Q2 vs Q1
MIL-BVA362-03032014-90141/VR Asset Management: Q2 vs Q1 €m 1Q24 2Q24 % Net interest income 14 15 8.1 Net fee and commission income 214 221 3.2 Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 1 0 (75.5) Other operating income (expenses) 11 14 27.4 Op
Slide 99: Insurance: 1H24 vs 1H23
MIL-BVA362-03032014-90141/VR Insurance: 1H24 vs 1H23 €m 1H23 1H24 % Net interest income 0 0 n.m. Net fee and commission income 1 2 100.0 Income from insurance business 834 889 6.6 Profits on financial assets and liabilities at fair value 0 0 n.m. Other operating income (expenses) (7) (5) (28.6) Ope
Slide 100: Insurance: Q2 vs Q1
MIL-BVA362-03032014-90141/VR Insurance: Q2 vs Q1 €m 1Q24 2Q24 % Net interest income 0 0 20.4 Net fee and commission income 1 1 3.3 Income from insurance business 448 442 (1.3) Profits on financial assets and liabilities at fair value 0 0 (78.4) Other operating income (expenses) (7) 3 n.m. Operating
Slide 101: Market leadership in Italy
MIL-BVA362-03032014-90141/VR Market leadership in Italy 1H24 Operating income breakdown by business area(1) Leader in Italy IMI Corporate & Market share(2) Ranking Investment Banking % 16% 1 Loans 18.1 Insurance(*) 7% 1 Deposits(3) 21.7 Banca 47% dei Territori 14% 1 Asset Management(4) 22.6 Private
Slide 102: International Subsidiary Banks by country
MIL-BVA362-03032014-90141/VR International Subsidiary Banks by country Data as at 30.6.24 Total % of the Total CEE Group Hungary Slovakia Slovenia Croatia Bosnia Serbia Albania Romania(*) Moldova Ukraine(**) Egypt Operating income (€ m) 231 377 84 330 25 251 41 28 8 3 1,379 204 1,582 11.6% Operating
Slide 103: 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 49,477 50,561 -149 99,889 383,814 Austria 679 1,448 58 2,185 484 Belgium 3,465 4,518 109 8,092 955 Bulgaria 0 0 0 0 9 Croatia 262 251 47 560 8,901 Cypr
Slide 104: 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 39,320 36,383 -3,438 72,265 10,507 Austria 616 1,159 27 1,802 0 Belgium 3,363 4,332 81 7,776 0 Bulgaria 0 0 0 0 0 Croatia 157 251 47 455 1
Slide 105: 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 2,303 8,390 2,078 12,771 18,420 Austria 53 272 30 355 220 Belgium 80 126 27 233 236 Bulgaria 0 0 0 0 0 Croatia 0 0 0 0 60 Cyprus 0 0 2 2 2 Czech Rep
Slide 106: 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 7,854 5,788 1,211 14,853 354,887 Austria 10 17 1 28 264 Belgium 22 60 1 83 719 Bulgaria 0 0 0 0 9 Croatia 105 0 0 105 7,517 Cyprus 0 0 0 0
Slide 107: Disclaimer
MIL-BVA362-03032014-90141/VR Disclaimer “The manager responsible for preparing the company’s financial reports, Elisabetta Stegher, 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 t