Intesa Sanpaolo S.p.a. · MIL:ISP
Intesa Sanpaolo — 9M22 Earnings Presentation
91 slides from Intesa Sanpaolo's earnings presentation, Nov 4, 2022
Slide 1: 9M22 Results
9M22 Results High-quality earnings driven by strong acceleration of Net interest income A Zero-NPL Bank with Russia exposure strongly reduced and approaching zero A strong bank for a sustainable world November 4, 2022
Slide 2: Net income at €4.4bn when excluding Russia de-risking, driven by high-quality earnings
MIL-BVA362-03032014-90141/VR Net income at €4.4bn when excluding Russia de-risking, driven by high-quality earnings €4.4bn 9M Net income (€1.1bn in Q3) when excluding Russia de-risking(1), the best 9M since 2008 ~65% reduction of Russia exposure in Q3 (-€2.3bn), down to 0.3% of Group customer loans
Slide 3: The best 9M Net income since 2008 when excluding Russia de-risking
MIL-BVA362-03032014-90141/VR The best 9M Net income since 2008 when excluding Russia de-risking Net income €m 4,367 4,006 +9.0% 1,083 Net impact of provisions/ 3,310 3,112 writedowns for 3,012 Russia-Ukraine 2,726 exposure 2,335 2,388 2,262 2,200 1,929 1,688 3,284 Stated Net 1,203 income 640 9M09 9M
Slide 4: Russia exposure reduced by ~65%, down to 0.3% of Group customer loans
MIL-BVA362-03032014-90141/VR Russia exposure reduced by ~65%, down to 0.3% of Group customer loans Cross-border exposure to Russia Local presence in Russia Loans to customers net of ECA guarantees and provisions, € bn Loans to customers net of provisions – Banca Intesa, € bn 3.2 -67% 1.05 0.4 0.3 -3
Slide 5: Contents
MIL-BVA362-03032014-90141/VR Contents 9M22: high-quality earnings 2022-2025 Business Plan proceeding at full speed ISP is well equipped for a challenging environment Final remarks
Slide 6: 9M: €4.4bn Net income when excluding Russia de-risking
MIL-BVA362-03032014-90141/VR 9M: €4.4bn Net income when excluding Russia de-risking, driven by high-quality operating performance 9M22 P&L €m Non-motor P&C revenues at €339m (+16% vs Including €1.3bn provisions Including €48m in charges Including €544m Levies 9M21), €410m including credit-linked pro
Slide 7: Q3: €1.1bn Net income when excluding Russia de-risking
MIL-BVA362-03032014-90141/VR Q3: €1.1bn Net income when excluding Russia de-risking, driven by high-quality operating performance 3Q22 P&L €m Including €266m Levies Including €0.2bn provisions and other charges 5,015 for Russia-Ukraine exposure concerning the banking 51 (12) 436 industry (€392m pre-
Slide 8: Net interest income gaining momentum with strong acceleration in Q3
MIL-BVA362-03032014-90141/VR Net interest income gaining momentum with strong acceleration in Q3… Net interest income €m % Euribor 1M(2) 2,387 2,092 +€295m 1,953 1,997 2,000 1,955 1,957 Despite ~€250m lower contribution from TLTRO in Q3 1Q21(1) 2Q21(1) 3Q21 4Q21 1Q22 2Q22 3Q22 Euribor 1M as at -0.56
Slide 9: … 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, 3Q22 vs 2Q22 % Euribor 1M(2) € m, 9M22 vs 9M21 % Euribor 1M(2) 263 2,387 492 6,436 43 5,950 144 2,092 (11) (150) Commercial Commercial Largely
Slide 10: ~€1.2 trillion in Customer financial assets
MIL-BVA362-03032014-90141/VR ~€1.2 trillion in Customer financial assets to fuel Wealth Management engine and drive Net interest income growth Customer financial assets(1) € bn 557.2 549.4 550.7 +€11.8bn in 537.6 short-term retail Direct deposits and corporate Decline due to negative deposits on a m
Slide 11: Continued strong reduction in Operating costs while investing in technology and growth
MIL-BVA362-03032014-90141/VR Continued strong reduction in Operating costs while investing in technology and growth Operating costs €m x Cost/Income, % Total Operating costs Administrative 2,125 2,047 costs -3.7% 7,948 7,804 -1.8% 9M21(1) 9M22 4,917 4,821 -2.0% Personnel f(x) costs 9M21(1) 9M22 Inve
Slide 12: One of the best Cost/Income ratios in Europe
MIL-BVA362-03032014-90141/VR One of the best Cost/Income ratios in Europe Cost/Income ratio(1) % 104.4 72.6 68.6 Peer average: 58.2% 62.3 58.8 59.2 60.1 54.0 54.6 55.3 49.4 50.5 50.6 48.5 45.0 45.3 41.7 Peer 10 Peer 11 Peer 12 Peer 13 Peer 14 Peer 15 Peer 16 ISP Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Pe
Slide 13: Zero-NPL Bank status…
MIL-BVA362-03032014-90141/VR Zero-NPL Bank status… NPL stock NPL inflow(4) from Performing loans € bn € Netbn NPL x Gross NPL ratio(1), % € bn Net inflow(5) x Net NPL ratio(1), % 2.9 1.9 1.5 1.0 18.3 11.4 12.2 -82% 9.1 9.0 2.4 2.2 6.0 1.7 1.5 30.9.21(2) 30.9.22(3) 9M12(6) 9M21 9M22(7) €6.9bn gross N
Slide 14: … driving low underlying Cost of risk…
MIL-BVA362-03032014-90141/VR … driving low underlying Cost of risk… Loan loss provisions (LLP) Cost of risk €m Provisions for Russia-Ukraine exposure (net of release of part of generic provisions bps; annualised Additional provisions on NPL portfolios to accelerate NPL deleveraging booked in 2020 fo
Slide 15: … with NPL inflow down to historical low and coverage up in Q3
MIL-BVA362-03032014-90141/VR … with NPL inflow down to historical low and coverage up in Q3 NPL inflow(1) from Performing loans NPL coverage ratio € bn Net inflow(2) % 0.9 46.9 44.8 +2.1pp -31% 0.6 0.7 0.4 2Q22 3Q22 30.6.22 30.9.22 Lowest-ever Q3 gross NPL inflow(1) (1) Inflow to NPL (Bad loans, Unl
Slide 16: Massive deleveraging with €3.9bn gross NPL stock reduction in 9M…
MIL-BVA362-03032014-90141/VR Massive deleveraging with €3.9bn gross NPL stock reduction in 9M… NPL stock(1) € bn Net NPL x Gross NPL ratio, % x Net NPL ratio, % 64.5 -€3.9bn Of which €0.5bn gross Q3 increase almost entirely due (€0.2bn net) related to to Russia-Ukraine exposure Russia-Ukraine exposu
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 19.6 12.0 11.0 8.6 8.2 7.5 6.8 6.4 6.0 4.6 2.6 1.9 1.9 1.3 0.8 1.1 1.1 1.1 1.4 2.2 1.0 0.8 0.5 0
Slide 18: Solid capital base, well above regulatory requirements
MIL-BVA362-03032014-90141/VR Solid capital base, well above regulatory requirements ISP CET1 ratios vs requirements SREP + combined buffer 30.9.22, % Second tranche of buyback(1) Including ~50bps impact from the second tranche of buyback (€1.7bn) authorised by the ECB and after €2.3bn dividends alre
Slide 19: All stakeholders benefit from our solid performance
MIL-BVA362-03032014-90141/VR All stakeholders benefit from our solid performance Shareholders Employees Net income, € bn Personnel expenses, € bn 4.8 3.3 9M22 9M22 €2.3bn dividends already accrued in 9M (€1.4bn to €48m one-off contribution to ISP People(2) to be paid in November as an interim divide
Slide 20: Contents
MIL-BVA362-03032014-90141/VR Contents 9M22: high-quality earnings 2022-2025 Business Plan proceeding at full speed ISP is well equipped for a challenging environment Final remarks
Slide 21: 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 22: 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 €3.9bn gross NPL stock reduction in 9M, reducing Net NPL ratio to 1% (1) and anticipating Business Plan target ▪ Focus on modular
Slide 23: 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 ▪ New Digital Bank (Isybank ) setup well underway: Delivery Unit “Domain Isy Tech” already operational with ~300 dedicated specialists, contract with Thought
Slide 24: Growth in Commissions, driven by Wealth Management, Protection & Advisory (1/2)
MIL-BVA362-03032014-90141/VR 2022-2025 Business Plan proceeding at full speed Growth in Commissions, driven by Wealth Management, Protection & Advisory (1/2) Key highlights ▪ New dedicated service model for Exclusive clients fully implemented ▪ Enhancement of the product offering (new AM/Insurance p
Slide 25: Growth in Commissions, driven by Wealth Management, Protection & Advisory (2/2)
MIL-BVA362-03032014-90141/VR 2022-2025 Business Plan proceeding at full speed Growth in Commissions, driven by Wealth Management, Protection & Advisory (2/2) Key highlights ▪ Launched webinars and workshops with clients aimed at educating and sharing views on key topics (e.g. digital transition) ▪ D
Slide 26: 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 27: 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: – 2 new museums opened in May (doubling the number of Gallerie d’Italia venues to 4): in Turin
Slide 28: 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) ▪ Innovation projects: 165 innovation projects launched in 9M (~800 innovation projects expected in the 2022-2025 B
Slide 29: 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) ▪ ~€29bn disbursed in 2021 and 9M out of the €76bn in new lending available for the green economy, circular economy
Slide 30: Confirmed leading ESG position in the main sustainability indexes and rankings
MIL-BVA362-03032014-90141/VR Confirmed leading ESG position in the main sustainability indexes and rankings Top ranking(1) for Sustainability The only Italian bank listed in the Dow Jones Sustainability Indices Ranked first among peer group by 74 A AAA 99 15.4 Bloomberg (ESG Disclosure Score), 62 A-
Slide 31: 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 ▪ ~1,100 professionals hired throughout 2021 and 9M ▪ ~1,450 people reskilled in 9M ▪ ~8.4m training hours delivered in 9M ▪ More than 120 talents have already complet
Slide 32: ISP has implemented multiple humanitarian projects to support the Ukrainian population
MIL-BVA362-03032014-90141/VR ISP has implemented multiple humanitarian projects to support the Ukrainian population and Pravex Bank colleagues ▪ The Extraordinary Fund for the donation of €10m in support of the humanitarian emergency in Ukraine has been fully utilised: 60% for initiatives abroad (in
Slide 33: The 2022-2025 Business Plan formula
MIL-BVA362-03032014-90141/VR The 2022-2025 Business Plan formula 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-class position i
Slide 34: Contents
MIL-BVA362-03032014-90141/VR Contents 9M22: high-quality earnings 2022-2025 Business Plan proceeding at full speed ISP is well equipped for a challenging environment Final remarks
Slide 35: ISP is facing a challenging environment with a stronger Balance sheet
MIL-BVA362-03032014-90141/VR ISP is facing a challenging environment with a stronger Balance sheet compared to the last downturn… Fully phased-in CET1 ratio Gross NPL ratio(4) Second tranche of buyback(1) Net NPL ratio(4), % x Gross NPL stock, € bn x Net NPL stock, € bn % % 14.1% pro-forma fully loa
Slide 36: … and a more resilient and efficient business model
MIL-BVA362-03032014-90141/VR … and a more resilient and efficient business model with additional benefits from interest rate increases … boosted by strong tailwind to Net interest income from More resilient and efficient business model… rate increases Contribution of Net fees and commissions and x N
Slide 37: ISP is far better equipped than its peers to tackle the challenges ahead
MIL-BVA362-03032014-90141/VR ISP is far better equipped than its peers to tackle the challenges ahead... Best-in-class risk profile Solid capital position High operating efficiency Fully phased-in CET1(1)/Total illiquid assets(2), Buffer vs requirements SREP + combined buffer(4), Cost/Income, 30.9.2
Slide 38: ... and is a best-in-class model of resilience across all dimensions
MIL-BVA362-03032014-90141/VR ... and is a best-in-class model of resilience across all dimensions Resilience dimensions ISP strengths ▪ Best-in-class profitability with €4.4bn 9M Net income when excluding Financial Russia de-risking resilience ▪ Solid capital base, well above regulatory requirements
Slide 39: The Italian economy is also stronger than in the past…
MIL-BVA362-03032014-90141/VR The Italian economy is also stronger than in the past… Italy's economic fundamentals are stronger … Italian corporates are more resilient… … and the banking system is more solid than in the past… Italian nominal GDP growth x Net International Italian corporates, leverage
Slide 40: … despite a likely slowdown in 2023 followed by an acceleration in 2024
MIL-BVA362-03032014-90141/VR … despite a likely slowdown in 2023 followed by an acceleration in 2024 Italian GDP YoY evolution The Italian economy is resilient thanks to solid fundamentals % ▪ Strong Italian household wealth at €11,000bn, of which €5,000bn in financial assets, coupled with low house
Slide 41: Contents
MIL-BVA362-03032014-90141/VR Contents 9M22: high-quality earnings 2022-2025 Business Plan proceeding at full speed ISP is well equipped for a challenging environment Final remarks
Slide 42: ISP is fully equipped to succeed in challenging environments
MIL-BVA362-03032014-90141/VR ISP is fully equipped to succeed in challenging environments, as demonstrated during the COVID-19 emergency and previous crises ISP delivered excellent 9M performance driven by … and is fully equipped to succeed in challenging high-quality earnings… environments ▪ €4.4bn
Slide 43: >€4bn Net income guidance for 2022
MIL-BVA362-03032014-90141/VR Strong Q3 operating performance and massive reduction of Russia exposure enable a >€4bn Net income guidance for 2022… Strong Q3 operating performance and massive … enable a >€4bn Net income guidance for 2022 reduction of Russia exposure… Loans to customers(1), € bn Cross
Slide 44: … and the confirmation of a strong value creation and distribution
MIL-BVA362-03032014-90141/VR … and the confirmation of a strong value creation and distribution €6.5bn Net income target for 2025 confirmed, with a clear and strong upside from any interest rate increase Basel 3/Basel 4 fully phased-in CET1 ratio target >12% through the 2022-2025 Business Plan horiz
Slide 45: 9M22 Results - Detailed information
9M22 Results Detailed information
Slide 46: Key P&L and Balance sheet figures
MIL-BVA362-03032014-90141/VR Key P&L and Balance sheet figures €m 9M22 30.9.22 Operating income 15,796 Loans to customers 473,746 Operating costs (7,804) Customer financial assets(1) 1,195,676 Cost/Income ratio 49.4% of which Direct deposits from banking business 550,678 of which Direct deposits fro
Slide 47: Contents
MIL-BVA362-03032014-90141/VR Contents Detailed consolidated P&L results Liquidity, Funding and Capital base Asset quality Divisional results and other information 46
Slide 48: 9M22 vs 9M21: €4.4bn Net income when excluding Russia de-risking
MIL-BVA362-03032014-90141/VR 9M22 vs 9M21: €4.4bn Net income when excluding Russia de-risking €m 9M21 9M22 % (1) (2) stated redetermined [C] [C]/[B] [A] [B] Net interest income 6,016 5,950 6,436 8.2 Net fee and commission income 7,103 7,009 6,697 (4.5) Income from insurance business 1,176 1,219 1,3
Slide 49: Q3 vs Q2: €1.1bn Net income when excluding Russia de-risking
MIL-BVA362-03032014-90141/VR Q3 vs Q2: €1.1bn Net income when excluding Russia de-risking €m 2Q22 3Q22 % Net interest income 2,092 2,387 14.1 Net fee and commission income 2,255 2,153 (4.5) Income from insurance business 465 436 (6.2) Profits on financial assets and liabilities at fair value 560 51
Slide 50: Net interest income: significant yearly growth with strong acceleration in Q3
MIL-BVA362-03032014-90141/VR Net interest income: significant yearly growth with strong acceleration in Q3 thanks to the commercial component Quarterly analysis Yearly analysis €m % Euribor 1M (average data) €m % Euribor 1M (average data) +8.2% 492 6,436 5,950 144 (150) +14.1% 263 2,387 2,092 43 Com
Slide 51: Net fee and commission income: impacted by negative market performance
MIL-BVA362-03032014-90141/VR Net fee and commission income: impacted by negative market performance Quarterly analysis Yearly analysis €m % 3Q22 vs 3Q21 and 2Q22 €m % 9M22 vs 9M21 7,009 6,697 2,323 2,255 2,153 3Q21 2Q22 3Q22 9M21 9M22 redetermined(1) (7.3) (4.5) (4.5) ▪ Commissions from Commerci
Slide 52: Profits on financial assets and liabilities at fair value: €1.4bn in 9M
MIL-BVA362-03032014-90141/VR Profits on financial assets and liabilities at fair value: €1.4bn in 9M Quarterly analysis Yearly analysis €m % 3Q22 vs 3Q21 and 2Q22 €m % 9M22 vs 9M21 1,524 1,380 380 560 51 3Q21 2Q22 3Q22 9M21 9M22 (1) redetermined (86.6) (90.9) (9.4) Contributions by activity 3Q21
Slide 53: Operating costs: significant yearly reduction while investing in technology and growth
MIL-BVA362-03032014-90141/VR Operating costs: significant yearly reduction while investing in technology and growth Quarterly analysis Yearly analysis % 3Q22 vs 3Q21 and 2Q22 % 9M22 vs 9M21 Operating costs Personnel expenses Operating costs Personnel expenses €m €m €m €m 7,948 7,804 4,917 4,821
Slide 54: Net adjustments to loans: strong decrease when excluding Russia de-risking
MIL-BVA362-03032014-90141/VR Net adjustments to loans: strong decrease when excluding Russia de-risking Quarterly analysis Yearly analysis €m % 3Q22 vs 3Q21 and 2Q22 €m % 9M22 vs 9M21 Provisions for Russia-Ukraine Provisions for Russia-Ukraine exposure (net of release of part of exposure (net of
Slide 55: Contents
MIL-BVA362-03032014-90141/VR Contents Detailed consolidated P&L results Liquidity, Funding and Capital base Asset quality Divisional results and other information 54
Slide 56: ~€1.2 trillion in Customer financial assets
MIL-BVA362-03032014-90141/VR ~€1.2 trillion in Customer financial assets % 30.9.22 vs 30.9.21, 31.12.21 and 30.6.22 Customer financial assets(1) Direct deposits from banking business € bn € bn 1,249 1,284 1,214 1,196 538 557 549 551 30.9.21 31.12.21 30.6.22 30.9.22 30.9.21 31.12.21 30.6.22 30.9.22
Slide 57: Funding mix
MIL-BVA362-03032014-90141/VR Funding mix Breakdown of Direct deposits from banking business € bn; 30.9.22 % Percentage of total Wholesale Retail 551 Current accounts 16 424 and deposits Repos and 3 - securities lending 464 Senior bonds(1) 26 6 Covered bonds 20 - 86 Short-term 11(2) - institutional f
Slide 58: Strong funding capability: broad access to international markets
MIL-BVA362-03032014-90141/VR Strong funding capability: broad access to international markets 2022-2024 MLT maturities Main wholesale issues € bn Wholesale 2020(1) Retail ◼ £350m senior unsecured, €3bn AT1 and €1.25bn senior unsecured placed. On average 85% demand from foreign investors; orderbooks
Slide 59: High liquidity: LCR and NSFR well above regulatory requirements
MIL-BVA362-03032014-90141/VR High liquidity: LCR and NSFR well above regulatory requirements Unencumbered eligible assets with Central Banks(2) Liquid assets(1) (net of haircuts) € bn € bn 335 319 301 181 181 163 30.9.21 30.6.22 30.9.22 30.9.21 30.6.22 30.9.22 ▪ Refinancing operations with the ECB:
Slide 60: Solid Capital base
MIL-BVA362-03032014-90141/VR Solid Capital base Phased-in Common equity ratio Phased-in Tier 1 ratio Phased-in Total capital ratio €2.3bn(1) dividends already accrued in 9M €2.3bn(1) dividends already accrued in 9M €2.3bn(1) dividends already accrued in 9M % % % 17.5 17.5 14.9 14.9 12.7 12.6 30.6.22
Slide 61: Contents
MIL-BVA362-03032014-90141/VR Contents Detailed consolidated P&L results Liquidity, Funding and Capital base Asset quality Divisional results and other information 60
Slide 62: 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 30.9.21(1) 31.12.21(2) 30.6.22(3) 30.9.22(4) 30.9.21(1) 31.12.21(2) 30.6.22(3) 30.9.22(4) Bad loans 9.1 7.2
Slide 63: Non-performing loans: sizeable and increased coverage in Q3
MIL-BVA362-03032014-90141/VR Non-performing loans: sizeable and increased coverage in Q3 Cash coverage; % Total NPL(1) 49.9 46.9 44.8 30.9.21 30.6.22 30.9.22 Bad loans Unlikely to pay Past due 60.7 63.9 65.8 40.9 37.8 38.9 20.0 21.3 22.2 30.9.21 30.6.22 30.9.22 30.9.21 30.6.22 30.9.22 30.9.21 30.6.2
Slide 64: Non-performing loans inflow: lowest-ever when excluding Russia-Ukraine exposure
MIL-BVA362-03032014-90141/VR Non-performing loans inflow: lowest-ever when excluding Russia-Ukraine exposure Gross inflow of new NPL(1) from Performing loans Net inflow of new NPL(1) from Performing loans € bn Inflow related to Russia-Ukraine exposure € bn Inflow related to Russia-Ukraine exposure I
Slide 65: 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 Inflow related to Russia-Ukraine exposure 1,218 944 326 793 175 892 618 3Q21 2Q22 3Q22 Bad loans Unlikely to pay Past due Inflow related to Russia-Ukraine exposure Inflow related to Rus
Slide 66: 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 Inflow related to Russia-Ukraine exposure 1,021 743 326 565 175 695 390 3Q21 2Q22 3Q22 Bad loans Unlikely to pay Past due Inflow related to Russia-Ukraine exposure Inflow related to Russia-
Slide 67: Loans to customers: a well-diversified portfolio
MIL-BVA362-03032014-90141/VR Loans to customers: a well-diversified portfolio Non-retail loans of the Italian banks and companies of the Group Breakdown by business area (data as at 30.9.22) Breakdown by economic business sector Repos, Capital markets and 30.9.22 Financial Institutions Public Admini
Slide 68: €2.3bn reduction of exposure to Russia in Q3
MIL-BVA362-03032014-90141/VR €2.3bn reduction of exposure to Russia in Q3, now limited to ~0.3% of Group customer loans € bn, data as at 30.9.22 Local presence Cross-border exposure to Russia Ukraine Russia(1) (Banca Intesa) (Pravex Bank) Loans to customers (net of ECA guarantees and provisions) 0.3
Slide 69: Contents
MIL-BVA362-03032014-90141/VR Contents Detailed consolidated P&L results Liquidity, Funding and Capital base Asset quality Divisional results and other information 68
Slide 70: Divisional financial highlights
MIL-BVA362-03032014-90141/VR Divisional financial highlights Data as at 30.9.22 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) 6,526 3,45
Slide 71: Banca dei Territori: 9M22 vs 9M21
MIL-BVA362-03032014-90141/VR Banca dei Territori: 9M22 vs 9M21 €m 9M21 9M22 % redetermined Net interest income 2,949 2,907 (1.4) Net fee and commission income 3,587 3,529 (1.6) Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 75 90 20.0 Other operati
Slide 72: Banca dei Territori: Q3 vs Q2
MIL-BVA362-03032014-90141/VR Banca dei Territori: Q3 vs Q2 €m 2Q22 3Q22 % Net interest income 979 970 (1.0) Net fee and commission income 1,185 1,152 (2.8) Income from insurance business 0 (0) n.m. Profits on financial assets and liabilities at fair value 29 31 5.7 Other operating income (expenses)
Slide 73: IMI Corporate & Investment Banking: 9M22 vs 9M21
MIL-BVA362-03032014-90141/VR IMI Corporate & Investment Banking: 9M22 vs 9M21 €m 9M21 9M22 % redetermined Net interest income 1,655 1,528 (7.7) Net fee and commission income 824 861 4.5 Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 1,179 1,064 (9.
Slide 74: IMI Corporate & Investment Banking: Q3 vs Q2
MIL-BVA362-03032014-90141/VR IMI Corporate & Investment Banking: Q3 vs Q2 €m 2Q22 3Q22 % Net interest income 494 560 13.4 Net fee and commission income 273 291 6.7 Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 402 38 (90.6) Other operating income
Slide 75: International Subsidiary Banks: 9M22 vs 9M21
MIL-BVA362-03032014-90141/VR International Subsidiary Banks: 9M22 vs 9M21 €m 9M21 9M22 % redetermined Net interest income 988 1,132 14.6 Net fee and commission income 408 436 6.9 Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 104 99 (4.8) Other ope
Slide 76: International Subsidiary Banks: Q3 vs Q2
MIL-BVA362-03032014-90141/VR International Subsidiary Banks: Q3 vs Q2 €m 2Q22 3Q22 % Net interest income 366 423 15.7 Net fee and commission income 150 146 (3.0) Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 49 20 (58.7) Other operating income (ex
Slide 77: Private Banking: 9M22 vs 9M21
MIL-BVA362-03032014-90141/VR Private Banking: 9M22 vs 9M21 €m 9M21 9M22 % redetermined Net interest income 164 203 23.8 Net fee and commission income 1,565 1,505 (3.8) Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 49 29 (40.8) Other operating inco
Slide 78: Private Banking: Q3 vs Q2
MIL-BVA362-03032014-90141/VR Private Banking: Q3 vs Q2 €m 2Q22 3Q22 % Net interest income 53 102 92.7 Net fee and commission income 512 482 (5.9) Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 12 4 (69.2) Other operating income (expenses) 7 2 (68.9
Slide 79: Asset Management: 9M22 vs 9M21
MIL-BVA362-03032014-90141/VR Asset Management: 9M22 vs 9M21 €m 9M21 9M22 % redetermined Net interest income (1) 0 (100.0) Net fee and commission income 887 690 (22.2) Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value (3) (22) n.m. Other operating inco
Slide 80: Asset Management: Q3 vs Q2
MIL-BVA362-03032014-90141/VR Asset Management: Q3 vs Q2 €m 2Q22 3Q22 % Net interest income (0) 0 n.m. Net fee and commission income 231 218 (5.6) Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value (10) (7) 25.1 Other operating income (expenses) 21 18 (
Slide 81: Insurance: 9M22 vs 9M21
MIL-BVA362-03032014-90141/VR Insurance: 9M22 vs 9M21 €m 9M21 9M22 % redetermined Net interest income 0 0 n.m. Net fee and commission income 1 2 100.0 Income from insurance business 1,189 1,245 4.7 Profits on financial assets and liabilities at fair value 0 0 n.m. Other operating income (expenses) (
Slide 82: Insurance: Q3 vs Q2
MIL-BVA362-03032014-90141/VR Insurance: Q3 vs Q2 €m 2Q22 3Q22 % Net interest income (0) (0) 16.7 Net fee and commission income 1 1 (0.8) Income from insurance business 442 415 (6.2) Profits on financial assets and liabilities at fair value (0) (0) 64.8 Other operating income (expenses) (4) (3) 25.5
Slide 83: Quarterly P&L
MIL-BVA362-03032014-90141/VR Quarterly P&L €m 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 redetermined(1) Net interest income 1,953 1,997 2,000 1,955 1,957 2,092 2,387 Net fee and commission income 2,317 2,369 2,323 2,518 2,289 2,255 2,153 Income from insurance business 398 456 365 410 402 465 436 Profits on
Slide 84: 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 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 redetermined(1) Guarantees given / received 42 51 57 52 47 54 86 Collection and payment services 137 139 138 138 139 164 156 Current account
Slide 85: Market leadership in Italy
MIL-BVA362-03032014-90141/VR Market leadership in Italy 9M22 Operating income breakdown by business area(1) Leader in Italy IMI Corporate & Ranking Market share(2) Investment Banking % 23% 1 Loans 19.9 Banca 43% dei Territori 1 Deposits(3) 22.2 Insurance 8% 1 Pension Funds(4) 24.3 11% 1 Asset Manage
Slide 86: International Subsidiary Banks by country
MIL-BVA362-03032014-90141/VR International Subsidiary Banks by country Data as at 30.9.22 Total % of the Total CEE Group Hungary Slovakia Slovenia Croatia Bosnia Serbia Albania Romania Moldova Ukraine Egypt Operating income (€ m) 229 357 57 334 34 238 32 33 13 15 1,341 286 1,627 10.3% Operating cost
Slide 87: 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 43,247 33,680 1,983 78,910 435,576 Austria 878 268 -8 1,138 1,018 Belgium 3,438 2,255 -12 5,681 1,339 Bulgaria 0 0 -3 -3 13 Croatia 281 1,173 80 1,534
Slide 88: 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 30,839 25,521 -961 55,399 10,674 Austria 615 170 -23 762 0 Belgium 2,342 2,187 -25 4,504 0 Bulgaria 0 0 -3 -3 0 Croatia 158 1,173 80 1,411
Slide 89: 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 2,325 4,159 1,286 7,770 22,911 Austria 247 56 12 315 156 Belgium 12 48 8 68 325 Bulgaria 0 0 0 0 0 Croatia 42 0 0 42 63 Cyprus 0 0 0 0 0 Czech Repub
Slide 90: 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 10,083 4,000 1,658 15,741 401,991 Austria 16 42 3 61 862 Belgium 1,084 20 5 1,109 1,014 Bulgaria 0 0 0 0 13 Croatia 81 0 0 81 6,505 Cyprus
Slide 91: 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