Intesa Sanpaolo S.p.a. · MIL:ISP
Intesa Sanpaolo — Intesa Sanpaolo Spa Ord — 9M24 Earnings Presentation
109 slides from Intesa Sanpaolo's earnings presentation, Oct 31, 2024
Slide 1: 9M24 Results
9M24 Results The best nine months ever with €7.2bn Net income Best-in-class Wealth Management, Protection & Advisory, accelerating our tech transformation A strong bank for a sustainable world October 31, 2024
Slide 2: 9M24 results: key achievements
MIL-BVA362-03032014-90141/VR 9M24 results: key achievements Best-in-class profitability €7.2bn Net income, best nine months ever, with 8% Commissions growth Effective cost management 39.1% Cost/Income ratio, best-in-class in Europe Zero-NPL Bank 0.9% Net NPL ratio(1), at historical lows Fully phased
Slide 3: The best 9M Net income ever
MIL-BVA362-03032014-90141/VR The best 9M Net income ever Net income €m Net impact of provisions/ write-downs for Russia-Ukraine exposure 7,167 6,122 +17% 4,386 4,006 3,781 3,171 3,310 3,112 3,012 2,726 2,262 2,200 2,335 2,388 1,929 1,688 1,203 3,303 640 9M07(1) 9M08 9M09 9M10 9M11 9M12 9M13 9M14 9M1
Slide 4: Resilient Net interest income
MIL-BVA362-03032014-90141/VR Resilient Net interest income Net interest income grew in 9M… … and was resilient in Q3 €m % Euribor 1M (average data) €m % Euribor 1M (average data) +€1.2bn 11,917 3,947 4,028 3,942 3,826 10,691 9M23 9M24 3Q23 1Q24 2Q24 3Q24 +3.05 +3.73 +3.62 +3.86 +3.77 +3.55 2024 Net
Slide 5: Strong growth in Commissions with AuM net inflow gaining momentum
MIL-BVA362-03032014-90141/VR Strong growth in Commissions with AuM net inflow gaining momentum Strong growth in Net fees and commissions in … with double-digit growth in Q3 on a yearly … and an acceleration in AuM net inflow 9M… basis… €m €m Normal seasonal business € bn slowdown in summer 6,970 2,3
Slide 6: Effective cost management while strongly investing in technology
MIL-BVA362-03032014-90141/VR Effective cost management while strongly investing in technology… Cost/Income ratio % €m Cost/Income ratio 20,439 18,830 +9% -3.0pp Operating 42.1 39.1 income 9M23 9M24 f(x) 7,924 7,986 +0.8% Operating costs 9M23 9M24 9M23 9M24 Costs down -3.4% when excluding growth in D
Slide 7: Tech transformation enabling generational change and efficiency gains
MIL-BVA362-03032014-90141/VR … with our tech transformation enabling generational change and significant efficiency gains, with 9,000 exits at no social cost Our tech transformation … enabling generational change and significant efficiency gains ( ) is accelerating… People, # Of which 1,500 as Globa
Slide 8: Strong and sustainable value creation and increased capital position
MIL-BVA362-03032014-90141/VR Strong and sustainable value creation and an increased rock-solid capital position … coupled with an increased … and a significant increase in EPS, The best nine months ever… rock-solid capital position… DPS and TBVPS Net income, € m x ROTE(1), %; annualised Fully phased
Slide 9: Our excellent performance benefits all our stakeholders
MIL-BVA362-03032014-90141/VR Our excellent performance benefits all our stakeholders Shareholders Employees Net income, € bn ~40% of cash dividends go directly to Italian Personnel expenses, € bn households and to charitable foundations 7.2 4.9 9M24 9M24 ▪ ISP People satisfaction index continues to
Slide 10: Improved 2025 Net income guidance and CET1 ratio projections
MIL-BVA362-03032014-90141/VR Improved 2025 Net income guidance and CET1 ratio projections Improved 2025 Net income guidance… … and 2025 CET1 ratio projections 2025 Net income guidance 31.12.25 CET1 ratio projections pre Basel 4 impact Well above ~15%(2) ~€9bn >14% 14.5% >€8.5bn >€8bn ▪ 70% cash payo
Slide 11: Contents
MIL-BVA362-03032014-90141/VR Contents 9M24: the best nine months ever ISP is fully equipped for further success Appendix: 2022-2025 Business Plan proceeding at full speed
Slide 12: The best nine months ever with €7.2bn Net income
MIL-BVA362-03032014-90141/VR The best nine months ever with €7.2bn Net income €7.2bn Net income (+17% vs 9M23), €7.4bn when excluding the final Deposit Guarantee Scheme contribution €2.4bn Net income in Q3 (+26% vs 3Q23), the best Q3 ever Best 9M ever for Operating income (+9% vs 9M23), Operating ma
Slide 13: 9M24: €7.2bn Net income, the best nine months ever
MIL-BVA362-03032014-90141/VR 9M24: €7.2bn Net income, the best nine months ever 9M24 P&L; € m Non-motor P&C revenues at €466m (+20% vs €7.4bn €262m due to national labour excluding the 9M23), €523m including credit-linked products €293m Levies and contract renewal €159m charges to final Deposit offs
Slide 14: 3Q24: €2.4bn Net income, the best Q3 ever
MIL-BVA362-03032014-90141/VR 3Q24: €2.4bn Net income, the best Q3 ever with strong yearly growth in Commissions 3Q24 P&L; € m Non-motor P&C revenues at €157m (+26% vs €98m due to national labour 3Q23), €175m including credit-linked products contract renewal €69m charges to offset Russian subsidiary
Slide 15: Resilient Net interest income with strong yearly growth
MIL-BVA362-03032014-90141/VR Resilient Net interest income with strong growth on a yearly basis Net interest income – Quarterly comparison Net interest income – Yearly comparison € m, 3Q24 vs 2Q24 % Euribor 1M (average data) € m, 9M24 vs 9M23 % Euribor 1M (average data) 468 11,917 1,156 10,691 4
Slide 16: ~€1.4 trillion in Customer financial assets
MIL-BVA362-03032014-90141/VR ~€1.4 trillion in Customer financial assets, ready to leverage on our leadership in Wealth Management, Protection & Advisory Customer financial assets(1) +€29.7bn € bn 559.2 589.8 588.9 Direct deposits +€135.2bn 30.9.23 30.6.24 30.9.24 1,378.2 +€39.5bn 1,353.4 1,242.9 As
Slide 17: Well-diversified business model with Wealth Management contribution
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 strong growth in Net fees and … and in Q3 Management… commissions in 9M… % of 9M24 Gross income(1) €m Commission
Slide 18: Contribution from Protection, driven by Non-motor business
MIL-BVA362-03032014-90141/VR … and from Protection, driven by the Non-motor business The best nine months ever for Insurance income… … with growing P&C contribution, driven by the Non-motor business €m €m Non-motor % As a % of Net fees and commissions + Insurance income Motor/Credit-linked products
Slide 19: 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) % 53 41 33 32 31 29 28 28 26 Peer average: 24 27% 22 21 19 18 13 Peer 10 Peer 11 Peer 12 Peer 13 Peer 14 Peer 1 Peer 2 Peer
Slide 20: 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 21: Unmatched client advisory network
MIL-BVA362-03032014-90141/VR Unmatched client advisory network with ~17,000 People dedicated to fueling AuM growth Unmatched client advisory network through Private Banking Sizeable amount of Direct deposits and Assets under and Banca dei Territori administration, further increased in 2023-9M24 Dire
Slide 22: Lowest Cost/Income ratio ever
MIL-BVA362-03032014-90141/VR Lowest Cost/Income ratio ever with high flexibility for further cost reduction Operating costs €m -3.9% excluding the impact of national labour contract renewal Total Operating costs -3.4% excluding growth in Depreciation 4,826 4,900 linked to tech investments and the im
Slide 23: 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) % 77.2 68.7 66.4 58.3 59.6 57.1 57.4 Peer average: 52.9 53.2% 48.1 49.3 45.2 41.2 41.7 38.0 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 24: Zero-NPL Bank status and NPL inflow at historical low
MIL-BVA362-03032014-90141/VR Zero-NPL Bank status and NPL inflow at historical low… NPL stock NPL inflow(2) from Performing loans € bn Net NPL x Gross NPL ratio(1), % € bn Net inflow(3) x Net NPL ratio(1), % 12.2 1.9 1.9 1.9 1.0 1.0 0.9 10.5 -€0.9bn 9.7 9.6 -81% 9.0 2.7 2.3 2.2 5.2 4.8 4.7 2.0 1.6 1
Slide 25: Among the best in Europe for NPL stock and ratios
MIL-BVA362-03032014-90141/VR … with ISP among the best in Europe for NPL stock and ratios… Net NPL stock for the main European banks(1) € bn x Net NPL ratio(2) x Gross NPL ratio(2) 34.2 20.3 13.3 12.1 11.3 8.9 8.2 7.4 6.2 4.7 2.8 2.2 1.8% 0.9% 1.1% 1.1% 1.1% 0.8% 1.5% 1.1% 0.9% 0.8% 0.4% 2.9% 1.7% 2
Slide 26: Stage 2 loans versus peers
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) 132 85 67 56 52 49 35 34 33 18 11% 8% 8% 9% 11% 11% 9% 8% 8% 5% 30.9.24 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 27: Lowest-ever 9M annualised Cost of risk
MIL-BVA362-03032014-90141/VR … driving lowest-ever 9M annualised Cost of risk Loan loss provisions (LLP) Cost of risk NPL coverage ratio €m bps; annualised Additional provisions to favour de-risking % 913 +0.9pp 792 36 49.9 50.8 25 32 9M23 9M24 FY23 9M24 31.12.23 30.9.24 Low Cost of risk in line wit
Slide 28: 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 -88% <0.5 0.4 <0.4 0.4 0.1 0.1
Slide 29: Rock-solid capital base, with >30bps increase in Q3
MIL-BVA362-03032014-90141/VR Rock-solid capital base, with >30bps increase in Q3 Fully phased-in CET1 ratio evolution x %, bps ISP 2024 fully loaded requirements SREP + combined buffer Q3 evolution Including ~20bps RWA optimisation benefit ~15.2% 13.7% ~13.2% ~235 ~(175) ~13.9% ~(55) 0 ~20 ~(5) ~(5)
Slide 30: Capital will increase, allowing flexibility for additional distributions
MIL-BVA362-03032014-90141/VR Capital will increase, allowing high flexibility for additional distributions Improved CET1 ratio projections 2022-2025 Business Plan target (confirmed) Fully phased-in CET1 ratio, % ~15 ~15.5 ~14.5 >12% 31.12.25(1) 31.12.25(1) 31.12.25(1) post 2025 post total Basel 4 im
Slide 31: Best-in-class MREL and liquidity ratios
MIL-BVA362-03032014-90141/VR Best-in-class MREL and liquidity ratios MREL(1) Liquidity ratios %, % RWA, 30.9.24 31.3.24 %, requirement %, 30.9.24 2025 Business Plan target x Buffer vs requirement 40.7 162 Buffer: 15.1 ~125 122 25.7 23.6 CBR(2): 4.0 Buffer: 5.5 ~115 18.0 CBR(2): 4.0 MREL: 21.7 MREL:
Slide 32: 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 30.9.24 (2022-9M24) targets Unparalleled support to Expanding food and shelter program for address social pe
Slide 33: A 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 30.9.24 (2022-9M24) targets New lending to support the green economy, circular economy and ecologica
Slide 34: Contents
MIL-BVA362-03032014-90141/VR Contents 9M24: the best nine months ever ISP is fully equipped for further success Appendix: 2022-2025 Business Plan proceeding at full speed
Slide 35: 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 with low h
Slide 36: ISP far better equipped than peers
MIL-BVA362-03032014-90141/VR ISP is far better equipped than its peers thanks to a best-in-class risk profile, rock-solid capital position and a well-diversified and resilient business model Fully phased-in CET1(1) /Total illiquid Contribution of Net fees and commissions Cost/Income ratio assets(2)
Slide 37: Unique 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 45 Peer 4 Peer 3 Peer 6 Peer 7 50 Pe
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 nine months ever and resilient business model ▪ €7.2bn Net income, the best nine months ever ▪ Resilient profitability, rock-soli
Slide 39: 2025 Net income guidance improved to ~€9bn
MIL-BVA362-03032014-90141/VR 2025 Net income guidance improved to ~€9bn ▪ Resilient Net interest income (thanks to a higher contribution from core deposits hedging and an increase in loan volume) Increase in ▪ Growth in Commissions and Insurance, leveraging on our revenues leadership in Wealth Manag
Slide 40: Contents
MIL-BVA362-03032014-90141/VR Contents 9M24: the best nine months ever ISP is fully equipped for further success Appendix: 2022-2025 Business Plan proceeding at full speed
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 €5.6bn gross NPL stock reduction in 2022-3Q24, reducing Net NPL ratio to 0.9%(1) and anticipating Business Plan target ▪ Focus on
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 ▪ 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 44: Tech transformation: cloud-based digital banking platform
MIL-BVA362-03032014-90141/VR 2022-2025 Business Plan proceeding at full speed Our tech transformation is accelerating and operating successfully : ISP cloud-based digital banking platform New technology backbone already available to mass market retail clients through , being progressively extended t
Slide 45: Tech transformation with >50% of applications cloud-based
MIL-BVA362-03032014-90141/VR Mooney Enel 2022-2025 Business Plan proceeding at full speed Tech transformation accelerating with >50% of applications already cloud-based : our cloud-native … already successfully … being progressively extended Applications already cloud-based tech backbone… deployed t
Slide 46: Group 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 47: New digital bank customer experience and momentum
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 … and gaining strong Unique digital customer experience… … already appreciated by the market… momentum Accounts opened by new custo
Slide 48: 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 49: Development of innovative 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) 4Q23 ▪ R
Slide 50: 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 51: AI program at scale with strong benefits
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 52: 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 53: 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 54: 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 55: Growth in Commissions (4/4): Digital Wealth Platform
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 56: 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 57: 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. 9M24 results: ‒ >510,000 visitors
Slide 58: 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: In 3Q24, developed by BdT in collaboration with ISPIC, the “INNOVIT for Up2Stars” initiative, that allo
Slide 59: 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) ▪ ~€62.7bn disbursed in the period 2021-9M24(1) out of the €76bn in new lending available for the green economy, ci
Slide 60: 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 The only Italian bank included in the Top ranking(1) for Sustainability Dow Jones Sustainability Indices (2) First bank in Europe and second world- wide
Slide 61: 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 ▪ ~4,200 professionals hired since 2021 ▪ ~6,000 people reskilled and ~35.7m training hours delivered since 2022 ▪ ~285 talents have completed their development path a
Slide 62: 9M24 Results: Detailed information
9M24 Results Detailed information
Slide 63: Key P&L and Balance sheet figures
MIL-BVA362-03032014-90141/VR Key P&L and Balance sheet figures €m 9M24 30.9.24 Operating income 20,439 Loans to customers 421,946 Operating costs (7,986) Customer financial assets(1) 1,378,154 Cost/Income ratio 39.1% of which Direct deposits from banking business 588,930 Operating margin 12,453 of w
Slide 64: Contents
MIL-BVA362-03032014-90141/VR Contents Detailed consolidated P&L results Liquidity, Funding and capital base Asset quality Divisional results and other information 63
Slide 65: 9M24 vs 9M23: €7.2bn Net income
MIL-BVA362-03032014-90141/VR 9M24 vs 9M23: €7.2bn Net income, the best 9M ever €m 9M23 9M24 % Net interest income 10,691 11,917 11.5 Net fee and commission income 6,461 6,970 7.9 Income from insurance business 1,275 1,311 2.8 Profits on financial assets and liabilities at fair value 396 251 (36.6)
Slide 66: Q3 vs Q2: €2.4bn Net income
MIL-BVA362-03032014-90141/VR Q3 vs Q2: €2.4bn Net income, the best Q3 ever €m 2Q24 3Q24 % Net interest income 4,028 3,942 (2.1) Net fee and commission income 2,387 2,307 (3.4) Income from insurance business 448 408 (8.9) Profits on financial assets and liabilities at fair value 20 150 650.0 Other o
Slide 67: Quarterly P&L
MIL-BVA362-03032014-90141/VR Quarterly P&L €m 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 Net interest income 3,268 3,597 3,826 4,009 3,947 4,028 3,942 Net fee and commission income 2,142 2,220 2,099 2,115 2,276 2,387 2,307 Income from insurance business 397 459 419 391 455 448 408 Profits on financial asset
Slide 68: 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) +11.5% 1,156 468 11,917 10,691 (398) -2.1% 4,028 3,942 Commercial (35) (21) (30) component Commercial component 2Q24 Volumes Spread Financial 3Q24 9M23 Vo
Slide 69: Net fee and commission income
MIL-BVA362-03032014-90141/VR Net fee and commission income Quarterly analysis Yearly analysis €m % 3Q24 vs 3Q23 and 2Q24 €m % 9M24 vs 9M23 6,461 6,970 2,099 2,387 2,307 3Q23 2Q24 3Q24 9M23 9M24 +9.9 (3.4) +7.9 ▪ 10% growth vs 3Q23 ▪ Double-digit increase in Commissions from Management, dealing a
Slide 70: 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 3Q24 9M23 9M24 Guarantees given / received 34 41 41 39 48 50 44 116 142 Collection and payment services 156 164 169 180 167 178 178 489 523 Curre
Slide 71: Income from insurance business
MIL-BVA362-03032014-90141/VR Income from insurance business Quarterly analysis Yearly analysis €m % 3Q24 vs 3Q23 and 2Q24 €m % 9M24 vs 9M23 1,275 1,311 419 448 408 3Q23 2Q24 3Q24 9M23 9M24 (2.6) (8.9) +2.8 ▪ Strong growth in Non-motor P&C revenues(1) at €157m in 3Q24 ▪ Strong growth in Non-motor
Slide 72: 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 % 3Q24 vs 3Q23 and 2Q24 €m % 9M24 vs 9M23 396 251 150 55 20 3Q23 2Q24 3Q24 9M23 9M24 +172.7 +650.0 (36.6) Contributions by activity 3Q23 2Q24 3Q24 9M23 9M24 Customers 91 7
Slide 73: Operating costs
MIL-BVA362-03032014-90141/VR Operating costs Quarterly analysis Yearly analysis % 3Q24 vs 3Q23 and 2Q24 % 9M24 vs 9M23 Operating costs Personnel expenses Operating costs Personnel expenses €m €m €m €m 7,924 7,986 2,671 2,659 2,736 4,826 4,900 1,621 1,619 1,679 3Q23 2Q24 3Q24 3Q23 2Q24 3Q24 9M23
Slide 74: Net adjustments to loans
MIL-BVA362-03032014-90141/VR Net adjustments to loans Quarterly analysis Yearly analysis €m % 3Q24 vs 3Q23 and 2Q24 €m % 9M24 vs 9M23 913 792 354 320 238 3Q23 2Q24 3Q24 9M23 9M24 (32.8) (25.6) (13.3) ▪ NPL inflow at historical low ▪ Lowest-ever annualised Cost of credit at 25bps ▪ €0.9bn as over
Slide 75: Contents
MIL-BVA362-03032014-90141/VR Contents Detailed consolidated P&L results Liquidity, Funding and capital base Asset quality Divisional results and other information 74
Slide 76: ~€1.4 trillion in Customer financial assets
MIL-BVA362-03032014-90141/VR ~€1.4 trillion in Customer financial assets % 30.9.24 vs 30.9.23 and 30.6.24 Customer financial assets(1) Direct deposits from banking business € bn € bn 1,243 1,353 1,378 559 590 589 30.9.23 30.6.24 30.9.24 30.9.23 30.6.24 30.9.24 +10.9 +1.8 +5.3 (0.1) ▪ €135bn increa
Slide 77: Funding mix
MIL-BVA362-03032014-90141/VR Funding mix Breakdown of Direct deposits from banking business € bn; 30.9.24 ~70% Households % Percentage of total ~30% Corporates Wholesale Retail 589 Current accounts 19 376 and deposits Repos and 33 - securities lending 438 Senior bonds(1) 41 7 151 Covered bonds 34 -
Slide 78: Strong funding capability: broad access to international markets
MIL-BVA362-03032014-90141/VR Strong funding capability: broad access to international markets 2024-2026 MLT maturities Main wholesale issues € bn Wholesale Retail 2023 ◼ €1bn Tier 2, €2.25bn dual-tranche green senior non-preferred, £600m green senior non-preferred, two floating rate senior preferred
Slide 79: 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 % 280 280 285 210 20
Slide 80: 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 €5.0bn dividends already accrued in 9M(1) €5.0bn dividends already accrued in 9M(1) €5.0bn dividends already accrued in 9M(1) % % %
Slide 81: Contents
MIL-BVA362-03032014-90141/VR Contents Detailed consolidated P&L results Liquidity, Funding and capital base Asset quality Divisional results and other information 80
Slide 82: 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 30.9.23 31.12.23 30.6.24 30.9.24 30.9.23 31.12.23 30.6.24 30.9.24 Bad loans 3.9 3.4 3.6 3.7 Bad loans 1.
Slide 83: Non-performing loans: sizeable and increased coverage
MIL-BVA362-03032014-90141/VR Non-performing loans: sizeable and increased coverage Cash coverage; % Total NPL(1) 49.9 50.7 50.8 31.12.23 30.6.24 30.9.24 Bad loans Unlikely to pay Past due 72.4 70.8 69.7 39.3 39.7 40.1 28.4 31.6 31.0 31.12.23 30.6.24 30.9.24 31.12.23 30.6.24 30.9.24 31.12.23 30.6.24
Slide 84: 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 12.2 Impact from the acquisition of the two former Veneti
Slide 85: 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 787 793 698 3Q23 2Q24 3Q24 Bad loans Unlikely to pay Past due 378 411 405 370 371 303 17 6 17 3Q23 2Q24 3Q24 3Q23 2Q24 3Q24 3Q23 2Q24 3Q24 Note: figures may not add up exactly due to ro
Slide 86: 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 661 494 503 3Q23 2Q24 3Q24 Bad loans Unlikely to pay Past due 352 326 306 258 225 179 11 3 (2) 3Q23 2Q24 3Q24 3Q23 2Q24 3Q24 3Q23 2Q24 3Q24 Note: figures may not add up exactly due to round
Slide 87: 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 30.9.24) Breakdown by economic business sector Repos, Capital markets and 30.9.24 Institutional Clients Public Adminis
Slide 88: 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 30.9.24 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 - 0.7(3) Due from banks (net of provisions) 0.6 0
Slide 89: Contents
MIL-BVA362-03032014-90141/VR Contents Detailed consolidated P&L results Liquidity, Funding and capital base Asset quality Divisional results and other information 88
Slide 90: Divisional financial highlights
MIL-BVA362-03032014-90141/VR Divisional financial highlights Data as at 30.9.24 Divisions IMI Banca dei Corporate & Corporate International Private Asset Investment Insurance(4) Centre / Total Territori Banks(1) Banking(2) Management(3) Banking Others(5) Wealth Management Divisions Operating income
Slide 91: Banca dei Territori: 9M24 vs 9M23
MIL-BVA362-03032014-90141/VR Banca dei Territori: 9M24 vs 9M23 €m 9M23 9M24 % +6% considering the benefit of Net interest income 4,910 5,039 2.6 actual market rate trends not entirely reflected in the internal fund Net fee and commission income 3,466 3,651 5.3 transfer price applied to the Division
Slide 92: Banca dei Territori: Q3 vs Q2
MIL-BVA362-03032014-90141/VR Banca dei Territori: Q3 vs Q2 €m 2Q24 3Q24 % Net interest income 1,700 1,638 (3.6) Net fee and commission income 1,221 1,222 0.1 Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 29 28 (3.6) Other operating income (expense
Slide 93: IMI Corporate & Investment Banking: 9M24 vs 9M23
MIL-BVA362-03032014-90141/VR IMI Corporate & Investment Banking: 9M24 vs 9M23 €m 9M23 9M24 % Net interest income 1,991 2,318 16.4 Net fee and commission income 810 916 13.1 Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 8 (223) n.m. Other operating
Slide 94: IMI Corporate & Investment Banking: Q3 vs Q2
MIL-BVA362-03032014-90141/VR IMI Corporate & Investment Banking: Q3 vs Q2 €m 2Q24 3Q24 % Net interest income 795 765 (3.8) Net fee and commission income 332 301 (9.1) Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value (89) (102) 14.7 Other operating in
Slide 95: International Banks: 9M24 vs 9M23
MIL-BVA362-03032014-90141/VR International Banks: 9M24 vs 9M23 €m 9M23 9M24 % Net interest income 1,744 1,895 8.7 Net fee and commission income 450 485 7.8 Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 99 124 25.3 Other operating income (expenses)
Slide 96: International Banks: Q3 vs Q2
MIL-BVA362-03032014-90141/VR International Banks: Q3 vs Q2 €m 2Q24 3Q24 % Net interest income 620 620 (0.1) Net fee and commission income 179 156 (13.2) Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 58 47 (20.3) Other operating income (expenses) (
Slide 97: Private Banking: 9M24 vs 9M23
MIL-BVA362-03032014-90141/VR Private Banking: 9M24 vs 9M23 €m 9M23 9M24 % Net interest income 933 912 (2.3) Net fee and commission income 1,385 1,558 12.5 Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 41 42 2.4 Other operating income (expenses) 11
Slide 98: Private Banking: Q3 vs Q2
MIL-BVA362-03032014-90141/VR Private Banking: Q3 vs Q2 €m 2Q24 3Q24 % Net interest income 309 290 (6.1) Net fee and commission income 521 503 (3.6) Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 17 18 6.0 Other operating income (expenses) 6 8 37.5
Slide 99: Asset Management: 9M24 vs 9M23
MIL-BVA362-03032014-90141/VR Asset Management: 9M24 vs 9M23 €m 9M23 9M24 % Net interest income 6 45 650.0 Net fee and commission income 619 663 7.1 Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 19 1 (94.7) Other operating income (expenses) 45 37 (
Slide 100: Asset Management: Q3 vs Q2
MIL-BVA362-03032014-90141/VR Asset Management: Q3 vs Q2 €m 2Q24 3Q24 % Net interest income 15 16 7.1 Net fee and commission income 221 228 2.9 Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 0 (0) n.m. Other operating income (expenses) 14 13 (8.4) O
Slide 101: Insurance: 9M24 vs 9M23
MIL-BVA362-03032014-90141/VR Insurance: 9M24 vs 9M23 €m 9M23 9M24 % Net interest income 0 0 n.m. Net fee and commission income 2 3 50.0 Income from insurance business 1,243 1,297 4.3 Profits on financial assets and liabilities at fair value 0 0 n.m. Other operating income (expenses) (12) (3) (75.0)
Slide 102: Insurance: Q3 vs Q2
MIL-BVA362-03032014-90141/VR Insurance: Q3 vs Q2 €m 2Q24 3Q24 % Net interest income 0 0 (10.3) Net fee and commission income 1 1 4.7 Income from insurance business 442 407 (7.8) Profits on financial assets and liabilities at fair value 0 0 208.5 Other operating income (expenses) 3 2 (15.2) Operatin
Slide 103: Market leadership in Italy
MIL-BVA362-03032014-90141/VR Market leadership in Italy 9M24 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) 21.5 Banca 47% dei Territori 13% 1 Asset Management(4) 22.0 Private
Slide 104: International Banks by country
MIL-BVA362-03032014-90141/VR International Banks by country Data as at 30.9.24 Total % of the Total CEE Group Hungary Slovakia Slovenia Croatia Bosnia Serbia Albania Romania(*) Moldova Ukraine(**) Egypt Operating income (€ m) 330 571 126 504 38 380 62 108 12 8 2,139 308 2,447 12.0% Operating costs (
Slide 105: 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 50,972 50,842 1,443 103,257 384,747 Austria 695 1,619 17 2,331 376 Belgium 3,470 4,619 -50 8,039 889 Bulgaria 0 0 5 5 8 Croatia 460 244 51 755 9,008 Cy
Slide 106: 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 (2) (3) AC FVTOCI FVTPL Total EU Countries 39,960 35,758 -1,823 73,895 10,686 Austria 617 1,319 0 1,936 0 Belgium 3,369 4,431 -55 7,745 0 Bulgaria 0 0 5 5 0 Croatia 340 244 51 635
Slide 107: Exposure to banks by main countries
MIL-BVA362-03032014-90141/VR Exposure to banks by main countries(1) €m DEBT SECURITIES Banking Business LOANS (2) (3) AC FVTOCI FVTPL Total EU Countries 2,467 9,218 2,156 13,841 19,181 Austria 68 283 13 364 144 Belgium 79 127 6 212 176 Bulgaria 0 0 0 0 0 Croatia 0 0 0 0 69 Cyprus 0 0 1 1 0 Czech Rep
Slide 108: 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 (2) (3) AC FVTOCI FVTPL Total EU Countries 8,545 5,866 1,110 15,521 354,880 Austria 10 17 4 31 232 Belgium 22 61 -1 82 713 Bulgaria 0 0 0 0 8 Croatia 120 0 0 120 7,690 Cyprus 0 0 0
Slide 109: 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