Intesa Sanpaolo S.p.a. · MIL:ISP
Intesa Sanpaolo — Intesa Sanpaolo Spa Ord — Q1 2024 Earnings Presentation
107 slides from Intesa Sanpaolo's earnings presentation, May 3, 2024
Slide 1: 1Q24 Results
1Q24 Results Best-ever start to the year Best-in-class Wealth Management, Protection & Advisory, Leading in Technology A strong bank for a sustainable world May 3, 2024
Slide 2: Best-ever start to the year with €2.3bn Net income
MIL-BVA362-03032014-90141/VR Best-ever start to the year with €2.3bn Net income €2.3bn Net income (+18% vs 1Q23), €2.5bn when excluding the final Deposit Guarantee Scheme contribution €2.8bn cash dividends to be paid in May (€15.2 cents per share)(1) and €1.7bn buyback to be launched in early June B
Slide 3: The best quarterly Net income since 2007
MIL-BVA362-03032014-90141/VR The best quarterly Net income since 2007 Net income €m Net impact of provisions/ write-downs for Russia-Ukraine exposure 2,301 +18% 1,956 1,749 1,689 1,516 1,252 1,151 1,075 1,064 1,050 901 804 806 688 661 503 1,043 306 1Q08 1Q09 1Q10 1Q11 1Q12 1Q13 1Q14 1Q15 1Q16 1Q17 1
Slide 4: Strong and sustainable value creation coupled with a rock-solid capital position
MIL-BVA362-03032014-90141/VR Strong and sustainable value creation coupled with a rock-solid capital position … coupled with a rock-solid capital … and significant increase in EPS, The best-ever start to the year… position… DPS and TBVPS Net income, € m Fully phased-in CET1 ratio, % Quarterly EPS(2)
Slide 5: Ready to leverage on our leadership in Wealth Management, Protection & Advisory
MIL-BVA362-03032014-90141/VR Ready to leverage on our leadership in Wealth Management, Protection & Advisory Fully-owned product factories under a single oversight unit enabling Distinctive advisory networks and top-notch digital tools quick time-to-market and production/distribution synergies Comme
Slide 6: ~€100bn asset pool identified to fuel AuM growth
MIL-BVA362-03032014-90141/VR ~€100bn asset pool identified to fuel AuM growth with our delivery machine already at work 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 7: Net income above €8bn in 2024 and 2025
MIL-BVA362-03032014-90141/VR Net income above €8bn in 2024 and 2025 2024-2025 Net income above €8bn Net income >€8bn ▪ Fully phased-in CET1 ratio >14% as at 31.12.25 (taking into account €1.7bn buyback to be launched in early June 2024 and not considering ~60bps Basel 4 impact and ~100bps benefit of
Slide 8: 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 2.3 1.6 1Q24 1Q24 ▪ ISP People satisfaction index continues to
Slide 9: Contents
MIL-BVA362-03032014-90141/VR Contents 1Q24: the best-ever start to the year ISP is fully equipped for further success Appendix: 2022-2025 Business Plan proceeding at full speed
Slide 10: 1Q24: €2.3bn Net income, the best quarter since 2007
MIL-BVA362-03032014-90141/VR 1Q24: €2.3bn Net income, the best quarter since 2007 1Q24 P&L; € m Non-motor P&C revenues at €165m (+23% vs €82m due to national labour 1Q23), €187m including credit-linked products contract renewal €257m Levies and other €2,558m excluding 6,732 No overlay charges concer
Slide 11: €3.9bn Net interest income in Q1…
MIL-BVA362-03032014-90141/VR €3.9bn Net interest income in Q1… Net interest income €m % Euribor 1M(1) +€0.7bn 3,932 3,254 1,953 1,957 1Q21 1Q22 1Q23 1Q24 Euribor 1M as at 31.3.24: -0.56 -0.55 +2.36 +3.86 +3.86 (vs 2023 average +3.24) Well on track to deliver growth in Net interest income in 2024 vs
Slide 12: … 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, 1Q24 vs 4Q23 % Euribor 1M (average data) € m, 1Q24 vs 1Q23 % Euribor 1M (average data) Of which ~-€60m for the different number of days in the
Slide 13: More than €1.3 trillion in Customer financial assets
MIL-BVA362-03032014-90141/VR More than €1.3 trillion in Customer financial assets, ready to leverage on our leadership in Wealth Management, Protection & Advisory Customer financial assets(1) +€41.5bn € bn 534.5 576.1 575.9 Direct deposits +€118.8bn 31.3.23 31.12.23 31.3.24 1,333.8 +€18.3bn 1,305.5
Slide 14: Well-diversified business model with strong contribution from 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 Management… … with an acceleration in Net fees and commissions % of 1Q24 Gross income(1) €m Commissions from Management
Slide 15: … and from Protection, driven by Non-motor business
MIL-BVA362-03032014-90141/VR … and from Protection, driven by Non-motor business Best-ever Q1 for Insurance income… … with growing P&C contribution, driven by Non-motor business €m €m Non-motor % % of Net fees and commissions + Insurance income Motor/Credit-linked products % P&C non-motor product pe
Slide 16: Best-in-class contribution of Commissions and Insurance income to revenues
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 32 31 31 29 27 26 26 Peer average: 23 26% 21 19 19 18 13 Peer 10 Peer 12 Peer 13 Peer 14 Peer 11 ISP Peer 1 Peer 2 P
Slide 17: Strong growth in revenues and effective Cost management
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 +€675m Cost/Income ratio 6,732 -3.7pp 6,057 Operating 41.9 income 38.2 1Q23 1Q24 f(x) +€34m 2,536 2,570 Operati
Slide 18: Effective cost management driving the lowest Cost/Income ratio ever
MIL-BVA362-03032014-90141/VR Effective cost management driving the lowest Cost/Income ratio ever Operating costs €m -3.2% excluding the impact of national labour contract renewal Total Operating costs -3.2% excluding growth in Depreciation 2,184 linked to tech investments and the impact Personnel 1,
Slide 19: Leading Cost/Income ratio in Europe
MIL-BVA362-03032014-90141/VR Leading Cost/Income ratio in Europe Cost/Income ratio(1) % 85.2 69.0 64.5 60.1 57.1 57.5 Peer average: 53.9 54.1 51.9 53.7% 48.4 42.6 43.3 38.2 39.1 39.7 39.7 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 8 Peer
Slide 20: 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), % 3.5 2.0 1.8 2.0 1.0 0.9 1.0 10.8 -€0.7bn 9.9 10.1 -79% 2.5 0.6 0.7 0.7 0.7 5.4 5.0 5.0 0.4 0
Slide 21: … with ISP among the best in Europe for NPL stock and ratios…
MIL-BVA362-03032014-90141/VR … with ISP among the best in Europe for NPL stock and ratios… Net NPL stock for the main European banks(1) € bn x Net NPL ratio(2) x Gross NPL ratio(2) 34.2 20.1 13.1 12.1 10.5 8.7 7.9 7.6 6.2 5.0 2.5 1.7 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 22: … as well as for Stage 2 loans…
MIL-BVA362-03032014-90141/VR … as well as for Stage 2 loans… Net Stage 2 loans(1) € bn x Stage 2 in % of Net loans(1) 130 72 72 72 56 53 38 36 35 19 11% 17% 8% 7% 9% 11% 8% 9% 8% 5% 31.3.24 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 23: … driving Cost of risk to historical low with coverage increasing further
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 % 236 +0.9pp 189 36 49.8 50.7 22 32 1Q23 1Q24 FY23 1Q24 31.12.23 31.3.24 Low
Slide 24: Russia exposure reduced to 0.1% of Group customer loans
MIL-BVA362-03032014-90141/VR Russia exposure reduced to 0.1% of Group customer loans Cross-border exposure to Russia Local presence in Russia Loans to customers net of ECA(1) guarantees and provisions, € bn Loans to customers net of provisions – Banca Intesa, € bn 3.2 -85% 1.0 0.5 <0.5 0.4 0.2 0.1 0
Slide 25: Rock-solid and increased capital base thanks to strong organic capital generation
MIL-BVA362-03032014-90141/VR Rock-solid and increased capital base thanks to strong organic capital generation Fully phased-in CET1 ratio evolution %, bps ISP 2024 fully loaded requirements SREP + combined buffer ~-10bps due to RWA increase for market risk and ~+5bps RWA accuracy ~14.7% 13.7% ~13.2%
Slide 26: Capital will increase in the coming years, 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 >14 >14.5 >13.5 >12% 31.12.25(1
Slide 27: Best-in-class MREL ratios and a very manageable 2024 wholesale funding plan
MIL-BVA362-03032014-90141/VR Best-in-class MREL ratios and a very manageable 2024 wholesale funding plan MREL(1) 2024 wholesale funding plan(3) % RWA, 31.3.24 %, requirement € bn Issued in January-April x Buffer vs requirement To be issued in May-December 1.5 5 40.6 1 2.5 0.5 2.5 Buffer: 14.7 0.5 CB
Slide 28: Sound liquidity position with LCR and NSFR well above requirements
MIL-BVA362-03032014-90141/VR Sound liquidity position with LCR and NSFR well above regulatory requirements and Business Plan targets Retail funding represents ~80% of Direct Liquidity ratios well above regulatory Loan to Deposit ratio deposits from banking business requirements and Business Plan tar
Slide 29: High liquidity reserves and TLTRO almost entirely reimbursed
MIL-BVA362-03032014-90141/VR High liquidity reserves and TLTRO almost entirely reimbursed Unencumbered eligible assets with Central Liquid assets(1) Cash and deposits with ECB vs TLTRO Banks(2) (net of haircuts) € bn Other reserves HQLA € bn Other reserves HQLA € bn, 31.3.24 307 202 38 192 272 270 1
Slide 30: Enhanced ESG commitment with the appointment of a Chief Sustainability Officer
MIL-BVA362-03032014-90141/VR Enhanced ESG commitment with the appointment of a Chief Sustainability Officer… NOT EXHAUSTIVE x Result achieved vs BP target Results achieved as 2022-2025 Business Plan 2022-2025 Business Plan main ESG initiatives at 31.3.24 (2022-1Q24) targets Unparalleled support to E
Slide 31: … with 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 31.03.24 (2022-1Q24) targets New lending to support the green economy, circular economy and ecologic
Slide 32: Contents
MIL-BVA362-03032014-90141/VR Contents 1Q24: the best-ever start to the year ISP is fully equipped for further success Appendix: 2022-2025 Business Plan proceeding at full speed
Slide 33: Italy's solid fundamentals support the resilience of the economy
MIL-BVA362-03032014-90141/VR Italy’s solid fundamentals support the resilience of the economy The Italian economy is resilient thanks to solid fundamentals Italian GDP YoY evolution % ▪ Strong Italian household gross wealth at ~€11,500bn, of which >€5,100bn in financial assets, coupled 1.2 with low
Slide 34: ISP is far better equipped than its peers
MIL-BVA362-03032014-90141/VR ISP is far better equipped than its peers thanks to a best-in-class risk profile, rock-solid capital position and a well-diversified and resilient business model Buffer vs requirements SREP + combined Contribution of Net fees and commissions Cost/Income ratio buffer(1) a
Slide 35: ISP has a 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%-13% >13% Cost/Income(1), % (reverse scale) Peer average: 26% 30 35 Peer 1 40 Peer 5 Peer 3 Peer 2 45 Peer 4 Peer 6 50 Peer 7 Peer
Slide 36: Delivering on our commitments and fully equipped for further success
MIL-BVA362-03032014-90141/VR Delivering on our commitments and fully equipped for further success Fully equipped for further success thanks to a well-diversified The best-ever start to the year and resilient business model ▪ €2.3bn Net income, the best quarterly Net income since 2007 ▪ Resilient pro
Slide 37: 2024 outlook: Net income above €8bn
MIL-BVA362-03032014-90141/VR 2024 outlook: Net income above €8bn Solid growth in Revenues driven by further increase in Net interest income (also thanks to higher contribution from core deposits hedging) Revenues and growth in Commissions and Insurance, leveraging on our leadership in Wealth Managem
Slide 38: Contents
MIL-BVA362-03032014-90141/VR Contents 1Q24: the best-ever start to the year 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 €5.2bn gross NPL stock reduction in 2022-1Q24, 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 ▪ isytech 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 o
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 isytech: ISP cloud-based digital banking platform New technology backbone already available to mass market retail clients through , to
Slide 43: isytech: cloud-native tech backbone
MIL-BVA362-03032014-90141/VR 2022-2025 Business Plan proceeding at full speed Mooney Enel New technology backbone (isytech) already available to mass market retail clients through ; the progressive extension to the entire Group has begun isytech: our cloud-native … already successfully … to be progr
Slide 44: isytech: Group cloud-based digital platform
MIL-BVA362-03032014-90141/VR 2022-2025 Business Plan proceeding at full speed isytech: Group cloud-based digital platform Key elements of our cloud-based digital platform Cloud-native Modular Secure Scalable Always-on ▪ Scalable hybrid ▪ API-based ▪ Enhanced cyber- ▪ Across segments ▪ 24/7/365 cloud
Slide 45: A new digital bank with an 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 and more innovative than digital challengers
MIL-BVA362-03032014-90141/VR 2022-2025 Business Plan proceeding at full speed Product offering broader and more innovative than digital challengers Additional benefits vs Business Plan Product offering broader than digital challengers(1)… from ~1 million new customers Fully accessible product catalo
Slide 47: Accelerated development of isytech's digital features
MIL-BVA362-03032014-90141/VR 2022-2025 Business Plan proceeding at full speed Accelerated the development of isytech’s innovative digital features, further enriching the customer experience Enriched digital offering, ahead of schedule ▪ Disposable virtual cards ▪ Installment payments (SpensieRata) D
Slide 48: A unique approach coupling digital with the human touch
MIL-BVA362-03032014-90141/VR 2022-2025 Business Plan proceeding at full speed : a unique approach coupling digital with the human touch of ISP’s Digital Branch A digital service … through ISP’s A digital bank … with innovative model with no Digital Branch at scale thanks to technology driving physic
Slide 49: AI program at scale with strong benefits for the Group
MIL-BVA362-03032014-90141/VR 2022-2025 Business Plan proceeding at full speed AI program at scale with strong benefits for the Group Dedicated program to adopt AI at scale… … with strong benefits for the Group ▪ Group-wide adoption of AI through the development of AI use cases favouring: AI use case
Slide 50: Growth in Commissions, driven by Wealth Management, Protection & Advisory (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, driven by Wealth Management, Protection & Advisory (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, driven by Wealth Management, Protection & Advisory (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 (e.g. Energy, TMT, Infrastructure) to optimise the i
Slide 53: Growth in Commissions, driven by Wealth Management, Protection & Advisory (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, museum with four sites: Milan, Naples, Turin and Vicenza. In 1Q24: ‒ >205,000 visitors, with f
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: in progress the 2nd edition of the initiative developed by Banca dei Territori with the support of ISPI
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) ▪ ~€47.2bn disbursed in the period 2021-1Q24 out of the €76bn in new lending available for the green economy, circu
Slide 58: Leading ESG position in the main 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 1
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 ▪ ~3,450 professionals hired since 2021 ▪ ~4,650 people reskilled since 2022 ▪ ~27.9m training hours delivered since 2022 ▪ ~270 talents have completed their developme
Slide 60: 1Q24 Results: Detailed information
1Q24 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 1Q24 31.3.24 Operating income 6,732 Loans to customers 423,254 Operating costs (2,570) Customer financial assets(1) 1,333,798 Cost/Income ratio 38.2% of which Direct deposits from banking business 575,926 Operating margin 4,162 of whi
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: 1Q24 vs 1Q23: €2.3bn Net income
MIL-BVA362-03032014-90141/VR 1Q24 vs 1Q23: €2.3bn Net income, the best quarter since 2007 €m 1Q23 1Q24 % Net interest income 3,254 3,932 20.8 Net fee and commission income 2,137 2,272 6.3 Income from insurance business 397 455 14.6 Profits on financial assets and liabilities at fair value 262 79 (6
Slide 64: Q1 vs Q4: strong growth in profitability
MIL-BVA362-03032014-90141/VR Q1 vs Q4: strong growth in profitability €m 4Q23 1Q24 % Net interest income 3,995 3,932 (1.6) Net fee and commission income 2,110 2,272 7.7 Income from insurance business 391 455 16.4 Profits on financial assets and liabilities at fair value (91) 79 n.m. Other operating
Slide 65: Quarterly P&L
MIL-BVA362-03032014-90141/VR Quarterly P&L €m 1Q23 2Q23 3Q23 4Q23 1Q24 Net interest income 3,254 3,584 3,813 3,995 3,932 Net fee and commission income 2,137 2,216 2,095 2,110 2,272 Income from insurance business 397 459 419 391 455 Profits on financial assets and liabilities at fair value 262 75 52
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) Of which ~-€60m for the different number of days in the two quarters -1.6% +20.8% 3,995 60 3,932 214 3,932 575 (81) (42) 3,254 (111) Commercial component
Slide 67: Net fee and commission income
MIL-BVA362-03032014-90141/VR Net fee and commission income Quarterly analysis Yearly analysis €m €m 2,110 2,272 2,137 2,272 +7.7% +6.3% 4Q23 1Q24 1Q23 1Q24 ▪ Increase almost entirely due to Commissions from ▪ Increase almost entirely due to Commissions from Management, dealing and consultancy activi
Slide 68: 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 1Q23 2Q23 3Q23 4Q23 1Q24 Guarantees given / received 34 41 41 39 48 Collection and payment services 156 164 169 180 167 Current accounts 341 344 339 336 327 Credit and debit c
Slide 69: Income from insurance business
MIL-BVA362-03032014-90141/VR Income from insurance business Quarterly analysis Yearly analysis €m €m 455 455 391 +16.4% 397 +14.6% 4Q23 1Q24 1Q23 1Q24 ▪ Non-motor P&C revenues(1) up 14% at €165m, €187m including ▪ Non-motor P&C revenues(1) up 23% at €165m, €187m including credit-linked products cred
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 €m 262 -69.8% 79 79 n.m. 1Q23 1Q24 (91) 4Q23 1Q24 Contributions by activity 1Q23 4Q23 1Q24 Customers 89 80 70 Capital markets 65 (136) (145) Trading and Treasury 107 (36) 148
Slide 71: Operating costs
MIL-BVA362-03032014-90141/VR Operating costs Quarterly analysis Yearly analysis Operating costs Personnel expenses Operating costs Personnel expenses €m €m €m €m -3.2% excluding growth in Adjustments linked to tech investments and the impact of national labour contract renewal -3.2% excluding the im
Slide 72: Net adjustments to loans
MIL-BVA362-03032014-90141/VR Net adjustments to loans Quarterly analysis Yearly analysis €m Additional provisions to favour de-risking €m 616 -61.7% 236 236 468 189 +24.9% 4Q23 1Q24 1Q23 1Q24 ▪ Increased NPL coverage (+0.9pp vs 31.12.23) ▪ Annualised Cost of credit at 22bps ▪ Strong decline in NPL i
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 €1.3 trillion in Customer financial assets
MIL-BVA362-03032014-90141/VR More than €1.3 trillion in Customer financial assets % 31.3.24 vs 31.3.23 and 31.12.23 Customer financial assets(1) Direct deposits from banking business € bn € bn 1,215 1,306 1,334 534 576 576 31.3.23(2) 31.12.23 31.3.24 31.3.23 31.12.23 31.3.24 +9.8 +2.2 +7.8 - ▪ €11
Slide 75: Funding mix
MIL-BVA362-03032014-90141/VR Funding mix Breakdown of Direct deposits from banking business € bn; 31.3.24 ~70% Households % Percentage of total ~30% Corporates Wholesale Retail 576 Current accounts 12 381 and deposits Repos and 26 - securities lending 442 Senior bonds(1) 40 7 Covered bonds 29 - 134
Slide 76: 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 23 Wholesale 2023 Retail 19 ◼ €1bn Tier 2, €2.25bn dual-tranche green senior non-preferred, £600m green senior non- preferred, two floating rate senior pr
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) Cash and deposits with ECB vs TLTRO with Central Banks(2) (net of haircuts) € bn Other reserves HQLA € bn Other reserves HQLA € bn, 31.
Slide 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 €1.6bn dividends already accrued in Q1 €1.6bn dividends already accrued in Q1 €1.6bn dividends already accrued in Q1 % % % 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 31.3.23 31.12.23 31.3.24 31.3.23 31.12.23 31.3.24 Bad loans 3.9 3.4 3.6 Bad loans 1.2 0.9 1.0 - of which
Slide 81: Non-performing loans: sizeable and increased coverage
MIL-BVA362-03032014-90141/VR Non-performing loans: sizeable and increased coverage Cash coverage; % Total NPL(1) 50.0 49.8 50.7 31.3.23 31.12.23 31.3.24 Bad loans Unlikely to pay Past due 70.0 72.4 73.0 40.0 39.3 39.1 25.8 27.0 27.9 31.3.23 31.12.23 31.3.24 31.3.23 31.12.23 31.3.24 31.3.23 31.12.23
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 3.5 3.4 Impact from the acquisition of the two former Ven
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 1,100 739 657 1Q23 4Q23 1Q24 Bad loans Unlikely to pay Past due 712 339 312 378 403 308 10 10 24 1Q23 4Q23 1Q24 1Q23 4Q23 1Q24 1Q23 4Q23 1Q24 Note: figures may not add up exactly due to
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 914 617 427 1Q23 4Q23 1Q24 Bad loans Unlikely to pay Past due 581 331 363 264 234 20 158 5 2 1Q23 4Q23 1Q24 1Q23 4Q23 1Q24 1Q23 4Q23 1Q24 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 31.3.24) Breakdown by economic business sector Repos, Capital markets and 31.3.24 Institutional Clients Public Adminis
Slide 86: Russia exposure reduced to 0.1% of Group customer loans
MIL-BVA362-03032014-90141/VR Russia exposure reduced to 0.1% of Group customer loans € bn, data as at 31.3.24 Local presence Russia Cross-border exposure to Russia Loans to customers (net of ECA guarantees and provisions) 0.1(1) 0.5 ECA(2) guarantees - 0.8(3) Due from banks (net of provisions) 0.7 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 31.3.24 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) 2,941 1,00
Slide 89: Banca dei Territori: 1Q24 vs 1Q23
MIL-BVA362-03032014-90141/VR Banca dei Territori: 1Q24 vs 1Q23 €m 1Q23 1Q24 % +20% considering the benefit of Net interest income 1,571 1,701 8.3 actual market rate trends not entirely reflected in the internal fund Net fee and commission income 1,176 1,208 2.7 transfer price applied to the Divisio
Slide 90: Banca dei Territori: Q1 vs Q4
MIL-BVA362-03032014-90141/VR Banca dei Territori: Q1 vs Q4 €m 4Q23 1Q24 % Net interest income 1,629 1,701 4.4 Net fee and commission income 1,137 1,208 6.2 Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 27 29 7.4 Other operating income (expenses) (
Slide 91: IMI Corporate & Investment Banking: 1Q24 vs 1Q23
MIL-BVA362-03032014-90141/VR IMI Corporate & Investment Banking: 1Q24 vs 1Q23 €m 1Q23 1Q24 % Net interest income 598 758 26.8 Net fee and commission income 256 283 10.5 Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 97 (32) n.m. Other operating inc
Slide 92: IMI Corporate & Investment Banking: Q1 vs Q4
MIL-BVA362-03032014-90141/VR IMI Corporate & Investment Banking: Q1 vs Q4 €m 4Q23 1Q24 % Net interest income 757 758 0.1 Net fee and commission income 269 283 5.2 Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value (55) (32) (41.8) Other operating incom
Slide 93: International Subsidiary Banks: 1Q24 vs 1Q23
MIL-BVA362-03032014-90141/VR International Subsidiary Banks: 1Q24 vs 1Q23 €m 1Q23 1Q24 % Net interest income 520 640 23.1 Net fee and commission income 138 146 5.8 Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 21 17 (19.0) Other operating income (
Slide 94: International Subsidiary Banks: Q1 vs Q4
MIL-BVA362-03032014-90141/VR International Subsidiary Banks: Q1 vs Q4 €m 4Q23 1Q24 % Net interest income 628 640 1.9 Net fee and commission income 147 146 (0.7) Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value (2) 17 n.m. Other operating income (expe
Slide 95: Private Banking: 1Q24 vs 1Q23
MIL-BVA362-03032014-90141/VR Private Banking: 1Q24 vs 1Q23 €m 1Q23 1Q24 % Net interest income 280 313 11.8 Net fee and commission income 455 534 17.4 Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 20 7 (65.0) Other operating income (expenses) (1) 4
Slide 96: Private Banking: Q1 vs Q4
MIL-BVA362-03032014-90141/VR Private Banking: Q1 vs Q4 €m 4Q23 1Q24 % Net interest income 334 313 (6.3) Net fee and commission income 473 534 12.9 Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 13 7 (46.2) Other operating income (expenses) 1 4 300.
Slide 97: Asset Management: 1Q24 vs 1Q23
MIL-BVA362-03032014-90141/VR Asset Management: 1Q24 vs 1Q23 €m 1Q23 1Q24 % Net interest income 1 14 n.m. Net fee and commission income 209 214 2.4 Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 8 1 (87.5) Other operating income (expenses) 17 11 (35
Slide 98: Asset Management: Q1 vs Q4
MIL-BVA362-03032014-90141/VR Asset Management: Q1 vs Q4 €m 4Q23 1Q24 % Net interest income 12 14 16.7 Net fee and commission income 197 214 8.6 Income from insurance business 0 0 n.m. Profits on financial assets and liabilities at fair value 1 1 0.0 Other operating income (expenses) 9 11 22.2 Opera
Slide 99: Insurance: 1Q24 vs 1Q23
MIL-BVA362-03032014-90141/VR Insurance: 1Q24 vs 1Q23 €m 1Q23 1Q24 % Net interest income 0 0 n.m. Net fee and commission income 1 1 0.0 Income from insurance business 385 447 16.1 Profits on financial assets and liabilities at fair value 0 0 n.m. Other operating income (expenses) (2) (7) 250.0 Opera
Slide 100: Insurance: Q1 vs Q4
MIL-BVA362-03032014-90141/VR Insurance: Q1 vs Q4 €m 4Q23 1Q24 % Net interest income 0 0 n.m. Net fee and commission income 1 1 0.0 Income from insurance business 383 447 16.7 Profits on financial assets and liabilities at fair value 0 0 n.m. Other operating income (expenses) (4) (7) 75.0 Operating
Slide 101: Market leadership in Italy
MIL-BVA362-03032014-90141/VR Market leadership in Italy 1Q24 Operating income breakdown by business area(1) Leader in Italy IMI Corporate & Market share(2) Ranking Investment Banking % 16% 1 Loans 18.2 Insurance 7% 1 Deposits(3) 21.6 Banca 47% dei Territori 14% 1 Asset Management(4) 23.0 Private Ban
Slide 102: International Subsidiary Banks by country
MIL-BVA362-03032014-90141/VR International Subsidiary Banks by country Data as at 31.3.24 Total % of the Total CEE Group Hungary Slovakia Slovenia Croatia Bosnia Serbia Albania Romania Moldova Ukraine(*) Egypt Operating income (€ m) 122 188 43 164 12 121 20 14 4 688 100 789 11.7% Operating costs (€
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 48,968 51,785 905 101,658 382,417 Austria 689 1,407 8 2,104 565 Belgium 3,319 4,890 133 8,342 1,075 Bulgaria 0 0 0 0 7 Croatia 261 533 61 855 8,685 Cyp
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 38,751 36,971 -2,649 73,073 10,334 Austria 616 1,130 0 1,746 0 Belgium 3,273 4,648 97 8,018 8 Bulgaria 0 0 1 1 0 Croatia 156 533 61 750 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 2,318 9,205 2,385 13,908 15,598 Austria 63 265 14 342 272 Belgium 24 164 29 217 182 Bulgaria 0 0 0 0 0 Croatia 0 0 0 0 34 Cyprus 0 0 -5 -5 0 Czech R
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 7,899 5,609 1,169 14,677 356,485 Austria 10 12 -6 16 293 Belgium 22 78 7 107 885 Bulgaria 0 0 -1 -1 7 Croatia 105 0 0 105 7,244 Cyprus 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
Intesa Sanpaolo Spa Ord — Q1 2024 Earnings Presentation on 6ix