Intesa Sanpaolo: 2022-2025 Business Plan

Turin - Milan, 4 February 2022 – The Board of Directors of Intesa Sanpaolo today approved the 2022-2025 Business Plan. Around 58,000 Group people have contributed to defining its strategic priorities and all the business units and governance functions have been involved in its scenario-based planning to develop a post-COVID approach. The Plan is grounded on the commitment of the Group’s people - its most important asset - to deliver on its targets.  

The Group aims to be a Wealth Management, Protection & Advisory leader in Europe, distinguished by zero NPLs, by a strong digital push and by a focus on commissions, while continuing to excel in ESG and offering the best professional experience for its People.
Intesa Sanpaolo’s priority for the coming years will continue to be strong and sustainable value creation for all stakeholders.
The four key pillars of Intesa Sanpaolo’s 2022-2025 Business Plan are:
•    Massive upfront de-risking: the Group will pursue a structural strategy of de-risking (already launched in the previous Business Plan with significant results) with the ambition to become a Zero-NPL Bank, ranking among the best in Europe in terms of NPL ratios and stock
•    Structural cost reduction, enabled by technology: strengthening the Bank’s omnichannel propositions and become the leader in Europe in terms of operational efficiency. To do so, we will create a new digital bank (named isybank) and will continue to invest strongly in technology, including through partnerships with top fintechs and artificial intelligence players
•    Growth in commissions, driven by Wealth Management, Protection & Advisory: in addition to strong Wealth Management & Protection capabilities, Advisory will be a key area for value creation in the new Plan. Intesa Sanpaolo will continue to leverage on the Group’s own product factories in asset management, life insurance and protection. The Bank will be a reference partner for all SME & Corporate clients, helping them to fully leverage Recovery Plan opportunities
•    Significant ESG commitment, with a world-class position in social impact and strong focus on climate: strengthening the Group’s current leadership in all main ESG rankings, Intesa  Sanpaolo will continue to support the community, with particular attention to those categories most in need, while reinforcing the Bank’s Net-Zero commitments.
Over the four-year Plan horizon, Intesa Sanpaolo is committed to creating value of over €520 billion for all stakeholders: 

Strong and sustainable value creation and distribution to shareholders:
- ROTE up to around 14% in 2025;
- net income up to €6.5bn in 2025;
- distribution for 2021-2025 of over €22bn, of which over €6.6bn in 2022, through cash dividends with a payout ratio of 70% in 2022-2025 and buyback of €3.4bn in 2022. Any additional distribution will be evaluated on a yearly basis starting from 2023.

Solid capital position: Fully phased-in Common Equity Tier 1 ratio above 12% in 2022-2025 in accordance with Basel 3 / Basel 4 regulations.

Massive de-risking:
- NPL to total loan ratio of 0.8%, net of adjustments, in 2025;
- cost of risk of around 40 basis points in 2022-2025.

Structural cost reduction, while significantly investing in technology and growth:
- operating costs down around €0.3bn in 2025, with €2bn of cost savings and €1.1bn costs for growth in 2022-2025;
- cost/income improvement, down to 46.4% in 2025;
- investments of €7.1bn in 2022-2025, of which €5bn in technology and growth, including around €650m in a new digital bank.

Solid revenue generation:
- operating income up €2bn in 2025, of which €1.6bn from commissions and €0.2bn from insurance business;
- net commissions and income from insurance business accounting for 57% of operating income in 2025.

Significant ESG commitment:
- contribution, in 2022-2025, of around €115bn to society and green transition and around €500m to support people in need;
- net-zero emissions, in terms of own emissions by 2030 and in terms of loan and investment portfolios, asset management and insurance by 2050.

People represent the decisive factor in Intesa Sanpaolo’s success: the Group will continue to invest in its talents, encouraging diversity and inclusion, and creating a unique ecosystem of skills to support the evolution of the Bank. The new Plan set the target of equal presence of men and women in new senior leadership appointments.
For more information please visit: https://group.intesasanpaolo.com/en/investor-relations/results