Intesa Sanpaolo, in the new plan 22 billion to shareholders over five years

Intesa Sanpaolo aims to achieve a net profit of € 6.5 billion in 2025with an average annual increase of 11.8%, ea distribute over € 22 billion to shareholders. These are some of the objectives indicated in the new business plan to 2025 of the bank, which over the next four years intends to strengthen its wealth management, eliminate non-performing loans and invest in digital. Among the financial targets, the group aims at net operating income of 22.8 billion euros in 2025 (+ 2.3% annual average), net commissions of 11.1 billion (+ 3.9%), with an amount of managed savings up to 574 billion (+ 4.9%), and net interest of 8.1 billion (+ 0.5%). On the capitalization front, a fully phased-in Cet1 ratio is expected to exceed 12% in 2022-2025.

“Goals that we are sure we can achieve”said the CEO of Intesa Sanpaolo, Carlo Messinapresenting the planstrictly stand alone. “We will evaluate the possibility of exceeding these targets year by year, but the plan is decidedly conservative”. The bank aims to distribute over 22 billion euros for 2021-2025, of which more than 6.6 billion in 2022, from cash dividends with a payout ratio of 70% in each year of the plan and by a buyback of 3.4 billion in 2022. The group also presented the accounts of the 2021closed with a net profit of 4.18 billion, up 19.4% on an annual basis and with a pro-forma Cet1 ratio when fully operational at 15.2%.

One of the pillars of Intesa Sanpaolo’s strategy for the next four years is “the massive derisking“, Messina explained,” with the ambition of becoming one bank with zero non-performing loansin practice a sort of Nordic bank “, with the incidence of impaired loans on total loans net of adjustments at 0.8% in 2025 compared to 1.2% in 2021. Another pillar is the digitization. Over the course of the plan, the bank expects investments of € 7.1 billionof which 5 billion for technology and growthincluding about 650 million in the new bdigital hip, Isybankto create a more efficient platform to structurally cut operating costs and defend against competition from the operators of the fintech. 9,200 voluntary exits are also expected, of which 2,850 already made last year, 4,600 new hires, of which 500 in 2021, and 8,000 people reconverted or retrained over the plan.

Another important chapter is the strengthening of Themes Esgenvironmental, social and governance, with thecommitment to allocate approximately 115 billion euros to the community and the green transition and around 500 million euros to support people in need. Finally, the bank intends to strengthen its international presence in private banking and will further strengthen itself in Europe in wealth management with selective growth and with the acquisition of customers and the recruitment of private banking teams.