Understood as Unicredit, it will not pay banks extra profit tax

The Board of Directors will propose to the meeting to allocate an amount of approximately 1,991 million euros to the non-distributable reserve

Intesa Sanpaolo, like Unicredit, will not pay the tax on the banks’ extra profits but, as required by law, will allocate it to provisions.

The extraordinary tax, the group announced in a note, calculated on the increase in the interest margin amounts to approximately 828 million euros for the group and approximately 797 million euros for the parent company. The board of directors of Intesa Sanpaolo, which met today, resolved that it will propose to the meeting to allocate an amount equal to approximately 1,991 million euros to the non-distributable reserve, corresponding to 2.5 times the amount of the approximately 797 million, instead of paying this tax, making use of the option provided for by the aforementioned provision.

Furthermore, the parent company will give instructions to the subsidiary banks affected by the provision (Fideuram, Intesa Sanpaolo Private Banking and Isybank) to adopt a similar approach, with a consequent allocation to the non-distributable reserve for the Intesa Sanpaolo Group of approximately 2,069 million euros, corresponding at 2.5 times the tax amount of approximately 828 million. “Consistent with the strategy of significant creation of value for all stakeholders – we read in the note – Intesa Sanpaolo will continue to support initiatives to address social needs, combat inequalities and promote financial, social, educational and cultural inclusion” .

In particular, the group’s note continues, “Intesa Sanpaolo intends to contribute an expected amount equal to approximately 1.5 billion euros in total costs in the five-year period 2023-2027 and already included pro-quota in the net profit prospects for 2023- 2025 reported in the press release regarding the results as at 30 June 2023 published on July 28. This amount includes approximately one billion euros for the amounts allocated to the aforementioned initiatives, identified from time to time, and approximately 500 million euros for structural costs of the approximately 1,000 people dedicated to supporting the initiatives”.