INTESA SANPAOLO:

THE PLAN MARKS INTESA SANPAOLO AS A SOUND BANK FOR A SUSTAINABLE WORLD, A WEALTH MANAGEMENT, PROTECTION & ADVISORY LEADER, A ZERO-NPL, DIGITAL AND FEE-DRIVEN COMPANY, WITH SIGNIFICANT ESG COMMITMENT.
VALUE CREATION OF OVER €520BN FOR ALL STAKEHOLDERS IN 2022-2025.
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.
THE GROUP’S PEOPLE AS ITS MOST IMPORTANT ASSET.

• STRONG INCREASE IN PROFITABILITY, STRONG AND SUSTAINABLE VALUE CREATION AND DISTRIBUTION TO SHAREHOLDERS:
• ROTE (1) UP TO 13.9% IN 2025 FROM 9.1% IN 2021
• ROE (2) UP TO 11.6% IN 2025 FROM 7.6% IN 2021
• NET INCOME UP TO €6.5BN IN 2025 FROM €4.2BN IN 2021
• DISTRIBUTION FOR 2021-2025 OF OVER €22BN (3), OF WHICH OVER €6.6BN IN 2022 (3) (4), THROUGH CASH DIVIDENDS WITH A PAYOUT RATIO OF 70% (5) IN 2022-2025 AND A BUYBACK OF €3.4BN IN 2022 (6)
• 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:
• ZERO-NPL BANK WITH NO IMPACT FROM CALENDAR PROVISIONING
• NPL REDUCTION, IN 2025, TO €9.3BN GROSS FROM €15.2BN IN 2021, AND €4.6BN NET FROM €7.1BN IN 2021
• NPL TO TOTAL LOAN RATIO (7) DOWN TO 1.6% GROSS FROM 2.4% IN 2021, AND 0.8% NET FROM 1.2% IN 2021
• NET ADJUSTMENTS TO LOANS DOWN TO €1.9BN IN 2025 FROM €2.8BN IN 2021 (-9% CAGR (8))
• COST OF RISK DOWN TO AROUND 40 BASIS POINTS IN 2022-2025 AND 38 BASIS POINTS IN 2025 FROM 59 BASIS POINTS IN 2021 (9)
• COST REDUCTION:
• €2BN IN COST SAVINGS IN 2022-2025
• OPERATING COSTS DOWN TO €10.6BN IN 2025 FROM €10.9BN IN 2021 (9) (-0.8% CAGR), DESPITE COSTS OF €1.1BN TO SUPPORT GROWTH IN 2022-2025
• IMPROVEMENT IN COST/INCOME, DOWN TO 46.4% IN 2025 FROM 52.5% IN 2017 (9) (-6.1 pp)
• INVESTMENTS OF €7.1BN IN 2022-2025, OF WHICH €5BN IN TECHNOLOGY AND GROWTH
• SOLID REVENUE GENERATION:
• OPERATING INCOME UP TO €22.8BN IN 2025 FROM €20.8BN IN 2021 (9) (+2.3% CAGR)
• NET FEE AND COMMISSION INCOME UP TO €11.1BN IN 2025 FROM €9.5BN IN 2021 (9) (+3.9% CAGR)
• INCOME FROM INSURANCE BUSINESS UP TO €1.9BN IN 2025 FROM €1.6BN IN 2021 (+3.3% CAGR), ATTRIBUTABLE TO STRONG GROWTH IN THE P&C BUSINESS
• NET FEE AND COMMISSION INCOME AND INCOME FROM INSURANCE BUSINESS ACCOUNTING FOR 57% OF OPERATING INCOME IN 2025 FROM 54% IN 2021
• SIGNIFICANT ESG COMMITMENT: IN 2022-2025, CONTRIBUTION OF AROUND €115BN TO SOCIETY AND THE GREEN TRANSITION AND AROUND €500M TO SUPPORT PEOPLE IN NEED
• THE GROUP’S PEOPLE AS ITS MOST IMPORTANT ASSET
(1) ROTE: net income / tangible net shareholders’ equity (net shareholders’ equity excluding net income, AT1, goodwill and other intangibles).
(2) ROE: net income / net shareholders’ equity (net shareholders’ equity excluding net income and AT1).
(3) Subject to shareholder approval and ECB approval and based on the achievement of the 2022-2025 Business Plan stated net income targets. Including €1.4bn interim dividends for 2021 paid in November 2021.
(4) Including the interim dividend for 2022 payable in November 2022, subject to Board of Directors approval.
(5) Subject to shareholder approvals. Calculated on the stated net income.
(6) Subject to shareholder approval and ECB approval. Amount equivalent to the suspended 2019 dividend.
(7) In accordance with the EBA methodology.
(8) CAGR: compound average growth rate.
(9) The figures for the first two quarters of 2021 were prepared to take into account the inclusion of the UBI Banca Group and the Reyl Group for the period before their acquisition and, on the basis of management figures, the reallocation of the contribution from the going concerns object of sale to income (loss) from discontinued operations, as well as the inclusion of the contribution of insurance companies Assicurazioni Vita (formerly Aviva Vita), Lombarda Vita and Cargeas, net of the effects attributable to the going concerns object of sale.

HIGHLIGHTS FOR 2025
CAPITAL RATIOS:
FULLY PHASED-IN COMMON EQUITY TIER 1 RATIO ABOVE 12% IN 2022-2025 IN ACCORDANCE WITH BASEL 3 / BASEL 4 REGULATIONS
OPERATING INCOME: +2.3% (10)
AT €22.8BN FROM €20.8BN IN 2021 (11)
OPERATING COSTS: -0.8% (10)
AT €10.6BN FROM €10.9BN IN 2021 (11)
OPERATING MARGIN: +5.5% (10)
AT €12.2BN FROM € 9.9BN IN 2021 (11)
NET ADJUSTMENTS TO LOANS: -9% (10)
AT €1.9BN FROM €2.8BN IN 2021 (11)
GROSS INCOME: +11.1% (10)
AT €10.1BN FROM €6.6BN IN 2021 (11)
NET INCOME: +11.8% (10)
AT €6.5BN FROM €4.2BN IN 2021 (11)
VALUE CREATION OF OVER €520BN FOR ALL STAKEHOLDERS (2022-2025 TOTAL)
SHAREHOLDERS:
OVER €22BN (12) FOR 2021-2025 FROM CASH DIVIDENDS WITH A PAYOUT RATIO OF 70% (13) AND A BUYBACK OF €3.4BN (14)
• SIGNIFICANT PORTION OF NET INCOME MADE AVAILABLE FOR CONSUMPTION/INVESTMENTS
HOUSEHOLDS AND BUSINESSES:
MEDIUM/LONG-TERM NEW LENDING TO THE REAL ECONOMY OF €328BN
• OF WHICH €285BN IN ITALY
GROUP PEOPLE:
PERSONNEL EXPENSES OF €26.5BN
• AROUND 100,000 HOUSEHOLDS
• AROUND 50 MILLION TRAINING HOURS
SUPPLIERS:
PURCHASES AND INVESTMENTS OF €17BN
• BENEFITTING MORE THAN 40,000 HOUSEHOLDS
PUBBLIC SECTOR:
TAXES (15)
OF €15BN
• AROUND 75% OF ITALY’S ANNUAL TAX REVENUES FROM REAL ESTATE PROPERTIES
SOCIAL LENDING:
NEW LENDING OF €25BN TO SUPPORT NON-PROFIT ACTIVITIES, VULNERABLE INDIVIDUALS AND YOUNG PEOPLE
• INTESA SANPAOLO IS THE LARGEST LENDER TO SOCIAL SECTOR IN ITALY
PEOPLE IN NEED, YOUTH AND SENIORS:
INVESTMENTS AND DONATIONS AMOUNTING TO AROUND €500M
• INTESA SANPAOLO IS THE FIRST BANK WORLDWIDE FOR SOCIAL IMPACT
ENVIRONMENT:
NEW LENDING OF AROUND €88BN TO GREEN ECONOMY, CIRCULAR ECONOMY AND GREEN TRANSITION
• STRONG FOCUS ON SUPPORTING THE GREEN TRANSITION OF CORPORATES AND SMES
(10) CAGR 2021-2025 (compound average growth rate).
(11) The figures for the first two quarters of 2021 were prepared to take into account the inclusion of the UBI Banca Group and the Reyl Group for the period before their acquisition and, on the basis of management figures, the reallocation of the contribution from the going concerns object of sale to income (loss) from discontinued operations, as well as the inclusion of the contribution of insurance companies Assicurazioni Vita (formerly Aviva Vita), Lombarda Vita and Cargeas, net of the effects attributable to the going concerns object of sale.
(12) Subject to shareholder approval and ECB approval and based on the achievement of the 2022-2025 Business Plan stated net income targets. Including €1.4bn interim dividends for 2021 paid in November 2021.
(13) Subject to shareholder approvals. Calculated on the stated net income.
(14) Subject to shareholder approval and ECB approval. Amount equivalent to the suspended 2019 dividend.
(15) Direct and indirect.