Our Business Model
The Intesa Sanpaolo Group’s business model combines the generation of sustainable revenues focused on increasing fee and commission and revenues from services, high efficiency and a low risk profile. This configures a distinctive and diversified business model, both with respect to the business areas in which the Group operates and internationally. This model shows the Group as a Wealth Management, Protection & Advisory leader, in Italy and Europe.
The integration between product factories, covering portfolio management scheme, life and non-life insurance, and the Group's commercial networks, which ensure high synergies in terms of profitability and greater effectiveness and flexibility in defining the commercial offering, is another mainstay of the business model.
Furthermore, the strategy is based on the awareness that People are the Group's main resource and the enabling factor for its future success. People’s ongoing enhancement, growth and satisfaction are the fundamental objectives to be pursued by investing in talent, in order to create a single ecosystem of competencies that are appropriate to the evolution of the Group, in which employees are its key actors. The collection of ideas and suggestions from approximately 58,000 employees as part of the definition of the 2022-2025 Business Plan confirms the importance of People, as well as the identification of the key value pillars of the corporate Mission.
The Group’s activities contribute to the creation of value for its customers and include the main processes underlying the provision of banking and financial services:
This includes managing the financial resources from external sources, such as customer deposits, funds raised on the financial markets and capital management. As a banking group, the Group manages these resources with the aim of maintaining adequate levels of liquidity and capital.
This includes all policy, management and control, strategic planning, risk management and compliance activities. The Group invests in a sound risk control and management structure in accordance with current regulations and to minimise operational risks.
This includes recruiting, training and developing personnel, focusing on digital skills and the ability to handle an increasingly demanding customer base. For the Group, company welfare, continuing education and initiatives dedicated to the well-being of the Group‘s People play a particularly important role.
This includes innovation and the implementation of new technologies, by investing in digital platforms, artificial intelligence, blockchain and sophisticated data analytics tools. The Group is speeding up its digitalisation process in order to improve operating efficiency and customer experience.
This covers purchases of goods and services necessary for the operations of the Group, including technologies, software, third-party consultancy and real estate management. Thanks to this support, the Group has the tools and the resources necessary to operate efficiently.
Moreover, in recent years, the Intesa Sanpaolo Group has demonstrated its ability to generate value for all its stakeholders, achieving significant results even in difficult external contexts and in particular during the COVID-19 pandemic.
Today, Intesa Sanpaolo is one of the leading players in the industry and is well positioned to capture future opportunities, thanks to a number of strengths including: proactive and granular risk management; indisputable capital strength; a distinctive, well-diversified and resilient business model; a leading ESG position, and a consolidated domestic leadership.
In light of the results achieved in the recent past and the main trends that will affect the banking industry and beyond, the Intesa Sanpaolo Group intends to take on the coming years with the objective of continuing to generate value for all stakeholders, while also building the bank of the future: profitable, innovative and sustainable.
Our formula for success
In the Business Plan, the Group has set itself the ambitious goal of becoming a Wealth Management, Protection & Advisory leader - Zero-NPL, Digital & Fee-Driven - and will do so through four key pillars:
Business Plan 2022-2025
The formula of 2022-2025 Business Plan
Strategic priorities
- To pursue a structural strategy of de-risking with the ambition to become a Zero-NPL Bank, ranking among the best in Europe in terms of NPL ratios and stock
- To be a real-economy Bank and a Wealth Management, Protection & Advisory leader
- To be an omnichannel Bank with a fintech perspective to become the leader in Europe in terms of operational efficiency
- To be a reference partner for all SME & Corporate clients, helping them to fully leverage Recovery Plan opportunities
- To support Italian businesses abroad with our international presence
- To be leader in all main ESG rankings
- To support the community, with particular attention to those categories most in need and to accelerate on commitment to Net-Zero, reducing high-emitting sectors and own emissions
Our value creation
Strong and sustainable value creation and distribution while maintaining a solid capital position and a strong focus on ESG
- Over the time horizon of the 2022-2025 Business Plan: a cash dividend distribution was envisaged corresponding to a payout ratio, based on the consolidated net income, of 70% each year of the Plan; a buyback of €3.4bn was approved at the Shareholders’ Meeting and authorised by the ECB (amount equivalent to the suspended 2019 dividend)
- Medium/long-term lending to households and businesses
- Continuous enhancement, growth and satisfaction of Intesa Sanpaolo’s People and employment protection
- Supplier partnership development
- Support for categories with difficulty accessing credit, despite their potential
- Unparalleled support to address social needs
- Continued commitment to contribute to generating value for the Italian economic and social system
- Product and service model innovation
- Supporting clients through the green transition
