MILAN, Italy, Feb. 04, 2022 (GLOBE NEWSWIRE) — Intesa Sanpaolo lifts the veil on its new business plan to 2025 and remains faithful to its vocation as a bank with very generous dividend policies.
The new business plan pledges to return more than €22 billion to investors, confirming Intesa Sanpaolo’s pole position among the leading European banks in terms of shareholder generosity and responding to the €16 billion pledged by UniCredit in its 2021-2024 plan announced last December.
Specifically, over the four-year period, the Group in committed to distribute over €22 billion to shareholders through cash dividends with a payout ratio of 70% each year of the plan and a €3.4 billion buyback in 2022; any further distribution will be assessed year by year starting from 2023. As part of its 2022-2025 business plan, Intesa Sanpaolo also aims to increase its net profit from €4.2 billion (in 2021) to €6.5 billion.
A significant increase in profitability is expected with ROTE and ROE rising to 13.9% and 11.6% respectively in 2025, from 9.1% and 7.6% in 2021.
Gross current income is expected to rise to €10.1 billion in 2025, from €6.6 billion in 2021.
The Group led by Carlo Messina also expects a net profit of around €5 billion in 2022, after having achieved its 2021 target of profits in excess of €4 billion.
The Group’s ambition is to become a ‘zero-NPL’ bank with no impact from calendar provisioning; in this respect, Intesa Sanpaolo expects an NPL reduction in 2025 to €9.3 billion gross, from €15.2 billion in 2021, and €4.6 billion net, from €7.1 billion in 2021.
Under the new 2022-2025 business plan, Intesa Sanpaolo is committed to creating value of over
€520 billion for all stakeholders. The shareholder return policies are accompanied by policies for households and businesses with medium/long-term new lending to the real economy of €328 billion.
New lending to support non-profit activities, vulnerable individuals and young people is expected to amount to €25 billion; for people in need, youth and seniors, investments and donations of around €500 million are planned; for the environment, new lending to the green economy, the circular economy and the green transition is expected to amount to €88 billion, with a strong focus on supporting the green transition of corporates and SMEs.
With regard to personnel, the business plan provides for the hiring of approximately 4,600 people.
Equita Sim pointed out that the plan’s targets are consistent with expectations, with a significant return to shareholders.
LaPresse SpA Communication and Press Office Director
Barbara Sanicola – [email protected] – +39 02 26305578 – M +39 333 3905243
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