Financial Data and Key Metrics Changes - In Q1 2022, the company reported a net income of €1.7 billion, the best quarterly performance since 2008 when excluding provisions for the Russia-Ukraine exposure [9][31][49] - The company provisioned €800 million for the Russia-Ukraine exposure, which impacted the net income [9][34] - The outlook for 2022 was revised to more than €4 billion net income, assuming no critical changes to commodity supplies [10][53] Business Line Data and Key Metrics Changes - Net interest income grew over 1% on a quarterly basis, with a 1.3% increase when adjusted for the number of days [14][35] - Commission income saw a 1% year-on-year growth, with significant contributions from wealth management and insurance [32][24] - Operating costs decreased by 3.2% year-on-year, improving the cost-income ratio to 46.3% [21][15] Market Data and Key Metrics Changes - The company reported a €28 billion increase in short-term direct deposits year-on-year, which will support wealth management growth [24][36] - The NPL stock is now lower than €6 billion, with an NPL ratio of just 1%, positioning the company among the best in Europe [20][50] Company Strategy and Development Direction - The new business plan focuses on four pillars: massive upfront de-risking, structural cost reduction, growth in commissions, and significant ESG commitment [16][30] - The company aims to achieve a net income target of €6.5 billion by 2025, with a 70% payout ratio each year [12][53] - The company is transitioning towards a digital bank with the establishment of Isybank and significant investments in technology [22][29] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in the company's resilience and ability to navigate the challenging environment, citing strong fundamentals in the Italian economy [47][49] - The management highlighted that the company is well-equipped to handle the impact of the Russia-Ukraine conflict, with a limited exposure of just 1% of group customer loans [39][41] - The management remains optimistic about achieving profitability targets despite geopolitical uncertainties [53][70] Other Important Information - The company has committed €10 million to support humanitarian initiatives related to the Ukraine crisis and has assisted employees affected by the conflict [28][27] - The company has a strong capital position with a fully phased common equity Tier 1 ratio of 13.6% [42][86] Q&A Session Summary Question: Share buyback approval status - The company submitted the buyback proposal to the ECB on April 1, 2022, and expects approval within 90 days [60][63] Question: Cost and IT investments flexibility - The company retains flexibility in its IT investments and does not foresee delays, emphasizing the importance of technological upgrades [64][66] Question: Profitability outlook assumptions - The management provided insights into the assumptions behind the profitability outlook, indicating a conservative approach to provisioning and exposure management [68][70] Question: Provisions for Russia and Ukraine exposures - The management explained the rationale behind the provisions for Russia and Ukraine, emphasizing a country risk approach [100][104] Question: Interest rate sensitivity - The management confirmed that for every 50 basis points increase in interest rates, net interest income could increase by more than €900 million [37][115]

A strong bank for a sustainable world 1Q22 Results Solid operating performance in a challenging environment Fully focused on executing the 2022-2025 Business Plan May 6, 2022 MIL-BVA362-03032014-90141/VR ISP delivered solid operating performance in a challenging environment, thanks to a well-diversified and resilient business model Execution of the 2022-2025 Business Plan proceeding at full speed, with key industrial initiatives well underway €1.7bn Net income excluding €0.8bn provisions/writedowns for Russ ...

Financial Data and Key Metrics Changes - In 2021, the company achieved a net income of €4.2 billion, the best year since 2007, reaching €5.3 billion when excluding additional provisions for deleveraging [13][14] - Revenues increased by 2%, with operating margin rising over 5%, marking the best year ever for the company [22] - The company plans to achieve a net income above €5 billion in 2022, with a payout ratio of 70% [29] Business Line Data and Key Metrics Changes - Commissions reached a record high, growing over 9% compared to the previous year, offsetting the decline in net interest income [20] - Customer financial assets grew by €90 billion on a yearly basis, with net inflows into assets under management positive by €17 billion [24] - Administrative costs decreased by almost 6% compared to last year, translating into a cumulative reduction of €600 million over the past four years [25] Market Data and Key Metrics Changes - The company reported a significant increase in retail direct customer deposits, with more than €20 billion added in the last quarter [21] - Gross NPL decreased by €10.5 billion on a yearly basis, with NPL ratios and stocks now among the best in Europe [26][27] - The fully loaded common equity Tier 1 ratio stood at 15.2%, indicating a strong capital position [27] Company Strategy and Development Direction - The company’s strategy is focused on revenue growth, efficiency, and derisking, with a goal to become a 0 NPL bank [7][32] - The new business plan emphasizes massive upfront derisking, structural cost reduction, growth in commissions, and significant ESG commitment [10][38] - The creation of a new digital bank, Easybank, aims to serve 4 million clients and enhance competitiveness against fintech challengers [56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a net income of €6.5 billion by 2025, with a strong capital position and low NPL ratios [32][41] - The outlook for 2022 is positive, with expectations of increasing revenues and a strong decline in cost of risk [29] - The company aims to contribute over €520 billion to the real economy over the next 40 years, reinforcing its commitment to social impact [47] Other Important Information - The company plans to return more than €22 billion to shareholders, primarily through cash dividends, with a commitment to increase distributions year by year [111] - A significant focus on ESG initiatives includes a commitment to net zero by 2030 and substantial investments in social housing and financial inclusion [104][102] Q&A Session Summary Question: What are the key targets for the new business plan? - The company aims for a net income of €6.5 billion by 2025, maintaining a very low NPL level and increasing revenues through commissions and insurance income [32][41] Question: How does the company plan to address fintech competition? - The creation of Easybank will allow the company to serve digital clients more efficiently and protect its retail franchise against fintech threats [56] Question: What is the company's approach to ESG commitments? - The company is committed to significant contributions to society, including €500 million for social needs and €90 billion in new lending for the green transition [100][104]