Intesa Sanpaolo(US:ISNPY)2022-02-04 19:53Financial 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]