Greetings Investors,
today we are talking about $ISP.MI (Intesa Sanpaolo Group) . Intesa San Paolo is one of the most important banking institutions in Europe, with branches across Europe and worldwide: group.intesasanpaolo.com/en/about-us Check this link for a convenient map and a brief list that will give you an idea of the bank's global presence. It is a leader in Italy, with a strong presence in all banking sectors: from retail to wealth management. Both senior management and various analysts and agencies have expressed confidence in the bank, even in the case of low-interest rates, which would not affect its ability to generate income, thanks to its well-diversified portfolio and some key strengths:
• SOLID CAPITAL POSITION: Cet1 at 13.2%, Tier1 at 15.7%, capital adequacy ratio at 18.6%. The minimum regulatory limits set by the ECB are: Cet1 7%, Tier 1 6%, capital adequacy ratio 10.5%. Cet1 represents primary capital - derived from retained earnings and common stock -, Tier1 is the ratio of primary capital - Cet1 - to risk-weighted assets, the capital adequacy ratio is the ratio of Tier1 to Tier2 - the latter consists of subordinated debt and hybrid instruments -. The higher these percentages, the more the bank can manage risky activities and absorb losses. We can see that these main indicators of a European bank's health are excellent for Intesa San Paolo, indicating the strength of its accounts.
• NPL: the bank excels in risk management, in fact, it is defined as zero NPL, meaning the risk of bad loans is near zero;
• DIVERSIFIED PORTFOLIO: retail, corporate, investment banking, insurance, wealth management. It is present and well-established in each of these sectors;
• WEALTH MANAGEMENT: Intesa San Paolo holds leadership in this sector, with €1.3 trillion in financial assets of wealthy clients. This segment generates high and stable fees, contributing significantly to the bank’s profit. For those wondering what wealth management is, it is simply a service for high-net-worth clients, ranging from financial and tax planning, to investment management and asset protection;
• TECHNOLOGY: the bank invests heavily in new technologies, with an IT investment plan of €5 billion. Among these innovations is Isybank, the digital bank aimed at reducing operating costs while improving efficiency. I must be honest: when it comes to Isybank, I am still gathering information to fully understand to what extent the goal has been achieved.
• ESG COMMITMENT: the bank has a strong commitment to environmental, social, and governance sustainability. Below I will present some virtuous examples of this commitment.
From this summary, you can understand how the bank's portfolio is structured, which does not fear a rate cut by the ECB thanks to a business model strongly based on fees, not to mention its operational efficiency. In fact, it has one of the best cost/income ratios in Europe.
It is very sensitive to ESG practices - in 2023, it was named the best European bank for investor relations and ESG - and to the green economy, as well as being present nationally with numerous initiatives to support Italian companies, particularly SMEs.
VIRTUOUS ESG EXAMPLES AND MORE
Internally, the bank is particularly attentive to ESG practices and the use of AI to optimize and speed up internal processes. In Italy, it is one of the most advanced if not the leader in this area.
In Lombardy alone, the bank has helped about 800 companies obtain PNRR funds, showing it follows its clients with great care and professionalism. In the green sector, as an example, it provided €10 million in financing to Agricola Moderna, a vertical farming company without pesticides, reduced emissions, and 95% less water consumption.
It launched the "Motore Italia Transizione Energetica" initiative, announced in April 2023, which aims to encourage companies to invest in renewable energy. With a €76 billion plafond, it aims to promote the energy autonomy of Italian companies to increase their competitiveness, with economic, social, and environmental benefits. Furthermore, with this program, it aims to contribute to the creation of Renewable Energy Communities (CERs): these represent a project for self-production of electricity from green sources. For further insight: group.intesasanpaolo.com/it/newsroom/tutte-le-news/news/2023/transizione-energetica-76mld-per-investimenti#:~:text=Intesa%20Sanpaolo%20presenta%20il%20nuovo,Comunit%C3%A0%20Energetiche%20Rinnovabili%20(CER)
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It also launched NEVA SGR funds. Neva is a venture capital fund of Asset Management within the ISP group. Initially, two funds were launched: • NEVA FIRST: €250 million invested in Italy and abroad, with a minimum investment in the Italian market of 30%. • NEVA FIRST ITALIA: co-invests with the NEVA... Show More
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Wed Jun 25 2025 04:26:53 GMT+0000 (Coordinated Universal Time)
