Intesa Sanpaolo's board of directors today approves the new 2018-2021 four-year plan that CEO Carlo Messina will present to the financial community and the market on Tuesday.
The new plan will crown the gradual shift of the center of gravity from the traditional activities of the leading Italian commercial bank to an increasingly accentuated vocation for wealth management, which includes managed savings, private banking and development in the insurance field.
But, in addition to the redefinition of the general strategy and the consequent organizational adjustments, the market expects two things above all: a boost in the accelerator on the disposal of NPLs and the identification of the moves necessary to keep the pay-out high even in the next few years. of Intesa Sanpaolo, the leading bank in the distribution of rich coupons to shareholders who have reached 10 billion in four years.
For the reduction of risky loans, which according to the latest estimates amount to 54 billion gross, of which 35 of non-performing loans, the Messina bank is about to announce the sale to foreign operators of a stock of over 10 billion Npl with no impact on the income statement but only on capital ratios that are well beyond the levels set by the ECB.
As for the profitability necessary to generate profits and dividends, the new business plan will combine cost cutting and revenue acceleration, without forgetting that an increase in rates is looming on the horizon which could have significant repercussions on the growth of the interest margin . To reduce costs, Intesa Sanpaolo's new plan will focus on the full integration of the Veneto banks (Popolare di Vicenza and Veneto Banca) and on the incorporation of Banco di Napoli (without however losing the brand) and other local banks and on the reduction of branches and employees in agreement with the trade unions.
To raise the group's revenues Messina will instead leverage more than ever on asset management - which is headed by Eurizon Capital, Fideuram and Intesa Private Banking - and on the development of the insurance business (Intesa Vita) which will increasingly become the heart of the group which focuses above all on wealth management.
