Intesa Sanpaolo’s 2026–2029 Growth and ESG Strategy

With the approval of its 2026-2029 Business Plan, Intesa Sanpaolo presents a medium-term strategy that combines financial strength, sustainable growth, and ESG leadership, further strengthening its role in the European banking system.

The Plan is based on three major numerical targets that summarize its ambition: net income exceeding €11.5 billion in 2029, total distributions to shareholders of approximately €50 billion, with a payout ratio of approximately 95% annually, and value creation of approximately €500 billion for all stakeholders over the four-year period. Alongside these financial objectives, a renewed commitment to ESG is reaffirmed and strengthened.

This commitment runs throughout the Plan and translates into social investments, support for the sustainable transition, and a structural focus on the Group’s people. Value creation is not limited to shareholders, but extends to families, businesses, Intesa employees, and communities. In a complex macroeconomic context, the Plan proposes a model for a modern, digital, and responsible bank, focused on the long term and on building truly sustainable development.

A solid, efficient and “zero NPL” group

The Plan aims to consolidate Intesa Sanpaolo as an extremely solid banking group, with a resilient and low-risk business model. Maintaining its “zero NPL” status, with a non-performing loan ratio below 1% for the entire 2026-2029 period, represents a distinctive element in the European landscape.

Credit quality, combined with a low cost of risk of between 25 and 30 basis points, allows the bank to sustain growth without compromising stability. Capitalization remains high, with a Common Equity Tier 1 ratio consistently above 12.5%, ensuring flexibility and the ability to absorb any macroeconomic shocks.

Revenue growth and strong value creation

Intesa’s plan envisages revenue growth in line with nominal GDP, with a CAGR of net operating income of approximately 3%, reaching €30.7 billion in 2029. The main driver of growth is commissions, supported by the development of wealth management, insurance, and advisory services.

This approach reduces dependence on net interest income and makes the business model more stable over time. Profitability is expected to improve significantly, with ROE reaching 22% and ROTE reaching 27% in 2029, among the highest levels in the European banking sector.

For shareholders, the Plan envisages distributions of approximately €50 billion between 2025 and 2029, with a payout ratio of 95% in the years 2026-2029, combining cash dividends and buyback programs.

Structural cost reduction and digital innovation

Another pillar of Intesa’s Plan is structural cost reduction, made possible by the significant technological investments already made and those planned for the four-year period. Operating costs will fall to €11.3 billion in 2029, despite new investments for growth.

The cost/income ratio is expected to improve by more than five percentage points, to 36.8%, thanks to process efficiency improvements and the expansion of digital platforms. The technological transformation also enables more efficient use of resources, improving the quality of customer service and internal productivity.

ESG – Social Impact and Community Support

The 2026-2029 Plan significantly strengthens Intesa Sanpaolo’s leadership in social impact. Over the four-year period, an additional contribution of approximately €1 billion is planned to combat poverty and reduce inequality, with an estimated multiplier effect of approximately €3 billion on the socioeconomic ecosystem.

30% of the total new medium-long term credit disbursed in the 2026-2029 period will be sustainable lending, for an estimated value of 25 billion euros in cumulative flows over the four-year period.

The bank aims to be a key player in inclusive development, supporting families, businesses, and the third sector, and affirming a vision of sustainability that goes beyond the environmental dimension.

ESG – Sustainable Transition and Decarbonization of Intesa

On the environmental front, the Plan provides strong support for the sustainable transition. Thirty percent of the new medium- to long-term credit will be allocated to sustainable lending, including financing for environmental, social, and governance projects.

The Group’s decarbonization objectives are confirmed, with a net-zero target for 2030 for financed and own emissions, as well as for asset management and insurance activities. This commitment positions the Group among the leading European players in supporting the green transition of the real economy.

ESG – People as a key resource

The Group’s people are at the heart of Intesa’s Plan. Intesa Sanpaolo plans significant investments in human capital, with training and retraining programs that will involve approximately 10,000 people, as well as 8,000 young people enrolled in dedicated development programs.

Each year, approximately 20,000 employees will participate in advanced training programs, strengthening their digital, consulting, and managerial skills. Generational turnover will be managed responsibly, without social impact, confirming the Group’s focus on welfare and work-life balance.

Strengthening the Group’s culture by promoting a Group Culture Code and involving all Group employees in initiatives to communicate the Group’s culture between 2026 and 2029.

Intesa’s international expansion and new service models

The Plan also focuses on international growth, particularly in wealth management, with the launch of isywealth Europe. This initiative combines digital and financial advisory services to serve clients in various European countries, leveraging Group synergies.

At the same time, significant growth is expected in the customer base, financial assets under management, and assets under administration, strengthening Intesa’s competitive positioning in key markets.

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(Featured image by Kseniia Zapiatkina via Unsplash)

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