Intesa Sanpaolo

Intesa Sanpaolo is an Italian banking group that was formed in 2007 from the merger of two banks, Banca Intesa and Sanpaolo IMI. It is headquartered in Turin, Italy and is considered one of the largest banking groups in the Eurozone.

The bank offers a wide range of financial products and services to individuals, small and medium-sized enterprises (SMEs), corporate clients, and public institutions. Its services include traditional banking activities such as deposits, loans, mortgages, and credit cards, as well as investment banking, asset management, and insurance services.

Intesa Sanpaolo has a strong presence in Italy with a network of over 4,500 branches and more than 11 million customers. It has also expanded internationally, with operations in Central and Eastern Europe, the Middle East, and North Africa, as well as in the United States and Asia.

The bank places great emphasis on sustainability and has developed a comprehensive sustainability strategy to integrate environmental, social, and governance (ESG) factors into its business activities. In 2020, Intesa Sanpaolo was included in the Dow Jones Sustainability Index for the 14th consecutive year, highlighting its commitment to sustainable development.

Intesa Sanpaolo has also been actively involved in supporting the communities it serves through various initiatives such as cultural sponsorships, educational programs, and social welfare projects. The bank has donated significant funds towards medical research, environmental protection, and disaster relief efforts.

In recent years, Intesa Sanpaolo has undertaken several strategic initiatives to strengthen its position as a leading banking group. In 2018, the bank acquired a majority stake in the payment services provider, Nexi, and formed a strategic partnership to develop new digital payment solutions. In 2020, Intesa Sanpaolo completed the acquisition of UBI Banca, further consolidating its position in the Italian market.

Banca Intesa and Sanpaolo IMI, the two banks that merged in 2007 to create Intesa Sanpaolo, were themselves the product of many mergers. Cariplo and Banco Ambrosiano Veneto merged in 1998 to form Banca Intesa. The following year Banca Commerciale Italiana joined the group. Sanpaolo IMI was born in 1998 following the merger of Istituto Bancario San Paolo di Torino, which specialized in retail banking, and IMI, an investment bank.

The oldest part of the banking group is Cariplo Sp.A. which traces its roots to the Austrian Empire household savings bank Cassa di Risparmio delle Provincie Lombarde which was established in 1823 in Milan. The cassa di risparmio was started by an Italian philanthropic group, the Central Committee of Charity; a response by the government to the hard economic times of the early 19th century. In the early 20th century the bank helped Italian companies in the North obtain capital during and after World Wars I and II, chiefly under the guidance of Giordano Dell'Amore. Banking reforms in 1990 started by Giuliano Amato led to the restructuring/reorganization of banks by forcing the government to relinquish control of them. Cariplo SpA was formed in 1991 when Cassa di Risparmio delle Provincie Lombarde merged with its subsidiary IBI. Banco Ambrosiano Veneto originated with Nuovo Banco Ambrosiano and Banca Cattolica del Veneto which merged in 1989. The bank increased in size during the 1990s due to numerous acquisitions.

Banca Commerciale Italiana started in 1894 as a corporate loans lender operating in the commercial industry of Northern Italy. In 1994 Mediobanca purchased an interest in BCI. BCI tried to acquire Banco Ambrosiano Veneto the same year but was spurned by shareholders who wouldn't accept the US$1.13 billion offer. In 1999 Italy's largest bank Unicredit Group at the time attempted a hostile takeover of BCI but failed due to Mediobanca's interest in the company. BCI merged with the former Banca Ambrosiano and Cariplo in 1998 to form a financial institution renamed Banca Intesa in 2003.

Sanpaolo IMI was formed in 1998 when Istituto Bancario San Paolo di Torino and Istituto Mobiliare Italiano merged, in a US 37.8 billion dollar deal.

In January 2007, Banca Intesa and Sanpaolo IMI, two of the three largest banks in Italy, officially merged. As part of the authorization of the merger, the Italian Competition Authority forbid Intesa Sanpaolo to open any new branches for two years in the provinces of Udine and Gorizia, provinces of Rovigo and Padua, Aosta Valley, provinces of Biella and Alessandria, Province of Bolzano, Province of Bologna, Province of Pavia, Province of Naples, Province of Imperia, provinces of Sassari and Cagliari, Province of Rieti, province of Terni, Province of Pesaro-Urbino, Province of Pescara and Province of Catanzaro. The French banking group Crédit Agricole started to spin off from Intesa Sanpaolo, by acquiring Cariparma, FriulAdria in 2007 and Carispezia in 2011, as well as branches from Intesa Sanpaolo. In 2012, Crédit Agricole sold all the shares of Intesa Sanpaolo. In December 2007, Cassa di Risparmio di Biella e Vercelli was also sold to Banca Monte dei Paschi di Siena for €399 million.In 2008, Intesa Sanpaolo acquired Banca CR Firenze. In December, Cassa di Risparmio di Fano was sold to Credito Valtellinese.

In 2009, group acquisitions included a 30% interest in business info company MF Honyvem, and an increased stake in Alitalia – Compagnia Aerea Italiana up to 33.3% Even though the bank was rumoured to have been working with the government to keep Air France from acquiring a stake in Alitalia, Air France eventually acquired 25%. Alitalia – Compagnia Aerea Italiana sold part of its stake in the airline to Etihad Airways in 2015.

From 2012 to 2013, Intesa Sanpaolo wrote down the value of the investment in Banca delle Marche for a total of €90 million, as well as €26 million for a minority stake in Cassa di Risparmio della Provincia di Chieti in 2014. The shareholders of the banks were bail-in in the rescue plan in 2015. Cassa di Risparmio di Venezia and Banca di Credito Sardo were absorbed into Intesa Sanpaolo. The 2014–17 business plan of the bank stated that the banking group would simplify their legal structure. In 2015, local banks Banca Monte Parma, Banca di Trento e Bolzano, Cassa di Risparmio di Civitavecchia, Cassa di Risparmio di Rieti and Cassa di Risparmio della Provincia di Viterbo were absorbed into Intesa Sanpaolo. Banca dell'Adriatico and Casse di Risparmio dell'Umbria were planned to be absorb by Intesa Sanpaolo in mid-2016. A unified website was also used for the remaining retail banks of the group. 

The next year, the banking group also sold their non-core businesses, such as the 0.49% ordinary shares of Visa Europe in cash plus share deal; Intesa Sanpaolo Card and subsidiary Setefi to Mercury for €1.035 billion and 4.88% shares of Bank of Italy to the bank's shareholders Compagnia di San Paolo, Fondazione Cariplo and the pension funds of the group for €366 million. In June, as part of a government-funded bailout of the depositors, Intesa Sanpaolo acquired the good assets of Banca Popolare di Vicenza and Veneto Banca, including some of the subsidiaries such as Banca Apulia and Banca Nuova. The branches of BPVi and Veneto Banca would at first become branches of Intesa Sanpaolo, but some of them would be closed down in the near future for efficiency, as Intesa Sanpaolo was also one of the major banks in the Veneto region which the failed banks based. In October 2017, the plan to absorb Banca Nuova into Intesa Sanpaolo was also announced. In December 2017, the plan to absorb Cassa di Risparmio del Friuli Venezia Giulia was announced.

On 6 February 2018, 10 further mergers were announced in the 2018–2021 business plan: Banco di Napoli. Banca CR Firenze, CR Pistoia e della Lucchesia, CR Veneto, Carisbo, Cariromagna, Banca Apulia, Banca IMI, Banca Prossima and Mediocredito Italiano. On 17 February 2020, Carlo Messina unexpectedly announced the launch of a voluntary OPS for 4.9 billion euros towards UBI Banca which provided for the delivery of 17 Intesa Sanpaolo shares for every 10 UBI Banca shares newly issued with a premium of 27.6% compared to the stock market listing on Friday 14 February. In addition, on 27 April 2020 Intesa, which has access to three million UBI customers, obtained from the extraordinary shareholders' meeting the approval of a capital increase in support of the takeover bid.

The operation is complex as, to prevent possible problems with the Antitrust Authority, it involves other companies. UnipolSai has already reached an agreement to take over the business branches of the insurance companies Banca Assurance Popolari, Lombardia Vita and Aviva Italia, owned by UBI. The Bolognese insurance group supported the share capital increase of 802.26 million euros of BPER Banca, the Emilian bank of which it is the first shareholder with 19.9%. In turn, BPER has already signed a contract with Intesa which provides for the purchase of 532 UBI branches with approximately 1.2 million customers, of which approximately half are in Lombardy. In July 2020, the antitrust authority ordered Intesa to sell as many of its own branches, in the event that the public subscription offer does not reach 67% of the shares. The transaction, which obtained the approval of various Italian and European authorities, led to the delisting of UBI and provides for the merger between the two banks.

The sale is scheduled for the end of 2020, with the aim of closing the financial statements in April 2021, presenting a credit institution in seventh place in Europe in terms of size, with a value of assets under management of 1.1 trillion, loans for 460 billion and profits for five. The offer ends on 30 July 2020 with the achievement of 91.0149% of the capital of UBI. Therefore, having exceeded 90% of the share capital, the delisting procedures have begun which have led Intesa Sanpaolo to become the sole shareholder of UBI Banca.

Intesa is required to complete the sale of 500 agencies within six months of the completion of the merger. On 5 October 2020 was announced Intesa Sanpaolo's private bank arm has reached an agreement to buy a 69% of Swiss-based bank REYL & Cie.

Intesa Sanpaolo mission is “to promote a style of growth that is attentive to capital and financial soundness, sustainability of results over time and the creation of a virtuous circle based on trust that comes from customer and shareholder satisfaction, from the sense of belonging of the collaborators and from the closeness to the needs of the community and the territories.”

Intesa Sanpaolo's vision is to be a trusted partner for its customers, stakeholders, and communities. The bank aims to build long-term relationships with its customers by providing them with innovative and sustainable financial solutions that meet their needs. In addition, Intesa Sanpaolo is committed to fostering sustainable economic growth and social development in the communities where it operates.

The bank's vision is driven by its core values, which include transparency, ethics, responsibility, and excellence. Intesa Sanpaolo believes that by acting with integrity and promoting social and environmental sustainability, it can create value for all its stakeholders.

Personal Banking: This includes various types of accounts such as current accounts, savings accounts, and deposit accounts. They also offer personal loans, mortgages, credit cards, and insurance products.

Business Banking: Intesa Sanpaolo provides a range of banking products and services for small, medium and large businesses, including corporate loans, project finance, trade finance, leasing, factoring, and cash management.

Investment Banking: The investment banking arm of Intesa Sanpaolo offers services such as mergers and acquisitions, capital markets, equity and debt financing, asset management, and private banking.

Wealth Management: Intesa Sanpaolo offers a range of wealth management services, including financial planning, asset allocation, portfolio management, and retirement planning.

Insurance: They offer a range of insurance products, including life insurance, home insurance, car insurance, health insurance, and travel insurance.

Digital Banking: Intesa Sanpaolo offers a range of digital banking services such as internet banking, mobile banking, online trading, and digital wallets.

International Banking: Intesa Sanpaolo has a strong international presence, offering cross-border banking services, including trade finance, foreign exchange, and correspondent banking.

Asset Management: Intesa Sanpaolo offers asset management services to institutional and retail investors, including mutual funds, pension funds, and hedge funds.

Real Estate: The bank offers real estate services such as real estate financing, brokerage, and management.

Sustainable Finance: Intesa Sanpaolo offers a range of sustainable finance products and services, including green loans, green bonds, and sustainable investments.