Why this issue is significant

One of the Group’s priority objectives is to preserve the sustainability of results in a macroeconomic scenario still unstable due to the continuing crisis. Considerable attention - in addition to profitability targets - is given to actions aimed at further strengthening the strong capital base and improving the risk and liquidity profiles. The capital base remains high, whilst the risk profile remains relatively low. The results of the assessment conducted in 2014 by the European Central Bank and the European Banking Authority on asset quality and on the impact simulation of a negative macroeconomic scenario on capital base were well above the minimum thresholds set by the Comprehensive Assessment. Being a solid bank with growing profitability means that we can make a positive contribution to the interests of shareholders and all stakeholders. With the new 2014-2017 Business Plan, quarter by quarter we have begun to achieve important results that demonstrate our capacity to hold true to commitments made to the markets. In 2014 the revenues generated allowed us to resolve to distribute dividends amounting to 1.2 billion euro, maintain the commitment to protect jobs for employees and to operate alongside our customers, including those in potential difficulty, implementing processes and internal structures to avoid the deterioration of our credit fundamentals.






Results achieved

The consolidated results as at 31 December 2014 recorded strong profitability growth, above the 2014-2017 Business Plan targets, proposed cash dividends amounting to 1.2 billion euro to be distributed to shareholders, strong capital base, net income of 1,251 million euro, with a positive trend in net interest income and strong growth in net fee and commission income, strong asset management performance and reduction in provisions reflecting an improving credit trend.

How it is managed

All the company departments are involved in implementing business solidity and profitability protection policies.
Among other things, the Management Board of the Parent Company is responsible for: formulating proposals on general planning and strategic guidelines of the Bank and the Group to be submitted to the Supervisory Board for approval; preparing business and/or financial plans and the budget of the Bank and the Group to be submitted to the Supervisory Board for approval; periodically monitoring the implementation of strategic, business and/or financial plans of the Bank and the Group; proposing risk management guidelines and policies to be submitted to the Supervisory Board for approval.
The corporate policies take into consideration the analysis and economic debate of Italy's main structural problems and of issues relating to the international economy important to the Group. The aim is to continue being a reference Bank for the country's real economy, with the reciprocal benefit of long-term growth.

Departments/Functions in charge

The Supervisory Board is responsible for guidance, strategic supervision and control of the Bank and, taking Management Board proposals into account, decides on the general planning and strategic guidelines of the Bank and the Group, approves the business and/or financial plans and the budget of the Bank and the Group, along with any amendments, authorises strategic transactions and approves the strategic guidelines and policies on risk management.     

Performance indicators and objectives achieved

Indicator2014 progress statusExpected 2017 result
Growth in Revenues +4% vs. 2013 +4% (2013-2017 average)
Percentage of Net fee and commission income/Total revenues 40% (+2 pp vs. 2013) 43%
Cost/Income 50.6% (-50 bps vs. 2013) 46.1%
Cost of credit 134 bps (-73 bps vs. 2013) 80 bps
CET1 – Fully Loaded 13.3% (+1 pp vs. 2013) 12.2%
LCR and NSFR >100% >100%
Financial Leverage* 17 approx. 17 approx.

(*) Total Tangible Assets/Total Return on Tangible Equity, including Net Income, net of dividends paid or payable and excluding Goodwill and other intangible items.