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STRATEGIC Plan

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WINNING BACK OUR FUTURE - UPDATE TO THE 2019-2023 STRATEGIC PLAN

KEY ASSUMPTIONS OF THE PLAN

Clean-up of legacy burdens

• Disposal of all NPE1 (excl. major position) as per end of 2018 by the end of 2019

• High Risk performing portfolio protection

• Penalties for termination / renegotiation of several contracts with external partners

• Impairment of properties in 2019 by 17€M

Capital increase by end of 2019 to comply with guidance (11.8% CET1, 15.3% TCR)

• Conversion of FITD bond 313€M

• Capital increase of 387€M

• Issuance of 200€M of T-2 bond @8.25%

Strategic actions in the business plan

• Simplify commercial bank and focus on households & SME

• Build a relevant player in wealth management building on Cesare Ponti

• Developing a stable funding structure based on deposits and covered bonds reducing relative cost of funding

• Moderate growth of operating income (CAGR 2.8%)2

• Normalization of cost of risk / transition matrices 

• Lean & digital revolution leading to a net cost reduction of ~117€M by 2023 (one off provision of 123€M booked in 2019)

 

1.Except: portfolio evolution,  1 major position, retained securitization , other minor exposures

2. Based on latest Prometeia macroeconomic scenario

 

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