Intesa Sanpaolo Targets $13.6 Billion Profit by 2029

MILAN, 2 February – Italy’s largest bank, Intesa Sanpaolo (ISP.MI), unveiled on Monday an ambitious new strategy aiming to lift net profit by nearly 25% by 2029, exceeding €11.5 billion ($13.6 billion), while returning approximately €50 billion to shareholders over the four-year period.

The bank’s 2026–2029 strategic plan focuses on reducing costs, boosting fee-based income, and expanding selectively across Europe. Intesa expects annual fee-driven revenue growth of around 3% and aims to lower its cost-to-income ratio from 42.2% in 2025 to 36.8% by 2029, reflecting its emphasis on operational efficiency.

Intesa has faced antitrust restrictions on domestic expansion following its 2020 acquisition of UBI Banca, which prevented it from participating in last year’s wave of Italian banking sector consolidations. In a move to broaden its European footprint, the bank plans to invest €200 million to introduce wealth management services in France, Germany, and Spain.

As the first Italian bank to report full-year results for 2025, Intesa posted a net profit of €9.3 billion, slightly above analyst expectations. For 2026, the bank forecasts net income of roughly €10 billion. From 2025 profits, Intesa will distribute €6.5 billion in cash dividends and deploy €2.3 billion for share buybacks beginning in July.

Under the new strategy, Intesa intends to distribute 95% of annual profits between 2026 and 2029, increasing its cash dividend payout ratio from 70% to 75%, with the remainder allocated to share repurchases. The bank will review additional distributions each year starting in 2027.

European banks have benefited from surging valuations in recent years as rising interest rates boosted profits, enabling record dividends and share buybacks. Intesa itself plans to invest around €5 billion in technology over the period to support growth and efficiency.

Key Highlights of Intesa Sanpaolo 2026–2029 Strategy

With its robust balance sheet, targeted cost reductions, and European expansion plans, Intesa Sanpaolo positions itself to remain a leading force in Italy and the broader European banking sector.