Intesa wealth management, over 900 billion under management

A strong half-year for Intesa Sanpaolo's wealth management divisions. With total assets under management of EUR 909 billion (they were 862 as at 30 June 2024) and a consolidated net profit of EUR 1.6 billion, the pole led by Tommaso Corcos confirmed its leadership position, ranking sixth in the European ranking with a market share of 6% (out of the top ten operators) and in first place in the Italian market.

Net operating income rose to EUR 3.1 billion, with a cost/income ratio of 25 per cent, considered the best result ever. "Today, Intesa Sanpaolo's asset management, insurance and private banking divisions are best positioned to address new market trends," Corcos said at the press conference presenting the area's results, projects and strategies. "The creation of the Wealth Management hub, which combines product factories with networks of financial advisors and private bankers, has led us to manage EUR 909 billion of customers". Lightweight structure, cost containment with aligned director's cabins on commissions, strategies and products, and consolidated brands are among the key points that have favoured this growth.

 Esg criteria also continue to be a priority with many spaces still to be covered in Europe, some left vacant by some large groups that have backed off on this front. In addition to the human factor and the centrality of the client, among the new market trends being closely followed is that of longevity, while on the supply side there are channels dedicated to younger people, and their increasingly digital propensity, and others ad hoc for more sophisticated clients, more attentive to obtaining high returns through private market and private deal instruments. "Insurance, consultancy and asset management contribute 42% to Intesa Sanpaolo's gross current income," Corcos added. "The enhancement of consultancy extended also to protection and pensions, production and distribution synergies and the group's bancassurance model, unique in Italy, bring benefits for customers, also thanks to increasingly innovative digital infrastructures.

As far as the Private banking division is concerned, CEO Lino Mainolfi rattled off some important figures: assets under management of EUR 402 billion with inflows of EUR 5.8 billion (EUR 44 billion over the past three and a half years). Moreover, the division can count on a network of 6,940 bankers with an average per capita portfolio of 58 million (over 350 new professionals since the beginning of the year) and a consolidated net profit of 813 million. Mainolfi also emphasised the importance of consultancy, an essential element for proper planning, of territorial presence, and of training. "We can count on a well-established network based on four brands, and we invest heavily in people and their skills. Recruitment is essential to continue growing'. Also important is the international presence with the Swiss and Luxembourg hubs and the increasingly fundamental role of technology with the Isytech platform that will enable digital wealth management at European level.

On the insurance side, the division's key figures (which has reached the 10-year milestone) are EUR 8.6 billion in life and pension gross inflows, EUR 862 million in non-life business, EUR 176 billion in technical reserves and a net profit of EUR 482 million. As far as asset management is concerned, Eurizon is the leading operator in Italy with positive net inflows of 3.6 billion and assets up to 397 billion with a market share of 20.8%. Net commissions, net of incentive commissions, amount to 429 million, while cost income is 22.5%. "This figure," explained Eurizon CEO Maria Luisa Gota, "is half that of international asset managers controlled by banks. This indicates an efficiency in the investment process that exploits all competences and is unique at international level'. Finally, it should be noted that the penetration of Eurizon funds in private portfolios has risen by 18 per cent.