Intesa Sanpaolo: 60 per cent of synergies from the MPS integration to be achieved by 2028

(Il Sole 24 Ore Radiocor) - Intesa Sanpaolo expects to realise the full potential of the estimated 2.9 billion gross synergies from the MPS transaction in 2029, whilst 60 per cent will be achieved as early as 2028. The bank clarified this in response to questions from shareholders ahead of Thursday’s general meeting, which will be called upon to approve the capital increase to fund the public takeover bid for Rocca Salimbeni. Ca’ de Sass reiterates that ‘the completion of the bid would facilitate the creation of one of Europe’s leading financial players’ and points out that the transaction will lead to an increase in profit and dividend per share of approximately 8 per cent by 2029. Shareholders will receive around 61 billion over the period 2025–2029 (compared with the 50 billion envisaged in Intesa’s stand-alone plan), with a total payout of 95 per cent, of which 75 per cent will be in cash and 20 per cent through share buybacks. In the two-year period 2026–2027, extraordinary cash distributions totalling 2.7 billion are also planned. With a view to the subsequent sale of part of the MPS assets to Unipol, Intesa further notes that ‘the higher profitability of the business retained by Intesa Sanpaolo stems both from the fact that the sale of the banking business to Unipol also includes the majority of the central functions (necessary to ensure that thethe entity to be transferred to Unipol can operate as an autonomous and independent bank) and the associated costs, and from the fact that some of the most profitable segments, such as the wealth management and consumer credit activities attributable to Mediobanca, are not included in the scope of the disposal’.

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