Intesa Sanpaolo, Italy’s
largest retail bank, will raise capital of up to €5bn
($7.1bn) to beef up its core tier one ratio, as part of its
2011-2013/2015 Business Plan, published on 6 April.

Intesa Sanpaolo’s
business plan sets out:

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  • 2013 targets, based on moderate
    macro-economic growth assumptions and include management actions
    relating to around 150 projects and
  • 2015 projections which assume a gradually
    normalising macro-economic scenario for 2014-2015 and show the full
    results of projects undertaken during the 2011-2013 period but do
    not include any new management actions and

The 2013 targets and the
2015 projections include only some effects of the €5 bn capital
increase.

In particular, Intesa
Sanpaolo is aiming to reduce its fiscal 2010 cost-income ratio of
56.1% to 46.7% by 2013 with a projected cost-income ratio of 43.0%
by 2015.

The bank said that
international opportunities will grow in the next four years – it
projects a modest increase from 20% to 21% of group revenue derived
from outside Italy – its domestic market will remain the lender’s
key market.

Domestic retail
initiatives include, what the bank termed: “testing new solutions
in the field, for example the ‘Banca dei Territori
laboratory’.”

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Several dozen laboratory
branches will be rolled out to test new segmentation initiatives
and new service models that could then be adopted across the whole
branch network.

The Plan includes a
large investment programme to promote growth and productivity in
the period 2011-2013, including:

  • around €1.2 billion for IT systems and
    back office;
  • about €1.1 billion for the upgrading of
    more than 1,000 branches
  • around €840 million for
    training;
  • €400 million for the development of
    “integrated multichannel system” and new products, and
  • €300 million invested in risk management
    and prevention.