Intesa Sanpaolo

Intesa Sanpaolo S.p.A.

Type	Società per azioni
Traded as	BIT: ISP
Industry	Financial services
Founded	2007 (merger of Banca Intesa and Sanpaolo IMI)
Headquarters	Turin, Italy (secondary headquarters Milan)
Number of locations	7,246 branches (5,581 in Italy and 1,761 abroad) (2011)[1]
Area served	Italy, Central Eastern Europe, Middle East, and North Africa[2]
Key people	Enrico Tommaso Cucchiani (CEO)and(Managing Director), Carlo Messina(CFO)and(General Manager), Gian Maria Gros-Pietro[3] (Chairman of the management board), Giovanni Bazoli (Chairman of the supervisory board), Gaetano Miccichè (General manager)[1]
Products	Retail, investment and private banking, investment management, public finance
Operating income	€16,785 million (2011)>[4]
Profit	€-8,190 million (2011)[4]
Total assets	€639,221 million (2011)[4]
Total equity	€47,040 million (2011)[4]
Employees	100,118 (2011)[1]
Website	www.intesasanpaolo.com

Intesa Sanpaolo is a banking group resulting from the merger between Banca Intesa and Sanpaolo IMI based in Turin, Italy. It has clear leadership in the Italian market and a minor but growing international presence focused on Central-Eastern Europe, the Middle East and North Africa (77% of the bank's revenue (96.3% from Europe) and 86% of all loans to customers come from business in Italy).^[1] When it was formed in 2007 it overtook Unicredit Group as the largest bank in Italy with 13 million customers and $690 billion worth of assets.^[5] By 2010 its assets had grown to $877.66 billion 26th highest among all of the world's companies.^[6][7]

Now is the second largest banking group in Italy, after Unicredit Group.

In 2009 group acquisitions included a 30% interest in business info company MF Honyvem, and an increased stake in Alitalia up to 33.3%^[8] Even though the bank was rumoured to have been working with the government to keep Air France from acquiring a stake in Alitalia Air France eventually acquired 25%.^[9][10]

History [edit]

Intesa Sanpaolo headquarters in piazza San Carlo, Turin

Intesa Sanpaolo secondary headquarters. Ca' de Sass building, Milan

Banca Intesa and Sanpaolo IMI, the two banks that merged in 2007 to create Intesa Sanpaolo, were themselves the product of many mergers.^[11] Cariplo and Banco Ambrosiano Veneto merged in 1998 to form Banca Intesa. The following year Banca Commerciale Italiana joined the group. Sanpaolo IMI was born in 1998 following the merger of Istituto Bancario San Paolo di Torino, which specialized in retail banking, and IMI (Istituto Mobiliare Italiano), an investment bank.^[11]

The oldest part of the banking group is Cariplo spa which traces its roots to Austrian household savings bank Cassa di Risparmio delle Provincie Lombarde which was established in 1823. Cassa di Risparmio was started by an Italian philanthropic group, the Central Committee of Charity; a response by the government to the hard economic times of the early 19th century. In the early 20th century the bank helped Italian companies in the North obtain capital during and after World War 1 and 2, chiefly under the guide of Giordano Dell'Amore. Banking reforms in 1990 started by Giuliano Amato (Amato Law) led to the restructuring/reorganization of banks by forcing the government to relinquish control of them (the result was a more market driven bank that focussed less on social programs/social causes were abandoned).^[12]

Cariplo spa was formed in 1991 when Cassa di Risparmio (sold by Ente Cassa Di Risparmio) merged with IBI. Banco Ambrosiano originated with Nuovo Banco Ambrosiano and Banca Cattolica del Veneto which merged in 1989. The bank increased in size during the 1990s due to numerous acquisitions (Citibank Italia, Banca Vallone di Galatina and European securities dealer Caboto among others).

Banca Commerciale Italiana (BCI) started in 1894 as a corporate loans lender operating in the commercial industry of Northern Italy. In 1994 Mediobanca purchased an interest in BCI (ironically BCI was one of the 3 banks that formed Mediobanca almost 50 years earlier). BCI tried to acquire Banco Ambrosiano Veneto the same year but was spurned by shareholders who wouldn't accept the US$1.13 billion offer. In 1999 Italy's largest bank Unicredit Group attempted a hostile takeover of BCI but failed due to Mediobanca's interest in the company (Mediobanca wanted to merge Banca di Roma with BCI)^[13] BCI merged with the former Banca Ambrosiano and Cariplo in 1998 to form a financial institution renamed Banca Intesa in 2003.

In January 2007 all of these banking entities came together when 2 of Italy's 3 largest banks officially merged (was announced in 2006).^[14] Banca Intesa (the result of a 1997 merger of Cariplo and Banco Ambrosiano) acquired Sanpaolo IMI (Sanpaolo was formed in 1998 when Istituto Bancario San Paolo di Torino and Istituto Mobiliare Italiano (IMI) merged, IMI was established in 1931) in a US 37.8 billion dollar deal.^[5]

Major shareholders [edit]

Intesa Sanpaolo’s shareholders with more than a 2% stake (as of 29 August 2012)^[4]

Corporate Governance [edit]

Intesa Sanpaolo has adopted a dual corporate governance system in which control and strategic management functions, exercised by the supervisory board, are separated from the management of the company's business, which is exercised by the management board. The supervisory board is appointed by the shareholders' meeting. It supervises the activities carried out by the management board and, in particular, it approves the main strategic initiatives proposed by the management board. The management board appoints one of their members to be the CEO.^[15]

Management board

• Chairman: Andrea Beltratti
• Senior deputy chairman: Marcello Sala
• Deputy chairman: Giovanni Costa
• Managing Director and CEO: Enrico Tommaso Cucchiani
• Member: Aureliano Benedetti
• Member: Paolo Campaioli
• Member: Elio Catania
• Member: Roberto Firpo
• Member: Emilio Ottolenghi

The current members were appointed on 7 May 2010 and will remain in office until the supervisory board approves the 2012 financial statements.^[4]

Supervisory board

• Chairman: Giovanni Bazoli
• Deputy chairman: Mario Bertolissi
• Deputy chairwoman: Pietro Garibaldi
• Member: Luigi Arturo Bianchi
• Member: Gianfranco Carbonato
• Member: Rosalba Casiraghi
• Member: Franco Dalla Sega
• Member: Jean-Paul Fitoussi
• Member: Guido Ghisolfi (joined on 16/11/2011, replacing Elsa Fornero, who ceased to hold office)
• Member: Giulio Stefano Lubatti
• Member: Marco Mangiagalli
• Member: Gianni Marchesini
• Member: Fabio Pasquini
• Member: Eugenio Pavarani (joined on 20/07/2011)
• Member: Gianluca Ponzellini
• Member: Gianguido Sacchi Morsiani
• Member: Marco Spadacini
• Member: Livio Torio
• Member: Riccardo Varaldo

Members are elected to a three-year term by the annual general shareholders’ meeting. The current members were appointed on 30 April 2010.^[4]

Financial information [edit]

Table with a comparison of Intesa Sanpaolo financial performance over the last 3 years.^[4]

Business Units [edit]

The group's operations are segmented into 5 parts^[16]

• Banca dei Territori - By far the largest division this is the company's domestic commercial bank in Italy. Subsidiaries include Mediocredito Italiano, Intesa Sanpaolo Private Banking, Banca Prossima, and insurance companies Intesa Sanpaolo Vita, Intesa Sanpaolo Assicura.
• Corporate and Investment Banking - Present in 29 countries this division acts as a "global partner" supporting the development of financial institutions, both nationally and internationally.
• International Subsidiary Banks - Present in 12 countries spanning central eastern Europe, the Middle East, and North Africa.
• Eurizon Capital - One of Italy's largest asset manager^[17] that invests in such things as bonds (including government), publicly traded companies and also engages in short term borrowing and lending. In 2010 another leading European asset manager Pioneer was rumoured to have been interested in joining forces with Eurizon Capital.^[18][19]
• Banca Fideuram - Offers financial advice services. It was created in 1968 as a subsidiary of IMI (later merged with Sanpaolo and then Banca Intesa to form the current company) with the purpose of managing IMI's Luxembourg mutual fund business. In 1992 it was merged with another subsidiary Manusardi, that is when it officially became Banca Fideuram. In 1997 it entered the private banking industry, 2000 it became a broker after acquiring French Company Groupe Wargny (was established in 1806, some of the Wargny business was sold in 2007) then in 2004 its parent company IMI took over its life insurance business. Its association with US company Frank Russell group gave it a foothold in the personal financial planning market.^[20][21]

Banca Intesa [edit]

Banca Intesa S.p.A. is a major Italian bank based in Milan. It was formed in 1998 from the merger of Cassa di Risparmio delle Provincie Lombarde and Banco Ambroveneto. In 1999 Banca Commerciale Italiana entered the group, which pursuant to the merger in 2001 changed its name in IntesaBci; on 1 January 2003, the group's name changed to Banca Intesa.

Retail Division [edit]

The Retail Division serves individuals, small businesses, small and medium enterprises and non-profit organizations; its main activities include retail banking, wealth management, private banking and industrial credit.

Corporate Division [edit]

The Corporate Division serves mid and large corporates, financial institutions and public administrations; its main activities include mergers and acquisitions and structured finance services, merchant banking, capital market, global custody and the specialized international network.

Italian Subsidiary Banks Division [edit]

The Italian Subsidiary Banks Division includes banking subsidiaries rooted in regional markets.

International Subsidiary Banks Division [edit]

The International Subsidiary Banks Division involves subsidiaries abroad, providing retail and commercial banking services mainly in Central-Eastern Europe. Banca Intesa has branches and representative offices in Europe, Asia, Latin and North America, and Africa.

Sanpaolo IMI [edit]

The Gruppo Sanpaolo IMI is one of Italy's major banking and insurance groups and it is based in Turin. It employs about 44,000 people and it has about seven million customers.

It has about 3,200 local offices where private, business and retail banking activities take place. It also cares about savings and retirement funds.

Subsidiaries [edit]

In addition to its strong presence in Italy, Intesa Sanpaolo has branches and representative offices around the world. The Group also directly controls many foreign banks, especially in Central-Eastern Europe and Middle East and North Africa, with around 1,600 branches and about 8.3 million clients operating in retail and commercial banking.^[16][22]

Photo gallery [edit]

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  Palazzo delle Colonne, Intesa Sanpaolo, Milan

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See also [edit]

Companies portal

• Inter-Alpha Group of Banks

References [edit]

1. ^ ^{a b c d} "Annual Report 2011". Intesa Sanpaolo. Retrieved 12 October 2012. 
2. ^ Intesa Sanpaolo Businesses
3. ^ "Biographies". 
4. ^ ^{a b c d e f g h} "Company profile". Borsa Italiana. Retrieved 12 October 2012. 
5. ^ ^{a b} Timmons, Heather (2006-08-28). "Italy's Creation of a Banking Giant Is Seen as a Precursor". The New York Times. 
6. ^ The Global 2000
7. ^ Intesa Sanpaolo S.P.A.
8. ^ "Leali, Other Investors Buy Alitalia Cargo Unit, Corriere Says". 2009-04-02. 
9. ^ Owen, Richard (2008-03-22). "Silvio Berlusconi may save Alitalia from Air France". The Times (London). 
10. ^ Intesa CEO attacks French purchase of Alitalia
11. ^ ^{a b} "History". Intesa Sanpaolo. Retrieved December 14, 2012. 
12. ^ Italy, Europe and Financial Regulation
13. ^ Decision time is near for BCI, Banca di Roma
14. ^ Bosrsa Italiana 2007 Review
15. ^ "Governance model". IntesaSanpaolo. Retrieved October 17, 2012. 
16. ^ ^{a b} "About us". Intesa Sanpaolo. Retrieved November 26, 2012. 
17. ^ "Eurizon Capital SGR implements Charles River Trader". Retrieved November 26, 2012. 
18. ^ "Natixis could be good fit for UniCredit's Pioneer". Reuters. 2010-08-16. 
19. ^ Eurizon Capital Gets New CEO
20. ^ Viel & Cie participates in the resumption of Fideuram Wargny
21. ^ Sanpaolo SEC
22. ^ "Institutional brochure". Intesa Sanpaolo. p. 23. Retrieved November 26, 2012. 

External links [edit]

• Official website

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