Italy: Intesa Confirms Board of Directors at a Time of “Major Uncertainty”

All the attention of the Italian and international financial community these days is focused on the Intesa Sanpaolo banking group, which has approved a new Board of Directors. Gian Maria Gros-Pietro was re-elected President, and Carlo Messina (pictured) was unanimously appointed Managing Director and Chief Executive Officer (CEO) for a fifth term (four terms under a single management system and one under a dualistic system). The board gave Messina “all necessary and appropriate powers to ensure unity in the management of the company.”

Italian media emphasize that in the current context of enormous geopolitical turmoil, “the financial results achieved by the Intesa Sanpaolo Group look truly impressive.” The General Meeting of the banking institution confirmed the parent company’s annual accounts for 2024 and approved the cash payment of dividends to shareholders: the total amount – upfront and final payment – for the 2024 financial year exceeded €6 billion, corresponding to a payout ratio of 70% of consolidated net profit. The credit institution said in an official statement that “the proposed aggregate payout per share of 34.1 eurocents, based on the average annual reference share price in 2024, provides a dividend yield of 9.8%.”

Il Sole 24 Ore, the largest economic and financial newspaper in Italy, reported today that “as expected, the line of succession in the bank’s management has been confirmed, which once again shows the market’s confidence in the bank’s top management in light of the results achieved in recent years.” Throughout the last decade, Intesa Sanpaolo has remained the first banking group in Europe in terms of total shareholders’ return, i.e. the increase in the market value of shares and the amount of dividends paid: since January 2014, this figure has increased by 259%, with 34 billion euros in cash paid to shareholders. Since 2014, Intesa Sanpaolo’s shares have risen 162% on the stock exchange, and its market capitalization has increased by 54 billion euros, giving the bank a leading position in the industry.

After being confirmed as the bank’s chief executive, Messina said: “Today I wish to reaffirm my full commitment to managing our Group in the interests of all stakeholders, shareholders, customers, our employees, and the territories where we operate, at a time of disequilibrium in the Italian banking sector and against the backdrop of a rapidly changing international environment.”

“Since I took over as Managing Director and CEO,” Messina emphasized, “the foresight of our stable shareholders, especially the Funds, has enabled us to build long-term plans and exceed our goals, even in the face of daunting challenges, such as the coronavirus pandemic and conflicts near Europe’s borders and in the Middle East.”

According to the CEO of one of the world’s largest banking groups, “our strong leadership in lending, our highly diversified business model driven by our status as an international leader in wealth management and protection, the achievement of zero NPL and one of the highest yields in the industry will continue to confirm Intesa Sanpaolo’s leadership among European banks in the years to come.”

“Above all, as I start a new term as head of Intesa Sanpaolo,” Messina noted, “I am thinking about the people of our bank. Throughout my years with the bank – from my first positions to leading the Group – it is the relationship with our employees that has remained the main source of motivation in my work. The utmost professionalism of our people is a key factor in our success, and I want to express my personal gratitude to them.”

Chief Executive Messina concluded by noting that he would be “honored” to serve for the coming three years with the support of the Board of Directors comprised of outstanding individuals with deep competencies and years of experience. The Board “will once again be led by President Gian Maria Gros-Pietro, to whom I express my most sincere gratitude for the professional and human contribution he has consistently made to the development of our Group.”

Following the confirmation of his credentials by the General Meeting, Gian Maria Gros-Pietro, President of Intesa Sanpaolo, said: “In a rapidly changing environment, the Intesa Sanpaolo Group intends to assert its position as a key player, promoting a development model based on unity, innovation, and sustainability. All this is possible thanks to the highest level of professionalism of our Group’s specialists, with whom I have had the luck to work and with whom I will continue to cooperate over the next three years.”

“In the years of my recently completed term,” Gros-Pietro said, “the world has been confronted with mounting geopolitical and economic tensions. We are living through a time when the imposition of customs duties will radically transform the model of the international economy, to which we have become accustomed over the past three decades.” According to the President of Intesa Sanpaolo, security and defense issues have begun to fundamentally change the economic policies of European countries: “As a corporate economist, I’m used to looking at the future with optimism, as entrepreneurs do. And I used to believe that every difficulty must be overcome, on the one hand, by preparing the necessary tools, and on the other hand, by taking advantage of arising opportunities,” concluded Gros-Pietro.

“We are satisfied with the outcome of the Intesa Sanpaolo General Meeting. Such stages are the result of work organized in advance and consistently implemented. On behalf of the Cariplo Foundation, I congratulate all the elected members of the bank’s governing bodies,” said Giovanni Azzone, President of the Cariplo Foundation, at the end of the Intesa Sanpaolo General Meeting. “It is once again about high-level professionals, capable of contributing with the competencies, ideas, and energy needed to overcome the challenges that await them in the future,” emphasized Chairman Azzone. “We are confident that they will be able to continue to deliver programs, which, while remaining consistent, also reflect the high ambitions set by the leadership. The Bank and the Foundation, while respecting the differences in their functions and areas of activity, continue to move in a unified direction that demonstrates commitment to the interests of society, people, and the environment we live in. It is necessary to keep up with the times without forgetting our origins. The Cariplo Foundation and Intesa Sanpaolo share common roots: in 1816, the Central Charity Commission (Commissione Centrale di Beneficenza) was established, which was already committed to helping those in need – its legacy is being preserved and developed by our Foundation; and in 1823, Banca Cariplo was founded: through a series of transformations over the years, it continues to prove today that the values, which have guided us, still serve as a firm foundation for us. Gian Maria Gros-Pietro, Carlo Messina, and all the staff of the bank receive the well-deserved praise for all that has been achieved to date. The unconditional reconfirmation of their credentials is not only deserved and fully supported, but is also a clear indication of the profound respect we have for their outstanding professionalism and high human qualities.”

Italy’s economy is performing positively during this challenging period for the world. This is evidenced by data from the Italian Institute of Statistics (ISTAT). The first quarter ended with +0.3% growth, a marked improvement over the +0.1% growth recorded at the end of 2024, which was preceded by summer stagnation. According to Italian Minister of Economy and Finance Giancarlo Giorgetti, “we can state the positive dynamics of growth in the first quarter, with indicators surpassing the results of a number of European countries. This is an important signal indicating the accuracy of our forecasts and the effectiveness of the government’s economic policy.”

Taking into account the +0.1% growth inherited from last year, the cumulative first quarter GDP change is +0.4%. It would be premature to make annualized forecasts at this time, especially given the highly volatile economic environment resulting from the new United States tariff policy. The growth rate, which has reached an impressive +0.6% compared to the first three months of 2024, is supported primarily by industry: after a prolonged decline in production, there is now a marked upward leap. In addition, growth is seen in agriculture, which had experienced a long period of decline. As far as demand is concerned, domestic demand, net of inventory changes, has a positive impact, while the net external contribution starts to weaken under the impact of trade conflicts.