Banca Intesa
With great financial results and a proposed merger that would create Italy’s biggest bank, Banca Intesa is the country’s Bank of the Year 2006.
The proposed merger with Sanpaolo IMI would give birth to a national champion, with more than 6000 branches and a market capitalisation of €65bn. The deal is significant, both for the banks involved and for the Italian banking system as a whole, entering a consolidation era supported, but not ‘arranged’, by the Bank of Italy and its new governor, Mario Draghi.
Even without such a deal, Banca Intesa’s strong financial performance alone would have guaranteed the award. Almost 65% profit growth, more than 22% RoE and a declining cost/income ratio are prime indicators of good results and management.
Banca Intesa particularly focused on optimising its risk/ return strategies within customer segments and value-added products and services. Alliances and outsourcing were also key in ensuring customer satisfaction. Of particular interest is the alliance with Crédit Agricole in asset management activities to increase distribution channels and product offerings.
“Our current business plan has been devoted to strengthening our role of partner in the growth of all our stakeholders, which will be significantly enhanced by the forthcoming merger between Banca Intesa and Sanpaolo IMI, thanks to the new group’s increased capability of investing in technology, promoting innovation and attracting and keeping talented and skilled personnel at the highest levels,” says chief executive Corrado Passera. “The new group will also be an important driver for the growth of our economic system, ensuring support to new investment in public works and to domestic firms’ business, both in Italy and abroad”.
