Capital management

To guarantee capital ratios in line with the new regulations, we have implemented a series of measures to optimize assets and use of capital, including via a programme of stake disposals to reduce our exposure to equity. These measures have enabled us to preserve solid capital ratios without having to implement rights issues (our most recent dates back to 1998).

As part of the 2014-16 strategic plan, we have disposed of equity stakes worth a total of €1.5 billion, generating gains of €500 million in three years.

The 2016-19 strategic plan provided for further capital allocation optimization, with continuing stake disposals to allow us to concentrate on higher fee-generating, capital-light banking activities. In FY17 and FY18 we have disposed of equity stakes worth a total of about €600 milion, generating gains of about €250 million. We have delivered robust capital generation despite increasing shareholder remuneration and expanding the Group’s consolidation area.

The Strategic Plan 2019-23 confirms the growth in capital generation capability, deriving from the high profitability (ROTE 11%) and the absence of adverse material impact from regulation in the coming years; the additional resources will allow growth to be financed, both organic and by acquisitions, and shareholders rewarded.