Side-by-side credit pricing comparison from Pillar 3 disclosures.
On a representative BBB+ EUR 25M 5-year term loan, Intesa Sanpaolo is the cheaper lender by 0bp in minimum spread. For a EUR 25M facility, that's EUR 256 per year.
| Metric | UniCredit Italy |
Intesa Sanpaolo Italy |
|---|---|---|
| IRB approach | Mixed | Mixed |
| Cost-to-income | 38.0% | 42.2% |
| Effective tax rate | 27.0% | 28.0% |
| Avg corporate PD | 4.52% | 4.13% |
| Avg LGD unsecured | 32.1% | 39.3% |
| Avg LGD secured | 19.3% | 23.6% |
| Funding spread (bp) | 20bp | 18bp |
| Corporate EAD | EUR 183bn | EUR 138bn |
Both banks priced on the exact same deal — 150bp spread, 20bp commitment fee, 60-month maturity. Higher RAROC means the bank earns more from this deal. Lower min-spread means the borrower gets a better rate.
| Component | UniCredit | Intesa Sanpaolo |
|---|---|---|
| Annual revenue | EUR 385,000 | EUR 385,000 |
| Operating cost | EUR 154,000 | EUR 154,000 |
| Expected loss | EUR 28,750 | EUR 28,750 |
| Capital required (FPE) | EUR 2,451,320 | EUR 2,451,320 |
| RAROC (after tax) | 6.68% | 6.76% |
| Min spread for 12% RAROC | 269bp | 269bp |
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