Italy's Intesa Sanpaolo aims to grow operating income by 7 percent per year from 2007-09

The bank, unveiling its first business plan after its 2006 merger of Banca Intesa and Sanpaolo IMI, said it wants to create growth through three main lines of action: recurring revenues, tight cost management and massive investment in human resources and information technology.

It aims to increase its operating profit in 2009 to €22.6 billion (US$30.58 billion), from €18.5 billion (US$25.03 billion) in 2006.

The Milan-based bank also plans to pay total dividends of at least €18 billion (US$24.36 billion) for the years of 2006, 2007, 2008 and 2009. It will pay a 2007 total dividend of €0.38 (US$.51) per share.

Intesa Sanpaolo shares are practically unchanged from Jan. 2 when the merger between Turin-based Sanpaolo IMI and Milan-based Banca Intesa became effective.

The bank Saturday confirmed its already-announced target of an €7 billion (US$9.47 billion) net profit by 2009.

Regarding international operations, Intesa Sanpaolo said in a statement it does not rule out further acquisitions.

"We are looking at other opportunities," bank CEO Corrado Passera said without elaborating further.

The bank is in a leadership position in Croatia, Hungary, Slovakia, Serbia and Albania. It said it aims to grow in Russia and Romania, where its presence is still limited, and boost its "already significant" presence in Egypt, Slovenia, Bosnia and Herzegovina.

In terms of domestic expansion, with 5,700 branches, Intesa Sanpaolo has a strong presence in both northern and southern Italy. Passera said the bank plans to further expand its operations in Central Italy, one of Italy's wealthiest areas.

The bank will update the market on plans for an initial public offering of its asset management and insurance unit Eurizon SpA by the end of June, it said in the statement.

Intesa Sanpaolo is holding an analysts presentation Monday.

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