The top five Italian banks are holding up the impact of pandemic and recorded decidedly better results than expected in the first six months of the year. This is what emerges from the analysis conducted by the Research Office of First Cisl on the financial statements of Intesa Sanpaolo, Unicredit, Mps, Banco Bpm, Bper.
Compared to a year ago, operating income increased (+5,5%), driven by the record increase in net commissions (+12%) and by other revenues, mainly originating from the management of financial assets. Primary margin per employee increased by 6,5%, while net commissions per employee increased by 16,8%. Furthermore, net adjustments to loans halved (from 5,6 to 2,7 billion), with a reduction in net non-performing loans from 29,9 billion at the beginning of the year to 28,4 and a net NPL ratio of 2,4%. The downward trend in the number of employees (-4%) and branches (-7,4%) continues. The cost/income ratio fell by more than 3 percentage points (53,5%), to levels well below the average value of the main European banks. It is therefore confirmedunsustainable further cuts also considering the level of productivity achieved.
Mps: revenues and profits better than expected
In this framework of uniform improvements, the performance of the MPS group should be underlined, which denotes a clear ability to develop revenues (+7,7%), also due to theincrease in net commissions (+ 8.7%), representing 56,3% of the primary margin, the highest percentage value among the five largest banks. The outlook for the interest margin is positive thanks to the reduction in the cost of funding. On this front, the trend reversal will be achieved when the bank is able to develop lending. Loans to MPS customers per employee are in fact equal to 3,8 million, while the average figure of the Big 5 is equal to 4,7 million.
It should be noted that the revenue trend appears to be significantly better than that expected by the stress test in the base scenario for 2021. In fact, the half-year ends with a profit of 202 million against the 28 estimated by the EBA for the entire year.
The reduction of 2/3 of the corrections is due to credit quality, which becomes a strong point of the bank also in view of the next quarterly reports. At the basis of these results is the extraordinary commitment of MPS workers, who were able to face the adversities of the restructuring plan focused on cutting costs so heavy as to hinder the revenue targets.
The risks of a new phase of concentration
“Signals are coming from the financial statements of the top five Italian groups that reflect the recovery in progress. This trend could be strengthened thanks to the strong recovery of the GDP and above all to the launch of the massive investment program of Pnrr. The data on credit quality are also reassuring, with the management of the moratoriums having no significant impact on non-performing individuals. It is probable that the containment of credit write-downs will continue in the coming months as well”, declares the general secretary of First Cisl Riccardo Colombani.
“Banks must assume responsibility for their role vis-à-vis the country and not be guided solely by dividend policy. The road is not that of cost cutting through the reduction of personnel, closure of branches, outsourcing of activities and centralization of functions and skills, lower credit flows for small businesses. Unfortunately, these were the effects produced by the processes of concentration which risk spreading further, creating – concludes the general secretary of First Cisl – irremediable conditions of territorial imbalance in the country, just the opposite of what must be achieved with the Pnrr”.
