One billion net profits and 1.800 fewer employees. These two numbers summarize the objectives of the industrial plan that the bank that will emerge from the marriage between Banca Popolare di Milano (Bpm) and Banco Popolare aims to become the third largest Italian banking center behind Intesa and Unicredit with a market share above 8% and 4 million customers.
On Monday 16 May, the number ones of Bpm, Giuseppe Castagna, and of Banco Popolare, Pier Francesco Saviotti, will raise the curtain on the level to which the market will pay particular attention, especially after the beatings that the two stocks have suffered on the stock market in relation to the capital increase of Banco Popolare and the horsepower that the ECB has imposed on the new bank to dispose of bad debts as quickly as possible.
To achieve the goal of one billion net profit in 2019, it will be essential to cut costs, starting with personnel costs. This is why Castagna and Saviotti will already meet the unions on Tuesday to illustrate the plan and to explain how they intend to reduce employees by 1.800 units in 3 years but on a voluntary basis and making use of all possible incentives, also in consideration of the recent extension to 7 years of the bank slide decided recently by the Government..
“Ours is a successful project that will create value” declared Castagna in recent days, who has in mind an innovative bank model that could become a point of reference for other institutions as well. The presentation of the business plan is a step in this direction.
