The top five Italian banks (Intesa Sanpaolo, Unicredit, Mps, Banco Bpm, Bper) close their accounts for the first six months of the year with sustained growth in operating revenues (+3,3%). Net profits rose by 6,2%, a performance which, among other things, was affected by the write-downs of receivables from Russia and Ukraine by Intesa SanPaolo and Unicredit (2,2 billion euro). This is what emerges fromanalysis conducted for First Cisl by the Scientific Committee of the Fiba Foundation (full version).
The net interest growth to drive balance sheets (+ 5,7%), to which the increase in rates contributed, which should unfold its effects above all in the coming quarters. This reverses the trend that had seen revenues benefit from the constant increase in net commissions, which were essentially stable in the period due to the adverse performance of the financial markets, which negatively affects revenues from investment services.
It also improves credit quality: in fact, the stock of net non-performing loans decreases (net NPL ratio to 1,7% from 2% as at 31.12.2021). Loan adjustments, to be placed in relation to the war in Ukraine, could have a lesser impact in subsequent quarters, bringing benefits to profitability.
Banks: costs still going down in the first semester
The increase in revenues, together with the reduction in operating costs, produced a new strong reduction in the cost/income ratio, which went from 53,4% to 50,8%, widening the difference compared to the average of the major European competitors (58,1. XNUMX%).
Personnel costs decreased by 1,1% and recorded a decrease as a percentage of total revenues: in fact, they went from 33,1% in the first half of 1 to 2021%.
Banks: productivity rises in the first half
Employment records a further drop estimated at 3% (for over 7000 workers), the number of branches also drops by 7,6% (- 1.007). The primary margin per employee increases again (+6,5%), an effect of productivity growth.
Banks: wealth to be redistributed through bargaining
“The six-monthly reports of Italian banks have seen significant growth in revenues and profits. The labor costs have fallen in absolute value and in relative terms, now representing just over 30% of revenues. A significant and rapid growth of salaries, through negotiation in groups, to adapt them to the high productivity which cannot only end up in the benefit of the shareholders through the distribution of dividends and buybacks, cannot be postponed. On the other hand, the protection of the purchasing power of wages will be one of the main topics in the negotiation with Abi in the imminent contractual round”, affirms the general secretary of First Cisl Riccardo Colombani.
“The increase in the interest margin, which will also characterize the next quarterly reports, should push banks to focus more on credit for revenue growth. Furthermore, it would be necessary to abandon the hitherto clearly prevailing business strategy, based on continued growth in commissions, as part of an admittedly non-independent consultancy service, and finally practice open consulting models, based on a large number of financial products, in the absence of conflicts of interest, without commercial pressure on male and female workers and with the greater satisfaction of savers. The importance of credit and savings – concludes Colombani – is more current than ever: cost-effectiveness and risks for banks must go hand in hand with support for economic activity in such a complex phase of the social and economic dynamics of our country”.
