The survey conducted by Mediobanca shows the performance of the major international banks in 2013 and in the first part of 2014, comparing the results recorded in Europe and in the United States and managing to provide a complete and complex picture of the situation of banking institutions in this exact moment and the strengths and weaknesses of Italian banks.
In Europe, banks recorded revenues down in 2013 (-1,3% on 2012), loan losses down by 8,5% but still significant (18% of revenues) and net extra charges doubled (+110% ).
In the USA, on the other hand, revenues grew in 2013 (+2% on 2012), a 48% drop in credit losses (to 5% of revenues) and more modest growth in extraordinary charges (+35%). In 2013, the net profitability of US banks was almost five times that of Europe (roe: 7,5% against 1,6%), also thanks to greater efficiency (cost/income ratio: 64,4% against 68,8%) . Since 2011, the crisis has cost European banks 137 billion. of euros and 63 billion. of Usd in the USA. The bulk came from impairment in Europe (98 billion), from charges for litigation in the USA (52 billion).
Strong deleveraging: -12,1% between 2011 and 2013 the assets of European banks, -9,8% that of American banks. Employment also fell, more in Europe (-7,5%) than in the USA (-1,9%). The assets of European banks are reduced to 200% of GDP (from 235% in 2011), that of American banks to 72% (86% in 2011). In 2013, the two largest German banks weigh less on GDP than the two largest Italian ones (79% against 94%).
Derivatives collapse: -36% in Europe between 2011 and 2013, -39% in the USA and in Europe they pass from 56% of GDP in 2011 to 22% in 2013, in the USA from 32% to 18%.
Loans to customers decreased in Europe by 3,7% on 2012, increased overseas (+1,2%). Credits to customers fall in Europe from 56% to 53% of GDP, they are stable in the USA (23%).
JP Morgan Chase is the world's largest bank by total assets (2.560 billion euros). HSB is the largest in Europe (2.145 billion euros) and the third largest in the world, after Bank of America (2.157 billion euros). Among the 28 major institutions, Unicredit is 17th (846 billion), Intesa SP 21st (626 billion).
Strengths of Italian banks compared to the European average: low leverage (17,7x against 23,6x), high regulatory capital (Cet at 10,9% against 10,5%), little speculation (Level 3 at 16,7% of equity against 24,4%), high coverage of doubtful loans (coverage at 53,6% against 45,3%), good efficiency (cost/income ratio at 67,5% against 68,8%) and low incidence of intangibles (intangible assets on equity at 13,5% against 16,5%).
Italian weaknesses: negative profitability in 2013 (roe at –16,9%; European average: +1,5%), many doubtful loans (79% as a % of equity; European average: 37%), government bond portfolio Giips on the rise: from 98,4 billion. in 2011 to 152,2 billion. in 2013, 10% of assets and 1,8 times equity. On the basis of a set of 13 balance sheet indicators, the major Italian banks have a median positioning: they are preceded by the Dutch, Spanish and French, but precede, in order, the British, Swiss and Germans.
Based on the same set of 13 balance sheet indicators, the best positioned European banks are: Nordea (Sweden), HSBC (UK), Rabobank (Netherlands), BBVA (Spain), Groupe Bcpe (France), Ing (Netherlands) and Danske (Denmark).
First Q2014: revenues (-3,7%) and net profit (-5,4%) are down in Europe, albeit with lower credit losses (-24,7%). Ditto in the USA: revenues are down (-3,7%) and the net result (-5,5%), with fewer credit losses (-29,9%). The Italians did well: stable revenues (+0,2%), fewer credit losses (-18%) and growing profits (+61%).
Government aid from 2008 to 2013. In the USA: 2.853 billion. of Usd to 1402 institutes, of which 1.679 billion. returned/expired (59%), for a net amount of 2.043 billion. In Europe: 3.166 billion euro to 480 institutions, of which 2.180 billion. returned/expired (69%), for a net amount of 986 billion. Greater aid (gross): UK for 1.213 billion. euros, Germany 446 billion, Spain 268 billion, Ireland 260 billion. and Belgium 243 billion.
