Giorgio Girelli, CEO of Banca Generali speaks: “Storm on BTPs? They are real sales, not speculation”

“Speculation on BTPs? There is not. Unfortunately". As? “These are divestments of real portfolios. By Dutch insurers rather than Japanese pension funds. Transactions that do not have a speculative intent". Giorgio Angelo Girelli, CEO of Banca Generali, confirms himself as a banker from the past, alien to fashions. Less attentive to short-term profit, but proud of a "zero leverage" or, if you prefer, a "zero risk" half-yearly.
That is to say? “A company operating in this sector can intervene effectively on two fronts. Costs, first of all. From this point of view, we reap the benefits of the reorganization that has just been completed. But still, we were able to lower our operating costs by another 3 percent. Then, of course, you have to work on the collection front. Our net deposits increased by 600 million: in six months we collected 6 thousand new customers against 10 thousand in the whole of 2010 who entrusted us with an average of 120 thousand euros. And we shouldn't overlook the fact that recurring commissions now represent 95 percent of revenue for us".
Yet the interest margin drops from 22,4 to 21,5 million. Have you sacrificed margins to retain customers? "Hand. The decline can be explained by the fact that our customers have moved money from current accounts, which fell from 1,8 to 1,6 billion, to more profitable long-term investments. Our strategy is simple: more masses, less costs, the number of employees unchanged ”.
Even the net profit is not that great: -0,8% if we do not take into account the extraordinary components. A little bit, don't you think? “I believe that too many banks, even among the Italian ones, rely heavily on the leverage effect ensured by proprietary trading. That's how they do results, but that's how they put sticks of dynamite in the vaults."
In short, according to his opinion, a bank manager can intervene on costs and increase efficiency. But it is dangerous to bet on market trends. Is that it? “ I can say that our results are risk-free”.
Hard to say in such a turbulent situation. “On the government bond markets there are real sales. Not speculative maneuvers. But the volumes are very low, typical of the summer season. The thing is, nobody buys. For this reason I believe that August will be a crucial month, probably decisive”.
And what prospects do you see for the world of savings? “Banks resort to issuing bank bonds to ensure adequate funding. To the detriment of the managed. It is a serious risk for household portfolios: bank bonds are an illiquid investment, which many customers ignore”.
It would take a better financial education, which has been talked about for years. With what results? “It seems to me that the quality of savings has worsened in recent years”.