The separate 35% taxation on the profits of financial assets held by banks for trading*, contained in the corrective maneuver that will be approved today by the Council of Ministers, should not have too much impact for most Italian banks.
According to a study by the Royal Bank of Scotland, the large trading portfolios managed by our banks consist largely of fixed-income assets, which generate earnings not subject to the new taxation (if the Scottish institution's interpretation of the law it's right).
According to 2010 data, the separate taxation, as envisaged by the maneuver, would have had marginally negative effects only on Monte dei Paschi and Unicredit. These are in fact the only banks that generate positive net earnings from financial assets subject to the new taxation, for a total value of 390 and 47 million euros respectively.
According to the Royal bank, Unicredit and Mps would therefore be "the most penalized by the Government's proposal, even if the extent of the dilution would be rather limited and equal to 6% and 5% of adjusted profits respectively".
The study also shows that Unicredit and Mps manage the largest trading portfolios in proportion to tangible common equity: 3,2 and 3,5 times respectively on 2010, against 2,6 times for Intesa Sanpaolo and Mediobanca, 1,8 times for Banco Popolare, 0,7 of Popolare Milano and 0,5 of Ubi.
According to Royal bank, the new taxation could incentivize a reduction of these trading portfolios over time.
In Milan at 13.15 pm Unicredit rises by 0,42% and Mps by 0,10%.
*For further information go to newsletter by Ugo Bertone
