How Intesa Sanpaolo, Unicredit, Mps, Bpm and Bper are doing
Analysis of the accounts of Unicredit, Intesa Sanpaolo, Banco Bpm, Mps and Bper. The article by Emanuela Rossi
Productivity increases and costs fall, starting with the number of employees and branches.
This was revealed in an analysis carried out in the quarterly report of the top five national banking groups – Unicredit, Intesa Sanpaolo, Banco Bpm, Mps, Bper – by the First Cisl research office.
In particular, the growth in net commissions per worker, according to the union, demonstrates the weight of commercial pressures, a problem that the trade unions have been denouncing for some time . First then launches the merger alarm which, according to him, would lead to further cost reductions, again to the detriment of the approximately 300,000 active banks in Italy. But let's read the numbers.
GROWING PRODUCTIVITY AND DECREASING COSTS
The figures resulting from the First Cisl study show a net operating result of the five banking groups which grew by 54.9% on the year and exceeds 4.9 billion and a net result just over 3 billion thanks to the drastic reduction in net write-downs on loans (-48.5%) and the strong growth in productivity with net commissions per employee at 20.5 billion (+ 7.5%). Minus sign for net interest to 5.2 billion (-8.8%) and primary margin to 10.4 billion (-2.9%) while net commissions increased to 5.1 billion (+ 4%) and operating income at 12.8 billion (2.8%).
At the same time, both operating costs and personnel costs fell (-3% for both items) due to the reduction in the number of employees (-3.3%) and branches (-2.2%). All this brings the cost / income ratio, or the ratio between operating costs and net revenues, to 51.5% from 54.5% a year earlier.
THE FIGURES ON COLLECTION AND NPL
In terms of deposits, there was a good increase in indirect deposits to 1,369 billion (+ 4.9%) and a decline in direct deposits from customers to 1,430 billion (-0.9 over quarter). As of March 31st, net impaired loans amounted to 29.8 billion (-0.4%) and the net Npl ratio at 2.5%, stable compared to three months earlier.
DATA PER EMPLOYEE
In the five groups examined, total employees increased in one year from 259,674 to 251,178 (-3.3%) and branches from 14,521 to 14,201 (-2.2%). Net commissions per employee, as mentioned, increased to 20,549 (+ 7.5%), the primary margin per employee to 41,442 (+ 0.4%) and the operating result per employee to 24,830 (+13.4 %). Figures that still confirm the higher productivity of workers in the sector and in the sector in general.
THE COMMENTARY OF THE SECRETARY GENERAL
According to First CISL Secretary General, Riccardo Colombani, the results for this quarter of the year are revealing that “it is not possible to plan further increases in fees and cost reductions”. A fact that could happen with "the mergers desired by the government" through the expected "provision on DTAs and" confirmed by the statements of some bankers ". The risk, he points out, is that in this way “employment and the presence, already to the bone, of branches in the area will be severely reduced. This year alone, the main groups will close a thousand. In addition to the workers, the consequences will be paid by the customers, deprived of the possibility of choosing in one of the most concentrated markets in Europe ”. What is worrying, says Colombani, is the level reached by the commissions. The increase in their per capita value is the manifestation of unbearable commercial pressures ”. If the banks really intend to "increase credit to support the recovery and accompany the public investments envisaged by the NRP" instead of mergers, there is a need for "business plans that provide for more employment and greater presence in the territories to support families and small businesses and medium-sized enterprises that represent the heart of the productive fabric of our country ".
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/intesa-unicredit-bpm-bper-cosa-succede/ on Mon, 17 May 2021 10:04:07 +0000.