How the accounts of Intesa Sanpaolo, Unicredit, Banco Bpm, Mps and Ubi went in the first half of 2020
Certainly the pandemic and the economic crisis unleashed by Covid-19 have made themselves felt but all in all there has not been a débâcle. To say this are the six-monthly numbers of the five major Italian banking groups – Intesa Sanpaolo, Unicredit, Banco Bpm, Mps and Ubi – analyzed by the First Cisl .
The greater capital solidity of the aggregate as a whole and the continuation of the decline in impaired loans should also be taken into account. In short, from the second credit union they have no doubts: our local banks have proved resilient.
DECREASE IN REVENUES AND RESULT BUT ALSO OPERATING COSTS AND BRANCHES
Compared to the first half of 2019, the period January-June 2020 certainly recorded a decline in various items: operating revenues (- 4.2%), net interest (-4.3%), net commissions (-4.7% ) and primary margin (-4.5%) but also operating costs (-2.1%) of which personnel costs (-2.2%). With regard to employees, there was a decrease in the number of employees (-2.1%) and in the number of branches (-4%) and that – contained considering the lockdown – of the primary margin per employee (- 2.5%) and net commissions per employee (-2.7%).
Net operating income halved (from 7.6 to 3.8 billion) but net adjustments to loans increased by 72.4% from -3 billion in the first six months of last year to -5.3 billion in the same period of 2020. These are largely (2.7 billion), explained by First Cisl, of provisions made to face the future impact of the pandemic on economic activity. Without them, they assure, the data would have been largely positive.
CAPITAL SOLIDITY INCREASES, NPLS CONTINUES
Positive elements come from the balance sheet data where we note the growth of the CET1 Ratio phased-in, which goes from 13.6% in December 2019 to 14.4% last June. "This, together with the relaxation of the regulatory measures decided in March – note the union -, leads to an estimate of a capital surplus on the minimum requirements of over 46 billion, with an increase of about 43% compared to the end-of-year data".
Remaining on the subject, it is necessary to underline the growth in loans to customers (+ 0.9%) and in direct deposits from customers (+ 1.7%) while indirect deposits decreased (-3.1%). The trend of the decline in net non-performing loans continues (-2.3%), from 38.8 billion to 37.9 billion, with the Npl ratio remaining essentially stable (from 3.4% to 3.3%) .
FIRST CISL: THE PANDEMIC HAS NOT SHOCKED THE SYSTEM, NOW LEAP IN QUALITY WITH MORE CREDIT
Figures, those that emerge from the half-yearly reports of the big five of Italian credit, which lead the secretary general of the First CISL, Riccardo Colombani, to a conclusion: "The pandemic has not shaken the system, which indeed has shown great resilience but now we need a qualitative leap : credit to businesses and households must increase. The large amount of available capital and the liquidity guaranteed by the ECB constitute the premise, together with the state guarantees on loans, on which to base the revival of the economy ”.
In this direction, "timely organizational decisions to strengthen the disbursement of credit and the management of moratoriums, with more dedicated and adequately qualified workers" become fundamental.
Furthermore, “we absolutely need countercyclical credit policies, capable of reactivating investments. Otherwise we would risk losing a significant part of our productive fabric and related employment ”.
And, while via XX Settembre aims to exit from 2021 from the capital of Montepaschi – where it is the majority shareholder with 68% – Colombani has no doubts: “Banks must become instruments of public policy. The presence of the state in the banking system can no longer be considered a taboo ”.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/intesa-sanpaolo-unicredit-banco-bpm-mps-e-ubi-cose-accaduto-nei-conti-del-primo-semestre/ on Mon, 17 Aug 2020 05:30:29 +0000.