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Intesa Sanpaolo, Unicredit, Mps, Banco Bpm and more. How does bank profit grow?

Intesa Sanpaolo, Unicredit, Mps, Banco Bpm and more. How does bank profit grow?

Numbers, comparisons and trends based on the financial statements of the major Italian banks according to a Uilca report. The article by Emanuela Rossi

Positive signals for the Italian credit system in the first nine months of the year. This was once again certified by the "Orietta Guerra" Study Center of the Uilca which conducted an analysis of the financial statements of Intesa Sanpaolo, Unicredit, Montepaschi, Banco Bpm, Fineco Bank, Bper, Credito Emiliano, Banco Desio, Banca Popolare di Sondrio . The net profit stands out, rising by 4.1% to 9.6 billion, and revenues (+4.2% to 41.7 billion) while the decline in operating costs continues. A scenario that leads the banking union to ask for "a significant wage increase" in the forthcoming renewal of the credit collective bargaining agreement.

NET INCOME: COMPARISON BETWEEN BANKS

If the sum total of the nine groups leads to almost 10 billion in profits there is – obviously – a big difference between the individual banks. Leading the ranking are confirmed by Intesa Sanpaolo and Unicredit , with 3.28 billion and 3.99 billion respectively, affected by the write-downs on assets involved in the Russian-Ukrainian war. In particular, these affect the institute led by Carlo Messina since it drops from 4 billion in profit a year earlier, unlike Unicredit which instead rises from 2.97 billion.

Strong decline for Montepaschi to -361 million from 388 million in the first nine months of 2021 due to the restructuring operation in progress. Another extraordinary operation – ie the completion of the merger of Carige – takes place in Bper which goes from 586 million to 1.46 billion.

Profit also increased in Banco Bpm to 510 million from 472 million, in Fineco Bank to 302 million from 289 million and in Popolare di Desio to 64 million from 56 million, while Credem gave way (to 223 million from 276 million) and in Popolare di Sondrio (to 151 million from 201 million).

From the Uilca Study Center they point out that the results of the three quarters, as well as the extraordinary operations listed, were also affected by the "restrictive monetary policy of the European Central Bank, which raised interest rates three times, for a total of 200 basis points , in order to cool the inflationary spiral, albeit with the risk of creating an economic recession in Europe”.

THE OTHER INCOME STATEMENT ITEMS

The analysis by the Uilca Study Center focuses on the most significant items of the income statement of the banks in question. It therefore emerges that in the first nine months of 2020 revenues increased by 4.2% to over 41 billion – and revenues from trading by 7.6% to 3.9 billion – thanks in particular to the increase in the trading margin interest (+9.7%) which reaches almost 19 billion. A voice, this, which in perspective, "could grow further due to future rate increases by the ECB ".

Plus sign, as we said, for net income to over 9.6 billion from 9.2 billion. In addition, the growth trend in commissions (+0.4%) is confirmed – one of the most useful indicators for understanding the ability to interact between the bank and customers – and a reduction (0.6%) in operating costs which drop to 21 .5 billion from over 21.6 billion. Specifically, personnel expenses fell by 0.9% to 13.3 billion and administrative expenses by 1% to 6.3 billion.

UILCA: THERE ARE THE CONDITIONS FOR A SIGNIFICANT WAGE INCREASE

The financial statements for the first nine months of the year allow the credit union – while waiting to know the results for the last quarter of 2022 – to make some considerations. "This situation confirms that the conditions exist for envisaging a significant wage increase in the forthcoming renewal of the National Credit Contract, which takes into account the increased productivity of the sector, the cost savings from which companies have benefited and the inflationary aspects of the next three years, without forgetting the extraordinary surge of 2022” comments Fulvio Furlan, general secretary of Uilca.

Instead, Roberto Telatin, head of the “Orietta Guerra” Study Centre, will take care of giving an interpretation of the particular historical moment. “Geopolitical variables, such as the Russian-Ukrainian war, the ecological transition and Covid-19, will reshape the world economy in 2022 – he explains -. Technological innovations, on the other hand, in this phase appear less incisive than in the past, as also demonstrated by the difficulties in the development of the Metaverses and the downsizing of cryptocurrency prices. However, investments to create digital banks continue – concludes Telatin -, even if it is necessary to know that apps do not always really make the bank closer to our needs".


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-mps-banco-bpm-e-non-solo-come-cresce-lutile-delle-banche/ on Sun, 27 Nov 2022 06:41:55 +0000.