Banks, profits at 13 billion: doubled in 2 years (+93%)
The banking sector’s golden two-year period. In two years, the country’s top seven banking groups have seen their profits almost double, from 6.7 to 12.9 billion euros, a growth between the first half of this year and the same period of 2022 of 93.1%. An exceptional dynamic, driven by the effect of high interest rates and which has allowed the Banks to achieve exceptional margins.
This is revealed by an analysis by the Fisac Cgil Studies & Research Office on how the first seven banking groups (Intesa Sanpaolo, Unicredit, Banco Bpm, Bper, Mps, Credem and Bp Sondrio) have doubled their profits in less than two years. These record numbers, observes the general secretary of Fisac Cgil, Susy Esposito, “generated by a favorable economic situation, must induce the sector to invest heavily in employment. We are in the midst of a digital revolution that is impacting the banking world and it is therefore important to put negotiation at the centre as a valuable tool to guarantee employment, rights and protections for workers in the sector. Significant investments in training will be needed to ensure requalification paths, and at the same time new and good employment”.
In the composition of the revenues, the study by Fisac Cgil underlines, The interest margin has a great weight, having grown, again for the first 7 groups, by 74.6% in two years, going from 11.8 billion in the first half of 2022 to 20.7 billion in 2024.
These results are also due to the simultaneous and modest increase in passive rates and the slower decline in active rates, i.e. loans and mortgages which in August stood at an average of around 5% for businesses and 3.4% for mortgages to families. As regards the remuneration of deposits, again in August, it recorded an average rate of 1% (1.05% in June and 0.32% in June 2022) but for the current account component alone the average rate applied was 0.53% (0.58% in June and 0.02% in June 2022).
The cost component, however, is contained, even on the labor side. In fact, the Fisac Cgil report shows that the cost of personnel increases by 3.9% year on year and by 3.5% compared to 2022, due to the renewal of the national labor contract, while other operating costs are higher than in 2022 (+1.8%) but lower than in 2023 (-1.3%).
Total costs in the first half of 2024 slowed down from +2.8% in 2022 to +1.9% compared to 2023. On the cost front, it should also be noted that, net of the development of the next meetings in Unicredit and Intesa Sanpaolo, the decrease in the number of employees is confirmed, albeit at a reduced intensity. Bank employees, Fisac Cgil reports, have dropped by 13 mina units in 30 months, going from 183,546 at the end of 2021 to 170,104 at the end of the first half of the year.
A situation of progressive stabilization but still lacking, also in light of the news related to the two major banking groups, a clear prospect of employment revival. Also on the issue of desertification there is a downward trend but slowing down. In the last six months of the year, branches decreased by ‘only’ 50 units compared to an average reduction of 346 per semester in the previous four. The number of branches thus went from 11,947 at the end of 2021 to 10,512 at the end of the first half of this year.
In light of these data, concludes Esposito, “to be read in parallel with the technological changes underway and the effects they will have on work, we believe it is important that employers’ associations and banking companies open a dialogue with trade unions. As Fisac Cgil we already have an appointment scheduled for next October 3 in Rome for an initiative entitled ‘Digital Hegemony'”, concludes the general secretary of Fisac Cgil.
#golden #years #banking #sector #profits #doubled #years