Undoubtedly, the strengthening of net profits for banks, and indeed to record levels in the first half of 2024, is mainly the result of the significant increase in their income, both from commissions and from interest.
However, the contribution of the expenses for recording this performance is not negligible.
The banks
In the current inflationary environment, amid wage adjustments and intensification of efforts to boost their production, the four systemic groups managed to contain their rise to low levels.
According to the annual financial statements that they released last week, in the first half of the current year their total expenses, excluding the cost of credit risk, amounted to 1.78 billion euros.
In relation to the corresponding period last year, the increase was in the order of 120 million euros or 7%, completely manageable levels, due to the simultaneous increase in net income by 9% or 430 million euros approximately in the same period
As a result, the “cost-to-income” ratio now averages around 35%, while in Italy and Spain it exceeds 45%.
The transformation
This success would not have been possible if it had not been preceded by their extensive transformation cycle during the previous 5 years.
Through this, both the number of their stores in Greece, as well as the number of employees, through voluntary exit and retirement programs, declined significantly.
From 2019 to the end of the first half of 2024, i.e. within 5.5 years, their network shrank by 33%, as they closed approximately 590 units, while bank employees decreased by 32% or 12,000 people.
Thus, today the units operating nationwide amount to 1,218, while the 4 big ones in the sector employ a total of 26,155 workers.
As of mid-2023 these numbers remain almost unchanged. In this way, wage costs have stabilized in the area of 400 million euros on average per quarter in this period.
The next steps
But this does not mean that the moves to further improve efficiency will not continue. These, however, from now on will not have a mass character, but will be targeted.
In terms of the executive force, there will be new voluntary retirement actions in the next period, with the aim of freeing up resources that will be channeled for new recruitment of specialists in critical areas for the growth of the banks’ assets.
Greater emphasis is placed on digital transformation and providing advice on wealth management and long-term lending.
On the other hand, the size of the network, at least until the end of 2025, is not expected to change significantly. The rate of reduction of the physical presence of systemic groups will depend on the speed of transfer of additional work to the digital world and the adaptation of the public to online services.
Important steps have been taken in this direction, however more time will be needed for the development of their information systems.
This is because despite the progress that has been made, there is still work that can only be done by living.
New format in stores
At the same time, the stores are changing their form and appearance through the ongoing rebranding. They are dominated by two main zones:
– Self-service for performing cash transactions
– Providing consulting services in places that ensure the privacy of meetings for more complex products, the availability of which requires a thorough discussion and analysis with customers
On the other hand, the number of tellers at the counter is limited, while some banks operate at certain times of the day. In this way, personnel are freed up to promote products with high added value.
SOURCE: ot.gr
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