The titles of Italian banks, in sharp fall on Tuesday, resumed colors Wednesday morning on the Milan Stock Exchange, after the decision of the government of Giorgia Meloni to put a ceiling on the tax on their “surplus profits”. “In order to preserve the stability of banking institutions”, the decree provides “a ceiling for the contribution, which cannot exceed 0.1% of the total assets” of a bank, announced Tuesday evening the Ministry of the Economy, anxious to calm the stock market storm.
The surprise decision of the right-wing and far-right government coalition to levy a 40% tax on the “surplus profits” of banks generated by the rise in interest rates caused financial sector securities to plummet on the stock market on Tuesday. Intesa Sanpaolo and Unicredit thus lost 8.6% and 5.9% respectively at the close. Monte dei Paschi di Siena fell by 10.8%, Bper Banca by 10.9% and Banco Bpm by 9%. On Wednesday morning, Intesa Sanpaolo gained 2.3% and its competitor Unicredit rose 4% around 10:30 a.m. (08:30 GMT), like other securities in the banking sector.
“We have been saying for months that the European Central Bank is wrong to raise interest rates”, and this taxation “is the inevitable consequence”, assured Deputy Prime Minister Antonio Tajani on Tuesday. Italian banks have seen their income generated by interest soar in the wake of the rise in interest rates, without increasing the remuneration of their customers’ current accounts in the same proportions.
Banks that have “already adjusted their rates” by reducing the gap between borrowing rates and current account remuneration, “will not be significantly affected” by the tax, the economy ministry promised on Tuesday. evening. After the ministry’s intervention, economists have significantly lowered their estimates of tax revenue.
Capping the contribution at 0.1% of assets “significantly reduces the impact of the tax”, Jefferies analysts commented on Wednesday, who now estimate the total cost for banks at 2.5 billion euros against 4.9 billion. previously. The tax on banks’ “excess profits”, which must be settled by June 2024, will concern the accounting years of 2022 or 2023.