(Finance) – The board of directors of the South Tyrolean bank Volksbank decided the new Industrial Plan “I-mpact 2026”, which provides for capital to further increase with a fully loaded CET1 that exceeds 16% and a ROE that is expected to remain stably above 5% despite the capital strengthening. All this – we read in a note – “despite a context that will see a fall in the interest margin and an increase in the cost of risk and operating costs due to inflation and the renewal of the national collective workers’ agreement”.
Volksbank said they are expected 100 million euros in distributions to members in the three-year period 2024-2026.
“The 2023 is an exceptional year that cannot be taken as a reference for a plan to develop the bank’s income – commented the general director Alberto Naef – In a context that foresees a reduction in margins and therefore profits, we nevertheless plan a growth in customers, market shares, volumes and assets. Also thanks to the managerial actions planned for growth.”
Volksbank explained that it had studied a growth plan for branches in the provinces of Padua, Venice, Vicenza and Verona (the latter where Volksbank is not present today) to reach 175 units at the end of the Plan. Important investments are also planned to improve the services offered in the management and protection of customer assets, in a macroeconomic context in which the commission contribution will once again become relevant for the income evolution of banks
The bank also focuses onintegration of digital processes with Artificial Intelligence (the I- of I-mpact) to continue along the path of dematerialisation and remote automation of the document exchange and transaction service with customers, proactively using artificial intelligence to increase the efficiency of internal processes (IT security, regulations).