SUSTAINABILITY REPORT

Transcription

2014
SUMMARY
WHY TALK OF SUSTAINABILITY FOR A BANK
WITH A 150-YEAR HISTORY?
2014 was a positive year for Banca Popolare di
Milano Group, which achieved earnings and a
financial position that were indeed noteworthy.
During the year we managed to successfully
meet the capitalisation objectives that were
laid down in the Business Plan, we closed the
financial statements with reported income that
exceeded expectations and the shares achieved
the best performance of all the main bank shares.
These tangible results are also a reflection of an
intangible asset created by staff involvement and
commitment, customer and shareholder trust,
participation by Members and good community
relations.
Continuous social and technological changes
and an ongoing difficult economic situation led
to significant transformations taking place.
We have simplified the Group structure, adopted
more streamlined and efficient models, tackled
costs and invested in multi-channel banking;
but all these actions would not have produced
the planned results if they had not been
accompanied by the involvement of internal
and external stakeholders that have acted as a
fundamental lever in withstanding the crisis and
in coping with changes.
social and environmental outlook, focusing on
our commitment and efforts for the achievement
of Strong and Sustainable Growth.
To make it possible to fully understand the
value of BPM Group, it is surely important to
provide information on financial performance,
but it is also necessary to highlight intangible
aspects, such as our capabilities in managing
relationships with stakeholders and in involving
them in our activities and goals.
For this reason, in 2015, 150 years after our
formation, with this Report, we have decided
to talk briefly about BPM Group’s economic,
Dino Piero Giarda, Chairman of the Supervisory Board
Mario Anolli, Chairman of the Management Board
Giuseppe Castagna, Managing Director and General Manager
For enquiries and further information
concerning this document, please write to
responsabilitasocialedimpresa@bpm.it
BPM Group | Sustainability Report
2
CONTENTS
1. IDENTITY 4
3. 2014 RESULTS
34
1.1 BANCA POPOLARE DI MILANO
5
3.1 ECONOMIC PERFORMANCE 35
5
3.1.1 BUSINESS AND EARNINGS 36
1.2 MISSION 7
3.1.2 ASSET QUALITY, NON-PERFORMING LOANS AND CAPITALISATION
37
1.3 VALUES 8
3.1.3 THE MARKET HAS BELIEVED IN BPM GROUP
37
1.4 STAKEHOLDER MAP
9
3.1.4 DISTRIBUTION OF VALUE 38
150-YEAR HISTORY 1.5 BANCA POPOLARE DI MILANO GROUP’S BRANDS
1.6 GOVERNANCE 10
3.2 SOCIAL PERFORMANCE 39
11
3.2.1 PERSONNEL
39
2. BUSINESS PLAN AND STAKEHOLDER EXPECTATIONS
12
3.2.2 CUSTOMERS
41
2.1 OUR BUSINESS PLAN: STRONG AND SUSTAINABLE GROWTH 13
3.2.3 TRANSPARENCY, SECURITY AND QUALITY OF SERVICE
43
2.1.1 IMPACT ON STAKEHOLDERS 14
3.2.4 MICROCREDIT AND FINANCIAL INCLUSION
43
2.1.2 THE DRIVERS OF SUSTAINABILITY IN THE BUSINESS PLAN
15
3.2.5 SUPPLIERS
44
2.2 WHAT STAKEHOLDERS EXPECT FROM US
16
3.2.6 COMMUNITY
45
17
3.3 ENVIRONMENTAL PERFORMANCE 46
2.3 SOLIDITY TO GIVE CREDENCE TO THE REAL ECONOMY
18
3.3.1 ENERGY 47
2.3.1 BANKS’ CAPITAL AT THE CONCLUSION OF THE COMPREHENSIVE ASSESSMENT
19
3.3.2 PAPER
48
3.3.2 “ECOLOGICAL PRODUCTS” OFFERED BY THE GROUP
49
2.3.2 MEASURES TAKEN BY BANCA POPOLARE DI MILANO GROUP AFTER THE AQR
19
3.3.3 SUSTAINABLE MOBILITY
49
3.3.4 DISSEMINATION OF ENVIRONMENTAL CULTURE
49
IMPORTANT ISSUES FOR STAKEHOLDERS
2.4 BRANCHES, INTEGRATED MULTI-CHANNEL BANKING AND LISTENING TO CUSTOMERS
20
2.5 PRODUCTS AND SERVICES FOR A RECOVERING ECONOMY
23
SOCIALLY RESPONSIBLE INVESTMENT PRODUCTS
24
THOUGHTS ON IDEAS AND SCENARIOS24
2.6 STREAMLINED ORGANISATIONAL STRUCTURE AND STRONG CORPORATE CULTURE
25
2.7 NEW TALENT, TRAINING AND MERITOCRACY
26
2.8 OUR CORPORATE WELFARE
28
2.9 COMMUNITY INITIATIVES 31
3.4 AWARDS RECEIVED
50
3.4.1 BANCA POPOLARE DI MILANO 50
3.4.2 PROFAMILY 52
3.4.3 WEBANK 52
3.4.4 BANCA AKROS 52
The complete document, which has been prepared in accordance with GRI/G3.1
Guidelines and which has been subjected to a limited audit by independent auditors,
will be made available on the website.
3
1. IDENTITY
We understand that the maintenance of our
identity, while welcoming transformation and
innovation, is the path we have to take to strike
a balance between earnings and social value.
In this section we look back over our 150-year
history and the salient features of our identity: the
mission, the values, the governance, the brands
by which we operate and the stakeholders that
we engage with every day.
1933
1st BPM Savings Promotion
INTRODUCTION
1. IDENTITY
3. 2014 RESULTS
150-YEAR HISTORY
In 1865 a brilliant economist Luigi Luzzatti
aged 24, inspired by the principles of
cooperative credit, established Banca
Popolare di Milano. Even today we remain
faithful to the model which inspired its birth:
we are a company with a widely distributed
share capital and a close relationship with
our customers who are mainly households
and small and medium sized businesses.
There is strong participation on the part
of our employees in company life and we
contribute to the well-being of the areas
where we operate by donating part of our
profits to social initiatives, as required by the
Articles of Association.
Our bond with tradition over the years has
not prevented us from being a point of
convergence, open to market changes.
In all that we do, as shown by our recent
business plans, there is a will to innovate
and to welcome transformations, while
being aware that the creation of social value
as well as economic value is the path to
long-term growth.
Porta Venezia
Branch (1935)
5
INTRODUCTION
1. IDENTITY
3. 2014 RESULTS
2012/13
1994
1865
1911
A brilliant economist, Luigi
Luzzatti, aged 24, founded
Banca Popolare di Milano
BPM hired
female staff for
the first time
1990
BPM was one
of the first banks to
adopt an online
banking platform
1900
THE 1950s
BPM participated
at the Paris Universal
Exhibition and won
a co-operative banking
section award
there began a series of acquisitions
and mergers:
Banca Popolare di Roma (1957),
Banca Briantea (1960),
Banca Popolare Cooperativa
Vogherese (1979),
Banca Agricola Milanese (1986),
Banca Popolare di Bologna
e Ferrara (1988),
Banca popolare di Apricena (1989),
INA Banca S.p.a. (1998)
Banca Popolare di Milano
BPM Group
Acquisitions
BPM, already listed
on the restricted
market, became
one of the first
cooperative banks
to be admitted to
trading on the Stock
Exchange
2001/04
2010
Banca di Legnano
and Cassa
di Risparmio
di Alessandria
were acquired
and joined the Group
ProFamily
was set up,
a company
specialised
in consumer
credit
Revitalisation of the Group
with a plan to simplify
the corporate and
organisational structure and
the distribution network.
Cassa di Risparmio di
Alessandria and Banca
di Legnano were merged.
A new commercial model was
introduced that envisaged
a series of Hub branches that
would offer all services and
Spoke branches that would
provide territorial coverage, but
which would rely on the lead
Hub branch for certain services
1998
2008
2011
2014
Banca Akros was
acquired and joined
the Group
Banca Popolare di
Mantova was acquired
and joined the Group
The Bank experienced
a period of severe crisis.
As a result of irregularities
that emerged from an
inspection, the Bank of
Italy imposed additional
capital requirements
(so-called add ons).
The General Meeting of
the Members approved
the introduction of
a “two-tier” system
of governance
March Approval and implementation of a long-term
Business Plan “BPM 2014-2016/2018: Strong
and sustainable growth”
May BPM completed a share capital increase
of Euro 500 million
June Bank of Italy removed the capital add ons
imposed in 2011. BPM became one of the highest
capitalised banks in Italy
October BPM was named among the banks
of national importance that fell under the control
of the European Central Bank and successfully
passed the Comprehensive Assessment
November With the merger of WeBank,
the development plan was implemented for
a modern, efficient multi-channel bank as
envisaged by the Strategic Plan
INTRODUCTION
1. IDENTITY
3. 2014 RESULTS
1.2 MISSION
To be the local bank of reference for the development of households and
businesses, with a strong emphasis on creating a long-term relationship
with customers:
To continue the BPM tradition of customer centrality (for both
households and companies) and strong orientation towards
a transparent relationship, significantly improving the service
provided by means of a straightforward offer oriented towards
the needs of the customer
To be a co-operative that is careful about its economic results
and capital solidity with respect for the commitments made
with members and shareholders
To enhance the value of its human capital and to maintain a
system of employee relations that generates motivation and a
sense of belonging, in order to achieve its corporate objectives.
To maintain an attentive approach to questions of corporate
social responsibility and sustainable growth initiatives in
the territory
Head office in Piazza Meda,
Milan
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INTRODUCTION
1. IDENTITY
3. 2014 RESULTS
1.3 VALUES
We are aware that the manner in which we conduct our business is important for all of our
stakeholders and, for this reason, our work is inspired by the Values laid down in the Charter
of Values and Commitments (in italian).
INTEGRITY
fairness and respect
for commitments
THE IMPORTANCE
OF DIALOGUE
know to appreciate
TRANSPARENCY
RESPONSIBILITY
provide full information
so people can decide
knowingly
Awareness
of one’s role
CO-OPERATIVE
SPIRIT
Participation
and proximity
Banking hall
of the head office in Piazza
Meda with central “corbeille”
(the 1950s)
8
INTRODUCTION
1. IDENTITY
3. 2014 RESULTS
1.4 STAKEHOLDER MAP
STAFF
STAKEHOLDERS
Stakeholders are persons who influence and are influenced
by the company.
They have a direct or indirect interest in the company and, due to
this interest, they are capable of influencing business operations
and the achievement of objectives or the organisation as
a whole and they, in turn, are influenced thereby.
Since the 1980s, importance has been placed on the
stakeholder view, that is, the need to pay attention to the
social consequences of doing business, with reference to the
expectations of shareholders and other stakeholders.
This theory is based on the fact that only companies with
business models capable of engaging various stakeholders will
guarantee access to the resources needed to achieve good
long-term performance. The new challenge for companies
is thus the development of business models based on striking
an appropriate balance between the various stakeholders
and value creation.
employees,
contract staff, interns
MEMBERS AND
SHAREHOLDERS
CUSTOMERS
individuals and
households, small
and medium-sized
enterprises, social
enterprises, large
enterprises, consumers’
associations, trade
associations, public
entities and public
administration
individual members
and small investors,
institutional investors,
shareholders’
associations
COMMUNITY
organisations that
represent collective
interests, public
institutions, the media
SUPPLIERS
ENVIRONMENT
large and
small suppliers
environmental
organisations,
future generations
9
GROUP’S BRANDS
HOW IS BANCA POPOLARE
DI MILANO’S BRAND PERCEIVED?
1. IDENTITY
3. 2014 RESULTS
The Banca Popolare di Milano brand
is the expression of a long history of growth
and transformation which has nevertheless
left its strong identity unchanged, its
distinguishing characteristics being proximity
to the local economy, a dedication to
customers and members, and employees’
participation in company life.
The chart shows the results of a survey
conducted in 2014 with 1,500 customers of the Bank
(individuals and companies)
BPM is a Bank:
INTRODUCTION
Marks on a scale from 0-100
with a great tradition
with ease of customer contact
The Group’s investment bank, it has
a brand that is known in the stockbroking
market and for the excellence of its
services to Private banking and Corporate
customers.
financially solid
engaged and active for social
and environmental issues
that applies adequate and
transparent general conditions
that understands and responds
to individual customer needs
that distinguishes itself for the
innovative nature of solutions proposed
that offers products and services
with good value for money
0
Local regional Bank par excellence,
founded and administered by leading
figures in the local economy. The brand
is known in the Mantua area, where
the Bank is present with 17 branches
and where it takes an active role in social
and cultural initiatives.
100
Company specialised in consumer
credit and operative since 2011, it has
established itself in the sector for assistance
to its customers focused on personalised,
appropriate and responsible choices.
Brand identified with service to
customers who use solely the online
channel and which is synonymous
with excellence in the field of web
and mobile services, a reputation
gained over time thanks to an innovative,
fast and quality service.
10
INTRODUCTION
1. IDENTITY
3. 2014 RESULTS
1.6 GOVERNANCE
Banca Popolare di Milano is a cooperative bank that in 2011 adopted
a “two-tier” system of Governance organised as follows:
General Meeting of Members: appoints the Supervisory Board
and is convened at least once a year.
Supervisory Board: in addition to appointing the members of
the Management Board, it performs a control function over
operative management and approves the financial statements.
Management Board: handles the management of the business
and the definition of strategic guidelines, appoints senior
management and identifies the Managing Director, who acts
as chief executive officer.
MEMBERS AND SHAREHOLDERS
General Meeting
of Members 2014,
Milan
The share capital, which consists of
4,391,784,467 shares, is held by approximately
114,000 shareholders, of whom 49% are
registered in the Register of Members. There are
56,185 shareholder members who hold 12.8%
of the shares, while there are approximately
58,000 non-members who hold 87.2% of the
share capital.
Further information on
corporate bodies and the
composition thereof
(in italian)
11
2. BUSINESS PLAN
AND STAKEHOLDER
EXPECTATIONS
We intend to establish ourselves as a solid
Bank that welcomes transformation and
which is capable of meeting the expectations
of different stakeholders. The development
of a results based culture and a show of
appreciation to those who contribute to its
achievement represent a fundamental tool for
our future development.
In this section we illustrate the guidelines
and main initiatives as laid down by our
Business Plan and issues that are relevant to
stakeholders, attempting to focus on those
issues that figure prominently for both our
planning purposes as well for those people
that we work with and relate to every day.
12
2.1 OUR BUSINESS PLAN:
STRONG AND SUSTAINABLE GROWTH
GUIDELINES
ACTION BEING TAKEN
SOLIDITY AND RESILIENCE:
•
INTRODUCTION
1. IDENTITY
3. 2014 RESULTS
Continuous monitoring of asset quality thanks to the •
SOLID CAPITAL BASE
adoption of specific policies by sector, optimisation •
IMPROVED LIQUIDITY
of monitoring of loans, active management
•
LOW RISK PROFILE
of problem loans.
•
OBJECTIVES ACHIEVED
Achieved objective of solid capital base thanks
to increase in share capital and removal of add-ons.
Improved liquidity capable of meeting ordinary commitments as well as facing up to extraordinary situations.
A more efficient territorial network with differentiated distribution formats, strengthening COMMERCIAL EFFECTIVENESS:
•
•
of network of financial advisors with the aim
of meeting the needs of specific market segments MULTI-CHANNEL
and personalised retail service offering.
CUTTING EDGE SERVICES
•
INNOVATION IN CUSTOMER
RELATIONSHIPS
•
Value added service offering to Corporate customers partially thanks to synergies with Banca Akros and Integration of WeBank into Banca Popolare
di Milano with a view to the creation of a sole
multi-channel bank.
strengthening of commercial services to companies.
•
Creation of a centre of excellence
in Private Banking segment.
•
Significant investments in IT.
EFFICIENCY AND MAKING BEST USE
OF INTANGIBLE AND TANGIBLE ASSETS:
• DEVELOPMENT OF GROUP’S RESOURCES, RECRUITMENT OF NEW PROFESSIONAL SKILLS AND TALENTED YOUNG PEOPLE
•
DIGITALISATION AND EFFICIENCY
• RATIONALISATION AND BEST USE
OF PROPERTY
Development of Training and a performance assessment system, staff involvement in achievement
•
Restyling/improved energy efficiency
of property portfolio.
of Business Plan objectives.
Constant attention to reducing costs thanks to current cost reduction measures, to the digitalisation of commercial processes and to the redesign
of back office processes.
13
2.1. OUR BUSINESS PLAN:
2.1.1
IMPACT ON STAKEHOLDERS
The Business Plan, as well as generating
financial results, is of relevance to all
of BPM Group’s stakeholders. On this
page we have set out the Business Plan
objectives in terms of impact on customers,
on members and shareholders, on staff,
on the community and on the environment.
INTRODUCTION
1. IDENTITY
3. 2014 RESULTS
CUSTOMERS
•
MEMBERS AND SHAREHOLDERS
More support for sectors that drive
•
the real economy
•
Remuneration of members and shareholders
in both the short and long term
New tools for customer contact
•
Increased investor confidence
and attention to customer satisfaction
•
Reduction of customer response times IMPACT OF
BUSINESS PLAN
ON STAKEHOLDERS
HUMAN RESOURCES
•
Show appreciation to staff and results
based culture
•
Constant sharing of corporate vision
and strengthening of internal cohesion
•
•
Training for staff redevelopment
COMMUNITY AND ENVIRONMENT
•
More resources to be dedicated
to the community
•
Attention to materials used in restructuring
real estate, energy efficiency and waste
reduction
Development of corporate welfare
14
2.1. OUR BUSINESS PLAN:
INTRODUCTION
1. IDENTITY
3. 2014 RESULTS
2.1.2 THE DRIVERS OF SUSTAINABILITY
IN THE BUSINESS PLAN
The Business Plan is based on the Sustainability
of three areas: Social, Economic, Environmental.
•
SOCIAL
Prudent credit
policy aimed at
supporting the sectors
of the real economy
with growth prospects
Handling of corporate reorganisation without
job losses
ECONOMIC
ENVIRONMENTAL
•
Responsible
management of Human Resources
•
More income
to allocate to
not-for-profit entities*
•
Balancing and satisfaction
of various stakeholders’
needs
•
Capital solidity
and long term
earnings
•
Cost
savings
•
Best use and redeployment
of the property portfolio
•
Energy efficiency
and reduction
of environmental impact
•
Involvement
of financial community
•
Generational change
with new recruits and
development of current
professional staff
•
*Article 60 of the Articles of Association of BPM envisages the possibility of allocating
an amount to the charity and social fund that does not exceed 2% of net income.
15
INTRODUCTION
1. IDENTITY
3. 2014 RESULTS
Environmental, social and economic issues
Below are listed the issues that the Bank’s stakeholders,
and society at large, deem to be important for BPM
Group. This matrix was created by involving external
stakeholders and corporate structures of the Group,
HIGH
Fight against corruption
Management of socialenvironmental risk in lending
Financial inclusion
and microcredit
Third Sector support
Enhancement of diversity
and equal opportunities
Quality, transparency
and security of services
Capital solidity
and earnings
Credit, support and advice
to households and businesses
Corporate welfare
Staff development
and involvement
Customer service
innovation
Reduction
of environmental impact
MEDIUM
IMPORTANCE FOR STAKEHOLDERS
Financial education
taking account of the main issues reported by the press
and the results of a survey conducted with a panel of
external stakeholders consulted by the ABI work group
“Project Shared Values”.
Green products
and services
ATTENTION
DEVELOPMENT
STRATEGY
BPM GROUP’S APPROACH
For the creation of this map, we wish to thank the “activist shareholder” association Etica Dignità Valori for its assistance
Environmental
Social
Economic
16
Capital solidity and earnings
INTRODUCTION
1. IDENTITY
3. 2014 RESULTS
SUMMARY SUSTAINABILITY REPORT
BUSINESS
PLAN
COMPLETE
2.3 Solidity to give credence to the business
3.1 Economic performance
2.3 Solidity to give credence to the business
Credit, support and advice to households
and businesses
2.4 Branches, integrated multi-channel banking
and listening to customers
2.5 Products and services for a recovering economy
Staff development and involvement
To meet stakeholders’ needs, we have
set out in this summary those issues
deemed important, many of which
have been covered by the Business
Plan.
It is possible to see where certain issues
are dealt with in the present document
and which issues will be dealt with by
the Complete Sustainability Report.
2.6 Streamlined organisational structure
and strong corporate culture
2.7 New talent, training and meritocracy
Customer service innovation
2.4 Branches, integrated multi-channel banking
and listening to customers
Quality, transparency and security of services
3.2 Social performance
Corporate welfare
2.8 Our corporate welfare
Financial education
2.9 Community initiatives
Third Sector support
2.9 Community initiatives
Enhancement of diversity and equal opportunities
3.2 Social performance
Fight against corruption
Reduction of environmental impact
3.3 Environmental performance
Green products and services
3.3 Environmental performance
Management of social-environmental risk in lending
The possibility of using social and environmental indicators in credit evaluation
is currently being assessed
From the analysis of what is
needed from the Banks, it
results that the main needs
of stakeholders relate to their
traditional activities and,
in particular, the ability to
innovate and to render the
banking business efficient,
to generate income and
to support the economy,
above all, by means of
actions aimed at supporting
Italy’s production system.
Environmental
Social
Economic
17
2.3 SOLIDITY TO GIVE CREDENCE
TO THE REAL ECONOMY
INTRODUCTION
1. IDENTITY
3. 2014 RESULTS
What will change after the Asset quality review?
Banca Popolare di Milano is one of the 15
Italian banks of national importance that, at
the end of 2014, fell under the control of the
European Central Bank, which has taken on a
key banking supervisory role, having become
the sole supervisor of the banking system.
As part of its control activities, the ECB
commenced a series of checks on the financial
soundness of national banks (Comprehensive
Assessment - see box) with the objective of
ensuring, in the event of a crisis, the stability
of European financial markets.
Banca Popolare di Milano successfully
passed all the stages of the ECB analysis
showing that it has sufficient capital to absorb
shocks arising from particular crisis conditions.
In particular, at the stress test stage, the
Bank was able to show that it was capable
of coping with adverse scenarios in the
forthcoming years with excess capital of Euro
713 millioni.
The European regulator’s new analysis
methodologies, which require the provision of
detailed, structured information on loans, have
led the Bank to develop the processes for
the assessment, granting and monitoring
of loans with the aim of aligning them with
the standards used for the AQR and to render
relations with client companies sustainable
over time.
In particular, methods of analysis have been
implemented that are based on financial and
risk indicators, which, in turn, are based on
the analysis of financial statements, business
plans and cash flow projections. Furthermore,
Banca Popolare di Milano has developed
credit policies that take account of the
prospects for specific industry sectors as well
as the positioning of individual companies.
In fact, today, in an economy that is
increasingly interconnected, the correct
association of risk to a business requires
knowledge, not only of individual businesses,
but also of the sector and the supply chain to
which it pertains.
By means of this approach, Banca Popolare di
Milano intends to consolidate its relationship
with client companies by performing a more
detailed analysis of a business and its
prospects, placing importance on a continuous
and transparent relationship.
THE EUROPEAN CENTRAL BANK’S
COMPREHENSIVE ASSESSMENT
PROCESS
1st PHASE
Supervisor
Risk Assessment
Analysis of the main risk
profiles inherent in the
financial statements of
institutions involved in the
Comprehensive Assessment
(review of the liquidity
position and of the level of
indebtedness and deposits).
2nd PHASE
Asset Quality
Review
Analysis of the quality of
banks’ assets, comprising
the adequacy of the
measurement of assets
and collateral and related
provisions.
3rd PHASE
Stress test
Verification of the adequacy
of the capital base of banks
when faced with adverse
scenarios over the period
2014-2016.
18
2.3 SOLIDITY TO GIVE CREDENCE TO THE BUSINESS
INTRODUCTION
1. IDENTITY
3. 2014 RESULTS
2.3.1 BANKS’ CAPITAL AT THE CONCLUSION
OF THE COMPREHENSIVE ASSESSMENT
2.3.2 MEASURES TAKEN BY BANCA POPOLARE DI MILANO
GROUP AFTER THE AQR
THE 15 ITALIAN BANKS UNDER SCRUTINY
2014 capital excess/shortfall (Euro million)
Intesa Sanpaolo
10,897
Unicredit
8,747
UBI Banca
1,761
Banco Popolare
1,183
Mediobanca
765
713
Popolare dell’Emilia Romagna
631
Credito Emiliano
463
Iccrea Holding
256
Credito Valtellinese
50
Popolare di Vicenza
30
Popolare di Sondrio
26
Veneto Banca
24
-814
Carige
Monte Paschi
Development of new Electronic Credit Line Dossier (ECLD),
with guidelines for “corporate managers” for the acquisition of
appropriate information and the industrialisation of the process for
the acquisition/update of figures from companies
-2,111
Review of the reclassification criteria for financial statements
and related ratios to bring them into line with the standards used
for AQR
Focus on prospective analysis, on cash flow and the ability
to repay debt
Simplification of credit administrative processes to ensure the
focus is on risk analysis
Analysis of consistency of requests with corporate credit policy
Implementation of a system to monitor the health status of
companies and the collateral provided
Assessment of the skills of Network and Credit Service staff (with
regards to accounting, financial analysis and scenario analysis)
and benchmarking against international competitors, with the
subsequent commencement of an ad hoc training programme to
bridge any resulting gaps
Source: Bank of Italy
19
INTRODUCTION
1. IDENTITY
3. 2014 RESULTS
2.4 BRANCHES, INTEGRATED MULTI-CHANNEL
BANKING AND LISTENING TO CUSTOMERS
Our commercial model offers an integrated multi-channel service thanks to
synergy among branches, financial advisors, internet banking, call center and
phone banking and guarantees a personalised service to a wide range of
customers. This is the Group’s core business to which are dedicated, with various
roles, over two thirds of personnel.
The “physical network” comprises the Bank’s branches, the specialised corporate
banking centres for medium-sized and large companies, the Private Banking
Centres and ProFamily branches for consumer credit and advisory services to
households.
THE BANK’S BRANCHES
Legnano branch
In Italy, until the 2000s, a branch network was practically the only
means of increasing deposits, loans and brand communication.
Recently, the fall in earnings experienced by the banking system
and social, cultural and technological changes pushed Italian
banks to rethink their contact model and to fall into line with
European standards in terms of the number of branches per capita.
In Italy in 2012 there were on average 54 branches per 100,000
inhabitants against an average of 41 at European level.
Source:
2013 PWC study (in italian)
20
2.4 BRANCHES, INTEGRATED MULTI-CHANNEL BANKING
AND LISTENING TO CUSTOMERS
In recent years the network has been subject to a process of rationalisation
and renewal that took account, on one hand, of the economic sustainability
of the traditional distribution model and, on the other hand, of the proximity
to the customer. The rationalisation of the branch network was not without
considerations of a social nature: for example, it was decided not to proceed
with the planned closure of branches in Accadia (FG) and Altamura (BA), to
meet the needs of the local population, for which the BPM branch was the
only bank.
In addition to the traditional network, there are 43 financial advisors operating
under the BPM name plus 15 under the Banca Akros name.
DISTRIBUTION NETWORK
OF THE BPM GROUP
31/12/14
31/12/13
31/12/12
654
716
769
Corporate Banking Centres
15
18
15
Private Banking Centres
12
18
17
ProFamily Branches
25
24
39
706
776
840
Total branches
TOTAL
INTRODUCTION
1. IDENTITY
3. 2014 RESULTS
Notwithstanding the changes that are underway, in our commercial model the
branch is the preferred location for a privileged relationship between the
bank and the customer. This is one of the reasons whereby we have initiated
a restyling of the branches to ensure they are welcoming places for customers
and modern, efficient work environments from an energy point of view.
The move towards integrated multi-channel banking, which was made by
the Group in 2014 (with significant developments and investment planned for
the coming years), is a driver of innovation that will make it possible to offer
various solutions that will enable constant, flexible contact with customers.
The merger of WeBank into Banca Popolare di Milano was a fundamental
step in the multi-channel strategy and made it possible to add online services
under a cutting edge brand to the BPM network’s product range. The WeBank
brand, which is recognised and established among digital customers, will
continue to operate based on a strategy of continuous innovation.
NEW CUSTOMER NEEDS
In 2013, almost 15 million Italians confirmed they used internet
banking, of which approximately 20% (a figure that is destined
to explode in coming years) stated that they used banking
services via smartphone. The need for more flexibility has led to
customers showing an increasing preference for the branch for
assistance and advice on important financial decisions and less
so for “ordinary” transactions (bank transfers, payments, bank
statements, etc.) for which there is a preference for the online
channel.
ABI and GfK-Eurisko survey
21
2.4 BRANCHES, INTEGRATED MULTI-CHANNEL BANKING
AND LISTENING TO CUSTOMERS
Listening to customers, aimed at consolidating and
enhancing the relationship, has long been practiced
through multiple channels. In addition to the traditional
customer satisfaction, new online modes have been
provided (e.g. ”The Bank that I would like”) as well
as good use having been made of previously existing
tools such as the “complaints procedure”, as part of
which, with the aim of transforming a “minus” into a
listening opportunity, in 2014 the “r_Evolution” project
was implemented and which has the objective of
handling complaints in such a manner as to improve
the relationship between the Bank and the customer.
INTRODUCTION
1. IDENTITY
3. 2014 RESULTS
LISTENING TO CUSTOMERS
AS A DRIVER OF CONTINUOUS
INNOVATION
Innovation comes from listening, discussion
and sharing. “The Bank that I would
like”, active since 2010, is an area of the
WeBank website dedicated to customers
who wish to suggest ideas for improving
services offered. As well as the section
“Submit your idea”, the website includes a
section “Ideas to be implemented”, which
comprises those ideas that will be put
into action and, lastly, the section “Ideas
implemented”, containing 863 ideas
suggested by customers that have been
implemented by the Bank in recent years.
PROJECT BIG 2.0: MAKE USE OF
THE COMMERCIAL NETWORK’S
KNOWLEDGE
With the aim of involving the network’s
employees in the creation of continuous
service excellence focused on the customer
and to make use of their wealth of
knowledge, a BIG 2.0 contest has been
launched. Over 300 colleagues split into
34 teams are tackling projects concerned
with various aspects of the customer
relationship, such as the welcome they
receive in the branch, understanding their
needs, the ability to meet those needs and
how to handle the unexpected. In addition
to being an internal cohesion tool, the
initiative is aimed at implementing the best
projects presented.
The Bank that I would like - WeBank
22
2.5 PRODUCTS AND SERVICES
FOR A RECOVERING ECONOMY
BPM Group, betting on the nation’s recovery, has introduced
loans and services to support personal and business projects
and has contributed to exchanges of ideas and thoughts
on the economic crisis and possible future prospects.
“Impresa in ripresa” (link in italian) was a campaign targeting
entrepreneurs, who, despite the crisis, sought resources needed to
relaunch their business. The Bank, in fact, implemented a series of
measures inclusive of the following:
•
•
•
•
Improved services for businesses, inclusive of support for the
internationalisation of businesses with growth potential abroad and
the creation of an ad hoc service model for customers that operate
in the property sector
•
•
•
•
INTRODUCTION
1. IDENTITY
3. 2014 RESULTS
Subsidised loans (increased by 30% in volume terms and 50%
in terms of the number of transactions)
Facility for loans granted at subsidised interest rates to companies
operating in territories where the Group has its historical roots and
that are members of Confindustria Alessandria, Como, Legnano and
Bologna and Confartigianato Lombardia
A new agreement with the European Investment Fund for the provision
of increased resources to support microcredit initiatives for SMEs
and start-ups.
Specialist teams dedicated to debt restructuring for companies in
crisis or that are experiencing difficulties with the aim of verifying
what the chances are of recovery and debt renegotiation Support for a lending policy to high potential “worthy” customers
via dedicated pricing and faster response times
Commercial initiatives aimed at supporting recovery such as a new
product line that meets the needs for liquidity, payments to suppliers,
taxes, duties, investments and internationalisation initiatives. Among
the opportunities offered there is a “loan with covenants”, which
is an agreement between BPM and the client company to grant a
loan on favourable terms with preferential transfer arrangements (e.g.
discounting of invoices, presentation for payment of import letters of
credit, etc.)
Support for female entrepreneurs, following the signature of a
memorandum of understanding by ABI, the Department for Equal
Opportunities of the Presidency of the Council of Ministers and by
Trade Associations, a facility has been made available of Euro 300
million for companies run by women that want to invest, set up a new
company or obtain help for recovery
23
2.5 PRODUCTS AND SERVICES
FOR A RECOVERING ECONOMY
INTRODUCTION
1. IDENTITY
3. 2014 RESULTS
As regards individuals, commercial initiatives have been focused mainly
on mortgage loans for house purchases. It is, in fact, support for families,
particularly young couples who need prompt feedback in order to plan their
futures, that has pushed BPM into offering a fast response mortgage loan with
a reduced spread of 1.5%.
Moreover, initiatives have been implemented to relaunch consumer spending,
such as loans against the assignment of one-fifth of the borrower’s salary,
prepaid cards linked to an IBAN to extend the usage thereof and savings via
the virtual piggybank “Savings Well Done”.
INNOVATION FOR SAVING SERVICES
“Savings Well Done” is an online service
that offers the following functions:
•
Setting of up to 4 spending objectives
(unspecified or defined)
•
•
Saving without defining specific
objectives
•
SOCIALLY RESPONSIBLE INVESTMENT PRODUCTS
Achievement of savings objectives
via bank or account transfer or by
topping up a prepaid Carta Je@ns
•
Again, in 2014, we have continued marketing socially responsible investment
products through Etica SGR, for which there has been an increase in volumes
and subscriber numbers.
Monitoring the performance of one’s
savings
•
Simplification of access to the app
via smartphone
•
2014
30,000
(data units)
To promote thoughts on ideas and scenarios regarding the crisis and possible
strategies to cope with and overcome it, interventions have been promoted
within the Group by economists and financial sector experts. In particular,
Banca Popolare di Mantova sponsored the intervention at the literature festival
of Mantua by Jeremy Rifkin, an American economist and political expert,
one of the most brilliant minds of our time, while Banca Akros organised at its
head office a conference with Jaques Attali, economist, business man and
government advisor, to which the Group’s customers were invited.
ProFamily organised a round table entitled “Credit for households in a
period of crisis: opportunities for a desirable economic recovery”, the
participants at which included key industry players such as Adiconsum,
Assofin, CRIF Credit Bureau and the Italian Association of Agents and Brokers.
On-line purchase of products at
attractive prices on Marketplace
Bazak
Etica SGR investment funds marketed by BPM Group
NUMBER OF SUBSCRIBERS
THOUGHTS ON IDEAS AND SCENARIOS
By inviting friends and relatives
to participate in a savings objective
20,000
2013
10,000
2012
100,000 200,000 300,000 400,000
ASSETS SUBSCRIBED BY BPM
(€ thousand)
24
2.6 STREAMLINED ORGANISATIONAL STRUCTURE
AND STRONG CORPORATE CULTURE
In recent years, the BPM Group structure has been vastly simplified to provide
a more sustainable cost model capable of rapidly adapting to technological
development and to change.
HOW WE WERE THREE YEARS AGO
COMMERCIAL BANKS
HOW WE ARE AT THE END OF 2014
COMMERCIAL BANKS
Banca Popolare di Mantova
Banca Popolare di Mantova
Banca di Legnano
For the achievement of synergy and cost savings objectives, there was a need
to invest in human and relationship capital, favouring the development of a
strong corporate culture and a sense of belonging.
Support for the changes was also provided through training: the “WeBank
integration” project was implemented by listening to a significant sample of
employees of both organisations, with the objective of receiving feedback that
would be useful in facilitating a real process of change and integration at the
individual and collective level.
1. IDENTITY
3. 2014 RESULTS
The involvement of employees in corporate vision and objectives is important
in times of change and for the achievement of daily goals.
Fundamental tools used to improve information, to increase the sense of
belonging and to increase cooperation were the launch of the new Group
intranet, the numerous opportunities for senior management and employees
to meet, employee engagement activities and activities dedicated to the
companies involved in the Group simplification process.
The Group intranet has made it possible to centralise on one platform
operational functions used on a daily basis and social functions for the
management of initiatives capable of bringing senior management closer to
their colleagues and to increase the desire to participate.
Cassa Risparmio di Alessandria
WeBank
INTRODUCTION
Communication is both “top down” with the publication of interviews with
senior management on particular occasions (key financial results, extraordinary
operations and implementation of new initiatives) and “bottom-up” whereby
feedback is provided by staff with the objective of receiving ideas and
requests from employees.
The intranet is also a tool used to communicate all the Group’s Social
Responsibility and Environmental initiatives, thus keeping all our colleagues
informed of and involved in our corporate values and culture.
Internal “engagement” events, such as team building have been organised by
business and support structure since 2013 and have involved approximately
3,500 persons. Furthermore, in order to involve employees of the merged
companies, various meetings were held in preparation for and subsequent
to the merger.
25
INTRODUCTION
1. IDENTITY
3. 2014 RESULTS
2.7 NEW TALENT, TRAINING
AND MERITOCRACY
The development of new professional skills, continuous training and the
promotion of a culture based on commitment and results represent the
essential drivers for the achievement of the Group’s strategic objectives
and the attainment of a competitive advantage that is also based on the
experience and value of individuals.
To obtain the required skills and abilities, BPM Group has launched a plan to
hire 400 young graduates and professionals by the end of 2016.
INTERNSHIPS AS A NEW MEANS
OF RECRUITMENT
“Welcome to the new hires”
Sala delle Colonne
Project “Young Graduates” is an initiative coordinated by
Development and Training that has proposed an innovative means
of recruitment. For interns, an internship represents an occasion to
put one’s skills into practice and gives their tutors the privilege
of being able to observe them. This path is accompanied by a
training plan and training on the job with the support of a superior
who monitors work based learning and induction. During the
year, 53 youngsters (new graduates and students), 26 of whom
took part in Project Young Graduates, completed internships in
various structures of the Bank.
26
INTRODUCTION
2.7 NEW TALENT, TRAINING AND MERITOCRACY
1. IDENTITY
3. 2014 RESULTS
The 2014 training programme focused on innovation and the
strengthening of the skills present in the Group, on supporting
those involved in organisational changes and on new hires.
These activities involved approximately 7,700 persons, for
a total of approximately 350,000 hours of training with an
investment of some Euro 4 million. Discretionary training alone
in the Parent Company increased by 60% compared with the
previous year, exceeding 137,000 hours.
For the development of a work environment based on merit
capable of promoting a culture of commitment and results, in
the first half of 2014 a cycle of performance appraisals began
that involved, in its various phases, more than 7,000 employees
assessed by 550 appraisers. The assessment system, which has
been redesigned to take better account of merit by recognising
the quality of performance, envisages not only the prompt and
transparent communication of objectives and of assessments, but
also the definition of the parameters for each assessment factor.
In particular, Group training dealt with:
In addition to comprising fixed elements envisaged by the
National Collective Labour Contract and by supplementary
company-level agreements, remuneration comprises variable
elements, such as the incentive scheme, linked to the achievement
of company and Group objectives, as well as the social bonus.
the activation of new levers envisaged by the Business Plan
through dedicated training;
•
the strengthening of technical-professional and managerial
skills;
•
change management dedicated to persons involved in the
integration of WeBank;
•
the qualitative strengthening of the skills of structures dedicated
to credit and services for businesses;
•
•
compliance and risk governance.
Moreover, in order to provide an incentive for the achievement
of financial targets, article 60 of BPM’s Articles of Association
envisages that the employees of the Parent Company will
participate in the distribution of profits via the allocation of
treasury shares, which the employees may decide to hold on
to or to sell.
NUMBER OF GROUP
EMPLOYEES
GROSS AVERAGE REMUNERATION* (in thousands of Euro)
AVERAGE HOURS
OF TRAINING PROVIDED
Executives
150
161
54
Managers
2,798
67
49
Professional staff and other employees
4,792
40
42
LEVEL
* Gross remuneration comprises gross annual basic remuneration (fixed) and variable components, such as the incentive scheme and the social bonus. Expense
reimbursements, daily allowances and overtime have been excluded from the calculation. The figure shown is based on a weighted average of the remuneration
of the employees (excluded part-time employees) of Banca Popolare di Milano (inclusive of WeBank), Banca Popolare di Mantova, Banca Akros and Profamily.
TRAINING: AN INVESTMENT
FOR THE FUTURE OF THE
GROUP
The Group promotes and encourages
training aimed at increasing the
skills of employees through internal
training courses, external courses
financed fully or partly by the Group
and the granting of sabbaticals with
a guaranteed return to work.
27
INTRODUCTION
1. IDENTITY
3. 2014 RESULTS
Quality of life within and outwith the Bank
The sustainable management of human resources mainly comes down to
paying attention to people’s needs. Such attention represents a meeting
point for people and the organisation and consists of a special tool for
the alignment of an individual’s objectives to those of the company.
1.PROFESSIONAL WELLBEING
Training and professional opportunities. In addition to training, job
posting has been introduced, an initiative aimed at all our colleagues
to render transparent the personnel research mechanisms within the
Bank, with a view to growth, job rotation, meritocracy and equal
opportunities. To promote the professional growth of its staff, financial
assistance is available for student workers.
Work environment. Having taken account of the fact that workplace
characteristics are important for a person’s wellbeing, in 2014,
the adequacy thereof was monitored and a plan was presented
to redesign the spaces and which has already been completed in
certain branches and offices. In particular, the spaces of the new
Contact Center have been completely redesigned.
BPM Contact Center
28
QUALITY OF THE ENVIRONMENT
OF THE NEW CONTACT CENTER
Climate control
Control of the physical parameters, such as temperature, velocity and
purity of the air, relative humidity, number of air changes per hour
and orientation of window surfaces.
•
Illumination and acoustics
Low environmental impact LED lighting and installation of adjustable
blinds for the modulation of direct natural light.
•
Dividers between workstations with sound-absorbing panels to
guarantee a high degree of sound absorption and to avoid auditory
and speech fatigue and difficulties encountered by operators in trying
to concentrate.
•
Furnishings, respect for the environment and socialising
Ergonomic furnishings and use of matt finish and anti-glare materials
for worktops. Compliance with parameters for safety, hygiene,
durability and maintainability.
•
•
Differentiated waste collection points and low environmental impact
furnishings compliant with the requirements concerning the release
of formaldehyde. Preparation of green areas, places to meet and
socialise with others, spaces for reading and relaxation with informal
furnishings to create a family environment.
INTRODUCTION
1. IDENTITY
3. 2014 RESULTS
2.PHYSICAL WELLBEING
Health and insurance coverage. The BPM Health Insurance Fund
provides financial assistance towards medical expenses of employees of
the Parent Company, dependent members of their families and retirees,
also thanks to a contribution made by the Bank.
Furthermore, supplementary insurance cover is provided for employees of
Banca Popolare di Milano and Banca Popolare di Mantova for accidents
at work and outside work and for disability caused by illness.
Health and safety. Health checks are performed for employees to
prevent the occurrence of work-related illnesses, safety plans are tested
by means of annual evacuation tests and workstations are adapted for
colleagues with disabilities or with special needs.
Canteens. The Meda and Bezzi premises offer high quality canteens that
offer varied menus. They are capable of meeting specific dietary needs
and provide details of potentially allergenic ingredients.
Company gymnasium. Based on positive feedback from employees,
in the first half of 2015 a company gymnasium will be opened at the
Service Centre in Viale Bezzi.
29
INTRODUCTION
1. IDENTITY
3. 2014 RESULTS
3.PERSONAL WELLBEING
Recreational activities and partners. In 2014 the Bank
reached an agreement with the trade unions concerning
cultural and recreational activities whereby the Bank would
contribute Euro 250,000 to the ARES cooperative.
Supplementary pensions. The employees of the Group
companies may participate in a supplementary pension
plan. The Bank makes direct contributions to the plan to the
benefit of the participants.
Work-Life Balance and family support. The Human
Resources function seeks solutions to meet the need for
flexible working hours. The corporate nursery, il Giardino di
Bez, which has a partnership with the Municipality of Milan,
has approximately 60 places and is open, in addition to
the employees of the Group, to other families. Moreover,
the Bank, through ARES, proposes and provides financial
support for summer camps organised for the children of
employees aged between 6 and 16.
Psychological support and handling diversity. Since
2000, BPM has had a specific function, which, in addition
to offering advice and support to those who find themselves
in difficulty, is committed to increasing employee awareness
about diversity and retraining of protected categories.
Extraordinary Company Social Bonus. Due to the good
financial results achieved by the Bank, a payment was made
in recognition thereof to all our Parent Company colleagues
regardless of staff level, paying a different amount solely to
those on part-time contracts or hired in the year. Through
a dedicated portal, our colleagues were provided with a
choice as how to use the bonus, such as for a reimbursement
of costs for their children’s education, shopping vouchers and
supplementary pensions.
CHILDREN IN THE OFFICE
On 18 September 2014, BPM opened the
doors of its Meda and Bezzi premises to
employees’ children, who had the chance to
look around the places where their mums and
dads work every day and to spend a day with
other children. The parents, in addition to the
satisfaction of finally being able to let their
children see a little piece of their world, were
able to take part in a course on unblocking
a child’s airway promoted by the Italian
Red Cross.
30
INTRODUCTION
1. IDENTITY
3. 2014 RESULTS
2.9 COMMUNITY INITIATIVES
In 2014, BPM Group, continuing the attention it traditionally pays to the community
and to issues of social interest, supported numerous initiatives aimed at promoting art,
culture and sport and by large and small charitable acts.
ART AND CULTURE
Support was given to initiatives aimed at highlighting our country’s important artistic
heritage. In particular, since 1996, the Parent Company has committed to financing
the restoration of the splendid San Maurizio Church at Monastero Maggiore in
Milan that is due to be completed in the spring of 2015. Thus, the city of Milan will
once again have a place where the frescoes by the Leonardo school make it the
“Sistine Chapel” of Milan.
The other initiatives relating to Milan include History Lessons, held in the Basilica of
Santa Maria delle Grazie, the Milanesiana, a series of events covering literature,
music, cinema and science, Milano Arte Musica, a festival of ancient music concerts
held in Milan’s most impressive churches, the Spazio Teatro NO’HMA, which offers
the public quality shows that are completely free and the art exhibition Mario Sironi
“L’Annunciazione” held in Palazzo Cusani.
As regards young emerging artists, such as the Associazione AreaOdeon, support
was provided to the Kernel Festival and the event named “Kernel Theater - Envisioning
Beethoven” held against the splendid backdrop of the eighteenth-century villa Tittoni
Traversi in Desio.
San Maurizio Church
at Monastero Maggiore,
Milan
31
Banca Popolare di Mantova, as a sign of its proximity to the local community,
gave a contribution to the Festival della Letteratura by sponsoring the
intervention of the economist Jeremy Rifkin and, concurrently with the
Festival, held, at its head office premises, the photographic exhibition “RiFlessioni” that had as its theme “Violence against women”.
In Cremona, support was given to the photographic exhibition “The birth
of Magnum. Robert Capa, Henri Cartier-Bresson, George Rodger, David
Seymour” held at the Museo del Violino in Cremona. An exhibition of 120
photographs to tell the story of the birth of the famous photographic agency
Magnum Photos.
Banca Popolare di Milano has also been active in sharing works of art
and in the organisation of exhibitions, such as “BPM tells the story of its
city - a 150 year-long journey amongst the Bank’s masterpieces”, a temporary
exhibition of paintings, some of which have never been shown to the public,
that recounted the main events in the growth of the Bank and, at the same
time, the development and the transformation of the city of Milan.
INTRODUCTION
1. IDENTITY
3. 2014 RESULTS
SPORT
Support for sport is a fine means of giving voice to values such as aggregation,
passion and team spirit.
Since its first edition, we have backed the STRAMILANO, a non-competitive
run that each year involves more than 50,000 participants along the city’s
streets. We also remind you of our sponsorship of the Bernocchi Cup and
of the Agostoni Cup, important Lombard cycling competitions; the Cyclopride
“Breathing and Peddling” initiative, a 5 km event through the streets of Genoa
to promote a healthy lifestyle; support for the 2014 Swimming Cup and
sponsorship of the Sport Management men’s waterpolo team, of the A1 Series
Vero Volley men’s waterpolo team, of the A League New Basket men’s team
from Brindisi and of the Association Sportiva Rugby Milano.
ITALY: AN EXTRAORDINARY HERITAGE
TO BE PROTECTED
The Bank is a member of the “FAI 200” group, which
is committed to supporting Fondo Ambiente Italiano
in protecting and treasuring the historical, artistic and
environmental heritage.
32
INTRODUCTION
1. IDENTITY
3. 2014 RESULTS
SOLIDARITY AND HEALTH
EDUCATION
There have been numerous initiatives by all the Group companies.
In particular:
BPM Group promotes studying by and training of young people, who
represent an important lever for innovation and social promotion.
Banca Popolare di Milano contributed in terms of financial and teaching
resources to Dr. Start-upper, an opportunity offered by the Università
Cattolica and the Milan Chamber of Commerce to post-graduate students
to participate in a course to prepare them for the working life based on
entrepreneurial values, creativity and innovation and to Tutti in Campo, a
solidarity and training project aimed at youngsters under the protection of
the Juvenile Court or who are deemed to be at risk that, by means of a
professional training course, offers useful tools to cope with the working
world. Furthermore, the Group’s employees participated, by sharing their
skills, in Financial Education initiatives at a number of schools.
Lastly, Banca Popolare di Milano contributes to various study grants: two
named after Luigi Luzzatti offered through the Fondazione Collegio delle
Università Milanesi, one for the Collegio Andreatta in Bologna through the
Fondazione per le Scienze Religiose Giovanni XXIII and twenty to worthy
youngsters through the Fondazione Famiglia Legnanese.
For youngsters and teenagers, support was provided to CAF Onlus,
an association dedicated to assisting minors who have been victims of
mistreatment and abuse, to Fondazione Milan, for the “Scuola Bottega”
project, aimed at teenagers aged between 13 and 17 with learning
difficulties, to the Fondazione per l’infanzia Ronald McDonald Italia that
offers accommodation to families of children being treated at the
Children’s Hospital Bambino Gesù in Rome, to the Associazione Bambini
in Romania and to the social cooperative Il Volo, which is dedicated to
the rehabilitation of young people with psychiatric problems.
•
•
In the health sphere, we have cooperated with CESVI for the ninth edition
of AfricAmore “Stop AIDS in its tracks”, supported the Associazione VIDAS
in the provision of social assistance to the terminally ill, the Fondazione
Dr. Ambrosoli Memorial Hospital in improving the training of staff at
Kalongo Hospital and at the School for midwives in Uganda, Medici
senza Frontiere in their efforts against the Ebola outbreak, the Associazione
Tria Corda Onlus in assisting children undergoing hospital treatment and
the Associazione ACUOREAPERTO for the donation of three defibrillators
to schools in the Municipality of Bollate.
Banca Popolare di Mantova hosted in its conference hall, for the third
consecutive year, the 2014 edition of “Cuore Amico”: a three day event
that promotes the prevention of cardiovascular diseases.
33
3. 2014 RESULTS
The measurement and communication of the
results of our actions is a transparent way to
assess the effectiveness of our work and the
decisions made. Despite the difficult economic
situation in 2014, the year just ended was
extremely positive for the achievement of the
goals that we had set, gained also thanks to
the confident of our stakeholders.
The awards that we have received bear witness
to the appreciation shown for our work in terms
of quality, innovation and products.
INTRODUCTION
1. IDENTITY
3. 2014 RESULTS
3.1 ECONOMIC PERFORMANCE
In 2014 BPM Group achieved a strong performance in the banking sector:
2
nd
Bank in terms of earnings
(ROTE > 5%)
7
th Bank in terms of total assets
(€48 billion)
5
th Bank in terms of market capitalisation
(3.7 billion at 23.2.2015)
4
th Best Italian Bank based
on results of Asset Quality
Review
3
rd Bank in terms
of cost to income
(60% at the end of 2014)
4
th Bank in terms
of capitalisation
(CET1 11.58% at the end
of 2014)
Giuseppe Castagna,
Managing Director
and General Manager
Source: ranking based
on a sample of banks
(UBI, Banco Popolare,
BPER, Intesa San Paolo,
Unicredit, CREDEM,
MPS and CARIGE)
35
3.1.1 BUSINESS AND EARNINGS
In 2014 we improved the level of deposit balances and, in particular, assets
under management, which increased by 17.8%.
Loans to customers fell (-3.8%) in line with the trend in the sector. In fact, the
Group had a market share of 1.84%, largely unchanged from the end of 2013.
Despite the decrease, loans represent 66.5% of the Group’s total assets,
confirming the traditional vocation geared towards support for the real economy.
Net income came to Euro 232.3 million, compared with 29.6 million for 2013.
This result was positively influenced by a gain that arose on the sale of part of
the equity interest held in Anima Holding.
Excluding the extraordinary component, net income came to Euro 141.7 million
compared with normalised net income for 2013 of 78.5 million. The result
exceeds that envisaged by the Business Plan and is extremely positive in the
context of what was still a critical economic scenario, with interest rates that fell
to an all-time low, penalising earnings in the banking sector.
INTRODUCTION
1. IDENTITY
3. 2014 RESULTS
KEY INDICATORS
2014
2013
2012
Total deposits
69.4
68,0
69.1
Assets under management
17.9
15.17
13.76
Loans to customers
32.1
33.3
34.8
0,232
0,029
-0,435
4.5
3.6
4.0
Net non-performing loans/loans to customers
4.19%
3.39%
2.46%
Coverage of non-performing loans
55.9%
55.5%
55.5%
Loans to customers/total assets
66.5%
67.6%
66.3%
11.58%
7.21%
8.38%
Amounts in Euro billions
Profit
Shareholders' equity*
Figures in percentage terms
Common equity tier 1 ratio
*including net income (loss) for the period
TRENDS IN REAL ECONOMY IN 2014
In 2014, Italy’s GDP recorded a downward trend for the third
year running, having fallen by 0.4%. Investment spending,
which has been falling for six years, decreased by 2.4%,
while the construction sector, which has fallen from pre-crisis
levels by 30%, closed the year with a decrease of 3.3%.
Source: Prometeia January 2015
36
INTRODUCTION
1. IDENTITY
3. 2014 RESULTS
3.1.2
ASSET QUALITY, NON-PERFORMING LOANS
AND CAPITALISATION
3.1.3
THE MARKET HAS BELIEVED IN BPM GROUP
Asset quality continues to be affected by the economic environment.
Again in 2014 BPM Group maintained an extremely prudent
approach by increasing the coverage of all categories of impaired
loans that came to 38.5% (36% in 2013).
During 2014, we received confirmation from the market and from
the institutions of the improvement in our reputation and credibility.
Banca Popolare di Milano’s shares achieved the best performance
of all the main bank shares and the share capital increase of
Euro 500 million was fully subscribed, coming within a whisker of
a sell-out (99.5%) at the initial placement stage.
The Common Equity Tier 1 ratio came to 11.58% against 7.21%
in 2013.
The prudent approach to the measurement of loans together
with robust capitalisation enabled BPM Group to achieve an
excellent result in the year for the Asset quality review (“AQR”) by
the European Central Bank, having been ranked fourth out of the
fifteen Italian banking groups that were analysed.
COMMON EQUITY TIER 1
This is the parameter that is used the most to assess
the solidity of a bank and consists of the ratio of
ordinary capital (share capital, reserves and
income) to risk-weighted assets that represent a
summary of the main risk factors attributable to the
activities performed by the Bank.
In addition to the foregoing, we wish to add that the removal of
the add-ons by the Bank of Italy and the fact that we passed the
Comprehensive Assessment by the European Central Bank have
confirmed the faith shown in BPM Group.
PERFORMANCE OF EQUITY
MARKETS IN 2014
In 2014 the Italian banking sector closed positively,
with the FTSE Italia All Share Banks having recorded
an increase of 7%, while the European index (Euro
Stoxx Banks) fell by 4.8%. Among the components
of the Italian banking index, BPM outperformed with
a rise of 35.2%.
STOCK MARKET PERFORMANCE
Intesa Sanpaolo
35.2%
35.01%
UBI Banca
Credem
20.75%
7.14%
Unicredit
0.83%
Banco Popolare
- 4.69%
BPER
- 13.32%
Monte Paschi
- 57.12%
Carige
- 70.04%
Source Bloomberg: annual change in official
closing prices
37
3.1.4 DISTRIBUTION OF VALUE
How much economic wealth has been produced by the
business and how has it been distributed to its stakeholders
INTRODUCTION
1. IDENTITY
3. 2014 RESULTS
STATEMENT OF DETERMINATION AND DISTRIBUTION
OF ECONOMIC VALUE (€/000)
2014
2013
CHANGES IN
ABSOLUTE TERMS
Interest margin
800,171
837,424
-37,253
Net fee and commission income
558,259
546,057
12,202
17,699
13,974
3,725
170,873
186,799
-15,926
1,547,002
1,584,254
-37,252
-423,839
-589,659
165,820
1,123,163
994,595
128,568
Other operating charges/income
138,048
128,906
9,142
Profits (losses) on disposal of investments
104,475
-258
104,733
1,365,686
1,123,243
242,443
614,113
609,960
4,153
Economic value distributed to suppliers
265,060
282,117
-17,057
Economic value distributed to the public administration
264,082
258,611
5,471
96,619
0
96,619
1,037
789
248
640
200
440
-1,241,551
-1,151,277
90,274
124,135
-28,034
158,243
Dividend and similar income
A reclassification of the consolidated income statement
for 2014 shows the economic value generated and its
distribution to stakeholders.
There are three main components in this reclassification:
economic value generated shows the economic wealth
that the Group has produced during the year;
•
•
•
economic value distributed includes that which was
distributed to personnel, to suppliers, to collective interests,
to shareholders as dividends, to the administration as taxes
and duties and to minority interests in respect of the results
of the consolidated companies attributable thereto;
economic value retained by the Group determined as
the difference between the economic value generated and
the value distributed and shall be employed for productive
investments to enable economic growth and a stable capital
base, as well as to guarantee the creation of new wealth to
the benefit of the stakeholders.
Net income (loss) on financial assets and liabilities
Net interest and other banking income
Net adjustments to loans
Net income from banking activities
A. ECONOMIC VALUE GENERATED
Economic value distributed to employees and other staff
Economic value distributed to shareholders
Economic value distributed to communities and the environment
Economic value distributed to third parties
B. ECONOMIC VALUE DISTRIBUTED
C. C. TOTAL ECONOMIC VALUE RETAINED C = A - B
These items have been reclassified in accordance with instructions issued by ABI ( Italian Banking Association) in compliance
with GRI - G3 guidelines.
38
INTRODUCTION
1. IDENTITY
3. 2014 RESULTS
3.2 SOCIAL PERFORMANCE
This measures the quality of our relations with stakeholders and comprises
intangible resources that are a fundamental element for a correct assessment
of the sustainability of BPM Group over time.
3.2.1 PERSONNEL
As regards relations with
stakeholders, those with
the people who work for
the Group are of strategic
importance. For this reason
almost all of our employees
are on permanent contracts
and benefit from corporate
training
that
increased
considerably in the year.
TOTAL GROUP EMPLOYEES
7,740
BREAKDOWN BY CONTRACT
Permanent contract
98.8%
Temporary contract
0.1%
Apprenticeship
1.1%
BREAKDOWN BY LEVEL
Executives
2%
Managers
36%
Other employees
62%
Breakdown by gender
Team Building
Credit function
Men
52%
Women
48%
39
The Group’s headcount went from 7,748 at the end
of 2013 to 7,740 at the end of 2014.
The decrease is mainly attributable to resignations
and to the Solidarity Fund, which involved 213
employees in the year.
At the same time, the Group hired 182 persons
(88 men and 94 women), most of whom were
young graduates, in order to create a generational
change and an attitude renewal.
Over the years there has been an increase in
female staff that at the end of 2014 represented
48% of the headcount. In total, there are 3,704
women, of whom 28% work shorter hours to
reconcile their work and family commitments.
1,091
Part-time contract
(14% of total
headcount)
of which 1,033
are women
and 58 men
44 years
Average age
(in line with
national average)
14.7 years
Average period
of service
INTRODUCTION
1. IDENTITY
3. 2014 RESULTS
approximately
350,000 hours
Total hours of training
45 hours
Average training
per capita
Training by level
54 hours on average
for executives
49 hours
for managers
42 hours
hours for other personnel
HANDLING DIVERSITY
In 2014 BPM was a partner of “Diversitalavoro”
and not only participated at the Career Day, but
also hosted the event for the third year running.
At last year’s edition, 3 disabled persons were
hired as interns, whereas, for those offered
internships in 2013, 2 accepted a 6 month
extension of their internship and 1 was hired with
a permanent contract. 469 persons pertaining to
protected categories work for the Group.
56.8%
SMART WORKING
In 2014 our participation in the “Easy
Work Day” promoted by the Municipality
of Milan, gave us the chance to
experiment with allowing staff to work at
the Group’s premises that were closest to
home.
43.2%
COMPULSORY TRAINING
Hours of training (in thousands) 199
DISCRETIONARY TRAINING
Hours of training (in thousands) 151
As part of our “Diversity” initiatives, an innovative
“Bridge” project has been developed and which
was used for a trial period of approximately one
month. This enables deaf people who work for
the Group to overcome communications barriers
by putting them in contact with those who can
hear through intermediaries (specialist call
centres, video interpretation) that make real time
communication possible.
40
INTRODUCTION
1. IDENTITY
3. 2014 RESULTS
3.2.2 CUSTOMERS
We have more than 1.3 million customers of which more than
55% have had a relationship with us for more than 10 years.
We have approximately one million individual customers, while
our corporate clients are mostly small and medium-sized.
INDIVIDUAL CUSTOMERS
4.6%
52%
95.4%
48%
13.5%
24.3%
Industry
Services
18.7%
Commerce
Skilled trades
Agriculture
Other
3.5%
italian
women
foreigners
CUSTOMERS WHO
SOLELY USE
THE ONLINE CHANNEL
CORPORATE CUSTOMERS - 92.4% are small businesses
SMALL BUSINESSES:
DISTRIBUTION BY ECONOMIC SECTOR
14%
men
26%
170000
160000
150000
140000
130000
120000
110000
100000
90000
80000
70000
60000
50000
40000
30000
20000
10000
0
At the end At the end At the end
of 2014
of 2013
of 2012
41
As regards the geographical distribution of
customers, there is a particular concentration in
territories where the Group has its historical roots,
mainly Lombardy, followed by Lazio, Piedmont,
Puglia
Valle d’Aosta
and Emilia Romagna, even though approximately 8%
of customers are located in other regions in Italy,
where we have fewer branches or our presence is
solely via the online channel or through financial
advisors.
The map shows the distribution of branches across
the Italian regions and an indicator of the average
wealth therein. As can be seen, BPM Group is
concentrated in Italy’s wealthiest regions, although
we have a presence in regions with below average
indicators of wealth.
INTRODUCTION
1. IDENTITY
3. 2014 RESULTS
Trentino Alto Adige (9)
BPM Group branches by region
NETWORK TOTAL 654
1
410
7
87
28
11
5
1
Umbria (398)
1
64
1
2
Basilicata (35)
Sardegna (32)
36
REGION
Autonomous Province of Bolzano
22,399
Valle d'Aosta
21,762
Emilia Romagna
21,039
Lombardy
20,666
Friuli Venezia Giulia
20,374
Piedmont
19,861
Liguria
19,633
Veneto
19,566
Autonomous Province of Trento
19,428
Tuscan
18,900
Lazio
18,780
Marche
18,514
Umbria
17,870
AVERAGE
17,588
Abruzzo
15,325
Molise
15,135
Sardinia
14,676
Basilicata
13,906
Puglia
13,603
Calabria
12,943
Calabria Sicily
(59)
Campania
Sicilia (79)
AVERAGE
INCOME
12,722
12,265
Current level of 2012 per capita disposable household
income. Source: Istat
42
INTRODUCTION
1. IDENTITY
3. 2014 RESULTS
3.2.3
TRANSPARENCY, SECURITY AND QUALITY
OF SERVICE
3.2.4
MICROCREDIT AND FINANCIAL INCLUSION
Transparency, quality and security have always been the
guiding principles on which the services offered by the
Group companies are based. To ensure complete adequacy
and compliance on the part of products sold to customers,
in 2014 we continued improving our documentation
(information sheets, summary documents and contracts) to
render it clear to and effective for our customers.
Moreover, particular attention was paid to guaranteeing the
security and simplicity of online services: BPM Masterpass
is a free service that allows Group customers to top up their
credit/prepaid cards by means of a “virtual wallet” and to
make purchases online simply by selecting the card to be
used for payment.
For a number of years now, the Group has supported various projects, also
in agreement with entities and institutions, aimed at the inclusion of persons
who would normally find it difficult to access credit, such as:
To learn more about our main products
and one’s rights in connection therewith, guides
and documents are available on the website
(in italian)
Linea BE1, dedicated to young people aged between 18 and 30
and which offers loans on special terms for the purchase of a first home,
to finance studies or to start a business. As of the end of 2014, over
14,000 young people were using this service;
•
BPM
GROUP
Fondo Nasko
No. of beneficiaries
Amount granted
Freely, loans aimed at otherwise-abled people for the purchase of a
home or prostheses or to assist with the removal of architectural barriers.
Amounts lent in 2014 came to some Euro 400,000;
Fondo Cresco
Nasko, Cresco e Sostengo, funds made available by Lombardy Region
and granted via prepaid Je@ns cards provided free of charge by Banca
Popolare di Milano to support poor families in need.
Amount granted
552
395,800
•
•
1,092
844,350
Fondo Sostengo
As regards microcredit, in collaboration with the European
Investment Fund, we have continued granting loans to over 450
customers, amounting in total to more than Euro 7 million.
Other microcredit initiatives have been undertaken in collaboration
with the Municipalit y of Milan and the Fondazione Ticino Olona.
Moreover, as a result of an agreement bet ween ABI and CEI,
loans have been granted, at special conditions, to various families
in economic difficult y or wishing to tr y self-employment.
Amount granted
679
1,404,400
2014 figures
As regards guaranteed loans, over Euro 126 million in loans
has been granted to SMEs via the Central Guarantee Fund
( Law 662/96).
43
INTRODUCTION
1. IDENTITY
3. 2014 RESULTS
3.2.5 SUPPLIERS
There were 2,457 suppliers at the end of 2014 that had
billed the Group an amount of over Euro 360 million. Almost
all of these are Italian and, in particular, are located in
the North West where the Bank has a greater presence.
Geographical breakdown of suppliers
AMOUNT BILLED
(in €/000)
1,677
260,903
North-East Italy
164
22,039
Central Italy
342
35,322
Southern Italy
83
3,956
Italian islands
17
7,930
Abroad
174
32,394
TOTALE
2,457
362,544
North-West Italy
The Group’s specialists, who maintain relations with suppliers,
are grouped into three large sectors: Property, Technologies
and Services.
In managing relationships with suppliers, the Group uses an
electronic platform which promotes interaction with the market
using criteria such as transparency, equity in the selection
process and correctness and clarity of contracts and, at the
same time, it monitors and assesses the application thereof.
The standard contract envisages formalisation of a clause
governing compliance by the supplier with the provisions of
Legislative Decree 231/01, as well as the Group’s Code
of Ethics.
NUMBER
NUMBER OF SUPPLIERS
IN PERCENTAGE TERMS
6.70%
Particular attention is paid to regulations concerning
environmental safety, money laundering and health and safety
in the workplace, under penalty of termination of the contract.
13.90%
6%
68.20%
72%
9.70%
3.40%
0.70%
7.10%
AMOUNT BILLED
IN PERCENTAGE TERMS
1%
2.20%
8.90%
44
INTRODUCTION
1. IDENTITY
3. 2014 RESULTS
3.2.6 COMMUNITY
Again in 2014, BPM Group confirmed its attention to the
community by acting concretely to support large and small
institutions through donations, gifts and sponsorships to
support their social and cultural development.
Article 60 of the Articles of Association of Banca Popolare
di Milano envisages the possibility of allocating an amount
to the charity and social fund that does not exceed 2%
of net income approved by the previous year’s General
Meeting of Members, to be used with regard to the territories
where the Group has opened branches.
Donations, gifts and sponsorships amounting to more than
Euro 2.9 million were granted to more than 250 beneficiaries
by the Group for social initiatives in 2014.
In particular, donations and gifts exceeded a million euro
(+13% compared with the previous year) almost 70%
of which was granted to Milan and the Province of Milan
and 50% to cultural associations.
Sponsorships amounted to almost Euro 1.9 million, over 70%
of which was granted to Milan and the Province of Milan
and almost 60% to cultural events.
AMOUNTS OF DONATIONS AND GIFTS
IN PERCENTAGE TERMS
AMOUNTS OF SPONSORSHIPS
IN PERCENTAGE TERMS
25%
35.2%
21%
1.6%
1.3%
0.8%
0.8%
1.5%
Culture
49.6%
Charities
Healthcare
59.5%
Education
Sport
Research
Other
FONDAZIONE TICINO OLONA
In addition to BPM Group’s support for
the community, amounts were awarded to
Fondazione Ticino Olona, which operates
in the North West of Milan Province, and of
which BPM is a founding member. In 2014 the
Fondazione issued six calls for applications for
a total amount of Euro 510,000 for: groups of
0.8%
0.6%
2.4%
young people, support for fragility and study,
promotion of cultural and artistic activities and
civic education. Moreover, it continued its
support for those who are disadvantaged, in
collaboration with a number of Municipalities
and with Banca Popolare di Milano through
microcredit initiatives.
45
INTRODUCTION
1. IDENTITY
3. 2014 RESULTS
3.3 ENVIRONMENTAL PERFORMANCE
Again in 2014, BPM Group continued planning the development of its
business while paying particular attention to its environmental impact.
TRENDS IN ENERGY CONSUMPTION
Despite a fall in energy consumption in recent years
caused by the economic crisis, the outlook is for a
gradual increase in the use of electricity mainly due to
the widespread use of digital systems. The sustainability
of the trend in consumption will be possible thanks to an
increase in electricity generated by renewable energy
sources, to the use of increasingly more efficient systems
and to the spread of an environmental culture that favours
the elimination of waste.
Bezzi Centre,
Milan
46
INTRODUCTION
1. IDENTITY
3. 2014 RESULTS
3.3.1 ENERGY
The Group’s 2013-2015 three year energy plan confirms the
decision to use solely electricity generated by renewable
energy sources, the use of new, more efficient technologies
and a consequent reduction of energy consumption.
Total electricity needs fell by approximately 12% in 2014,
confirming a falling trend seen over the years thanks to the
use of IT equipment and advanced lighting systems coupled
with constant control of consumption.
There are plans for 2015 to commence an energy
consumption awareness programme aimed at involving
the Group’s employees in this issue, in order to make them
understand the importance that even small daily actions
may have on the rationalisation of consumption and the
consequence of the environmental impact thereof.
ELECTRICITY
From renewable energy sources
Consumption in GJ
Heating and electricity
consumption
As regards thermal energy, the efficient use of heating
systems has allowed the achievement of significant results in
recent years relating to the consumption of gas and oil and,
consequently, to CO 2 emissions.
2014 heating consumption
The use of electricity generated by renewable
energy sources has enabled the Group to prevent
the emission of approximately 18,000 tonnes
of CO 2
2014 electricity consumption
Heating consumption
Electricity consumption
2014
2013
2012
CHANGE
OVER THE
THREE
YEARS
100%
100%
100%
0%
167,695
191,173
209,205
-19.8%
210000
200000
190000
180000
170000
160000
150000
140000
130000
120000
110000
100000
90000
80000
70000
60000
50000
40000
30000
20000
10000
0
Consumption
in GJ
2010
2011
2012
2013
2014
47
INTRODUCTION
1. IDENTITY
3. 2014 RESULTS
3.3.2 PAPER
One of the most used raw materials in the banking sector is
paper. With respect to this resource, particular attention was
paid in 2014 to the printing process and to the rationalisation of
printouts and paper-based communications to customers.
Compared to 2013, the total consumption of paper fell by
approximately 9% thanks to a reduction in the use of A4 sheets
(the most used format in the offices), of printouts and paperbased communications to customers, which, together, account
for approximately 75% of paper consumption by the Bank.
INNOVATION
State of the art
multifunctional
equipment
ENVIRONMENT
−Energy
−Paper
PAPER
CONSUMPTION
in tonnes
2014
2013
2012
CHANGE
OVER THE
THREE YEARS
A4 format
paper
461
488
603
-24%
Printouts
206
232
259
-20%
Paper-based
communications
to customers
245
196
Other
consumption
288
Total
consumption
1,151
180
232
214
-16%
35%
−Emissions compliant
SAVING
MANAGE PRINTING
Paper
With this project, we have
replaced our printers
with new state of the art
printers positioned, to
allow them to be shared,
outside the offices.
Energy
Toner
Printers
HEALTH
− Fine particles
− Noise
+Space
+ Comfort
1,145
1,308
-12%
48
INTRODUCTION
1. IDENTITY
3. 2014 RESULTS
3.3.2
“ECOLOGICAL PRODUCTS” OFFERED
BY THE GROUP
3.3.3
SUSTAINABLE MOBILITY
3.3.4
DISSEMINATION
OF ENVIRONMENTAL CULTURE
By means of specific products we have granted a
total of more than Euro 60 million to finance the
energy ef ficiency of proper t y, the installation of
photovoltaic panels and equipment that uses other
renewable energy sources (wind, biomass, solar,
thermal and geothermal ) and for the purchase
of vehicles with reduced environmental impact
( electric, natural gas or LPG ), new generation
boilers, new windows or roof insulation.
To reduce indirect emissions caused by our employees
travelling and commuting, we have added 3 electric
cars to the corporate car fleet, offered the possibility to
take part in web conferences through the use of unified
communication systems (Lync) and have agreed special
terms with public transport and car sharing companies.
In addition, on 6 February 2014, as part of the Easy
Work Day promoted by the Municipality of Milan, we
conducted a telecommuting experiment that made it
possible to work at the branch of the Bank closest to
home.
We participate in workgroups and initiatives
for the promotion of a culture of environmental
sustainabilit y, such as:
ISERV, international project for the monitoring
of energy efficiency promoted by the European
Commission;
ABI Lab, a research and training centre for energy
savings and environmental issues promoted by the
Italian Banking Association;
Solarexpo, a trade fair focused on solar energy;
M’illumino di Meno, an energy consumption
awareness initiative;
WORK ON REAL ESTATE ASSETS
IN 2014
Restructuring of branches with technological and
plant-engineering solutions aimed at the
reduction of energy consumption and a new
furnishing concept that gives preference to the
use of environmentally sustainable materials.
•
Easy Work Day, promoted by the Municipality
The efficient use of climate control systems
for a sample of branches that were subjected to
monitoring and subsequent analysis of the energy
benefits obtained to decide whether to extend
the initiative to other branches.
•
of Milan to experiment with remote working.
Call to tender aimed at identifying the best
technical-economic offers for lighting systems.
•
Replacement of oil-fired boilers with new gas-fired
boilers and replacement of obsolete refrigeration
units with more efficient equipment.
•
49
INTRODUCTION
1. IDENTITY
3. 2014 RESULTS
3.4 AWARDS RECEIVED
3.4.1 BANCA POPOLARE DI MILANO
On 3 March 2014, for the second
consecutive year, it won the Diversity
& Inclusion Award for its commitment
to the promotion of policies designed
to introduce the disadvantaged to the
world of work.
On 3 July 2014, BPM’s General Counsel
function won a TopLegal Corporate
Counsel Award for having been ranked
first in the “Teams” category.
Head office in Piazza Meda,
Milan
50
3.4 AWARDS RECEIVED
On 7 October the Bank won first prize
in the Best Engagement category of
the Press & Outdoor Key Award, for
the skill it showed in the preparation of
a setting representing a football match
during the event dedicated to AC Milan
in the central hall of the Piazza Meda
premises.
On 8 October 2014, for the second
consecutive year, the Bank won two
important AIFIn “Bank and Territory”
awards promoted by the Italian
Association for Financial Innovation:
second place, in the Environmental
Protection category, with the project
“Manage Printing”, designed with
the objective of reducing consumption,
improving the work environment
and obtaining cost savings.
•
third place, in the Education and
Training category, with
“Tutti in Campo”, a training project
aimed at youngsters under the
protection of the Juvenile Court
or who come from areas at risk,
with the objective of offering
opportunities for personal and
professional development in the field
of catering.
INTRODUCTION
1. IDENTITY
3. 2014 RESULTS
On 24 October 2014, the Bank was
awarded the “ICT innovation” prize at
Smau Milan 2014, in the “Management
& Advanced Performance Improvement”
section, created in recognition of
companies that have most successfully
developed their business using digital
technologies. The Bank won the award
for the technological and organisational
changes implemented for Human
Resources, aimed at the introduction of
one IT system for the entire Group.
On 28 October 2014, the Bank won
the “Lean Banking” award, promoted
by Lean Finance, in the “Customer
Centricity” project category for the
management of paper-based bank
transfers and related forms. The award
was in recognition of the streamlining
and constant improvement of operational
processes focused on the systematic
reduction of waste and the rigidity and
variability of the system.
•
51
3. 2014 RESULTS
3.4.3 WEBANK
3.4.4 BANCA AKROS
Won second prize as “Best company for innovation,
growth strategy and operational quality in the Sale of V”
at the Leadership Forum Awards, a credit advisory event
organised by EMF Group srl.
The company won the award based on an online voting
system, the results of which were subsequently validated
by a qualified jury.
Won an award for Best Mortgage Online Banks 2014
based on the level of customer satisfaction resulting from
a survey conducted by the German Institute for Quality
and Finance, which is specialised in the analysis and
comparison of financial products. The results of the study
were based on a sample of customers who, in the last
twelve months, have taken out a mortgage loan with the
main banks operating in the Italian market.
Won an award at the Starmine Analyst Awards
2014, an important recognition by Thomson Reuters
Company following industry research which highlighted
the excellent performance by the investment bank over
the period 2013/2014.
merca
con il
1. IDENTITY
3.4.2 PROFAMILY
to dal
2007
3.4 AWARDS RECEIVED
INTRODUCTION
4
°
LEADERSHIPFORUM
52
GLOSSARY
Add ons: additional capital requirements
imposed by the Bank of Italy.
AQR: Asset Quality Review, a review conducted
by the European Central Bank on the balance
sheet assets of banks. This is the second phase
of an operation focused on transparency in the
banking industry that comprises a supervisor risk
assessment and a stress test.
supervision task.
Corporate: customer segment comprised
of companies.
Customer satisfaction: the main objective
of a marketing-oriented business focused on
the development of a quality relationship with
customers.
Audit: a careful check or review of something.
Engagement: involvement.
Back-Office: office work that does not consist
of direct contact with customers.
European Central Bank: the ECB, which has
its head office in Frankfurt, Germany and which
has the objective of guaranteeing the stability of
prices within the “Euro-zone” by means of the
implementation of monetary policy (issue of the
euro, the single currency).
Benchmark: reference parameter.
Bottom-up (communication): process for
handling information from the bottom upwards.
Brand: a name, sign, symbol or design that
identifies and distinguishes the products and
services marketed by a company, differentiating
them from those of competitors.
Business plan: a document that summarises the
content and features of a business project. This is
used for business planning and management as
well as for external communication, particularly
to potential lenders or investors.
Change management : definition and
implementation of procedures and/or technologies
to deal with changes.
Compliance: conformity with the law.
Comprehensive assessment: assessment
performed by the ECB prior to its new banking
GAP: difference, divide.
Governance: a series of instruments and rules
that govern company life, regarding in particular
the transparency of documents, company deeds
and the completeness of information given to the
market.
Hub: lead branches for more complex services.
Intangible assets: non accounting variables
capable of creating value over time for
shareholders and which may be split into three
main categories: human capital, being a body
of knowledge and relationships linked to the
personality of those who work for the company;
structural capital, being a set of procedures
and rules, written or otherwise, that enable the
company to operate; relational capital, being
the company’s image perceived by the outside
world, shareholders, customers, suppliers,
employees, institutions and media organisations.
Investment bank: a specialist bank dedicated,
in particular, to advising on the issue of securities
and, more in general, on sourcing funds in
capital markets.
Job posting: an intranet service that enables
employees to apply for job vacancies within the
organisation. A transparent selection process
that enables the Group to speed up personnel
recruitment and employees to seek new growth
opportunities.
Job rotation: rotation of work tasks.
Market capitalisation: the market value of a
company’s shares, calculated by multiplying the
number of shares by their market price.
Mission: the overall orientation towards a
company’s underlying macro objectives that
reflect the reasons why a business exists.
Consistent with the declared values, the
mission statement usually links purely economic
objectives to those concerning its contribution to
the community in terms of greater well-being, the
quality of life and social integration.
Policy: a series of fundamental principles and
guidelines devised and implemented by an
organisation, with a view to directing its activities
and pursuing its long-term objectives.
Pricing: process for determination of the price of
a product or service.
Retail: a term borrowed from high-street
commerce to indicate the provision of a service
or the sale of a product to the general public
(consumers/users).
Risk Management: identification, assessment,
and prioritisation of risks.
Stakeholder: those persons
a particular interest in a business.
who
have
Spoke: branches aggregated for the provision of
basic services.
Start-up: newly formed companies, for which
there are still organisational processes underway.
Sustainability: ability to involve key stakeholders
and engage them in social issues in accordance
with corporate policy in order to sustain the
business over the medium to long term.
Team building: with respect to human
resources, is a series of training activities (games,
experiential or well-being), the purpose of which
is to train a group of people and to increase their
team spirit.
Top down (communication): process for
handling information from the top down.
Training on the job: training that takes place
in the performance of one’s work activities.
Vision: strategic vision.
Welfare: the initiatives that an organisation may
take to improve the quality of life of its employees
inside and outside the company.
53
GLOSSARY
Capitalisation: measurement of the ability of
a company to finance itself through equity.
Career day: a day dedicated to recruitment
and career guidance, typically carried out in
universities and schools or during special events,
in order to bring together businesses and aspiring
candidates.
Car sharing: a service that enables one to use a
previously booked car, by picking it up from and
returning it to a parking lot, with payment therefor
based on actual use.
CET 1: Common Equity Tier 1, is the ratio of
Common Equity 1 (consisting mainly of ordinary
paid in capital) to risk-weighted assets.
CO2 : carbon dioxide.
Cost to income: an indicator of efficiency
computed as the ratio of a company’s costs to
its income.
Digitalisation: information conversion process.
In IT terms, for example, this consists of the
process for the transformation of an image,
a song or a document to a binary code (a
computer readable format).
Diversity: the state of being different or diverse.
FTSE Italia All Share Banks: an index that
groups banking stocks listed on the Italian stock
exchange.
GJ: equivalent to one billion joules, a unit of
measurement of the energy used in work and in
creating heat.
Impaired loans: bank loans exposed to a
potential impairment loss and, as a consequence,
deemed to be high risk.
Microcredit: loans consisting of small sums
granted to persons who would not normally meet
with the requirements needed to access standard
loans.
Smart working: an innovative means of
working based on a strong element of flexibility,
particularly with respect to working hours and
location.
Work life balance: flexibility and a balanced
relationship between work and private life.
Multi-channel: the use of various tools for
customer contact, such as branches, the call
center, home banking, etc.
Non-performing loans: loans to borrowers in a
state of insolvency or similar circumstances.
Real economy: that part of the economy that
is not linked to the financial market and which
relates to the production and sale of goods and
services.
Renewable energy: forms of energy generated
by renewable energy sources (sun, wind, etc.).
Renewable energy sources: natural resources
that regenerate at least at the same speed as
which they are consumed.
Resilience: ability to deal with changes and to
cope with events in a positive manner.
Restyling: revisiting the style of the branches
without changing their initial setting.
ROTE: return on tangible equity, a ratio that
measures a bank’s earnings and which is
calculated by dividing net income by tangible
net worth (that is, equity less intangible assets).
54

SUSTAINABILITY REPORT

Transcription

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