COMMISSION DECISION
of 21 October 2008
on a State aid scheme implemented by Italy to remunerate Poste Italiane for distributing postal savings certificates (C 49/06 (ex NN 65/06))
(notified under document number C(2008) 5585)
(Only the Italian text is authentic)
(Text with EEA relevance)
(2009/554/EC)
I.
PROCEDURE
II.
THE BUSINESS OF CDP AND PI/BANCOPOSTA — THE RELEVANT MARKETS
II.1.
CDP
II.2.
PI
Year 2006 |
|
Total staff (annual average) |
151 470 |
Regional areas |
9 |
Branches |
140 |
Post offices |
13 893 |
Main Financial Figures of Poste Italiane Group |
|
Total revenue |
17 055,6 |
Sales and service revenues |
15 932,2 |
Of which: |
|
from postal services |
5 339,4 |
from financial services |
4 382,5 |
from insurance services |
5 993,6 |
from other services |
216,7 |
Other revenue |
1 123,3 |
Net profit |
675,7 |
Postal Services |
|
Products and services |
volumes (number of items) |
Mail (standard, priority, registered, insured, legal documents, other recorded mail) |
3 522 792 200 |
Commercial mail (Postatarget, catalogues, unaddressed mail, etc.) |
1 887 699 700 |
Periodicals (printed, gifts, books etc.) |
1 216 045 800 |
Telegrams, fax, telex |
17 442 800 |
Express delivery (Poste Italiane and SDA) |
46 284 600 |
Parcels |
16 052 000 |
Postal savings |
|
Savings books, savings certificates and postal current accounts: total |
EUR 282 408 million |
Life assurance policies: policies written |
EUR 5 989 million |
Conto BancoPosta: number of current accounts |
4 880 000 |
Carta Postepay: number of cards issued |
2 801 000 |
II.2.1.
Postal services
II.2.2.
Financial services
III.
THE MEASURE UNDER ASSESSMENT
III.1.
Postal savings
III.1.1.
Postal savings books
III.1.2.
Savings certificates
Category of certificate |
Maximum duration |
Average duration |
31.12.2005 |
31.12.2006 |
Ordinary |
20 years |
[7-10] years |
121,1 |
132,2 |
Indexed |
7 years |
[4-7] years(21) |
1,6 |
3,6 |
18-month |
18 months |
unknown(22) |
1,9 |
8,3 |
Fixed-term |
7 years |
[4-7 years] |
48,6 |
36,2 |
Total |
|
|
173,1 |
180,6 |
III.1.3.
The funds raised
Financial instrument |
Dec. 1999 |
Dec. 2004 |
Postal savings certificates |
113 |
160 |
State bonds |
126 |
203 |
Euro area government bonds |
156 |
160 |
Postal savings books |
36 |
60 |
Bank savings deposits |
69 |
74 |
Source: ABI |
III.2.
Remuneration paid to PI for placing postal savings certificates
2000 |
2001 |
2002 |
2003 |
2004 |
2005 |
2006 |
Annual commission on the stock of certificates outstanding: […](23) (24) |
Annual commission on the stock of certificates outstanding: […] |
Annual commission on the stock of certificates outstanding: […] |
Annual commission on the stock of certificates outstanding: […](25) |
Annual commission on the stock of certificates outstanding: […] |
Annual commission on the stock of certificates outstanding: […] |
Annual commission on the stock of certificates outstanding: […] |
Commission on the value of new certificates subscribed in the year: […] |
Commission on the value of new certificates subscribed in the year: […] |
Commission on the value of new certificates subscribed in the year: […] |
Commission on the value of new certificates subscribed in the year: […] |
Commission on the value of new certificates subscribed in the year: […] |
Commission on the value of new certificates subscribed in the year: […] |
Commission on the value of new certificates subscribed in the year: […]. |
Other components: […](26) |
Other components: […] |
Other components: […] |
Other components: […] |
Other components: […] |
Other components: […] |
Other components: […] |
|
2000 |
2001 |
2002 |
2003 |
2004 |
2005 |
2006 |
Remuneration for new subscriptions: |
57 |
243 |
123 |
302 |
381 |
487 |
460 |
18-month |
|
|
|
|
|
13 |
50 |
Indexed |
|
|
|
8 |
7 |
29 |
59 |
Fixed-term |
25 |
73 |
60 |
|
|
|
|
Ordinary |
32 |
170 |
63 |
293 |
374 |
444 |
351 |
Remuneration for accounting and management activities: |
252 |
196 |
194 |
115 |
101 |
96 |
99 |
18-month |
0,0 |
0,0 |
0,0 |
0,0 |
0,0 |
0,0 |
0,0 |
Indexed |
0,0 |
0,0 |
0,0 |
0,0 |
0,0 |
0,0 |
0,0 |
Fixed-term |
130,6 |
98,2 |
94,7 |
46,9 |
36,5 |
26,0 |
20,6 |
Ordinary |
121,4 |
98,0 |
98,9 |
67,6 |
64,8 |
69,6 |
78,0 |
Remuneration for paper certificate production |
|
|
|
15 |
16 |
18 |
18 |
Total fees |
309 |
439 |
316 |
431 |
498 |
600 |
577 |
IV.
GROUNDS FOR INITIATING THE PROCEDURE
V.
COMMENTS FROM INTERESTED PARTIES
VI.
COMMENTS FROM ITALY
Category of certificate |
|
Benchmark |
Remuneration for PI |
|
Min |
Max |
|||
Ordinary |
remuneration on sum collected |
1,35 |
3,05 |
[…](33) |
Indexed |
remuneration on sum collected |
1,80 |
3,45 |
[…](34) |
18-month |
remuneration on sum collected |
0,48 |
1,25 |
[…] |
VII.
THE EXPERT STUDY
Product |
Risk |
Liquidity |
Complexity |
Reputation |
Duration |
Institutional or retail distribution |
Offering structure |
Minimum Investment required (EUR ) |
BOTs |
low |
high |
low |
High |
short |
institutional |
auction |
1 000 |
BTPs |
low to medium |
high |
low |
High |
medium to long |
institutional |
auction |
1 000 |
CCTs(40) |
low |
high |
low |
High |
medium |
institutional |
auction |
1 000 |
Savings deposits |
low |
high |
low |
High |
short |
retail |
on tap |
none |
Time deposits |
low |
low |
low |
High |
short to medium |
retail |
on tap |
none |
Deposit certificates (CDs) |
low |
low |
low |
High |
short to medium |
retail |
on tap |
≥ 50 |
Listed plain vanilla bank bonds |
low to medium |
medium |
low |
High |
medium |
retail |
public offer |
≥ 1 000 |
Unlisted plain vanilla bank bonds |
low to medium |
low |
low |
High |
medium |
retail |
public offer |
≥ 1 000 |
Listed structured bank bonds |
high |
medium |
high |
High |
medium |
retail |
public offer |
≥ 1 000 |
Unlisted structured bank bonds |
high |
low |
high |
High |
medium |
retail |
public offer |
≥ 1 000 |
Corporate bonds |
medium to high |
low to medium |
low |
low to high |
medium |
institutional |
public offer |
≥ 1 000 |
Money market mutual funds |
low |
high |
medium |
Medium |
not applicable |
retail |
on tap |
≥ 100 |
Bond mutual funds |
medium |
high |
medium |
Medium |
not applicable |
retail |
on tap |
≥ 100 |
Equity mutual funds |
high |
high |
medium |
Medium |
not applicable |
retail |
on tap |
≥ 100 |
Equity (listed) |
high |
medium to high |
low |
low to high |
not applicable |
institutional |
public offer |
≥ 1 000 |
Ordinary postal savings certificates |
low |
medium |
low |
High |
long |
retail |
on tap |
≥ 50 |
Fixed-term postal savings certificates |
low |
medium |
low |
High |
medium |
retail |
on tap |
≥ 50 |
Postal savings certificates indexed at maturity |
high |
medium |
high |
High |
medium |
retail |
on tap |
≥ 250 |
Postal savings certificates, inflation-linked |
medium |
medium |
high |
High |
medium |
retail |
on tap |
≥ 250 |
18-month postal savings certificates |
low |
medium |
low |
High |
short |
retail |
on tap |
≥ 50 |
Ordinary certificates (paper form) |
||
|
Constant annual remuneration |
Variable annual remuneration |
2000 |
[…] |
[…] |
2001 |
[…] |
[…] |
2002 |
[…] |
[…] |
2003 |
[…] |
[…] |
2004 |
[…] |
[…] |
2005 |
[…] |
[…] |
2006 |
[…] |
[…] |
Fixed-term certificates (paper form) |
||
|
Constant annual remuneration |
Variable annual remuneration |
2000 |
[…] |
[…] |
2001 |
[…] |
[…] |
2002 |
[…] |
[…] |
|
2000 |
2001(51) |
2002 |
2003 |
2004 |
2005 |
2006 |
Paper certificates (all certificates before 2003) |
|||||||
Ordinary |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Fixed-term |
[…] |
[…] |
[…] |
|
|
|
|
18-month |
|
|
|
|
|
[…] |
[…] |
Dematerialised certificates (after 2003) |
|||||||
Ordinary |
|
|
|
[…] |
[…] |
[…] |
[…] |
Indexed (equity-linked) |
|
|
|
[…] |
[…] |
[…] |
[…] |
Indexed (inflation-linked) |
|
|
|
|
|
|
[…] |
18-month |
|
|
|
|
|
[…] |
[…] |
Form of certificate |
Paper |
De-materialised |
Paper |
Demat. |
Demat. |
Paper |
Demat. |
Category of certificate |
Ordinary |
Ordinary |
Fixed-term |
Equity-linked(55) |
Inflation-linked |
18 month |
18 month |
Minimum fee for postal savings certificates 2000-2006 |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Maximum fee for postal savings certificates 2000–2006 |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
expected value — lowest estimate |
3,05 |
3,05 |
1,76 |
1,69 |
2,83 |
0,63 |
0,63 |
exp. value + 1 std. dev. |
3,40 |
3,40 |
2,11 |
2,51 |
2,14 |
0,88 |
0,92 |
exp. value + 2 std. dev. |
3,75 |
3,75 |
2,46 |
3,32 |
4,20 |
1,21 |
1,21 |
expected value — highest estimate |
4,54 |
4,54 |
3,34 |
1,69 |
2,83 |
0,63 |
0,63 |
exp. value + 1 std. dev. |
5,25 |
5,25 |
4,05 |
2,51 |
3,51 |
0,92 |
0,92 |
exp. value + 2 std. dev. |
5,96 |
5,96 |
4,76 |
3,32 |
4,20 |
1,21 |
1,21 |
|
Plain vanilla bank bonds |
Fixed-interest bank bonds |
|
Panel A: Ordinary postal savings certificates |
|
UBM |
3,60 % |
3,23 % |
PopVicenza |
3,06 % |
2,65 % |
Antonveneta |
2,95 % |
2,98 % |
Carige |
2,62 % |
2,53 % |
IntesaSanPaolo |
2,25 % |
2,73 % |
SanPaoloIMI |
1,44 % |
2,45 % |
|
Panel B: Fixed-term postal savings certificates |
|
UBM |
2,75 % |
1,91 % |
PopVicenza |
2,21 % |
1,33 % |
Antonveneta |
2,10 % |
1,66 % |
Carige |
1,77 % |
1,21 % |
IntesaSanPaolo |
1,40 % |
1,41 % |
SanPaoloIMI |
0,59 % |
1,13 % |
Ordinary postal savings certificates |
|
|
|
|
Postal savings certificates |
Money-market mutual funds |
|
Year |
|
mean |
mean + 1 standard deviation |
2000 |
[…] |
1,48 % |
3,41 % |
2001 |
[…] |
1,48 % |
3,41 % |
2002 |
[…] |
2,13 % |
4,06 % |
2003 |
[…] |
2,45 % |
4,38 % |
2004 |
[…] |
2,55 % |
4,48 % |
2005 |
[…] |
3,38 % |
5,31 % |
2006 |
[…] |
3,38 % |
5,31 % |
Fixed-term postal savings certificates |
|
|
|
|
Postal savings certificates |
Money-market mutual funds |
|
Year |
|
mean |
mean + 1 standard deviation |
2000 |
[…] |
1,15 % |
3,08 % |
2001 |
[…] |
1,15 % |
2,80 % |
2002 |
[…] |
1,65 % |
3,30 % |
|
Postal savings certificates |
Money-market mutual funds |
|
|
|
mean |
mean + 1 standard deviation |
2000 |
361 |
217 |
426 |
2001 |
439 |
235 |
459 |
2002 |
316 |
355 |
596 |
2003 |
416 |
457 |
721 |
2004 |
482 |
519 |
803 |
2005 |
582 |
762 |
1 062 |
2006 |
559 |
820 |
1 139 |
Total 2000-2006 |
3 157 |
3 364 |
5 207 |
VIII.
ASSESSMENT OF THE MEASURE
VIII.1.
The context of the assessment
VIII.2.
Definition of the comparators
VIII.2.1.
Validation of the expert study by the Commission
Product |
Benchmark study |
ABI study |
Expert study |
Ordinary postal savings certificates |
Structured corporate bonds with a rating of at least BBB (S&P’s) or Baa2 (Moody’s) |
BTPs of similar maturity |
Bank-issued plain vanilla bonds (fixed-rate and floating-rate) |
Fixed-term postal savings certificates |
Structured corporate bonds with a rating of at least BBB (S&P’s) or Baa2 (Moody’s) |
BOTs, CTZs and BTPs depending on the residual life of the postal savings certificate |
Bank-issued plain vanilla bonds |
Indexed postal savings certificates (inflation-linked and equity-linked) |
Structured corporate bonds with a rating of at least BBB (S&P’s) or Baa2 (Moody’s) |
For inflation-linked certificates: BTPEUR i indexed; for equity-linked certificates: index-linked financial bonds with a rating of at least A+ (S&P’s) or Aa2 (Moody’s). |
Bank-issued indexed bonds (equity-linked or inflation-linked as the case may be) |
18-month postal savings certificates |
Structured corporate bonds with a rating of at least A– (S&P’s) or A3 (Moody’s) |
Short-term BOTs and CTZs |
Deposit certificates (CDs)(60), with useful indications provided by shorter-maturity fixed-interest bank bonds, and money-market mutual funds |
Comments on other comparators |
Italy considers postal savings certificates to be comparable to mutual funds investing in euro area government bonds |
ABI considered initially that postal savings certificates were comparable to mutual funds investing in euro area government bonds. In the ABI study, however, comparability between postal savings certificates and mutual funds is no longer mentioned. |
Useful indications for the determination of the market level of the remuneration for the distribution of postal savings certificates (except for indexed certificates) might be provided by the observation of the remuneration for the most closely comparable types of mutual funds, notably money-market mutual funds. |
VIII.2.2.
The Commission’s opinion on the arguments of the Italian authorities
VIII.2.3.
The Commission’s opinion on the arguments of ABI
VIII.2.4.
Conclusion
VIII.3.
Estimated market remuneration for postal savings certificates
VIII.3.1.
Methodology for evaluating market remuneration
a)
Postal savings certificates
b)
Comparables
VIII.3.2.
Analysis of market conformity
Category of certificate |
Dematerialised form |
Paper form |
Ordinary |
2003-2006 |
2000-2006 |
Fixed-term |
Not available for subscription |
2000-2002 |
18-month |
2005-2006 |
2005-2006 |
Indexed: equity-linked |
2003-2006 |
Not available for subscription |
Indexed: inflation-linked |
2006 |
Not available for subscription |