COMMISSION DECISION
of 16 July 2008
on a State aid scheme implemented by Italy to remunerate current accounts held by Poste Italiane with the State Treasury (C 42/06 (ex NN 52/06))
(notified under document number C(2008) 3492)
(Only the Italian text is authentic)
(Text with EEA relevance)
(2009/178/EC)
1. PROCEDURE
2. THE BUSINESS OF PI AND BANCOPOSTA – THE RELEVANT MARKETS
Total staff (annual average) |
151 470 |
||
Regional areas |
9 |
||
Branches |
140 |
||
Post offices |
13 893 |
||
MAIN FINANCIAL FIGURES OF POSTE ITALIANE GROUP |
EUR million |
||
Total revenue |
17 055,6 |
||
Sales and service revenues |
15 932,2 |
||
of which: |
|
||
|
5 339,4 |
||
|
4 382,5 |
||
|
5 993,6 |
||
|
216,7 |
||
Other revenue |
1 123,3 |
||
Net profit |
675,7 |
||
POSTAL SERVICES |
volumes (number of items) |
||
Products and services |
|
||
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 |
2.1. Postal services
2.2. Financial services
(EUR billion) |
||||||||||||
|
1995 |
1996 |
1997 |
1998 |
1999 |
2000 |
2001 |
2002 |
2003 |
2004 |
2005 |
2006 |
Average deposits |
[…](16) |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Accounting date |
Market share |
31 December 2000 |
[3 – 8] % |
31 December 2001 |
[3 – 8] % |
31 December 2002 |
[3 – 8] % |
31 December 2003 |
[3 – 8] % |
31 December 2004 |
[3 – 8] % |
31 December 2005 |
[3 – 8] % |
31 December 2006 |
[3 – 8] % |
31 December 2007 |
[3 – 8] % |
3. THE MEASURES UNDER ASSESSMENT
Figure 1
|
2005 |
2006 |
2007 |
Interest rate (%) |
3,90 |
4,25 |
4,70 |
Interest payable (EUR million) |
1 336(26) |
1 516 |
1 012 |
4. GROUNDS FOR INITIATING THE PROCEDURE
5. COMMENTS FROM INTERESTED PARTIES
6. COMMENTS FROM ITALY
6.1. Variation in the amounts deposited in postal current accounts
6.2. Nature of the Agreement
6.3. Changes in the Obligation
6.4. Stability of the funds collected
6.4.1. Passive fund management
6.4.2. Active fund management
6.5. Costs of management of postal current accounts
6.6. The conformity with market criteria of the remuneration given to PI by the Treasury
6.6.1. Comparison with La Banque Postale
6.6.2. Auditors’ opinion
6.6.3. Letters from private banks and consultants
6.6.4. Comparison with the returns achieved on Poste Vita products
Year |
Posta Più portfolio return (gross) |
Agreement rate |
Difference |
Average financial life |
2002 |
6,38 % |
5,25 % |
1,13 % |
3,78 |
2003 |
5,11 % |
4,69 % |
0,42 % |
2,66 |
2004 |
4,13 % |
4,64 % |
–0,51 % |
2,53 |
2005 |
4,00 % |
3,90 % |
0,10 % |
3,62 |
2006 |
3,77 % |
4,25 % |
–0,48 % |
3,15 |
Average |
4,68 % |
4,55 % |
0,13 % |
3,148 |
6.6.5. Comparison with the Treasury’s cost of funding
Year |
5 years |
10 years |
15 years |
30 years |
Agreement rate |
Average |
2001 |
4,59 % |
5,13 % |
|
5,80 % |
|
5,04 % |
2002 |
4,58 % |
5,09 % |
5,46 % |
5,73 % |
5,25 % |
5,03 % |
2003 |
4,15 % |
4,81 % |
4,96 % |
5,44 % |
4,69 % |
4,71 % |
2004 |
3,95 % |
4,66 % |
4,85 % |
5,35 % |
4,64 % |
4,56 % |
2005 |
3,68 % |
4,43 % |
4,64 % |
5,19 % |
3,90 % |
4,31 % |
2006 |
3,47 % |
4,35 % |
4,54 % |
5,06 % |
4,25 % |
4,21 % |
6.7. Comparison with alternative investment strategies (active management of funds)
7. ASSESSMENT OF THE MEASURES
7.1. Use of State resources
7.2. Selectivity
7.3. Effect on trade between Member States and distortion of competition
7.4. Economic advantage
7.4.1. Context of the analysis
7.4.2. The test of the prudent borrower operating in a market economy
7.4.2.1. Gross volume of the funds deposited
(EUR billion) |
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|
1995 |
1996 |
1997 |
1998 |
1999 |
2000 |
2001 |
2002 |
2003 |
2004 |
2005 |
2006 |
Postal current accounts |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Deposit to Treasury |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
7.4.2.2. Stable and volatile components in the deposits
(EUR billion) |
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|
1995 |
1996 |
1997 |
1998 |
1999 |
2000 |
2001 |
2002 |
2003 |
2004 |
2005 |
Average total deposits in postal current accounts |
[…] |
[…] |
[…] |
[…] |
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[…] |
[…] |
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[…] |
[…] |
[…] |
Average stable total deposits (equal to lowest level of total deposits in the calendar year) |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Average volatile total deposits |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
7.4.2.3. Average life and variations in the deposits
Figure 2
7.4.2.4. Provisional conclusion: the relevant benchmarks in the loan rate
7.4.2.5. Financial risks
7.4.2.6. Conclusion: definition of the rate offered by a private borrower; existence of State aid
|
Agreement |
Private Borrower |
||
|
Instrument/yield |
Weight |
Instrument/yield |
Weight |
Stable component |
30-year BTP bond |
80 % |
5-year BTP bond |
90 % |
|
10-year BTP bond |
10 % |
|
|
Volatile component |
12-month BOT bond |
10 % |
3-month BOT bond |
5 % |
|
|
|
Overnight interbank interest rate |
5 % |
|
Agreement rate |
Private borrower rate |
2005 |
3,90 |
2,81 |
2006 |
4,25 |
3,60 |
2007 |
4,70 |
4,23 |
7.4.3. Analyses of investment policies pursued by PI in the absence of the Obligation
7.4.3.1. Summary of the arguments put forward by Italy(70)
7.4.3.2. General remarks on the relevance of the […] study and of the letters from financial intermediaries
(%) |
||||||||
|
2000 |
2001 |
2002 |
2003 |
2004 |
2005 |
2006 |
2007 |
BTP 5 years |
5,30 |
4,59 |
4,56 |
3,27 |
3,34 |
2,84 |
3,60 |
4,23 |
BTP 10 years |
5,57 |
5,13 |
5,46 |
4,20 |
4,29 |
3,54 |
3,95 |
4,41 |
CCT 7 years |
4,40 |
4,35 |
3,41 |
2,36 |
2,12 |
2,20 |
3,13 |
4,12 |
7.4.3.3. Comparison with insurance activities
(%) |
||||
|
Net yields of Posta Più(78) |
Net yields of Posta Valore(78) |
Agreement rates |
Private borrower rates |
31 December 2005 |
3,00 |
3,08 |
3,90 |
2,81 |
31 December 2006 |
2,80 |
2,63 |
4,25 |
3,60 |
31 December 2007 |
2,71 |
2,46 |
4,70 |
4,23 |
Average |
2,8 |
2,7 |
4,3 |
3,5 |
7.4.3.4. Alternative investment strategies
7.4.3.5. Active fund management strategies
(1997 to 2007) |
Cash return |
Agreement |
Benchmark total return |
Tactical strategy total return |
Average return |
3,30 % |
5,15 %(87) |
5,02 % |
6,78 % |
Volatility of return |
0,32 % |
0,33 % |
2,16 % |
2,42 % |
Sharpe ratio |
|
146,74 |
0,93 |
1,66 |
Figure 3
(%) |
||||
|
Trading strategy total return(89) |
Trading strategy interest income(90) |
Agreement rate |
Private borrower rate |
2005 |
2,78 |
2,18 |
3,90 |
2,81 |
2006 |
1,78 |
3,88 |
4,25 |
3,60 |
2007 |
3,58 |
3,88 |
4,70 |
4,23 |
Average |
2,71 |
3,31 |
4,28 |
3,55 |