The benefits from the Capitalia integration might take some time to be fully realized – after all it was, arguably, the weakest bank in Italy. Still, the bank’s management believes that the potential gains from the restructuring are tremendous. It has every confidence, given its track record in integrating other financial institutions, that it will succeed in this instance too.
The big concern surrounding the Italian retail business – which is expected to account for 85% of the retail division’s profits this year, according to Roccati at FPK – is asset quality deterioration because of a weakening macroeconomic environment.
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