Italy’s banks seek savings product comeback after retail state bond boom

As falling interest rates compress lending margins and dent bonds’ appeal, Italian banks are seizing the moment to woo retail savers back to higher-fee investment products they deserted in favour of government debt when rates were peaking.

UniCredit’s (CRDI.MI), opens new tab CEO Andrea Orcel in June said growing fees could account for as much as 40% of revenues in coming years, from around one third currently, as a narrowing gap between lending and deposit rates eats into the bank’s net interest income.

Source: REUTER