In a phase of weak growth in the volume of business, heightened tensions on the financial markets and mounting credit risk, a recovery of profitability must be sustained by gains in efficiency. As I have remarked on other occasions, strategies to improve production and distribution processes, to exploit the contribution of new technologies in full, must be rapidly put into practice.
In the first quarter of this year the operating costs of the five largest banking groups declined in relation to gross income. Operating profitability consequently benefited. The action undertaken to curb costs must continue. Banks must rapidly rationalize supply structures. Compensation policies too must be aimed at the objective of reducing costs.