Il overall portfolio di impaired loans, the so-called NPL (non-performing loan) of the European banks of systemic importance has grown to 373 billion euros, an increase of 16 billion euros (+4,5%) as of June 30, generated mainly by the banks of Germany and France. instead in Italy the stock is decreasing. This is stated in the annual report presented to the'Npl Meeting 2024 da Bank Ifis in Cernobbio.
But what is particularly worrying is Germany, which is thus opposing the interest of Unicredit for Commerzbank. Bank stocks in Germany are grew by 9,4 billion, equal to +13,57%, to 41 billion. But the portfolio of bad loans higher it is highlighted in French (+7,8% y 121 billion), while the Spain sees NPLs rise by 1% to 76 billion.
Italy pink jersey: NPLs down 11% to 41 billion
Instead, it stands out Italy which, as far as the relevant banks, sees the total NPL decrease by 5,1 billion (-11%) to 41 billion. If we also consider the non-relevant banks, the total exposure is 51 billion. "Italy shows, in contrast, a reduction" we read in the report "thanks also to public policies to support businesses".
“Il Italian banking system was able to handle the sufferings in a much better way compared to that of other European countries, also thanks to the industrial processes of bad debts and their rational management". This is stated by the Undersecretary of Economy Federico Freni via video link with the 'Npl Meeting 2024' of Banca Ifis, underlining how the Npl market "unfortunately has not been considered in its industrial nature" and seen only for the social coefficient of credit, considered as a problem and never as an opportunity: "The suffering of credit is physiological" he adds "and there is no credit mass without a coefficient of suffering, inherent in the structure of credit".
“If today the rating of Italian banks is better than that of other European countries, first and foremost Germany,” Freni underlines, “we owe it to best industrial process on NPLs”. “The sovereign rating is also calculated by calculating the bank rating and if the latter improves, the country's rating also improves” and he concludes: “The system works and we can make it work well together, the chosen line is the right one”.
The operators ofbad credit industry “they have been able to effectively support the banking system since 2015 onwards, freeing up bad debts and allowing the generation of new credit”, underlined the CEO of Banca Ifis Frederik Geertman. “The analysis of our Research Office – he explains – highlights an increase in the stock of NPEs and the NPE ratio at a European level, in contrast to what is happening on the Italian market, where it is decreasing”: a “further confirmation of the excellent work carried out by Italian banks and operators in the impaired credit industry”.
Slight increase expected in Italy until 2025, then decline
The deterioration rate of Italian credit continues to maintain a historically low level, after having substantially completed the derisking process, says Banca Ifis' annual report on the NPL sector presented today.For the 2024 – we read in the report – we expect 15 billion euros of new bad debt flowsa moderate increase expected for 2025 which will already begin to decline in the 2026 forecast.”
The stabilization of new bad debt stocks also has an impact on sales volumes NPLs transacted, which are expected to decrease to 19 billion euros, from 23 billion euros in 2023 and 32 billion euros in 2022". In this context - the report notes - the primary market will be increasingly competitive and with increasing prices due to lower volumes of new supply, while a readjustment of the secondary market which will be driven by an optimization of the portfolios under management.
Fürstenberg: Social banking approach needs to be strengthened
“We need to strengthen the operators' approach to social banking to promote inclusion,” explained Ernesto Fürstenberg Fassio, president of Banca Ifis, opening the proceedings of the 'Npl Meeting 2024', underlining that “the Npl industry has made a change of pace by becoming fully aware of its role”. It has done so not only in building a more sustainable system for all, he underlines, but also in promoting the financial re-inclusion of vulnerable individuals through sustainable recovery models".
“Now, he underlines, we must strengthen further the approach of all the players in the bad debt industry in the direction of 'social banking', which requires basic mutual respect in the relationship that banks and operators have with customer-debtors". "The dialogue - he underlines - must take into account the needs of people to define sustainable recovery plans".
