Abi: bad debts continue to rise in September. The profitability on the core activity is at its lowest

Net non-performing loans rise to €67,5 billion in September: +21,6%, or 12 billion, compared to the same period a year ago and 1,5 billion more compared to the month of August 2012. This is indicated by the monthly bulletin of the ABI. On the other hand, deposits hold steady at 1,73 billion, +1% in October, a growth similar to the previous month. Loans, on the other hand, are in an adjustment phase at 1,93 billion, registering in October a decrease of 0,84% ​​compared to the previous year and a decrease of 0,9% compared to September. Also in October, the interest rate on mortgages to households fell from 3,86% in the previous month to 3,81%, the lowest value since November 2011. In the same month, however, the rate on loans to companies non-financial stood at 3,82%. At the same time, the bank spread, which measures the effective profit of banks, updates to new historic lows. The spread between the average rate on loans and the average rate on funding fell in October to 170 basis points, the reduction compared to the previous month is 2 basis points and compared to a year ago by 56 basis points. And it is on the fall in profitability of the core business, not that of trading which in the last quarter guaranteed the big banks profits above expectations, that the concerns of bankers are concentrated, brought together by the governor of the Bank of Italy, Ignazio Visco, last Monday together with the top management of the Abi. A meeting that wanted to take stock of the bad debts and the effects of the recession on bank balance sheets and how banks are dealing with the problem. And just on Monday Moody's confirmed the negative outlook on the sector in Italy.