An exhaustive mapping of the transactions on the Italian non-performing loan market, trend analysis, clustering by segment and by geolocation of Italian non-performing loans. Data that Banca IFIS is able to analyze in an overall manner thanks to the crossing of sources, the proprietary database and a proven leadership in the Italian Non-Performing Loans market and which were collected in April 2017, in the new observatory "Market Watch NPL – Italian Scenario”.
The observatory, which will be available on a quarterly basis, highlights the main data relating to the general and detailed trends of NPLs, with a particular focus on completed and pipelined transactions which characterize the Italian panorama. The document, drawn up in English, is made up of four sections:
1) general overview (trends of the various types of non-performing loans);
2) distribution by industry and segment of economic activity (distribution of non-performing loans by productive economic sector according to the ATECO code);
3) distribution by customer location (division of NPLs by geographical area of the debtors/customers);
4) transactions on the Italian market (total transactions and divided by macro-category of assets), complete with highlighting of top buyers and originators.
The document provides an easy-to-read and understandable cross-section of the NPL market trend in Italy. Below are the main findings of the first issue of the NPL Market Watch:
o Non-performing loans have more than doubled in the last 7 years (from 145,7 billion in 2010 to 324,3 billion at the end of 2016); o Most gross non-performing loans are concentrated in non-financial companies (71,3%). In particular, the Services and Construction sectors are characterized by the worst trends, with growth in NPLs of +480% and +601% respectively from the beginning of 2009 to the end of 2016.
o Northern Italy boasts the most NPLs by amount (51,9%, +370% since 2009), however Southern Italy and the Islands boast the worst performance in the ratio of NPLs to total loans disbursed, with a growth of this index respectively of almost 8 pp for the islands and 7 pp for the south from 2011 to the end of 2016.
o Transactions: in the first quarter of 2017 deals were completed for 2,8 billion euro compared to 4,8 billion in Q1 2016 (-41,6%) and 1,0 billion in Q1 2015 (+169,6%) .
o In 2016, retail and corporate debtors increased compared to 2015, but at the beginning of 2017, the category with the greatest increase was the mixed category, which includes both retail and corporate debtors;
o The price of the deals closed in Q1 2017 was less than 10% of the nominal value;
o 46,1 billion NPLs are about to be brought to market, on deals indicated as “ongoing” or “announced”.
