At the end of September 2017 the amount of loans to customers disbursed by banks operating in Italy, 1.763,2 billion euro is clearly higher, by almost 44,3 billion, than the total amount of deposits from customers, 1.718,9 billion euro. From the data as at 30 September 2017, it emerges that loans to households and businesses are growing on an annual basis by +1,4%, continuing the overall positive trend of total outstanding loans (for the seventh consecutive month the annual growth rate is more than 1%).
This evidence emerges from the estimates based on data published by the Bank of Italy, relating to loans to households and businesses (calculated including loans not recognized in banks' balance sheets as securitized and net of changes in stocks not connected with transactions, for example, changes due to exchange rate fluctuations, value adjustments or reclassifications).
Based on the latest official data, relating to August 2017, the recovery of the mortgage market is confirmed. The total amount of outstanding household mortgages recorded a positive change of +2,6% compared to August 2016 (when there were already signs of improvement). In September 2017, the interest rates applied to loans to customers were at very low levels: the average rate on total loans was 2,76%, a new all-time low (2,78% the previous month and 6,18% % before the crisis, at the end of 2007).
With 1,97% new historic low even of average rate on new home purchase transactions (2,11% in August 2017, 5,72% at the end of 2007). Of the total new mortgage disbursements, around two-thirds are fixed-rate mortgages. The average rate on new business loan transactions is 1,68%, it was 1,60% the previous month (5,48% at the end of 2007).
Le net suffering (i.e. net of write-downs and provisions already made by banks with their own resources) in August 2017 they fell sharply to €65,3 billion (the lowest value since March 2013); a decrease compared to both the 66 billion euro of the previous month and the December 2016 figure (86,8 billion euro). In particular, the reduction is almost 24 billion euro compared to the maximum level of net non-performing loans reached in November 2015 (88,8 billion euro).
Il ratio of net non-performing loans to total loans it decreased to 3,83% in August 2017 (it was 4,89% at the end of 2016). In Italy, deposits (current accounts, certificates of deposit, repurchase agreements) increased, at the end of September 2017, by over 70,1 billion euro compared to a year earlier (change of +5,2% on an annual basis ), while the decrease in medium and long-term deposits, i.e. through bonds, is confirmed, for almost 43,9 billion euros in absolute value in the last 12 months (equal to -12,7%).
The dynamics of total collection (deposits from resident customers + bonds) recorded an annual growth of +2017% in September 1,6, it was +0,6% the previous month. From the end of 2007, before the start of the crisis, to date customer deposits have grown from 1.549 to almost 1.718,9 billion euro, marking an increase – in absolute terms – of almost 170 billion.
In September 2017 the average interest rate on total bank deposits from customers (sum of deposits, bonds and repurchase agreements in euro to households and non-financial companies) is 0,94% in Italy (0,95% the previous month) as a result of:
– the rate charged on deposits (current accounts, savings deposits and certificates of deposit), equal to 0,39% (0,39% also in August 2017);
– the rate on PCTs, which stands at 0,96% (1% in August);
– of the bond yield, equal to 2,70% (2,67% in August).
Il margin (spread) between the average rate on loans and the average rate on funding to households and non-financial companies remains at particularly low levels in Italy, in September 2017 it was equal to 182 basis points (183 basis points the previous month), a marked decrease from the over 300 basis points before the financial crisis (329 basis points at the end of 2007). On average in 2016 this difference was equal to 1,98 percentage points (2,11 pp in 2015).
