13 June, Il Sole 24 Ore
The credit activity grew in April as loans and deposits grew. According to the outlook, such growth is meant to continue also the second quarter with a 0.3% increase, despite some signs of a slowdown. In the meanwhile, banks continue reducing their exposure risk represented by bad loans and the amounts of state bonds in their portfolios. According to the latest figures by Banca d’Italia published on “Banca e Moneta”, the loans in the private sector, adjusted to take into account of securitisations and other credits that were transferred and thus cancelled from the reports, have increased by 3% on a yearly basis (2.4% in March). Such results are mostly driven by companies (+2.2% for non-financial companies, +1.2% in March). Loans to families have grown by 2.9%, continuing the trend of the previous month.
Since the beginning of 2018, loans to companies have recorded a growth especially for what concerns new investments for big companies operating in the manufacturing and service industries, also thanks to specific refinancing operations by the Eurosystem. We must remember that in 2017 the total loans increased by 1.4% despite the reduction of new loans to the public administration, while loans to privates reached 1,800 billion, a level close to that registered in 2008 but still 16 points below the peak reported by 2021.
Regarding the figures disclosed yesterday, we also note the positive trend of deposit of the private sector (+4.2% on a yearly basis, after the 6% of the previous month), while the bonds market decreased by 17.7% (-17.1% in the last month). Banca d’Italia clarifies that the bad loans have reduced by 10.7% on a yearly basis (the reduction was 10.9% in March). The NPL should further decrease throughout the year thanks to total transfers assessed around 65 billion (35 billion in 2017). According to the plans presented last March to the Surveillance Authority, the impact of bad loans on the total impaired credits is supposed to be of only 5% by 2020.
For what concerns the reduction of state bonds in the banks’ portfolios, there is no risk assessment for these securities. At the end of April, the total of Italian bonds, Treasury bills, Treasury credit certificates and zero-coupon Treasury certificates amounted to 341.8 billion (against the 338 billion in March), namely 53 billion less in comparison with the highest level registered in April 2012, whereas the bonds reduced by 12.5% in 2017. At the end of December 2017, the state bonds stock on the total assets was 9.1%.
Finally, concerning the market conditions, the bank interest rates for loans to families to buy a house, including auxiliary expenses, were 2.20% in April (2.24% in March), while interest rates for consumer credit were 8.34%. The rates for new loans to non-financial companies are also at their lowest, around 1.47% (1.54% in March). More in detail, the interest rates for loans up to 1 million euro have been equal to 1.96%, 1.00% for higher amounts. Finally, the total interest rates receivable for existing deposits have been equal to 0.40%.
Source: Il Sole 24 Ore
Translator: Cristina Ambrosi