18 May 2017

Prometeia Banking Day

 
 
 

2017 might be the turning point for the Italian banking sector, whose results closed in the red last year.

Losses were caused by a set of extraordinary factors, among which the increase in writeoffs was the most relevant, leading to the Non Performing Loans sale some operators will deliver in 2017. The reduction of NPLs, thus, has started and will continue to be the leitmotive in the years to come. Many banks have already disclosed to the market their bad debt recovery/sale plan in order to meet the NPL ratio goals required by the ECB.

Further, as to decrease the risk of the assets, we reckon banks will carry on a strategy based on cost reduction and investments in technology, in order to improve profitability. As well, we forecast in next years an increase in intermediation volumes, though modest, that will back banks' income.

Presenting the analyses on the Italian banking sector, Prometeia dealt with the following topics:

2017 might be the turning point for the Italian banking sector, whose results closed in the red last year.

Losses were caused by a set of extraordinary factors, among which the increase in writeoffs was the most relevant, leading to the Non Performing Loans sale some operators will deliver in 2017. The reduction of NPLs, thus, has started and will continue to be the leitmotive in the years to come. Many banks have already disclosed to the market their bad debt recovery/sale plan in order to meet the NPL ratio goals required by the ECB.

Further, as to decrease the risk of the assets, we reckon banks will carry on a strategy based on cost reduction and investments in technology, in order to improve profitability. As well, we forecast in next years an increase in intermediation volumes, though modest, that will back banks' income.

Presenting the analyses on the Italian banking sector, Prometeia dealt with the following topics:

  1. What macroeconomic scenario and market conditions will banks have to handle in the near future?
  2. What are the risks for the industry from a shift in short-term or long-term interest rates?
  3. What strategy will banks pursue to reduce NPLs? What effects on capital and credit supply?
  4. What should banks do as for costs and investments as to recover adequate levels of profitability?