A positive picture for revenues and profits
In the third quarter of 2024, the five main Italian banking groups recorded a significant increase in revenues and profits, despite the fact that the credit sector is facing a phase of contraction. According to an analysis conducted by the First CISL Fiba Foundation, net interest showed an increase of 7% compared to the same period of the previous year, despite a decrease in employment of 2.1%. This figure highlights a certain resilience of the Italian banking system, which manages to generate profits even in a challenging economic environment
.
Credit contraction and risk aversion
Despite the positive results, the credit sector continues to suffer a slowdown. Bank loans fell for the ninth consecutive quarter, with an overall contraction of more than 94 billion euros, equal to a decrease of 7.8%. This phenomenon is not isolated, but it represents a worrying trend that distinguishes the Italian banking system from the European one, where significant banks registered an increase of 3% in the same period. The main cause of this contraction is the increase in risk aversion on the part of banks, as emphasized by the Secretary General of First CISL,
Riccardo Colombani.
Credit quality and capitalization
A positive aspect that emerges from the analysis is the credit quality of Italian banks. With a minimum incidence of net non-performing loans, equal to 1.4%, and a significant reduction in loans in stage 2, the banking system shows signs of strength. In addition, capitalization remains high, with a slightly increasing CET1 ratio, from 14.92% to 15.19%. These indicators suggest that, despite difficulties in the credit sector, Italian banks are well positioned to face any future challenges
.
Collection and operating costs
Direct inflows showed moderate growth (+0.6%), while indirect inflows registered a more significant increase (+8.5%), thanks to the good performance of the financial markets. However, the cost of personnel registered a moderate increase (+2%), offset by a reduction in staff (-2.03%). This balance is essential to maintain operational efficiency, which has reached record levels, with indicators such as staff cost/operating income at 25% and cost/income at 40.1%, significantly lower than the European average
.
Future prospects and the need for financial education
Looking to the future, it is clear that the Italian banking system faces significant challenges, including the need to improve financial education among investors. On the occasion of the month dedicated to financial education, Opstart conducted a survey on crowdfunding, highlighting the importance of greater financial awareness in Italy. The combination of prudent credit management and adequate financial education could represent the key to a more stable and prosperous future for the Italian banking sector
.