The Deloitte Italian NPL Survey outlook for 2012-2013
This survey focuses on non-performing debt and whether banks will divest these assets, and we have undertaken analysis with regards to not only the volume of NPLs on European and Italian bank balance sheets, but also the scale of non-core assets held.
Our paper Deleveraging in the European Financial Sector estimated €1.7 trillion of such assets being on banks’ balance sheets across Europe and €186 billion in Italy as at the end of 2010. Following the ABI’s latest announcement regarding a 17% increase in NPLs and various Italian banks’ response to the European Banking Authority (EBA) pronouncements regarding Core Tier 1 levels, Deloitte refreshed its analysis and our latest research estimates €281 billion of NPLs and non-core assets being on Italian banks’ balance sheets as at the end of 2011.
The background to this potential increase is covered within the survey’s findings along with the potential next steps that banks might consider.