Italian Banking System Overview

Problem loan ratio European banksProblem loan ratio Italian banks

20

10

0

17.3%

5.1 %

Top 5 Bank by Assets and Market Share

Domestic market share (loans)Total Assets €bn

20%

15%

10%5%

0%

1000

500250

750

0

827

11.3%788

19.5%

1686.2%

1447.0%

1344.6%

UniCredit IntesaSanpaolo

Banco BPM Banca Monte deiPaschi di Siena

Unione diBanche Italiane

Distribution of Ratings: Highest Italian Bank Rating is A3

Government of Italy – Key Data

Italian Banking System Data

Avg. DepositRating Baa2

Average SeniorUnsecured and

Issuer Rating Baa2

Average BaselineCredit

Assessment ba2

OutlookNegative

RatingBaa2

OutlookNegative

Real GDP growth2017f: 1.3%

GeneralGovernment Debt/

GDP %: 132%

*All numbers approximate due to difference in reporting months

€349 billionProblem loans

23Italian banksrated by Moody’s

€2.1 trillionTop 5 banks combined assets

€3.9 trillionTotal Italian banking

system assets

Problem Loans

© 2017 Moody’s Corporation, Inc. and/or its licensors and affiliates. All rights reserved. Data as of 13 October 2017.

12.8%

Italian banks continue to face a challenging environment. This infographic highlights the system's large stock of bad debt, and negative outlooks.

For more information on Italian banks at moodys.com/italianbanks

Italian Banks Funding

67%

24%

,

9%

Retail fundingWholesale fundingEurosystem refinancing

Average CET1 ratio

Asse

ts €

bn

Problem Loans Mostly Comefrom SME and Corporates

Corporate & SMEsOther Residential mortgages Micro enterprises (up to 5 employees)Consumer credit

72%

8%

12%

7%

2%

Note: Problem loans and CET1 ratio refer to December 2016, and they are sourced from Bank of Italy and European Banking Authority. Average CET1 includes €22 billion of equity raised by rated Italian banks after June 2017

0

1

2

3

4

5

6

7

A1 A2 A3 Baa1 Baa2 Baa3 Ba1 Ba2 Ba3 B1 B2 B3 Caa1 Caa2 Caa3 Ca C

Num

ber o

f ban

ks