The big Italian banks were promoted with full marks. Intesa Sanpaolo, UniCredit, up to Banco BPM, BPER and MPS, recorded aggregate net profit of 4.8 billion euros in the second quarter of 2022, up by 62% compared to the second quarter of 2021, or by 20% excluding both the impact in Russia and Ukraine and the badwill deriving from the acquisition of Banca Carige by BPER.
The numbers are those pitted by a DBRS Morningstar report according to which the performance of the first half of 2022 of Italian banks was driven by the increase in revenues, the decrease in operating expenses and the reduction in credit costs on an underlying basis. According to the report, revenues for the half-year benefited from the growth in core revenues and trading activities, supported by higher business flows combined with higher interest rates, the rating agency’s analysis reads. Also Scope Ratingsanother rating agency, analyzing the half-year results of Italian banks, confirmed their solidity. “We believe that Italian banks are in a better position to withstand a potential deterioration in credit quality and the consequent need for greater provisions due to headwinds of inflation, considering their strengthened risk profiles, leaner cost structures, the availability of provisions to cover COVID-19 and rising revenues from higher rates “, said Andrea Costanzo, Vice President of DBRS Morningstar Global Financial Institutions team.
“The banks were also able to absorb the negative impact on their capitalization of the widening of the Italian sovereign spread linked to the increased volatility resulting from the Russian invasion of Ukraine, and aggravated by the recent political crisis in the country that led to early elections in September, ”added Costanzo.