The consolidated non-performing loan (NPL) ratio of EU banks remained low in Q3 2024 but marginally rose quarter on quarter from 1.86% to 1.88%, according to most recent EBA data. Banks added EUR 2.7bn of new NPLs, bringing the total stock to EUR 376bn.

We are constructive on European covered bond ratings. European banks entered 2025 in solid shape, while a stable European economy will support rating levels. But investors will need to remain vigilant for risks that could catch the market off guard.

Large European banks could see their pre-tax credit portfolio return on assets completely wiped out in the long run from the impacts of climate change on their lending portfolios.

Tuesday, January 21st 2025 - 3:00 PM (CET)

Scope Ratings has been given a public ratings mandate by Banca Agricola Popolare di Sicilia (BAPS), the largest regional bank in Southern Italy formed from the recent merger of Banca Agricola Popolare di Ragusa and Banca Popolare Sant’Angelo.

French banks have underperformed EU peers on profitability in 2024, mainly due to slower balance-sheet repricing. We expect revenue growth in 2025, but political uncertainty will weigh on market confidence and could delay the recovery in lending volumes.

Savings bank consolidation has accelerated in 2024. With integration risks and capital impacts well controlled, this is positive from a credit risk perspective given economies of scale, stronger market positions, and business and regional diversification.

UniCredit is pursuing growth both nationally and internationally. If its bid for Banco BPM is successful, it will rebalance the group’s exposure to the Italian market while reshaping the domestic competitive landscape.

Tuesday, 3 December 2024, 15:30 CET

Spanish banks enjoyed a strong Q3 driven again by high interest margins and low provisions. The challenge now is to return to steady loan growth while generating more commissions as interest margins shrink. Extension of the bank tax could erode profits.