Takeaways from profitability and capital calculations conducted by Scope on 50 large European banks in its rated universe show that 44 institutions will remain profitable even if they had to triple their credit provisions.

March 2022 Italian NPL collections were 50% higher than in February, a comparable increase to February-March 2021 (+40%). Year over year, collections rose 7%.

Europe’s airline sector faces difficult financing and operating conditions, squeezed by rising interest rates and surging fuel prices even as air traffic recovers from the pandemic, forcing airlines to again adapt their strategies.

Scope Ratings' update to the methodology contains editorial changes and minor modifications; no impact on outstanding ratings expected.

Exemptions included in the set of macroprudential measures proposed by Austria’s Financial Market Authority to address risks in the housing market are too generous and do not tackle the risk of higher interest rates. Legislative adjustments are needed.

Replay from 12.05.2022

Spanish banks reported a solid set of first-quarter results. Net interest income was flat for most domestic lenders, although it has bottomed out in Spain. Santander and BBVA, meanwhile, showed a positive year-on-year trend in international lending.

European banks and regulators have highlighted time and again that they consider cyber risk to be a key threat to banks’ activities, yet this remains one of the least assessed and considered risk factors.

Scope updates and clarifies its definition of default and long-term vs short-sterm correspondance table. This update does not impact any outstanding credit ratings.

German banks are in better shape than they have been for a long time. Results were solid in 2021 and early signals for Q1 2022 look promising. But as the storm clouds gather over the global economy, the positive dynamic looks set to weaken considerably.