Italian NPL Collections

volumes 23% below previous two years; fewer note sales

Feb 07, 2024

Create a horizontal rectangle image that visually represents the decrease in Italian credit collections on non-performing loans without using a graph. Imagine a series of falling coins and diminishing stacks of money along a downward path, symbolizing the decline. The path starts from the left, high with large stacks of coins and bills, and as it progresses to the right, the stacks become smaller and fewer in number, ending with just a few coins. The background should be a stylized Italian landscape, subtly integrating elements like the Colosseum or rolling hills of Tuscany in the far background, using soft, muted colors to keep the focus on the foreground. The overall tone should be sophisticated and convey a clear message of decline in a visually engaging manner.

Scope Ratings published its regular update on the performance of a static universe of Italian NPL securitisations originated pre-Covid and rated by Scope. The report is based on monthly servicing reports available to November 2023.

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In November, the Italian non-performing loan (NPL) collections remained consistent compared to the previous month with a collection of 121 million euros. However, this was a 22% decrease from the average collections in November for the years 2021 and 2022, which were 151 million and 161 million euros, respectively.

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La Finanza in Soldoni

Throughout 2023, there has been a downward trend, with the first 11 months seeing collections fall 23% below the two-year average. Collections in November were predominantly through judicial processes rather than out-of-court settlements, which has been the common theme for the year.

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Source: Scope calculations on servicing reports

Note sales transactions were also down with only two occurring in November, contributing to fewer transactions over the year compared to the monthly average of the last two years. The report analyzes the performance of a select group of Italian NPL securitisations that were initiated before the pandemic and assessed by Scope, using data up to November 2023.