The monthly ABI report for November 2017 on Economics and Financial Markets was published, where it is possible to collect all the data useful to the sector well in advance, as they are produced by the banks themselves.
Data on loans and mortgages
If we analyze the data collected at the end of October, loans granted by Italian banks are significantly higher than customer deposits (1,764.7 billion euro against 1,722.3); in addition, loans granted to families and businesses recorded an annual growth of + 0.9% , maintaining a positive trend that has continued for 21 months.
We can also talk about the recovery of the mortgage market , based on official September data. The growth compared to September 2016 is + 3.3%.
Interest rates? At the minimum historical
Interest rates on loans remain very low, and record a new historical low with 2.74%. Historical minimums also for the average rate on new home purchase transactions, at 2.02%, and on new business financing transactions, which stop at 1.35%.
In Italy, data for October show an increase in current account deposits, certificates of deposit and repurchase agreements, with over 65 billion euros compared to the previous year (annual + 4.8%); bond funding fell, therefore in the medium to long term, with a -14.6% and € 50.4 billion raised. Overall, the performance of total deposits is positive with 0.9%, compared with 1.9% in the previous month. As far as interest rates are concerned , it is equal to 0.38% that applied to deposits, + 0.95% to PVT and 2.66% to the yield on bonds. Overall, it is equal to + 0.91%.
The spread between loans and deposits is equal to 183 basis points, down and very low levels (before the financial crisis in 2007, the figure was over 300 basis points).
There were numerous signs of growth, from second-quarter GDP to the dynamics of bank loan stock for home purchase, to an increase in the number of trades.
Abi explains that ” Credit dynamics continue to be influenced by the performance of investments and the economic cycle, which, although recovering, sees an intensity that remains contained “. The report outlines a more favorable scenario for the coming months: ” The investment programs declared by companies for 2017 envisage a further increase in spending (2.8%). The accumulation would be driven by the plans of the largest companies in all the main sectors “.