Large Italian Banks' Solid Credit Fundamentals in H1 2025 Bode Well in Worsening Macroenvironment

The commentary analyses the H1 2025 results for the five major Italian banks: Intesa Sanpaolo S.p.A., UniCredit S.p.A., Banco BPM S.p.A., BPER Banca S.p.A., and Banca Monte dei Paschi di Siena S.p.A.

Summary highlights from the commentary include:

-- Italian banks reported an aggregate net profit of EUR 7.6 billion in Q2 2025, up 15% YOY. For H1 2025, aggregate net profit totalled EUR 14.3 billion, up 13% YOY or up 16% YOY excluding one-offs.

-- Italian banks' ability to absorb credit losses remains strong despite lower interest rates.

-- Cost of risk is reducing; however, banks maintain a conservative stance given the worsening macroenvironment.

-- Risk, funding and liquidity, and capitalisation profiles remain sound.

"Italian banks confirmed solid credit fundamentals in H1 2025 as also indicated in the EBA's latest stress test exercise which saw Southern European banks, including Italian banks, among the best performers in the adverse scenario," said Andrea Costanzo, Vice President, European Financial Institution Ratings. "This allows Italian banks to keep strategic flexibility while ensuring protection against risks in the current worsening macroenvironment characterised by escalating geopolitical and trade tensions globally".