Italian banks have successfully reduced their non-performing loans (NPEs) to under €53 billion by the end of 2023, down from a peak of €341 billion in 2015. This cleanup of their balance sheets has been a significant achievement, with non-performing exposures (NPEs) plummeting. However, there are still over €300 billion in total NPEs and more than €200 billion in high-risk, Stage 2 loans that require careful monitoring. The reduction in NPE sales suggests limited future volumes in the primary market. Managing the remaining €300 billion in NPEs is crucial for maintaining financial stability in the region [2459455f].
Intesa Sanpaolo, one of Italy's largest banks, has ruled out big acquisitions and will instead focus on boosting investor rewards. The bank's CEO stated that acquiring a domestic rival is not on the cards due to the bank's significant market share. Foreign targets are also not enticing, leading the bank to avoid major acquisitions. Instead, Intesa Sanpaolo raised its profit outlook, indicating more rewards for investors in the future [f0f57fd8].
In other news, Leonardo, an aerospace and defense company, reported double-digit growth and hinted at forming a space industry alliance with Thales and Airbus. This move reflects Europe's push to solidify its position in the global space industry and enhance its defense capabilities amidst geopolitical tensions. Leonardo's talks with Thales and Airbus could have significant implications for the European defense sector [f0f57fd8].
