Volumes fall down 20% for Italian NPL collections during the first half of the year

After hitting a three year low in 1Q24 (SCI, 30 May), Italian NPL volumes were down 20% over 1H24 compared to the same periods in 2022 and 2023, according to Scope ratings.

Total collections in 1H24 reached €1,200m from 45 transactions. This is a significant drop in returns YoY, with 1H23 seeing €1,450m from 44 transactions.

The drop in collections across the half were driven by a 28% drop in discounted payoffs (DPOs) and a 62% drop in note sales, equivalent to €90m and €66m respectively, compared to the same periods in 2022 and 2023. Judicial proceeds are broadly in line with these periods but still saw a 3% decline, equivalent to €17m.

In June, collections were up 23% month-on-month to €255m – but this was still 31% below the June average of the previous two years.

As a percentage of collections per recovery strategy, judicial proceeds is dominant with 63.5% of total collections in June 2024. This is higher than the June 2023 figure (approx. 52%) and June 2022 figure (approx. 50%). As a percentage, judicial proceeds peaked at 75% in February 2023.

Note sales sit at 8.5%, a steep decline from June of the previous two years where they accounted for about 20% of the total.

Joe Quiruga