09 Mar The UTPs exceed the NPLs. Specialized managing Non Performing Loans is increasingly necessary

At the end of 2021, the stock of UTPs recorded in the banks’ balance sheets exceeded NPLs for the first time in Italy.

This news emerges from the latest Banca Ifis Market Watch on impaired loans which confirms what has already been announced in recent months and which expects the same overtaking to remain stable for the next few years. In fact, at the end of 2021, it is estimated that there will be 45 billion euros of UTPs, against 39 billion euros of bad loans and 4 billion of overdue loans. Also from the report it emerges that the overall stock of NPE remains stable at 330 billion euros but it is estimated that it will rise to reach 402 billion in 2024. The stock in 2021 is made up of approximately 88 billion euros of NPE owned by banks and 242 billion euros under management by servicers and specialized investors (approximately 73%). In 2024 it is expected that 78% of the NPE stock will be managed by the NPL industry and only 22% will be in the bank balance sheet. These data therefore confirm once again how important and necessary is an ever greater specialization of players able to manage UTPs to prevent sleeping problem loans from becoming NPLs.

The in-depth study here: https://www.bancaifis.it/app/uploads/2022/02/MW_NPL_Feb22_ITA.pdf