Istituto Bancario del Lavoro’s (IBL) issuer rating reflects the low-risk business model of IBL, a leader in the Italian market for payroll and pension deducted loans (PDLs), which is a high-margin, low-risk personal loan product with a long history in Italy.

The 2024 strategic plan includes commercial initiatives to improve the bank’s positioning in PDLs and strengthen its funding profile. At the same time, IBL is cautiously pursuing diversification outside its core business into non-performing exposure (NPE) investing, both directly on secured NPEs and through Credit Factor for unsecured NPEs.

The Stable Outlook reflects Scope’s view that the risks and opportunities associated with the new strategic direction are balanced.

This monitoring note does not constitute a rating action, nor does it indicate the likelihood of a credit rating action in the short term. The latest information on the credit ratings in this monitoring note along with the associated rating history can be found on www.scoperatings.com.

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