Spanish banks’ net interest margins reached their lowest level in Q1 vs 2024, yet profitability continues to improve, driven by higher loan volumes, sustained growth in fees and commissions and strict cost discipline.

Collections in April declined by 22% month over month and were 35% lower than the April average for the three previous years, indicating a notable slowdown in recovery performance.

Global ABS 2025 kicks off next Tuesday June 10. We are excited to be a Partner Sponsor of this year’s event and are looking forward to engaging with speakers and delegates.

UK bank profitability will remain sound in 2025. Asset quality is weakening modestly but remains resilient, capital is adequate and deposit outflows have reversed. The stable outlooks on our UK bank ratings indicate that risks are broadly balanced.

Bolt-on acquisitions and investments will improve the group’s diversification and consolidate its pan-European market position, but transformational deals remain complex and subject to political barriers.

Italian banks are among the most profitable in Europe and the outlook is favourable, even if we anticipate lower profits in coming quarters. M&A may reshape the sector, though execution risks are rising.

Operating environment assessments, the starting point for the analytical process, reflect regulatory and supervisory convergence. Ratings are determined by economic, sector and bank-specific factors. Despite uncertainties, the picture is resilient.

Italian NPL collections in March rose 45% month on month, consistent with previous years. But while monthly volumes bounced back from a poor February, they were still 43% below the three-year March average.

Wednesday, 28 May, 3 pm CEST

The robust solvency of European banks and their capacity to absorb credit losses from ordinary profitability provide important buffers against credit deterioration at a time when US trade policy is impacting Europe’s growth and interest-rate outlook.