S&P raises Iccrea Banca

S&P said it raised Iccrea Banca SpA’s issuer rating to BB+ from BB. Iccrea Banca is the parent of Gruppo Bancario Cooperativo Iccrea.

“We expect strong profits in 2022 and continued improvement thereafter, which will beef up GBCI's capitalization. Under our base case, we forecast net income will significantly exceed €1 billion in 2022. This reflects our view that the net interest margin will increase to about 2% while new loan loss provisions will remain at about 50 basis points (bps)-60 bps,” S&P said in a press release.

Improved efficiency and healthier revenue should provide a buffer if credit losses increase more than expected, the agency said.

The outlook is stable.

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