(Finance) – S&P Global Ratings has revised and increased theoutlook of Volksbank from stable to positiveand has confirmed the ratings short-term and long-term BB+/B.
The improvement, reports a note, is justified by the fact that according to the rating agency in the next 12-24 months theThe bank’s creditworthiness is expected to further improve. Furthermore, S&P Global Ratings highlights a more positive view of the economic risks to which banks in Italy are exposed, with benefits on the solvency of financial institutions.
There prudent risk management it allowed Volksbank to reduce the cost of risk by 58%, which stands at 30 basis points, and to reduce the net share of the non-performing loan portfolio by 15% on the total portfolio (net NPL Ratio) to 2.26%.
“Volksbank has excellent solidity and profitability levels in the European banking context and this allows us to continue to effectively support households and businesses in our North-East area”, he comments Georg Mair am TinkhofChief Financial Officer and Deputy General Manager of Volksbank.