Journal of
Italian
Banking
Association
year 100
Italian
Banking
Association
year 100
The return of net interest income. A transitory or lasting phenomenon?
Giovanni FerriJune 2024 - n. 6
Keywords: Margine di interesse, banche
Jel codes: G21, G28
Taking a cue from the recent return to an appreciable level of profitability of the Italian banking sector after a long phase of unsatisfactory performance, we observe that the profits' recovery coincided with the strong expansion of interest margin, which returned above 50% of gross banking income. This recovery coincided with a return to the usual situation, typical of the period before the global financial crisis of 2008/9, in which more than half of banks' net revenues came from the core management of money and less than 50% from other activities. We have therefore asked ourselves whether the return of net interest income to the role traditionally played is a transitory or a lasting event, leaning towards the second hypothesis.
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