Banking industry in Italy - statistics & facts
The Italian banking industry provides a diverse range of financial services and exhibits several distinctive characteristics. Italy stands out with a relatively high number of banks compared to its European counterparts. In 2024, only Germany and Poland had more banks in Europe than Italy. This can be attributed to a tradition of regional banking, with different regions having their own local institutions. Lombardy, in particular, boasts the highest concentration of banks in the country.
Italy also has a significant presence of cooperative banks, known as “banche di credito cooperative”, constituting the largest segment of banks in 2023. These banks are often community-oriented and serve the financial needs of specific regions or local communities. Another notable characteristic of the Italian banking industry is the relatively low penetration rate of online banking compared to other European countries. In 2022, online banking penetration in Italy was just above 50 percent, way below the European average.
The Italian banking industry plays a vital role in the country's economy, marked by a strong regional focus and the dominance of major players like Intesa Sanpaolo and UniCredit. Despite challenges like fluctuating profits and slower digital adoption, the sector continues to evolve, maintaining its importance in both local communities and the broader financial landscape.
Italy also has a significant presence of cooperative banks, known as “banche di credito cooperative”, constituting the largest segment of banks in 2023. These banks are often community-oriented and serve the financial needs of specific regions or local communities. Another notable characteristic of the Italian banking industry is the relatively low penetration rate of online banking compared to other European countries. In 2022, online banking penetration in Italy was just above 50 percent, way below the European average.
Financial overview of the Italian banking sector
The financial indicators of the banking industry in Italy showcase some noteworthy trends. The net profit of the banking sector in Italy experienced significant fluctuations during the last decade due to the economic backdrops but reached a record high in the fourth quarter of 2023. Total assets, on the other hand, remained relatively stable overall, with an increasing trajectory observed between 2020 and 2022. However, in 2023, there was a notable decrease in asset growth. When it comes to asset composition, loans and advances constitute the largest portion of the banking industry's assets, reflecting the significance of lending activities. Debt securities follow as the next significant component. These indicators highlight the importance of credit provision and investment activities within the Italian banking sector.The largest banks in Italy
The Italian banking sector is largely dominated by two major banks, namely Intesa Sanpaolo and UniCredit, which hold prominent positions in terms of assets, market capitalization, and branch networks. Intesa Sanpaolo stands out as the largest bank in Italy, with a significant market share and extensive operations both domestically and internationally. It boasts a substantial asset base, with an asset value close to one trillion euros in 2023. UniCredit, another key player in the Italian banking landscape, also holds a leading position in terms of assets and market capitalization. With an extensive branch network, UniCredit maintains a strong presence across the country, serving a broad customer base. The dominance of Intesa Sanpaolo and UniCredit highlights the concentrated nature of the banking industry in Italy, with these two institutions playing a crucial role in shaping the sector's landscape and dynamics.The Italian banking industry plays a vital role in the country's economy, marked by a strong regional focus and the dominance of major players like Intesa Sanpaolo and UniCredit. Despite challenges like fluctuating profits and slower digital adoption, the sector continues to evolve, maintaining its importance in both local communities and the broader financial landscape.
