The bulletin

ABI, loans to households and businesses grow again (0.9 %). Mortgage rates stable

Loans to businesses and households up 0.9% in June compared to a year earlier, accelerating from +0.1% in the previous month

19 July 2025

3' min read

Loans to businesses and households jumped in June, up 0.9 per cent year-on-year, accelerating from +0.1 per cent in the previous month. In May 2025 loans to households had grown by 1.5 per cent while those to businesses had fallen by 1.4 per cent. A growth that on the whole also suggests a recovery in business loans. . The margin (spread) on new business (the difference between the rates on new loans and new deposits) with households and non-financial corporations in June 2025 was 198 basis points. This is what emerges from the new ABI bulletin with the main highlights for July 2025.

Mortgage rates stable

Uncertainty leaves bank lending rates effectively stable. According to the findings of the Banking Association in June 2025, the average rate on new business loans fell to 3.56% from 3.66% in the previous month and from 5.45% in December 2023. While the rate on mortgages taken out by households for house purchases was unchanged at 3.17%, confirming the rate recorded last May, but still far from the 4.42% recorded in December in December 2023). Instead, the average rate on total loans (i.e. subscribed over the years) fell by 0.6% to 4.02% from 4.08% in the previous month.

Market rates

In the first 17 days of July 2025, Abi highlights, the 3-month Euribor rate averaged 1.99%, also substantially stable compared to June 2025 (1.98%) and 85 basis points lower than in December 2024 (2.84%). The six-month BOT gross rate averaged 1.92%, down 1 basis point from June (1.93%) and 70 basis points lower than in December 2024 (2.62%).

On the other hand, the 10-year Irs rate widely used in mortgages rose by 8 basis points compared to June (2.56%) and averaged 2.64%. Compared to December 2024, the Irs rate was 41 basis points higher (2.23%).

The gross rate for 10-year BTPs averaged 3.55%, 5 basis points higher than in June (3.50%) and 21 basis points higher than in December 2024 (3.34%).

Banking

The bulletin also shows that the rate charged on new fixed-term deposits (i.e. certificates of deposit and time deposits) in June 2025 was 2.08%. In May, this rate was higher in Italy than the euro area average (Italy 2.17%; euro area 2.00%). Compared to June 2022, (last month before the European Central Bank rate hikes) when the rate was 0.29%, the increase was 179 basis points. On the other hand, the yield on new issues of fixed-rate bank bonds showed that in June 2025 it stood at 3.24%, an increase of 193 basis points compared to June 2022 when it was 1.31%.

Interest rate on deposits and current cones

In June 2025, the average rate on total deposits (certificates of deposit, savings deposits and current accounts) was 0.66% (0.70% in the previous month; 0.32% in June 2022). While that on the current account, which has no investment function and allows a multitude of services, was 0.30% in June 2025 (0.32% in the previous month; 0.02% in June 2022)

Customer deposits

Indirect funding, i.e. investments in securities held with banks, increased to EUR 104.5bn between May 2024 and May 2025 (EUR 9.9bn households, EUR 16bn corporates and the remainder to other sectors, financial companies, insurance companies, public administration). Total direct funding (deposits from resident customers and bonds) in June 2025 increased by 1.0% year-on-year, continuing the positive trend recorded since the beginning of 2024 (+3.2% in the previous month). In June 2025, deposits, in their various forms, grew by 1.0% year-on-year (+3.8% the previous month). Medium- and long-term funding, in the form of bonds, also grew in June 2025, up 0.9% year-on-year (-0.9% the previous month).

Impaired loans

Slight decrease in non-performing bank loans, In May 2025, writes the ABI, net impaired loans (i.e. the total of non-performing loans, probable defaults and exposures past due and/or in arrears calculated net of write-downs and provisions already made by banks) fell slightly to EUR 31.2 billion, from EUR 31.3 billion in December 2024 (EUR 30.5 billion in December 2023). Compared to their peak level, 196.3 billion reached in 2015, they are down by more than 165 billion. Also in May 2025, net impaired loans accounted for 1.50% of total loans. A ratio, as mentioned, that is slightly lower than in December 2024 (1.51%; 1.41% in December 2023; 9.8% in December 2015).