DEPObank - Banca Depositaria Italiana S.p.A.

Lower credit risk exposure than peers. Sound liquidity profile. Limited funding needs. Low business diversification. High revenue concentration by client. Capitalization constrained by high dividend distribution. S&P Global Ratings' stable outlook reflects balanced risks to the ratings on DEPObank - Banca Depositaria Italiana SpA over the next 12 months. In particular, we anticipate DEPObank's revenue will remain concentrated in niche sectors and on few customers. We also expect the bank's risk profile will continue to benefit from more limited exposure to credit risk compared domestic peers, while the bank will likely preserve its current capitalization, with a risk-adjusted capital (RAC) ratio at 5.5%-6.0% by end-2021. We could consider a downgrade if we believed DEPObank's combined capital and risk profiles had

...Capitalization constrained by high dividend distribution. Outlook: Stable S&P Global Ratings' stable outlook reflects balanced risks to the ratings on DEPObank - Banca Depositaria Italiana SpA over the next 12 months. In particular, we anticipate DEPObank's revenue will remain concentrated in niche sectors and on few customers. We also expect the bank's risk profile will continue to benefit from more limited exposure to credit risk compared domestic peers, while the bank will likely preserve its current capitalization, with a risk-adjusted capital (RAC) ratio at 5.5%-6.0% by end-2021. We could consider a downgrade if we believed DEPObank's combined capital and risk profiles had weakened. In particular, we could lower the ratings if we anticipated that aggressive growth in the lending activity had materially weakened the bank's credit risk profile. Although unlikely at this stage, we could raise the ratings if we anticipated our forecast RAC could sustainably improve above the 7% threshold,...

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