Modest for return to growth Italian banks in 2011. The banking sector in Italy is pleased to have overcome the worst of the financial crisis, but even so, does not expect exceptional growth levels to 2011 and 2012, according to the sector's employers' federation (ABI) in its biannual prospectus report. The economic and financial environment remains poor, recovery is modest and the threat represented by uncertainty as a result of the sovereign debt of certain European member states persists. The ABI predicts growth of no more than 1% in Italy this year, or possibly 0.9% if the international situation develops unfavourably. For their part, the Italian banks should manage to achieve an annual net result of €5.5 billion by the end of 2012, which is still modest, given that over the first nine months of 2010, their cumulative profits were already close to €4 billion, including €1.8 for Intesa Sanpaolo and €1 billion for UniCredit. The banking Federation nonetheless sees a few encouraging signs: risk loans, which will have increased by 20% in 2010, are expected to rise by only 10% in 2011, before starting to tail off (-1.7%) in 2012. Additionally, economic recovery seems to be taking hold. (I.L./transl.fl)