Moody's forecast the Italian economy would grow by under 1 percent in 2014 and 1-2 percent in 2015.
"The operating environment for banks remains challenging, because economic conditions in Italy are stabilising only gradually," analysts said.
Despite concerns, Rossi denied that Italian banks were in the same straits as Portugal's Espirito Santo. Speculation about a prospective default in the bank's parent group increased this week, after Espirito Santo International delayed paying short-term bondholders while Banque Privee Espirito Santo failed to pay some clients.
"I would not any make direct comparison between what is going on in Portugal—a situation on which I do not want to comment—and what is the situation in Italy," he told CNBC.
Read MorePortugal's bank woes just got more complicated
The Italian banking system recorded a 20.6 billion euro ($12.0 billion) net loss in 2013, according to Moody's, which expects core revenues to be at best marginally higher in 2014.
—By CNBC's Katy Barnato