Greece’s four systemic banks have reduced their stock of nonperforming exposures (NPEs) by € 15.3 billion in the last year, as their financial reports at the end of June showed that their total NPEs stood at € 78.8 billion, compared to € 94.1 billion a year earlier.
This reduction is the outcome of loan restructurings and settlements as well as the extensive sales of loan portfolios.
According to the second-quarter results issued by banks, Eurobank considerably reduced its NPE stock from € 18.9 billion a year earlier to € 14.3 billion, bringing down its share of NPEs from 40.7% to 32.8%of all loans issued.
Alpha Bank cut its NPEs from € 28.8 billion in June 2018 to € 24.7 billion last June, reducing the NPE share from 51.9 to 48.1%.
National also significantly contained its NPEs, from € 17 billion to € 13.7 billion within a year, pruning the share of NPEs from 42.4% at end-June last year to 36.5%just over two months ago.
Piraeus Bank lightened its load of NPEs from € 29.4 billion to € 26.1 billion by end-June, but it still has the largest sum, as well as the biggest NPE share, which came to 51.4 %, from 54.7% in June 2018. Within this month the lender is expected to complete an agreement with Swedish group Intrum for the concession of the management of Piraeus Bank’s entire NPE portfolio. Next year Piraeus is targeting the sale of NPE portfolios totaling € 4.5 billion.
Eurobank is also in the process of conceding NPE portfolios, aiming to bring its NPE index below 16% by the end of this year and to less than 10% by the end of 2021. National aims to contain its NPE stock by another € 1.8 billion, mainly via portfolio sales, while Alpha is eyeing the sale of €5.5 billion of loans in total this year.
Original Story: Ekathimerini | Author: Evgenia Tzortzi
Photo: Site Alpha Bank
Edition: Prime Yield