Credit granting should grow by 10% in Brazil next year, says S&P

Standard & Poor’s Global (S&P) expects Brazilian banks to significantly raise credit granting in 2019, given the greater economic growth prospects. The international rating agency forecasts a 10% expansion in the total credit portfolio next year. As for 2018, S&P anticipates a growth between 4% to 6%, after years of contraction.

If this scenario is confirmed, the total credit ratio to GDP will rise to 47% in 2018 and 49%. The NPL ratio (for non-performing loans over 90 days), for its hand, should continue to gradually fall over the next two years, receding from the 3% level recorded in September. The Banks’ asset quality is expected to continue to improve and there should be a further moderation within the loan renegotiation levels, states S&P.

The credit growth should continue be headed by private banking institutions.

Original Story: Valor Económico | Sérgio Tauhat
Translation & Edition:Prime Yield

Brazil banks going to deliver proposal to cut loan rates

Brazil’s main banking lobby is going to deliver proposals aimed at reducing loan interest rates to the newly President-elect Jair Bolsonaro once he is inaugurated in January.

The information was told to Reuters by Bradesco’s Chief Executive, Octavio de Lazari, who explained that the proposals from industry group Febraban will include revamping brazil’s bankruptcy law and reducing mandatory notary services that elevate credit costs.

According to Reuters, the move comes as Brazil’s central bank has been looking for ways to cut consumer interest rates that average around 260% annually for revolving credit lines (central bank data). That figure compares with 6.5% for the country’s benchamark Selic rate.

Lazari also said that Bradesco expects its loan book to grow at a faster pace in 2019 than this year, as the Brazilian economy accelerates. Its corporate loan book is expected to grow close to 10% in 2019, and credit to individuals may grow at even higher rates, he said.

Original Story: Reuters | Authors: Tatiana Bautzer, Carolina Mandl, Rodrigo Campos
Photo: Banco Central do Brasil
Edition:Prime Yield

Brazilian state bank freezes part of housing subsidy program

Brazil’s state bank Caixa Económica Federal has suspended the issuance of some new home loans in the “Minha Casa, Minha Vida” housing subsidy program.

In a statement to Reuteurs, the bank said it was not extending new loans in the so-called “bracket 1.5” of the subsidy program until the end of this year due do budgetary restrictios. Loans in that segment, which offer favourable terms to families earning up to 2,600 reais ($690) per month, will be restarted next year, the bank explained.

The announcement of this move knocked the shares of homebuilders and dealing a blow to low income consumers who rely on the program.

Original Story: Reuteurs
Photo: wikimedia commons /Gaf.arq
Edition:Prime Yield

Greek economy and banks committed to ambitious NPL reduction by 2021

Hellenic Bank Association is ready to agree with the government on a new framework to protect first home that will not create any side-effects, Nikos Karamouzis, president of the association announced on Monday, according to ANA.

Speaking to reporters, Karamouzis admitted that non-performing loans are a big challenge for the society, the economy and banks have committed to an ambitious programme of NPL reduction by 2021. He added that home protection should cover lower incomes that will be able to meet their obligations with the support of the state and pointed out that an existing legislation has frozen borrowers’ obligations worth 18 billion euros.

Original Story: Tornos News

Spanish banks reduce €114 billion in NPL in 5 years

Spanish Banks have reduced over €114 billion in Non-Performing Loans (NPL) since the peak of December 2013, reflecting a decrease of 60.2% in the NPL amount, says the November’s Financial Stability Report released by the Central Bank of Spain.

The monetary authoroty chaired by Pablo Hernandez de Cos considers that the positive evolution of the Economy over the last year, associated with the active management of distressed assets by financial entities and the supervision’s pressure are the causes of such a positive improvement.

Over the last 12 months alone, the amount of NPL has fallen €24,7 billion, with the stock hitting €74,8 billion as of June 2018. The most recent sales of NPL portfolios have involved Banks such as Sabadell, Caixa Bank, BBVA or Santander.

Original Story: Europa Press
Photo: Banco de España
Translation and Edition: Prime Yield

Novo Banco confirms the sale of a large NPL portfolio by the end of the year

Novo Banco  will complete the sale of a €1,75 billion NPL portfolio by the end of the year, said António Remalho, CEO of the Bank.

The bank has already “selected a short-list with three buyer consortia”. “We are now waiting for them to make their accuarte analysis of the portfolio in order to present their bids until the beggining of December. The operation aims to deconsolidate before the year ends, so all the effects should be produced by the end of the year”, said António Ramalho to Dinheiro Vivo, aside the conference Money Conference.

“It’s a very interesting operation as it is the largest one so far in the Portuguese market. It’s particularly important to Novo Banco and it is a crucial step in the Bank’s restructing”, he added.

Original Story: Dinheiro Vivo | Elisabete Tavares
Photo: Novo Banco
Edition and Translation: Prime Yield


Sale of credit portfolio pushes CGD’s NPL ratio to below 10%

Caixa Geral de Depósitos (CGD), the Portuguese public Bank led by Paulo Macedo has completed the sale of a €825 million  NPL portfolio, an operation that pushed the bank’s NPL ratio to below 10%.

During the presentation of 3rdquarter results, CGD highlighted “the improvement in asset quality, with NPL ratio reducing to 9.6%” (considering already the disposal of a portfolio concluded in October 2018)”. Excluding this operation, the NPL ratio of the Bank stood at 10.5% at the end of the period analysed.

“We are currently commited in continuing a sustained reduction of this ratio in order to align with the European average by 2020”, stated the board director José Brito during the press conference.

As to the amount of NPL, the State Bank has presented a reduction of about €1,300 million, given the “positive evolution of sales, write-offs and debt recovery”, according to CGD’s quarterly accounts.

In what concerns the discount applied to the portfolio, Paulo Macedo only said that “it was a figure slightly better that the ones the market has been transacting”. The manager also highlighted that this operation has attracted several entities, but did not disclose who was the final buyer.

Paulo Macedo said also that the Bank aims to achieve a NPL ratio below 7% and that it is continuing to sell NPL portfolios, also disclosing  that a new sale of a €250 million NPL portfolio in the household segment should be completed before the year ends.

Original Story: Jornal de Negócios | Rita Atalaia
Photo: Caixa Geral de Depósitos
Translation and Editon: Prime Yield

BPI prepares the sale of €200 million in NPL

BPI’s CEO, Pablo Forero, stated that the Bank is preparing the sale of a Non-Performing Loans (NPL) portfolio worth €200 million involving unsecured credit to companies.

“We are currently on a process to sell an NPL portfolio of €200 million”, the manager said during the press conference held to present the results of the Bank in January-September 2018. “It’s a portfolio of unsecured credit to companies”, Pablo Forero added. Between January and September 2018, BPI has recorded a consolidated profit of €529,1 million, a value that compares to the €22,6 million recorded year before.

The CEO of BPI also reported that this year the Bank has already sold 300 properties worth €26 million, corresponding to a gain of about €2,8 million.

During this period, credit to companies has increased 12% to €7,887 million.

As for the credit for house acquisition record a 1.3% growth over the period to €11,233 million.

Original Story: Lusa in Diário de Notícias
Photo: BPI Bank
Translation and edition: Prime Yield