Novo Banco puts bad debt from Sogema and Ongoing for sale

The two largest debtors included in the Non-Performing Loans (NPL) portfolio named Natal II that Novo Banco put for sale in the beginning of March are Sogema and Ongoing, reveals Jornal Económico.

According to the newspaper, the NPL from Sogema has an indicative value of €540 million (what should include interest) while the credits from Ongoing have an indicative value of €350 million, to which must be added other €240 million in commercial paper from theholding.

These are, indeed, the largest debtors on the Nata 2 NPL portfolio. The bank has already selected three candidates to move forward the second phase of the sales tender, inviting them to present biding offers:  Bain Capital, the JV KKR-Hipoges and Davidson Kempner Capital Management.

Original Story:Jornal Económico |Maria Teixeira Alves
Photo: Novo Banco site
Translation & Edition:Prime Yield

Portugal’s banks «on right track»

The CEO of Lloyds Bank of the UK, António Horta Osório, has said that Portugal’s banking sector is «on the right track», while warning that there is still much to do.

«Portuguese banks are presenting positive results, but we should not be complacent because there is still much to recover», said Horta Osório, a former head of Santander’s operation in Portugal, speaking at a conference on exports and foreign investment at the Nova School of Business and Economics in Carcavelos, in the municipality of Cascais.

Horta Osório began his address by acknowledging the improvement in the solvency ratios of Portugal’s banks, which he noted are currently «positive» and «in line with international standards». He mentioned the importance of the capital injection into state-owned Caixa General de Depósitos (CGD) in stabilising not only the bank itself but the whole system, of which CGD represents about one quarter.

He warned, however, that the «worrying» levels of non-performing loans, which reached as high as 15% of total assets, are still higher than they should be.

«Ten percent non-performing loans is still very high», he said. «The banks mostly have positive results, but there is still a lot to do and non-performing loans can improve».

Original Story: The Portugal News |News 
Photo: Caetano
Edition & Translation:Prime Yield

Greece’s second-largest lender gets 1stQ profit lift from trading gains

National Bank (NBG), Greece’s second-largest lender by assets, said profit from continuing operations had risen in the first quarter of 2019 on the back of higher trading gains.

NBG, 40% owned by the country’s bank rescue fund HFSF, said net profit from continued operations reached €131 million versus a net profit of €8 million in the last quarter of 2018.

Greek banks are focused on reducing their bad debt portfolios and meeting targets on so-called non-performing exposures agreed with regulators.

Trading income rebounded to €101 million in the first quarter from a loss of €47 million in the previous quarter.

«The results of (the) first quarter are beginning to reflect NBG’s significant efforts at transformation,»NBG Chief Executive Paul Mylonas said in a statement.

NBG’s ratio of non-performing exposures (NPEs), which includes non-performing loans (NPLs) and other credit likely to turn bad, edged lower to 38.9% from 40.9% in December. Its provisions for credit impairments rised by 70% quarter-on-quarter to €103 million.

Original Story:Reuters | Lefteris Papadimas 
Photo: National Bank of Greece
Edition:Prime Yield

EIB and Banca March provide €340 million to finance SMEs

The European Investment Bank (EIB) and Banca March are joining forces to provide financing on favourable terms for Spanish SMEs and mid-caps. EIB Vice-President Emma Navarro and Banca March CEO José Luis Acea signed two agreements in Madrid enabling the Spanish company to provide up to €340 million in financing to support the investments of small and medium-sized enterprises.

Firstly, the EIB has granted a €70 million guarantee to Banca March on a portfolio of pre-existing loans to mid-caps. This guarantee will enable Banca March to build up a new loan portfolio of up to €140 million. The agreement was made possible by the support of the Investment Plan for Europe, known as the “Juncker Plan”. This means that Banca March now has more resources to foster investment among mid-caps, especially investment focusing on innovation and projects promoting climate action.

Secondly, the EU bank has provided Banca March with €100 million of financing – to which it will add a further €100 million of its own funds – for expanding SMEs’ financing capacities. The two agreements signed today will enable SMEs and mid-caps to access €340 million on favourable conditions, in terms of both maturities and interest rates.

Banca March CEO José Luis Acea said: «Banca March is dedicated to remaining a point of reference for companies, family businesses and business families, and to this end has a specialised range – unique in Spain – that drives the business-entrepreneur dynamic. These agreements with the EIB enable us to move forward with our firm commitment to bring the best and most appropriate financing options to companies via a specialist family-run bank.»

Original Story:Noticias Bancárias |  News
Photo: Banca March site
Edition:Prime Yield

Portuguese NPL stock declines by €11.1 billion in 2018

After reaching € 37 billion in 2017, Portugal’s Non Performing Loan (NPL) stock pile shrank by € 11.1 billion along 2018, standing at € 25.9 billion in December last. The corporate NPL had a significant impact for this decrease, in which the NPL stock reduction was due not only to the rebate from the asset but also to the NPL recoveries and sales.

These achievements were highlighted by Portugal’s Central Bank in its Executive Board Annual Report. The document stresses that the NPL, considered to be one of the main vulnerabilities of the Portuguese banking system, has significantly reduced over the last year.

More specifically, the NPL went down from its €50.5 billion historic peak of June 2016 to €25.9 billion in December 2018, in a sharp drop of almost 50%, lowering in €24.7 billion.

This sustained downward trend within the NPL stock allowed that by the end of 2018 the NPL ratio stood below the 10% (9.4%), comparing with the 13.3% recorded just a year before.

Original Story:Jornal Económico | Maria Teixeira Alves 
Photo: Banco de Portugal
Edition & Translation:Prime Yield

Brazil’s Central Bank holds interest rates at 6.5%

Brazil’s central bank held fire on interest rates despite lackluster growth in Latin America’s biggest economy and uncertainty over President Jair Bolsonaro’s ability to push through a much-needed pension reform.

In a unanimous decision, last May 8th the bank kept the key Selic rate, its main instrument for controlling inflation, at the historic low of 6.5%. That is unchanged since March 2018.

The bank expects the rate to stay at that level for the rest of the year, but flagged a possible rise to 7.5% in 2020, according to a statement released after its meeting.

The government’s proposed overhaul of Brazil’s unsustainable pension system, which Bolsonaro has warned would bankrupt the country if the changes are not adopted, is seen as crucial to the president’s chances of making good on his other promised economic reforms.

A parliamentary committee is currently scrutinising the bill which analysts fear could be diluted after it sparked heated debate in the Congress.

Brazil’s commodities-driven economy, which is still struggling to recover from a record 2015-2016 recession, is expected to expand by 1.49% this year, according to a recent central bank survey of economists.

That would be only slightly faster than the 1.1% growth recorded in 2017 and 2018.

Original Story: The Business Times | AFP 
Photo: Site Banco Central do Brasil
Edition: Prime Yield

Banks to cut up staff in 2019 as NPL sale slashes assets

The reduction of Greece’s banks NPL stock is also leading to shrinking of the credit system’s assets and followed by reduction on the banks staff, according to the online newspaper Ekathimerini.

The total assets of Greece’s four systemic banks reached 225 billion euros in end-2018, 60% of which consisted of loans to businesses and households. This is due to come down by some 50 billion euros, which is the target for the reduction of bad loans by 2023.

The banks’ aim, therefore, is not only to slash their bad-loan stock but also to reduce the staff employed in managing those loans. This effort will also take place at the group level, through the divestment from activities that are not at the core of banks’ purview, as well as by ceasing certain activities abroad.

At its peak in 2008, the number of employees in the Greek banking sector exceeded 66,000. Last year this figure (including non-systemic banks) dropped to 39,380 people, a reduction of 26,780, or over 40%. The number of branches shrank by over 51% in a decade, from 4,097 in 2008 to 1,979 in 2018.

The reduction of staff has been much faster in the last few years than the diminishing of the system’s assets, because banks were slow in relieving their books of nonperforming loans.

The size of the banking system in the next few years will depend on the growth of the Greek economy, but in any case, digital banking is set to change its structure and operation as well.

After a voluntary redundancy program in 2018 that led to 2,582 fewer bank jobs in Greece, estimates for this year speak of a reduction in staff by up to 4,000 people. Banks’ initiatives for the reduction of their employees will not be confined to voluntary exit programs, which are set to see some 1,500 staff depart. Even greater staff cuts are expected – by up to 2,500 people – through the transfer of the management of NPLs to investment entities, with a parallel transfer of employees.

National Bank is due this week to present its transformation plan, a key dimension of which is the reduction of its staff by 2,000 by the end of the year.

Original Story:Ekathimerini | Evgenia Tzortz
Photo: Bank of Greece
Edition:Prime Yield


CaixaBank is back with further NPL sales in 2019

After the sales boom recorded along 2017 and 2018 in Spain, CaixaBank is now back in the NPL sales business.

One of Spain’s top banks, Caixa Bank has just launched one of the first and largest Non-Performing Loan (NPL) disposals of this year: Project Niseko, with a gross nominal value of about €700 million, according to sources listened by El Confidencial.

Aiming to obtain at least €300 million, CaixaBank hired KPMG’s advisory for the sale process of this portfolio which is divided into two different segments. The first, named Hokkaido, groups eight large loans with real estate collaterals and a gross initial value of almost €400 million. 70% of the properties supporting the portfolio are commercial (offices and stores) while the rest are residential (20%) and land (10%). Named Sapporo, the other part of the portfolio is made-up of other 100 smaller credits (with an average value of €2.4 million, each) with a gross value of more than €300 million shared equally among land, residential and commercial properties.

Project Niseko is one of largest NPL portfolios available for sale in the present, along with three others (with gross value of about €1 billion each) that were put on the market by entities like Bankia, Unicaja and Ibercaja.

Original Story: El Confidencial | Jorge Zuloaga 
Photo: CaixaBank site
Edition & Translation:Prime Yield

Millennium bcp reduces its NPL in €1.9 billion in a year

Millennium bcp recorded a significant reduction of its Non-Performing Exposures (NPE) over the last year, reducing its stockpile in almost -1.9% from the end of the first quarter of 2018 to same period of 2019; and of which -1.8 billion correspond to the activity in Portugal.

Highlighting the «continuous improvement of asset quality; significant NPE reduction, with improvement in credit coverage», the Portuguese banking group informed in a note that its NPE covergage by impairment improved to 55% in the first trimester (48% as at 31 March 2018) and overall coverage to 110% (104% as at 31 March 2018).

In the same document, Millennium bcp also stressed the «significant improvement the profitability» in the first three months of 2019, driven by the activity in Portugal that more than doubled the contribution of the first three months of 2018, reaching € 94.3 million. The group net profit reached €153.8 million in the quarter ended in March.

Original Story: Jornal Económico | António Vasconcelos Moreira and Maria Teixeira Alves
Photo: Millennium bcp site
Edition & Translation:Prime Yield

Brazil’s largest private bank sets lower targets for 2019

Brazil’s largest private-sector lender Itau Unibanco Holding SA posted a higher first-quarter recurring profit, but set lower targets for gains with clients in 2019, indicating it sees fiercer competition for consumers.

Itau revised its 2019 guidance nearly three months after releasing its estimates, as competition sharply rose among credit card processors. The bank owns Rede, and has decided to stop charging interest rates to advance payments for merchants using its machines.

Itau reduced estimates for fee income growth to a range of 2% to 5% in 2019. Earlier this year, the bank had expected growth of 3% to 6%.

The bank also predicted slower growth in its financial margin with clients, of 9% to 12%, instead of 9.5% to 12.5%.

The bank’s recurring net income totalled 6.87 billion reais ($1.73 billion), up 7.1% from the year-ago period and roughly in line with a Refinitiv analysts’ consensus estimate.

Profit was boosted by higher financial margins with clients as Itau extended more loans to consumers and small companies.

The bank’s loan book reached 647.061 billion reais, up 1.6% from the previous quarter, boosted by car, payroll and personal loans. Corporate loans shrank during Brazil’s slow economic recovery.

Earlier this year, the bank had foreseen its loan book would grow between 8% and 11% this year, below competitors’ targets.

Itaú’s return on equity, a gauge of profitability, came in at 23.6%, up 1.8 percentage point in the quarter. For the year, the bank expects to reach 24% profitability.

Loans in arrears for more than 90 days were at 3% in March, up 0.1 percentage point from December.

Total loan-loss provisions remained stable year-over-year, but grew 11.4% in the quarter to 3.8 billion reais.

Original Story:Reuters | Carolina Mandl 
Photo: Itaú site
Edition:Prime Yield

Investors eye holdings in domestic REICs

The managing officers of real estate investment companies as well as foreign funds exploring the Greek market in search of opportunities have their eyes fixed on the real estate assets in the portfolios of secured nonperforming loans that were sold last year.

According to Kathimerini news, preliminary talks for the gradual sale of properties from those portfolios have already started, as the special administrators have made progress in settling a number of pending issues in order to make the transfer feasible.

It is reminded that two portfolios of loans secured on real estate collateral were sold over the course of 2018, for about €770 million. These were the “Amoeba” package by Piraeus Bank, and Alpha Bank’s “Jupiter” package. The cost of the former came to €432 million for buyer Bain Capital, while the latter fetched €337 million from Apollo Global Management.

The real estate assets of the above property packages comprise more than 140 hotel units, worth a total of more than €282 million, which are expected to come into high demand, regardless of whether they are sold off individually or as portfolios.

However, according to property market professionals, there is even greater interest in the way that the properties from the bad-loan packages will be sold.

According to well-informed sources, both Bain Capital and Apollo Global Management are likely to invest directly in a real estate investment company (REIC), in which they plan to bring property assets they have acquired in exchange for a certain number of shares in that company.

In that context, Piraeus Bank’s intention to concede the 39.4% stake it continues to control in Trastor REIC is seen as a springboard for developments in the immediate future. Certain negotiations to that effect have already taken place since the end of the last year, though without any positive conclusions having been reached so far.

Another real estate investment company that is likely to be open to such discussions is Trade Estates, an REIC founded by the Athens-listed Fourlis group whose establishment will have been completed by this fall. The new company has already been endowed with a particularly significant portfolio of properties, all of them of the Fourlis group, with a total value of €176 million.

Nevertheless, the Greek company’s management intends to enrich its asset portfolio further. It is therefore planning to reach out to companies active in the property management sector, and likely with funds too, in order to find co-investors.

The company aspires to evolve into the biggest real estate investment firm in the country in terms of commercial property concentration.

A good illustration of the significant demand being seen from institutional investors, such as real estate investment companies, as well as foreign funds, is the fact that some €300 million have been placed in the acquisition of income properties, such as office blocks and commercial stores, in the first quarter of this year alone.

This amount constitutes a historic high for the sector in a period of just three months, taking into account that as a rule such sums used to be invested in the Greek market over the course of an entire year and certainly not in just a single quarter.

The biggest transaction in terms of value concerned the acquisition of four hypermarket properties of the Sklavenitis supermarket chain by Grivalia Properties REIC. The Athens-listed company carried out the investment, which was worth around €119 million and is set to be officially completed over the next few weeks, before becoming a part of the Eurobank group.

Trastor Properties REIC was also particularly active in the first quarter of this year, as it invested a sum of €46 million, against a total of €38 million over the entire course of 2018. This amount went to the buyout of a series of office buildings, and of a store on Voukourestiou Street in the upscale downtown Athens district of Kolonaki.

Trastor’s biggest transaction this year concerns the portfolio acquired by Argentinian group Grupo Dolphin SA in Greece a few year ago. The portfolio in question, whose final price came to €27.8 million, contains four commercial properties in the Attica area.

Besides this transaction, Trastor has also obtained an office complex that had previously belonged to Prometheus Gas of the Copelouzos group and is located at Paradeisos in Maroussi, north of the capital. The cost of that transaction came to an estimated €12 million.

Likewise, Brook Lane Capital is in the process of completing investments that are expected to reach up to about €110 million. The biggest move in this direction has concerned winning a tender by Alpha Bank for the portfolio of five office buildings, mainly consisting of properties that used to belong to the now-defunct Babis Vovos construction company. Brook Lane Capital has paid Alpha the sum of €95 million for this portfolio.

Original Story: Kathimerini | Nikos Roussanoglou 
Photo: Photo by Markellos P. from FreeImages
Edition:Prime Yield

CGD’s net income up 85% in Q1 to €126 million

Portugal’s state-owned bank Caixa Geral de Depósitos (CGD) reported progress in terms of profitability and asset quality in the first quarter of the year, allowing to resume the payment of dividends.

CGD consolidated net income was up €58 million in the first quarter of the year, in an increase of 85% over March 2018 to €126.1 million, equivalent to return on equity (ROE) of 6.6%.

In a press note, the bank headed by Paulo Macedo also stressed the «maintenance of positive trend in quality of CGD’s assets with a CGD Group NPL (Non-Performing Loans) ratio of 7.8% and impairment and collateral coverage of 103.0%). Cost of credit risk was 0.06% in the first quarter».

As for the performing loan book, excluding public sector, the trend of was of growth in the quarter. There was 58% increase of €165 million in new residential mortgage loans over the same period 2018, informed the public bank.

Original Story:Dinheiro Vivo |Ana Sanlez and Rui Barroso
Photo: CGD site 
Edition & Translation:Prime Yield

Santander Brasil loan book will reach R$400 billion by December

Banco Santander Brasil SA’s aggressive pace of growth in lending may decelerate this year, as Chief Executive Sergio Rial recently said that demand for corporate loans has been weak and competition is likely to be fiercer.

Rial told journalists he expects the bank’s extended loan book to reach around 400 billion reais ($101.5 billion) by December. «We will surpass 400 billion reais. If not, we will be close to 400 billion reais,» he said.

If Santander does not surpass this target, it would mean a loan book growth of roughly 3.5% in 2019, around one-third of the 11.2% growth posted in 2018.

Santander Brasil’s loan book remained at 386.9 billion reais in the first quarter, stable from the previous quarter, although lending for consumers grew.

The bank had been outpacing its competitors in previous quarters by extending loans to consumers shunned by other mainstream banks. However, Banco Bradesco SA, Brazil’s second largest lender, is closing the gap with Santander.

Still, the bank beat analysts’ first-quarter profit estimates.

Recurring net income at the Brazilian unit of Spain’s Banco Santander SA rose 21.9% to 3.485 billion reais and topped the 3.296 billion reais expected by analysts, according to Refinitiv data, helped by lower loan-loss provisions.

The bank’s return on equity remained stable at 21.1%.

Brazil made up 29% of the euro zone’s biggest bank by market value in the first quarter. Latin America’s importance has increased for Santander, as its businesses in the region have posted higher profitability growth, compensating for lower gains in Europe.

Its 90-day delinquency rate also remained stable at 3.1% from the previous quarter.

Chief Executive Sergio Rial, who also became the bank’s regional head for South America earlier this month, said he intends to boost the bank’s consumer finance business in the region at his new position. In Argentina, the bank will launch a consumer finance unit soon.

Spain’s Santander reported a net profit fall of 10 pct due to restructuring costs in Britain and Poland.

Original Story:Reuters | Carolina Mandl and Paula Laier
Photo: Santander site
Edition:Prime Yield


Unicaja and Liberbank call off merger deal

The process of merger of the two mid-sized Spanish banks Unicaja and Liberbank was cancelled after the two lenders said they could not reach a deal over the terms of a share swap.

Merger talks started in the summer of 2018 which, in the case an agreement had been reached, would have created Spain’s sixth-largest bank with around € 100 bn in assets and headquartered in the Andalusian city of Malaga

According to sources close to the matter, Unicaja wanted to take a 60% stake in the new entity, a proposal rejected by Liberbank, which was talking of a 55% instead, leaving itself with a minority stake of 45%.

Last month, in a bid to accelerate the operation, both the president of Unicaja, Manuel Azuagaand, and the chief executive officer of Libernank, Manuel Menéndez, had met the European Central Bank in Frankfurt to present all the details on the merger project.

Liberbank was created out of the merger of three regional savings banks in 2011, in the midst of Spain’s banking crisis.

Unicaja, based in the Andalusian city of Málaga, was created from the merger of five local savings banks in 1991.

Original Story:Investment Europe | Eugenia Jimenéz
Photo: Unicaja Banco site
Edition:Prime Yield

NBG to securitise €3 billion of NPL by 2022

Greece’s National Bank (NBG) plans to securitise €3 billion of non-performing mortgage loans (NPL) by 2022, its chief executive said, as the country’s lenders battle to deal with a legacy of bad debt.

Non-performing exposures (NPE) in the Greek banking sector totalled € 81.8 billion in December, which at 46.7% of their loan books is the euro zone’s highest.

The government and central bank have come up with more radical initiatives involving securitisations as the urgency for Greek banks to slash their soured loans rises.

Presenting the 2019-2022 strategy of the country’s second-largest lender, Chief Executive Paul Mylonas told a news conference that NBG also plans to sell 3 soured loans portfolios within 2019.

NBG said that it aims to reduce its non-performing loan portfolio to around 5% of total loans by 2022, from 41% at the end of 2018.

This target does not take into account the possible inclusion of its soured loans into two different schemes that Athens and the central bank have been working on, Mylonas said.

One plan to solve the problem is an asset protection scheme (APS) that was put together by the finance ministry and the country’s bank rescue fund HFSF, which holds stakes in Greek banks after taking part in three recapitalisations.

It involves special purpose vehicles (SPVs) that would issue bonds with a government guarantee for senior tranches, similar to a model known as GACS which has been tried in Italy.

A second plan proposed by the Bank of Greece is a scheme to have banks transfer NPEs to an SPV, aiming for a single-digit NPE ratio within two to three years.

Banks would transfer a portion of NPEs and deferred tax credits to an SPV that would fund the transfer with securitisations.

Under an EU-approved restructuring plan to divest non-core assets, NBG twice failed to sell a 75% stake in its wholly-owned insurance unit last year.

Mylonas recently said that NBG will start talking to potential investors for the sale of its insurance business soon. «We have an obligation to sell it by 2020,» he said. Asked if there was serious interest in the unit at the moment, Mylonas said “no”.

Original Story: Reuters | Lefteris Papadimas
Photo:Photo by Michalis Famelis / Wikimedia Commons
Edition:Prime Yield

Many Greeks still struggle to claw out from mountains of debt

According to many investors, Greece is in the midst of a supercharged recovery after being the euro debt crisis’s poster child and suffering under years of recession and austerity. But many Greeks are not buying the turnaround story…

By many measures Greece has turned a corner: Its stock benchmark has jumped 26% in 2019, set for its best first half in two decades, and trumping European shares’ 8.1%  gain. Last year, the country recorded the strongest economic growth since 2007. Greece’s 10-year bonds yield 3.3%, a fraction of the 37% the country had to pay at the height of the financial crisis.

For all that, many Greeks are still struggling to claw out from under mountains of debt after a decade during which the economy cratered, contracting by more than a quarter. The country’s unemployment rate of 18.5% is still among the highest in the European Union.

Since the start of the financial crisis in 2010, more than 87,500 small and medium-sized businesses have folded, while personal disposable income has shrunk by 14.5%, national statistics show. About 4 million taxpayers, or about 37% of the population, owe the state €104.4 billion in back payments—more than triple the arrears in 2010 of €32.5 billion.

Many Greeks are exhausted and are no longer putting up a fight to preserve their assets. With cases winding their way through Greek courts, which can take years, many people who were once determined to protect their properties, have seen the ceaseless pressure take its toll, said Dimitris Anastasopoulos, a lawyer who handles cases to stop banks from taking over primary residences.

Borrowers feel harassed, with the collection agencies calling them on a daily basis, Anastasopoulos said to Bloomberg.

Repossession of Greek homes, which was unheard of, is becoming more prevalent as banks themselves face pressure to slash bad loans. Bank non-performing exposures stand at €81.8 billion, or almost half of the country’s gross domestic product. They are the biggest drag on the Greek economy.

Faced with an election year, the government of Prime Minister Alexis Tsipras is seeking to help protect primary residences. At the end of March, parliament voted a primary-residence protection framework after a long-drawn dispute with the country’s creditors over the eligibility criteria.

Distressed home owners can apply for help, and if they meet the criteria, banks will restructure the loan with the state subsidizing a part of the installments and the borrower having to repay the rest without any new delays.

The new framework covers bad loans worth around €25 billion, based on data from the Hellenic Bank Association. Of that, the trade body expects about €10 billion—corresponding to around 160,000 debtors—to use the new legislation and eventually some €5 billion may be restructured and turned into performing loans.

If the estimates are right, the new plan will help both borrowers and lenders. Greece’s creditors and the European Central Bank have identified the reduction of bad debt as the country’s top priority.

Looks Ambitious

Greek banks are auctioning off repossessed residences to clean up their balance sheets but so far the main buyers of these properties have been the banks themselves—with few other bidders emerging. In 2018, some 10,000 properties, or about 85% of the ones put on the block, were bought by the banks. Lenders estimate they’ll buy back some 15,000 homes this year.

While the government is diving in to try and help, for some that aid is coming too late.

Original Story: Bloomberg | Antonis Galanopoulos and Sotiris Nikas 
Photo: Kolokotronis
Edition:Prime Yield

SAREB enters into negotiations with TPG for the sale of Tempore Properties

Spanish «bad bank» Sareb has entered into formal negotiations with the American fund TPG Real Estate Partners III, L.P. for the sale of part of its stake in the REIT Témpore Properties, which currently equates to 98.38% of the share capital.

This move forms part of the competitive sales process that Sareb launched a few months ago to dispose of part of its stake in the REIT it created at the end of 2017, and which listed on the Spanish Alternative Stock Exchange (MAB) in April 2018.

At YE 2018, Témpore Properties posted a net profit/(loss) that exceeded initial estimates – booking a loss of EUR 384,394 euros, 13% less than forecast in the Information Document for Listings on the Spanish Alternative Stock Exchange – MAB (DIIM). The REIT estimates that the company will start to turn a profit in 2020.

At 31 December 2018, Témpore managed a portfolio of 2,249 residential rental properties across various provinces of Spain, had obtained a revenue of €7.3 million and reduced its portfolio arrears rate from 5.5% at YE 2017, to 4% at YE 2018.

Original Story: Cinco Días | PR 
Photo: Linked In SAREB
Edition & Translation:Prime Yield

CTT completes 321 Crédito acquisition for €100 million

Banco CTT completed the acquisition of 321 Crédito from Firmus Investimentos, for a price of €100 million. The deal was agreed in July 2018.

321 Crédito is a specialised consumer credit business focusing on the provision of credit for the purchase of used cars by individuals rough a network of circa 1,200 points of sale, and «demonstrated a strong growth in 2018 with a loan production of €177 million (+33% vs 2017), which represents a market share of circa 10% in its segment, finishing the year with a net loan book of € 360 million», informs Banco CTT in a note. Its banking product and net profit reached € 21.4 million (+31% vs 2017) and €8.1 million (+3% vs 2017), respectively.

In a note sent to capital markets regulator, Banco CTT explains that «the acquisition of 321 Crédito is part of Banco CTT’s development strategy, introducing a new line off business, creating funding synergies and optimising Banco CTT’s consolidated Balance Sheet through a significant increase in the loan book, while improving its loan-to-deposits ratio from 30% to over 70%».

Original Story: Observador |  António Cotrim / Lusa 
Photo: Banco CTT site
Edition & Translation: Prime Yield


FinanZero secures $11 Million trough Series B Funding Round

FinanZero, a marketplace for consumer loans in Brazil, had recently announced it secured $11 million through its Series B funding round. Participants of the round were Atlant Fonder, Dunross & Co, and Vostok Emerging Finance.

The company describes itself as an independent broker for loans that negotiate with the customer’s loan application with several banks and credit institutions, to find the loan with the best interest rate and terms for the consumer. The lender also handles the lending process from start to finish. FinanZero has handled more than 600,000 loan applications and over the next 12 months, the expectation is to grow the volume of intermediated loans 10 times.

«FinanZero has simplified the way to apply for all type of consumer loan products in Brazil. We are a cost-free marketplace that allows you to compare loans online and choose the option that fits your needs with the lowest interest rate and best terms

Olle Widén, CEO of FinanZero, commented: «FinanZero will improve its technical platform and invest heavily in marketing to increase the visibility of the brand. We have already received more than 3 million loan applications in three years of operation in the Brazilian market. Today, the company has a growth of 50% per quarter, which adds up to more than 1 million visitors on our site per month»

Speaking about the investment, David Nangle, CEO of Vostok Emerging Finance, went onto add: «Brazil remains our favored fintech market globally, and through FinanZero we have one of the best ways to play its extremely attractive consumer finance market. With a strong team, partnerships and growing traction, we are more than happy to continue to support team FinanZero on this exciting journey».

Original Story: Crowdfunding insider |Samantha Hurst
Photo: FinanZero Site
Edition:Prime Yield






Distressed funds gobble up €20 billion in NPL

Buried under a mountain of non-performing loans (NPL), Greece’s four big banks have been able to sell off some €20 billion euros to distress funds to hound debtors, many unable to pay because of repeated pay cuts, tax hikes, slashed pensions and worker firings.

The banks had already gotten €50 billion in a bailout from €326 billion successive governments got in three rescue packages from international lenders and were allowed to start foreclosing on homes.

Greek banks and bad loan servicers together hold some €100 billion worth of NPL and aim to get rid of €30 billion in the next three years. And the funds are expected to buy another €33 billion more.

So far, 17 distress funds have been licensed for operation in Greece, and another five are expected to open soon, the business newspaper Naftemporiki said.

The funds now employ about 2,000 people, many tasked with repeatedly calling people demanding they pay what they owe while the government is holding back payments to people owed money by the state to build up a primary surplus by not paying bills.

Original Story:The Herald Times |  TNH Staff
Photo: Remos
Edition:Prime Yield