KKR, Tilden Park and Waterfall compete for CaixaBank’s bad credit

CaixaBank put for sale the Project MoMa, a portfolio of 5,700 problematic loans with a nominal value of 576 million euros. KKR, Tilden Park and Waterfall are the finalists of the bidding process launched by the bank.

Being advised by KPMG in the sales process, CaixaBank expects to close the deal before the end of the year.

The Project MoMa comprises 5,700 loans from 3,700 creditors who initially requested 576 million euros. The unpaid amount stands at 495 million and the portfolio is secured by 4,500 properties located mainly in Madrid, Barcelona and Seville. These properties are valued at 775 million, above the value of the loans.

The three finalists are the most active firms in this business after the outbreak of the pandemic. KKR manages all types of non-performing loans and real estate for third parties from the Hipoges platform. Tilden Park, for its part, last year closed the purchase of loans from Banco Sabadell. Finally, Waterfall, founded by former CaixaBank executives, bought mortgage loans from the Catalan bank at the end of 2019. The operation covers some higher quality assets – properties worth more than one million euros – in locations such as Mallorca, Boadilla del Monte, Pozuelo de Alarcón, the Costa Brava, Xàtiva and Barcelona.

Original Story: EJE Prime | News 
Photo: Caixa Bank website
Translation & Edition: Prime Yield

Piraeus Bank in talks with Bain Capital to sell leasing portfolio

Piraeus Bank, one of Greece’s four largest lenders, is in talks with Bain Capital to sell a portfolio of leasing contracts as part of efforts to clear non-performing loans (NPL) from its balance sheet, bankers close to the talks told Reuters.

Greek banks have been making headway in their bid to sell, write off or restructure billions of euros of bad debt accumulated during the last financial crisis.

Recently, ratings agency Moody’s upgraded the four largest Greek banks and gave them a positive outlook, saying the move was primarily driven by their improving asset quality and good prospects for further boosting their recurring profitability.

Piraeus Bank’s portfolio of leasing contracts, dubbed project Sunshine, has a gross book value of about 530 million euros.

Bain Capital is a multi-asset alternative investment firm.

In June last year Bain Capital Credit, a unit of the group, bought 1.6 billion euros of corporate NPL from Greece’s National Bank.

In 2018, Piraeus Bank agreed to sell a 1.45 billion euro portfolio of secured, non-performing business loans to Bain Capital Credit as part of moves to reduce its bad debts.

Original story: Reuters | Staff 
Photo: Piraeus website
Edition: Prime Yield

Brazil: 56.4% of defaulting debts are paid within 60 days

Data from Serasa Experian, relative to April 2021, showed that 56.4% of defaulted consumer debts in Brazil are paid within 60 days, mainly in the Utilities segment (67.4%) that covers expenses like water and energy. Next, is the Banks and Credit Cards sector, with 62.6% of related debts settled in the period.

These figures are from the Credit Recovery Indicator, which shows the percentage of debts paid within 60 days after being in default.

The economist at Serasa Experian Luiz Rabi evaluates that the fact that the percentages of debt recovery are lower in the last two months – March/21 (56%) and Apr/21 (56.4%) -, compared to the beginning of the year (58.8% in January and 59.3% in February), may be related to the acceleration of inflation in the period, which ends up eroding the purchasing power of the population and making it difficult to pay off debts in arrears.

He suggests that creditors provide discounts and payment facilities to their customers in debt, in order to be able to increase their recovery percentages at this time of higher-than-expected inflation.This indicator also suggests a pattern: more recent debts tend to be recovered more, while those with a longer history have the lowest percentage of discharge. Considering commitments that were 30 days overdue, 74.3% were settled; from 30 to 60 days, 42.4%; from 60 to 90 days; 31.0%; from 90 to 180 days; 28.3% between 180 days and the first year and 16.3% between one and more years

Original Story: Agência Brasil | Camila Boehm 
Photo: Photo by Magda S from
Edition & Translation: Prime Yield

CGD and Novo Banco choose the buyers for their NPL portfolios’ by mid October

Portugal’s Novo Banco (NB) and Caixa Geral de Depósitos (CGD) have two portfolios of non-performing loans (NPLs) for sale, called Harvey and Mercury, respectively. Tenders for the purchase of the respective portfolios are in the final stages and there are several interested parties in the race, and buyers/winners should be chosen on 15 October, 2021. 

According to the newspaper Jornal Económico, which quotes a market source, there are three candidates in the final stage of the tender to buy the NPL Harvey portfolio and four in the final race for Mercury. 

For each of the operations four interested parties have been chosen to move on to the negotiation phase, but in the case of NB one of the candidates, Bank of America Merrill Lynch, will not move forward, the paper said, adding that the three finalists for the Harvey project are the DDM Group, Deva Capital and DK Partners.

At stake are the debts of 20 single names – eight corporate and 12 real estate-related -, with the Project Harvey project encompassing NPL with a gross value of 640 million euros. 

As for the Mercury portfolio, one of the four funds interested in buying is, according to Jornal Económico, the North American Cerberus. This is a granular portfolio and not of large debtors, with CGD’s portfolio being of collateralised (secured) NPL. 

The Mercury portfolio comprises 100 million euros of residential NPL and a small pool of REOs [real estate owned] in the amount of 10 million euros.

Original story: Jornal Económico | Maria Teixeira Alves 
Photo: CGD website
Translation & Edition: Prime Yield

GREECE Greece’s NPL ratio to fall to single digit next year

The Greek banks’ non-performing loans (NPL) stock should fall to single-digit rate in 2022, Finance Minister Christos Staikouras said.

The correct, serious and methodical work done in the last two years, under the coordination of the former deputy Finance Minister George Zavvos, continues,” the Finance Minister said in an announcement.

“According to Bank of Greece data, Greek banks’ NPLs totalled 29.4 billion euros in June 2021, 20.3% of total loans, recording an impressive decline during the last two years”.

The stock of NPLs has fallen by around 46 billion euros since New Democracy took over the government of the country (it was 75.3 billion euros in June 2019) and around 78 billion down from the peak in March 2016 (107.2 billion euros).

This significant reduction is the result of an integrated and coherent strategy followed by the finance ministry through the successful programme ‘Hercules’ which has been expanded, and specific interventions implemented to contain the creation of a new wave of non-performing loans because of the pandemic crisis.”

Original Story: : Greek City Times |Athens Bureau
Photo: Photo by Jonte Remos in
Edition: Prime Yield

BRAZIL BTG wins the bidding and buys Banco Econômico credits for R$ 937,7 million

The FIDC NP Alternative Assets 1 fund, managed by BTG, won the auction held by BNDES and the FGC (Credit Guarantee Fund) to buy Banco Econômico’s credits that were held by these institutions since 1995, when the Central Bank intervened in the bank. 

Three participants had registered to take part in the auction: NPL Brasil, FIDC NP Atlântico and Alternative Asset 1, but only BTG’s fund made a bid, winning by the minimum amount of R$937.750 million.

When contacted, BTG informed that “the operation is part of BTG Pactual’s proprietary strategy of buying portfolios of non-performing loans”.

According to the statement on the auction, BNDES and FGC aimed to recover credits that have been in their portfolios for 25 years and with no prospect of being received before 2028. As they are adjusted by the Reference Rate (TR), zeroed since September 2017, have no correction since August 2017.

Also according to the statement, the credits owed by Econômico amount to R$ 14.88 billion, of which R$ 12.02 billion are related to creditors entitled to receive before the BNDES and the FGC. The credits of the institutions are unsecured (without preference in case of bankruptcy or composition with creditors, being paid after all other creditors), and therefore have no preference in the order of payment.

At the time of the Econômico intervention, the bank had R$ 401 million in debts relating to transfers from the BNDES System and debts with the now extinct Deposit and Real Estate Letter Guarantee Fund (FGDLI), which was succeeded by the FGC when it was created. Subsequently, these credits were incorporated into the institution’s liquidation mass.

Of the credits granted in the auction, without co-obligation, 28.71% are from BNDES itself and 23.32% from the Special Agency for Industrial Financing (Finame). The other 47.97% are from the FGC.

Original Story: Valor Investe | Álvaro Campos 
Photo: BTG Pactual website
Edition & Translation: Prime Yield

Bank deposits rise in July to almost €172 billion

The bank deposits of individuals and companies stood at €171.7 billion at the end of July, a €1.8 billion increase from June, according to Bank of Greece data.

Corporate deposits increased by over a billion, including €477 million from insurance companies.

Overall, corporate liquidity stood at €35.3 billion at the end of July, €11.4 billion more than in March 2020, when the first pandemic lockdown hit the economy.

Insurance companies’ liquidity stood at €5.1 billion.

Term deposits declined by €976 million month-on-month to €31.6 billion, as lower interest rates have been dissuading depositors from locking in their money. 

Original StoryEkathimerini |News
Photo: Photo by Jonte Remos from FreeImages
Edition: Prime Yield

Spanish banks NPL rate at its lowest since 2009

Spanish banks’ non-performing loan (NPL) rate have retreated to its lowest since 2009.

According to the latest statistical series published by the Bank of Spain, in June the NPL from NFCs and households in the sheets of the Spanish banking institutions fell to 4.4%, compared with 4.55% in May, when it had risen slightly.

In fact, this 4.4% ratio is the lowest level recorded since March 2009, when it stood at 4.26%. It then began to climb month after month, reaching an all-time high of 13.62% in December 2013. 

Doubtful loans also fell by 1.76% to 54,218 million euros, the lowest volume in recent years.

Moreover, according to provisional data from the Bank of Spain, the volume of total credit increased by 1.6% in June to 1.232 trillion euros, after a slowdown in loans granted in the previous two months.

Original StoryCinco Dias | News
Photo: Photo by Victor Iglesias from FreeImages
Edition & Translation: Prime Yield

NPL rate steady at 2.3% in July

With an increase of 6.1% compared to the same month last year, the stock of credit operations reached R$ 4.266 trillion in July. The value is also 1.2% higher than the one registered in June this year. The figures numbers are from the Credit Monetary Note, released this Friday (27) by the Central Bank (BC). The concession of credit was R$ 418.4 billion, 16.3% more than in July last year.

For individuals, the balance of credit operations grew 8.6% compared to July 2020 and 1.5% compared to June this year. For companies, the increase was 2.9% and 0.8%, in the yearly and monthly comparison, respectively.

At 2.3% of the total balance of operations, defaults remained stable in relation to the month immediately before, but advanced 0.2 percentage points in relation to July 2020.

In free resources, the credit stock reached R$ 2.495 trillion in July, a growth of 7.4% compared to July last year. Still in this segment, credit granting totaled R$ 356.2 billion in the period, up 15.2%.

Credit with directed resources, which is that subsidized by governments, totaled R$ 1.770 trillion in July. The value is 4.3% greater than the one registered in July of last year. The concession of credit totaled R$ 62.2 billion, an increase of 25.6%.

Original Story: CNN Brasil | Anna Russi
Photo: Photo by Bruno Neves from FreeImages
Edition & Translation: Prime Yield

Portugal’s 5 larger banks with aggregated profits of €708 billion

The five main banks based in Portugal recorded, in the first half of the year, an aggregate profit of €708.4 million.

Together, Caixa Geral de Depósitos (CGD), Novo Banco, BCP, BPI and Santander Totta recorded aggregate profits of €708.4 million.

Novo Banco announced profits of €137.7 million in the first six months of the year, an improvement compared to the losses recorded since its foundation, in 2014.

Caixa Geral de Depósitos (CGD) recorded the highest profit among the five largest banks, with €294 million in the first half, after €249 million in the same period last year.

The second largest contribution came from BPI, with €183 million in profit, which compares with the 43 obtained in the first six months of 2020.

In fourth place, after Novo Banco’s profits, which place it in third place in the table of positive net results, was Santander Totta, with a profit of €81.4 million in the first half, compared with €172.9 million in the same period of 2020.

Finally, BCP profited €12.3 million, greatly impacted by losses of €112.7 million in the Polish operation, when it had profited €76 million in the first half of 2020.

Original Story: The Portugal News | TPL/ Lusa 
Photo: CGD website
Edition: Prime Yield

Alpha Bank to get rid of over €8 billion in NPL

Alpha Bank wants to get rid of over €8 billion in bad loans through securitization and other operations in 2022, aiming to reduce its bad loans ratio into the single digits.

In its Cyprus subsidiary, €2.2 billion in bad loans have been transferred to special purpose vehicles.

Cyprus and Romania will remain Alpha’s sole foreign subsidiaries.

Original Story: Ekathimerini | News
Photo: Alpha Bank website
Edition: Prime Yield

Servihabitat to manage €1.2 billion portfolio from Kutxabank

Servihabitat, the subsidiary of Lone Star (80%) and Caixa Bank (20%), won the contract to manage Kutxabank’s real estate asset portfolio, valued at €1.2 billion.

The bank’s portfolio is made up of 10,000 assets in Spain, concentrated in Andalusia and the Basque Country. Of this, 50% is residential and commercial, and the other half is land.

Iheb Nafaa, CEO of Servihabitat, explained: “Our commitment is to become a servicer with the guarantee of offering a quality service with a differential value that sets us apart from many other competitors. As a multi-client servicer with exclusive management capacity for our clients, and with nationwide territorial capillarity, we have been strategically reinforcing our structure to continue to be a benchmark in the sector.”

Neinor has held the contract until May 2022 for seven years but was eliminated in the process at the beginning of July. From that month, Servihabitat will take over for the next five years.

In 2020, Servihabitat closed 12.2 % more deals than in 2019. By 2021, it has focused its strategic plan on the management of land, mobilising land markets that will enable it to expand the supply of housing.

Original Story: El Confidencial|Ruth Ugalde
Photo: Photo by Philipp K for FreeImages
Edition: Prime Yield