NPL&REO News

Spanish bank bad debts hit 17-year low

28 November, 2025

According to the historical series of doubtful loans published monthly by the Bank of Spain, Spanish bank non-performing loans (NPL) fell to 2.87% in September, their lowest level since September 2008, when they stood at 2.63%.

Compared to August, the decline in September is six basis points, while compared to September 2024, the drop is 56 basis points.

In terms of credit volume, the stock of NPL was €34.697 billion, representing reductions of €682 million and €5.757 billion compared to August and September 2024 respectively.

Meanwhile, the total volume of loans granted was €1.21 trillion, representing an increase of €2.688 billion compared to August and €31.003 billion compared to September 2024.

By type of institution, the ratio of NPL for banks, savings banks, and cooperatives was 2.78% in September, which is six basis points lower than the previous month and 59 basis points lower than in the same period in 2024.

In absolute terms, these types of institutions recorded a €608 million decrease in their NPL portfolio, bringing it to €32.207 billion. Compared to September 2024, this is approximately €5.2 billion lower.

Credit institutions also saw their NPL ratio fall to 5.31%, compared to 5.65% in August, while the year-on-year rate fell by more than one percentage point.

The volume of NPL at these institutions was €2.311 billion at the end of September, which is €72 million less than in August. Compared to the same month last year, the balance of NPL fell by around €550 million.

According to data from the Bank of Spain, provisions for all credit institutions totalled €27.445 billion at the end of September, which is an increase of €72 million compared to August. However, the year-on-year variation showed a reduction of €1.795 billion.

Original Story: Idealista News | Author: Europa Press / Ana P. Larcos
Edition and translation: Prime Yield

Greek NPLs dropped further in the first half of 2025

26 November, 2025

Greek banks showed further progress in their effort to reduce nonperforming loans in the first half of 2025, according to the latest data released by the European Central Bank.

However, the percentage of NPLs in Greece remains higher compared to the European average. At the same time, the Greek banks seem to have a fairly strong capital base in the eurozone, while they are lagging behind the competition in lending.

The percentage of bad loans fell to 2.73% in the second quarter of 2025 from 2.90% in the first quarter of the year. Moreover, Greek banks are more efficient than the European average based on return on equity.

The index of Greek banks stood at 13.2% at the end of the second quarter of 2025 compared to 10.11% in European banks.

At the same time, the Greek systemic banks (National, Piraeus, Eurobank and Alpha) which are on the SSM radar of the ECB’s supervisory arm appear to be among the most adequately capitalized in the eurozone as the relative capital adequacy ratio (CET1) increased to 16.09% from 15.88% at the end of the first quarter of 2025.

For European banks the same index stood at 16.12% from 16%. In addition, Greek banks appear to have granted far fewer loans compared to European banks. The loan-to-deposit ratio of Greek banks is only at 62.37% against 102.16% in the eurozone

Original Story: Ekathimerini
Edition: Prime Yield

Number of people in default has reached a historic high in Brazil

19 November, 2025

The number of people with bad credit has reached a record high, revealing the challenges consumers face in balancing their budgets.

Brazil has reached a historic milestone in terms of population indebtedness: there is currently almost R$500 billion in active debt distributed among 79 million consumers who have defaulted on payments. The data comes from Serasa’s Default Map, which shows nine consecutive months of increases, with 318,000 new defaulters added in September alone.

According to the report, the country has accumulated 313 million active debts, with an average value of R$6,274.82 per person. Most of these debts are related to banks and credit cards (27%), followed by basic bills such as electricity and water (21%), and non-bank financial companies (19.9%).

São Paulo continues to have the highest default rates, with 18.6 million people in default and debts totalling R$133.7 billion. In September, 55,400 new consumers joined the list of debtors, representing a 0.3% increase compared to August. The average debt per person in the state is R$7,175.46, with the main debts relating to basic bills (28.5%), banks and credit cards (27.3%), and financial companies (20.1%).

Original Story: Consumidor Moderno | Author: Bianca Alvarenga
Edition and translation: Prime Yield

Pollen Street Capital acquires Hipoges through Finsolutia

18 November, 2025

The transaction combines more than €55 billion in assets under management and a team of 2,000 professionals with a presence in four countries.

Pollen Street Capital has completed the acquisition of Hipoges through Finsolutia, with the aim of creating a joint real estate and credit management services platform operating in Spain, Portugal, Italy and Greece. According to the information provided, the new group will have more than 2,000 professionals and approximately €55 billion in assets under management.

Hipoges, founded in 2008, operates in the four countries where the new platform will be structured and manages more than €50 billion in assets, with a team of over 1,800 employees. Its activity is aimed at financial institutions and international investors, with services related to different types of credit and real estate assets.

Finsolutia, created in 2007, will contribute its technological capabilities and experience in loan and real estate asset management. The company has around 360 professionals and collaborates with various institutional investors in Iberia and other expanding geographies.

According to the companies, the transaction will allow them to integrate resources and expand the geographical coverage of the new group. The same sources indicate that the combination will facilitate the joint use of common analysis systems and operational processes, with the aim of managing different types of operations in the southern European markets.

Statements issued by Hipoges, Pollen Street Capital and Finsolutia emphasise the fit between the two structures and the effect the transaction will have on the size and organisation of the resulting group, although the essential information focuses on the expansion of scale and operational integration resulting from the transaction.

Original Story: Iberian Property | Author: Alexandre Lima
Edition: Prime Yield

Greece’s NPL stock fell by 2.4% in the first half of the year

18 November, 2025

The quality of loan portfolios at Greece’s credit institutions continued to improve during the first half of the year, with the stock of nonperforming loans (NPL) at the country’s banks falling by 2.4% from December 2024.

At the end of June 2025, the NPL stock stood at EUR 5.8 billion on a solo basis, down by 2.4% from December 2024, primarily due to loan recoveries, sales, and write-offs.

The Greek banking NPL ratio was 3.6% at the end of the first half of the year, which is 0.2 percentage points lower than the 3.8% recorded at the end of 2024, as credit growth was accompanied by a decline in NPLs. This is the lowest NPL ratio since Greece joined the euro area and is largely in line with the average for significant institutions in the Banking Union (June 2025: 2.2%).

Additionally, the NPL ratio of less significant institutions dropped to 5.9% in June 2025.

Original Story: NPL Confidential | Author: Phil Karametos
Edition: Prime Yield

CGD reduces NPE exposure by €57 million in the first nine months of 2025

13 November, 2025

Caixa Geral de Depósitos (CGD) has just released its consolidated results for the third quarter, revealing a reduction in exposure to non-performing assets (NPE) of €57 million in that period. These assets include non-performing loans (NPL), properties held for sale, and restructuring funds.

In the first nine months of 2025, CGD maintained its reduction in exposure to non-core assets, which decreased by 13% compared to the same period last year. Properties held for sale recorded a reduction of more than €50 million over the past year, standing at €199 million in September 2025. Restructuring funds totalled €107 million, a decrease of €11 million despite the revaluation of some assets in the quarter. Finally, investment properties are valued at only €9 million,” the statement said.

At the end of September, the Portuguese public bank’s NPL ratio was 1.55%. Although this is still below the national and European averages, it represents a slight increase of 0.07 percentage points compared to 1.48% in September 2024.

Original Story: Caixa Geral de Depósitos
Edition and translation: Prime Yield

Cajamar reduces bad debt by 5.5% in last year

12 November, 2025

By the end of September, the Cajamar Group had €769.8 million of defaulted or doubtful loans on its balance sheet, which was 5.5% less than a year earlier. This gave it one of the lowest NPL ratios in Spain at 1.76%.

Between January and September 2025, the Cajamar group posted a net profit of €263 million, representing a 6.9% year-on-year increase, according to the bank’s quarterly results.

The bank’s total revenue (gross margin) in the first nine months of the year was €1.239 billion, which is 3.8% higher than in the same period in 2024.

On 30 September, the bank’s balance sheet assets were worth €63,364.44 million, an increase of 3.6% year-on-year. Of this amount, loans and advances to customers increased by 10.2% year-on-year to €39,698.9 million.

Of the total loan portfolio, almost €770 million corresponded to non-performing loans — a decrease of 5.5% year-on-year — contributing to an improvement in the NPL ratio of 30 basis points to 1.76%.

Original Story: Forbes
Editing and translation: Prime Yield

(Photo: Cajamar)

Banco Montepio reduces NPL by €55 million

7 November, 2025

In the first nine months of 2025, Banco Montepio reduced the volume of non-performing loans on its balance sheet by €55 million. The bank closed the third quarter with an NPE ratio of 2.1%.

The bank has released its third quarter results this week, showing that consolidated net income for the first nine months of 2025 fell by 10.1% year-on-year to €86.4 million, compared to €96.1 million a year earlier.

On 30 September 2025, gross customer loans totalled €12,726 million, showing an increase in performing loans of €564 million (4.7%). Non-performing loans remained in line with the end of last year. Gross customer loans increased by 6.3% (€757 million) compared to the same period last year, supported by an increase in performing loans of €811 million (7%), despite a reduction in non-performing loans of €55 million (17.3%).

Following the year-on-year reduction in non-performing exposures (NPEs) of €55 million (-17.3%), the NPE ratio improved by 0.5 percentage points, falling from 2.6% at the end of September 2024 to 2.1%.

In terms of risk, the bank reported a 32% year-on-year reduction in its exposure to real estate risk, falling by €67 million to a total of €145 million. This represents only 0.7% of the bank’s net assets (compared to 1.1% at the end of September 2024) and 9.2% of own funds (compared to 14.1% on 30 September 2024).

Source: Banco Montepio
Edition and translation: Prime Yield

Caixabank has already ‘cleaned up’ €889 million in NPLs by September

6 November, 2025

By the end of September, CaixaBank had cleaned up €889 million of bad debt from its balance sheet, reducing its NPL ratio to 2.3%.

CaixaBank’s net result for the first nine months of 2025 increased by 3.5% year-on-year to reach €4.397 billion. The bank explains in a statement sent to the Comisión Nacional del Mercado de Valores (CNMV) that this result is driven by a significant increase in commercial activity in a context of moderate interest rates throughout the first three quarters of the financial year.

The volume of new financing granted by the bank during the review period grew by 20% compared to the previous year, reaching €61.255 billion. This expansion was accompanied by increases in key areas: mortgages grew by 39%, corporate lending advanced by 16%, and consumer credit rose by 12%.

In terms of risk management, the bank reported that the NPL ratio fell to 2.3%, supported by a €889 million reduction in the volume of non-performing loans (NPL) in 2025. Consequently, the coverage ratio for NPL improved to 72%, which is three percentage points higher than at the end of 2024. The cost of risk remained moderate, standing at 0.24% over the last twelve months.

Original Story: Infobae
Edition and translation: Prime Yield