NPL&REO News

NPL stock sank to €25 billion boosted by portfolio sales

Since its June 2016 historic peak, of €50 billion, the non-performing loans (NPL) stock fell by almost 50%. This is due not only to write-offs but also to the sales of toxic assets portfolios.

The shrinking trend towards the NPL reduction continues within the Portuguese Banks. And much of it on the “free ride” from Novo Banco, which accelerated the sales of these toxic assets over the last year.

By the end of 2018, the total volume of NPL reached €25,8 billion, showing a 30% reduction from the €37 billion recorded just one year before, according to the latest data released by Portugal’s Central Bank (BdP).

In just one year the NPL stock retreated €11 billion, helping the NPL ratio to keep its downward trend, reaching 9.4% in the end of 2018, Bdp figures show.

Original Story: Jornal de Negócios | Rita Atalaia
Photo:  FreeImages.com/Armindo Caetano
Edition & Translation:Prime Yield

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