NPL&REO News

New roadmap for doValue: fewer NPLs and greater use of AI

19 March, 2026

There is a tide slowly receding in the world of credit: that of non-performing loans (NPLs). And it risks leaving some vessels stranded. The more forward-thinking credit managers have already begun to reposition themselves.

“Fewer NPLs, more value-added services and investment in technology, especially artificial intelligence,” doValue’s CEO, Manuela Franchi, summarised to Corriere.

Bank balance sheets explain the phenomenon well. In the two-year period 2022–June 2025, the stock of impaired loans in Europe stood at €273 billion, but with divergent dynamics: the increase was driven by Germany with €14.4 billion and France with €11.8 billion, while flows declined in Spain and, above all, in Italy. Here, banking bad debts have fallen from €200 billion in 2015–2016 to €28.3 billion in 2025.

“We manage impaired loans; we do not buy them,” Franchi emphasised, distinguishing doValue’s model from that of other operators more exposed to refinancing costs.

The 2024–2026 industrial plan is progressing as expected: in 2025, profit rose to €25.3 million from €6.7 million in 2024, while gross revenues, at €580 million, increased by 21%. These results were also supported by the €2.7 billion in NPEs managed on behalf of BPER.

The group’s profile is also changing thanks to acquisitions. After Gardant, incorporated in 2024 and focused on UTPs (unlikely to pay), the German company Coeo is now arriving, which will strengthen the group’s international presence. Gardant has already generated €5 million in synergies, expected to rise to €10 million this year and €15 million in 2027.

With Coeo, the group will enter new markets – Germany, Scandinavia, the United Kingdom, Benelux, Austria and Switzerland – adding to Italy, Greece, Spain and Cyprus. The strategy of growth through acquisitions is not new: in the past, doValue acquired Altamira in Spain (2019) and Eurobank FPS in Greece (2020). New deals are possible after 2027, once the current structure has been consolidated.

At the same time, the group has invested heavily in technology to reduce costs and expand its portfolio. It is now increasingly focusing on UTPs and performing loans, as well as services for companies.

Germany will play an important role. Coeo specialises in small-ticket loans linked to digital markets, energy and telecommunications, and has developed its own artificial intelligence company for debt collection. After integration, the share of NPLs in doValue’s core business will fall to 45%, marking a shift away from an overly concentrated model.

Meanwhile, traditional activity continues to grow: the group has secured €8 billion in new assets and, over two years, has exceeded €24 billion, reaching the targets of the industrial plan a year ahead of schedule.

Artificial intelligence will mainly be used to improve recovery forecasts and automate processes, increasing margins towards 40%. The financial structure also remains under control: leverage fell from 2.4 in 2024 to 2.0 in 2025 and, despite the acquisition of Coeo for €350 million, it should stand at 2.2 this year before dropping below the level of 2 in 2027.

“Our traditional business remains central,” Franchi concluded, “but we are opening up new segments with higher growth rates, particularly in small-ticket loans.”

Original Story: Market Screener | Author: Alliance News
Edition and translation: Prime Yield

Prolonged Middle East conflict could pressure Greek banks, Moody’s says

19 March, 2026

Ratings agency warns extended disruption could weigh on growth, raise refinancing risks and trigger a new wave of non-performing loans.

Markets may be pricing in a short-lived Middle East conflict, but a prolonged war – a scenario that cannot be ruled out – would put significant pressure on Greek banks’ business plans and financial performance, potentially triggering a new wave of non-performing loans, Moody’s told Kathimerini.

According to the ratings agency, Greek banks are unlikely to face an immediate deterioration in solvency from the direct effects of the conflict. However, secondary risks would rise if the disruption proves prolonged, as lenders would be exposed to weaker economic activity, reduced investor confidence and possible liquidity pressures.

“If the conflict is short-lived, there will be no serious impact on Greek banks,” Nontas Nikolaidis, Vice President and Senior Analyst for Bank Credit Ratings at Moody’s, told Kathimerini.

Fitch has a similar view, estimating that a brief conflict would not alter its assessment of the operating environment for Greek banks, given their limited exposure to the region and their capacity to absorb short-term shocks.

However, the outlook would change significantly in the event of a prolonged war. According to Nikolaidis, “a prolonged conflict in the Middle East is likely to have secondary effects on the Greek economy.”

These effects could stem from several factors, he said. “First, higher energy prices and inflationary pressures resulting from disruptions to shipping through the Strait of Hormuz. Second, a deepening of global risk aversion, which could broaden pressure on credit spreads in high-yield markets. Third, increased refinancing risks for issuers with short-term maturities, particularly in energy-intensive and cyclical sectors already facing high input costs. And fourth, added complications for the path of interest rates and central bank decision-making.”

“These developments are likely to negatively affect Greek banks’ growth plans and financial performance and could potentially lead to a new wave of non-performing exposures,” he added.

Original Story: Ekathimerini | Author: Eleftheria Kourtali
Edition: Prime Yield

Strong 2025 results position Portuguese banks well amid rising uncertainty in 2026

19 March, 2026

Portuguese banks reported solid results in the 2025 fiscal year and enter 2026 with robust capital and risk buffers, despite a more uncertain macroeconomic and geopolitical environment, according to rating agency DBRS Morningstar.

“Portuguese banks delivered resilient 2025 results, supported by strong profitability, improved asset quality, and robust capital buffers, despite margin pressures. As they enter 2026, banks are well positioned to face a more uncertain macroeconomic and geopolitical backdrop, though risks to growth and credit quality remain,” DBRS noted.

Asset quality strengthened further, with lower non-performing loan ratios and high coverage levels, while capitalisation remained solid despite modest CET1 declines driven by risk-weighted asset inflation and capital distributions.

Profitability in 2025 was underpinned by significant provision releases, strong fee income, and growth in other revenues, which helped offset a general decline in net interest income.

“Portuguese banks start 2026 with solid profitability, strong asset quality, and robust capital reserves, positioning them well to absorb a more uncertain macro and geopolitical environment,” said María Jesús Parra, CFA, Vice President of European Financial Institutions Ratings. “While some margin pressure may persist, we expect banks to remain resilient, supported by solid fundamentals and disciplined risk management.”

Original Story: Jornal Económico | Author: Maria Teixeira Alves
Edition and translation: Prime Yield

Half of Portuguese consumers fall into debt due to rising cost of living

17 March, 2026

A study by Intrum also shows that unexpected expenses, stagnant incomes and greater reliance on credit cards are putting pressure on household budgets, with the percentage of people paying their bills on time falling compared with 2024.

Half of Portuguese consumers cited the rising cost of living as the main reason for falling into debt, according to a study by Intrum, which also highlighted the use of credit cards over the past six months to pay bills or other expenses.

In a statement, the organisation stressed that the “increase in the cost of living continues to be the main factor behind the financial difficulties of Portuguese households”. The study found that 50% of consumers in Portugal “who face difficulties in paying their debts point to rising prices of essential goods, such as food and energy, as the main reason for this situation”.

According to the Intrum study, which operates in the credit management services sector in Europe, “43% of Portuguese people fall into debt due to unexpected expenses, such as family emergencies or medical costs”, while 34% point to the stagnation of their “wages or income, as they have not kept pace with the rising cost of living”.

Even so, 77% of consumers in Portugal say they are “able to pay all their bills on time, a figure slightly above the European average”. However, this result “shows a significant deterioration compared with 2024, when 85% of consumers were able to do so”, signalling “increasing financial pressure on household budgets”.

On the other hand, a regional analysis in the study shows that although the rising cost of living is a cross-cutting factor, “the specific reasons for financial difficulties vary between regions of the country”.

In the Autonomous Regions of Madeira and the Azores, 71% of consumers indicate “the rising cost of living as the main reason for difficulties in paying debts”. In Alentejo, meanwhile, “82% of consumers facing financial difficulties point to unexpected expenses as one of the main reasons for indebtedness, highlighting greater exposure to unforeseen financial events”.

The Lisbon Metropolitan Area is where consumers most frequently complain that “their income has not kept pace with the rising cost of living (56%), leading them into debt”.

The Intrum study, the ECPR — European Consumer Payment Report, also identifies differences between generations regarding the reasons for indebtedness.

“Among Generation X, 74% point to the cost of living as the main reason for difficulties in paying debts, making it the age group most affected by this factor. Half of this generation (50%) also mention the impact of incomes that have not kept pace with rising prices.” Among Millennials, however, 43% cite unexpected expenses.

“Generation Z shows greater vulnerability to unforeseen financial events: 59% point to unexpected costs as the main reason for difficulties in paying debts, reflecting a smaller financial cushion to deal with unexpected expenses,” the statement reads.

When asked about the reasons for not paying bills on time, “40% of Portuguese consumers surveyed say they do not have enough money available at the time the payment is due”.

According to the study, “46% of consumers in Portugal say they have used a credit card in the past six months to pay bills or other expenses”, Intrum also noted, while 19% of consumers said they had borrowed money.

The study was conducted by FT Longitude in August 2025, based on a survey of 20,000 consumers in 20 European countries. In Portugal, the sample consisted of 1,000 consumers.

Original Story: Expresso
Edition and translation: Prime Yield

Spanish banks’ NPLs fall by €879 million in December to €33 billion

17 March, 2026

The volume of non-performing loans (NPLs) held by Spanish banks fell by €879 million at the end of 2025, declining to €33.329 billion, according to the historical series on doubtful loans published monthly by the Bank of Spain.

This level of bad loans is the lowest since June 2008 and is also reflected in the NPL ratio, which closed 2025 at 2.71%—its lowest level since September 2008.

On a year-on-year basis, the stock of unpaid loans fell by €6.03 billion between December 2024 and December 2025.

Meanwhile, the total volume of credit granted stood at €1.22 trillion, down €1.695 billion compared with the previous month and €42.262 billion lower than in December 2024.

By type of institution, the NPL ratio for banks, savings banks and credit cooperatives stood at 2.64% in December, five basis points lower than the previous month and 60 basis points below the level recorded in the same period of 2024.

In absolute terms, these institutions reduced their stock of bad loans by €709 million to €30.951 billion. Compared with December 2024, the figure is around €5.649 billion lower.

Specialised consumer credit institutions saw their NPL ratio close 2025 at 4.89%, down from 5.53% in November and 76 basis points lower than a year earlier.

The volume of doubtful credit at these institutions stood at €2.208 billion at the end of December, €151 million less than in November. Compared with the same month of the previous year, the stock of bad loans declined by around €357 million.

Finally, according to data from the Bank of Spain, loan-loss provisions across all credit institutions totalled €26.956 billion. This represents a decline of €331 million compared with November and a year-on-year decrease of €1.953 billion.

Original Story: Forbes |Author: Forbes/ EP
Edition and translation: Prime Yield

National Bank of Greece completes the Etalia A transaction

17 March, 2026

The National Bank of Greece (NBG) has announced the completion of the Etalia A transaction, which envolves the disposal of a portfolio of non-performing exposures (NPE) with a total principal amount of c.€0.1 bilion to a purchaser company (Leon Issuer DAC) managed by Bain Capital.

The transaction is capital accretive.

doValue Greece undertook the servicing of the Etalia A portfolio.

DoValue Greece undertook servicing of the Etalia A portfolio.

Morgan Stanley & Co. International plc acted as the financial adviser and arranger of the transaction, while Karatzas & Partners Law Firm and Clifford Chance LLP served as the local and international external legal counsel to NBG, respectively.

Original Story: NBG
Edition: Prime Yield

Diglo lists €40 million of non-performing loans for sale

5 February, 2026

Diglo, the servicing unit of Banco Santander, has put €40 million of non-performing loans (NPLs) up for sale on its online credit sales platform.

The offer includes 258 NPLs secured by residential, commercial, and industrial properties across Spain. According to the company, these assets present “investment opportunities” in mortgage-backed debt.

Previously, purchasing unpaid mortgage loans was mainly for specialist investors, but Diglo says its platform now allows both institutional and individual investors to participate.

Available loans include judicial foreclosure claims and unpaid mortgages, offered at discounts to market value that could generate attractive medium-term returns on tangible assets.

“With our Credit Sales portal, any investor can quickly and transparently access opportunities in non-performing loans, explore the characteristics of each NPL, and manage their investments with complete security. Our goal is to provide an intuitive and efficient process that makes investment in secured credit accessible to everyone,” said Ángel Rubio, Diglo’s Head of NPLs.

Diglo states that investors can review each loan’s details and complete purchases digitally. The company also assists buyers from initial evaluation through to closing.

Original Story: Forbes | Author: Forbes / EP
Translation and edition: Prime Yield

Spanish banks cut bad loans by €312m in November, keep delinquency at lowest level since 2008

29 January, 2026

Spanish banks reduced their stock of non-performing loans by €312 million in November 2025, while the overall delinquency rate remained at its lowest level since 2008, according to data published by the Bank of Spain and reported by Demócrata.

Figures show that the total amount of doubtful loans stood at €34.21 billion in November, down from the previous month. The delinquency ratio — the share of loans classified as doubtful relative to total credit — fell to 2.78%, marking its lowest point in more than 17 years.

The total volume of credit granted by Spanish lenders continued to rise, reaching approximately €1.23 trillion, reflecting ongoing credit extension to households and businesses.

Among different types of lenders, traditional banks, savings banks and cooperatives saw their bad-loan ratios improve, while some smaller financial institutions reported slight variations in their numbers.

Economists have attributed the decline in bad loans to both stronger economic conditions and active risk management by banks, including more effective debt recovery strategies.

Source: Demócrata
Edition and translation: Prime Yield

Alantra advised on BBVA’s first NPL portfolio sale in Portugal

23 January, 2026

Alantra advised BBVA Portugal on the sale of a portfolio of non-performing loans (NPLs) and properties received as collateral. The value of the portfolio was not disclosed.

The portfolio consisted of two distinct segments: a segment of secured NPLs, predominantly backed by high-end residential properties, and the seller’s entire exposure to properties received in lieu of payment.

Alantra said in a statement that it ‘played a key role in designing and executing a competitive sale process, ensuring strong investor engagement and aligning bidder expectations.’

This mandate also represents BBVA’s first portfolio sale in Portugal and reflects the trust placed in Alantra by long-standing clients, as the firm continues to support the group in various regions.

Joel Grau, partner at Alantra, believes that “this transaction clearly demonstrates our end-to-end execution capabilities in NPLs and secured repossessed properties. We are proud to have supported BBVA Portugal in achieving this strategic milestone and look forward to continuing our collaboration in different markets.”

This transaction reinforces Alantra’s recent track record of advising financial institutions, including the sale of Hipoges to Finsolutia, with the support of Pollen Street Capital; the transfer of a €450 million portfolio of non-performing SME assets from Alpha Bank to Waterwheel Capital Management; the securitisation and transfer of a €300 million NPE portfolio from Piraeus Bank to an affiliate of Waterwheel Capital Management; and the sale of performing credit exposures from Banco Santander Totta.

Original Story: Jornal Económico | Autor: Maria Teixeira Alves
Edition and translation: Prime Yield

Mortgage NPL Ratio Falls to Lowest Level Since 2008

22 January, 2026

Spain’s mortgage non-performing loan (NPL) ratio stood at 1.85% at the end of the third quarter of 2025, its lowest level since December 2008, according to data from the Bank of Spain.

The figure comes from the latest arrears bulletin published by the Spanish Mortgage Association (AHE), based on central bank data. The mortgage NPL ratio declined due both to a reduction in the volume of non-performing mortgage loans and an increase in the overall stock of mortgages.

Specifically, the volume of non-performing mortgage loans fell by 20.9% year on year to €9.14 billion, while declining by 7.9% on a quarterly basis.

Total outstanding mortgage lending reached €491.87 billion in the third quarter, up 0.8% compared with the previous quarter and 3% higher than in the same period of 2024.

Meanwhile, the loan portfolio for home renovation also showed a favourable trend in asset quality. Its NPL ratio improved by 0.6 percentage points year on year to 3%, although it remained unchanged from the second quarter.

In the corporate segment, the NPL ratio for loans to the construction sector stood at 7.2%, slightly higher than in the second quarter but below the 8% recorded at the end of the third quarter of 2024.

Finally, the real estate activities portfolio closed September with an NPL ratio of 1.8%, down from 1.9% in the previous quarter and 2.5% in the third quarter of the previous year.

Original Story: Idealista | Author: Europa Press
Edition and translation: Prime Yield
Image by Jörg Hertle from Pixabay

Major banks are increasing their exposure to the real estate sector

19 January, 2026

Greece’s major banking groups are making a comeback to domestic real estate, currently running investment programs exceeding €1.5 billion. The overarching aim is to increase exposure in the real estate sector, after the large divestments during the financial crisis.

This is a strategy that serves multiple purposes, from generating stable revenue and profit streams, to reducing operating costs, as some of the properties acquired are self-occupied to meet housing needs. As a rule, however, these are moves made to enrich the banks’ portfolios with income properties, such as “green” office buildings, shopping malls and logistics centers.

The most recent agreement concerns the decision by the National Bank of Greece to repurchase dozens of properties that currently house its services, from brick-and-mortar branches to central offices. It is a portfolio worth €510.5 million, owned by Prodea Investments, which until today is leased by NBG.

The transaction is expected to be completed during the first half of 2026, ensuring a significant reduction in its operating expenses, as it will no longer pay rents, while adding important realty assets to their portfolios.

Original Story: Ekathimerini | Author: Nikos Roussanoglou
Edition: Prime Yield

BBVA Launches €380m “Project Terral” NPL Sale

15 January, 2026

BBVA SA is working to sell a portfolio of approximately €380 million in non-performing loans as part of its efforts to clean up its balance sheet.

The Spanish lender has already begun talks with potential investors regarding the portfolio, which includes loans linked to around 3,900 properties across Spain, according to a sales document reviewed by Bloomberg News.

KPMG is acting as adviser on the sale, which has been dubbed Project Terral.

According to the document, BBVA has asked interested investors to submit non-binding bids by the end of January.

The bank expects to receive binding offers by mid-March, with the final signing of the deal anticipated to take place in April.

Original Story: Investing.com
Translation and edition: Prime Yield
Image by moerschy from Pixabay

Alantra advised Unicre on the sale of €150 million in NPL

14 January, 2026

Alantra acted as advisor to Unicre on the disposal of its non-performing consumer credit exposures in Portugal, with a total gross book value of approximately €150 million. This was prior to the closing of the sale of Unibanco to Novobanco.

Alantra advised Unicre on the sale of its non-performing consumer credit portfolio with a total gross book value of approximately €150 million.

The portfolio comprised all credit card and personal loan agreements more than 90 days past due and marks the first and only competitive sale of Unicre’s loan portfolios. Last year, Unicre announced that it had sold Unibanco, its consumer credit unit, to Novobanco. This has already been given the green light by the Competition Authority.

This transaction represents the final phase of Unicre’s exit from the consumer credit segment and follows the previously announced agreement for the sale of Unicre’s performing consumer credit business to Novobanco, in which Alantra also acts as exclusive financial advisor.

This operation has enabled Unicre to fully dispose of its NPL exposures, maximise recoveries and complete the liquidation of its consumer finance activities, with full recognition of profits in the 2025 financial year.

Original Story: Jornal Económico | Author: Maria Teixeira Alves
Edition and translation: Prime Yield

Net credit expansion until October

12 January, 2026

A small recovery in housing loans is recorded by the Bank of Greece’s data for October, which is mainly attributed to the strengthening of disbursements through the “My Home II” program.

The central bank’s data reflect this trend as the net flow of financing – i.e. new loans after the repayments of previous debts – moved into positive territory, recording a net credit expansion of 30 million euros since the beginning of the year.

In the business loan sector, the net flow of financing was negative by approximately €1.4 billion, a development attributed to the weakening of new loans after the peak traditionally observed at the end of each quarter – i.e. in September.

Original Story: Ekathimerini
Edition: Prime Yield

Banks are turning to synthetic securitizations

6 January, 2026

Greek banks are turning to securitizations of performing loans in an effort to free up capital and strengthen their ability to provide new loans to the economy.

Through synthetic securitizations, as performing-loan securitizations are called, banks have strengthened their liquidity pipeline with new loans of up to approximately €10 billion over the last five years and for the next two years.

Unlike “classic” securitization, where banks mainly sell nonperforming loans in their attempt to clean up their balance sheets, in synthetic securitizations the loans that are securitized are performing.

This tool is now being used massively by three of Greece’s four systemic banks – Alpha, Eurobank and Piraeus, with National Bank being the only one that has not used this tool due to the excess capital it has – in their attempt to finance the economy with new loans without burdening their capital ratios.

Eurobank has already securitized loans worth over €7 billion through successive such transactions since 2021, reducing its risk-weighted assets (RWAs) by over €2.5 billion.

The amount of RWAs released is gradually reduced based on the maturities of the bonds issued in the context of the securitization.

Accordingly, Piraeus Bank has securitized loans totaling €8.6 billion, releasing assets – after maturities – close to €2.3 billion, while Alpha Bank has securitized loans worth €3.8 billion, releasing approximately €1.8 billion.

Original Story: Ekathimerini
Edition: Prime Yield

Spain’s NPL rate falls to its lowest in 17 years

5 January, 2026

The rate of non-performing loans (NPLs) at Spanish banks fell to 2.84% in October, the lowest level since 2008, due to fewer defaults and increased lending.

This figure represents a decline from 2.87% in September and marks the lowest level since September 2008. This decline is attributed to an increase in credit and a reduction in unpaid loans, according to data released by the Bank of Spain.

NPL fell by €174 million to €34.523 billion, while the total loan portfolio grew to €1.215 trillion, up from €1.210 trillion at the end of September.

Year-on-year, the decline in NPL is even more significant. The NPL ratio has fallen from 3.41% in October 2024 to 2.84% in October 2023, supported by a €5.643 billion reduction in the balance of NPL.

Among banks, savings banks and cooperatives, the NPL ratio fell from 2.78% in September to 2.75% in October — also the lowest level in 17 years. In this segment, unpaid loans fell by €217 million in a single month to €31.99 billion.

Consumer finance companies: uneven performance

The default ratio for consumer finance companies rose from 5.31% to 5.49% in October, following a 1.43% increase in unpaid loans to 2.344 billion euros.

Despite the monthly increase, the year-on-year trend remains favourable. Delinquency in consumer finance companies has fallen from 6.68% in October 2024 to the current 5.49%, reflecting a sustained improvement in the quality of credit granted.

Original Story: The Officer | Author: Eva Santander
Edition and translation: Prime Yield

Total NPL stock down by €7.2 billion since September 2024

19 December, 2025

According to the latest European Risk Dashboard from the European Central Bank, the total stock of non-performing loans (NPL) held by Spanish banks has fallen by €7.2 billion over the last year. Despite this positive trend, Spain still has the second-highest volume of non-performing loans in the European Union after France, which has €126.9 billion.

At the end of the third quarter of 2024, Spain’s largest banks had €69 billion of non-performing loans on their balance sheets — €7.2 billion less than the €76.2 billion reported in the same quarter of the previous year — representing a 9.45% reduction over that period.

Compared to the €70.4 billion recorded at the end of June, the quarterly evolution shows a 2% reduction in this indicator.

Reflecting the improving quality of assets held by banks, the NPL ratio has also evolved positively, falling by 0.3 percentage points (pp) from 2.8% in Q3 2024 to 2.5% currently. Compared to the previous quarter (2.6%), the reduction was 0.1 percentage points.

NPL stock shrinks 16% in the last year

19 December, 2025

According to the latest data from the European Central Bank, the total volume of non-performing loans (NPL) in the Portuguese banking system fell by 16% in the last year, with the NPL ratio falling by 0.4 percentage points (pp) in the third quarter of 2025 compared to the same period last year.

The European Central Bank has released its European Risk Dashboard for Q3 2025, which confirms the ongoing improvement in the soundness of Portuguese banks. At the end of September, national banks held €4.2 billion of non-performing loans, which is a 16% decrease compared to the €5 billion recorded in the same period last year.

The quarterly trend was also positive, with non-performing loans falling by 2%, from €4.3 billion in the quarter ending in June to €4.2 billion in the quarter ending in September.

The NPL ratio fell by 0.4 percentage points from 2.4% at the end of September 2024 to close the third quarter at 2%. Compared to the previous quarter (2.1%), the decrease was 0.1 percentage points.

Source: EBA
Edition and translation: Prime Yield

Banks ‘clean up’ €1.1 billion in NPLs from their balance sheets

18 December, 2025

The main Greek banks are continuing to make progress in reducing the bad debts on their balance sheets. They closed the third quarter of the year with a cumulative reduction of €1.1 billion compared to September 2024.

According to the European Central Bank’s latest European Risk Dashboard, Greece recorded an non-performing loans (NPL) volume of €5.7 billion in the third quarter of 2025, which is down 16% from the same period last year when the figure was €6.8 billion. This equates to a reduction of €1.1 billion over twelve months. Compared to the previous quarter, there was a decline of 3%, with the NPL stock falling by €200 million compared to the €5.9 billion recorded at the end of June 2025.

The NPL ratio also declined by 0.5 percentage points (p.p.), falling from 3.3% in September 2024 to 2.7% at the end of the third quarter of 2025. Despite the positive year-on-year performance, this figure remained unchanged from the previous quarter and still ranks as the third highest among European Union countries.

Source: European Central Bank
Edition and translation: Prime Yield

Unicre is selling Unibanco and wants to “clear up” €160 million of bad debt

2 December, 2025

With Unibanco about to be sold to Novobanco, Unicre placed a €160 million portfolio of non-performing loans (NPL) on the market with the aim of “cleaning up” its balance sheet.

According to a presentation of the process sent to potential interested parties and seen by ECO, Unicre is finalising the sale of its consumer credit and credit card unit to Novobanco and has placed a portfolio of bad debt worth approximately €160 million on the market.

In the so-called ‘Project Summit’, the financial institution — which is owned by the largest national banks — is selling almost 20,000 problematic loans, which were mostly taken out by individuals. These loans are unsecured, with an average value of €8,000 per contract and an average default period of around seven years.

According to the portfolio description, most of these loans were granted through credit cards (€108.6 million), although there are also personal loans (€48.8 million). The majority of cases (84%) are already in court.

The transaction is being conducted by Alantra and is expected to be finalised by the end of the year. At least, that is Unicre’s intention as it seeks to “clean up” its balance sheet by selling this portfolio. With the non-binding offer phase now closed, interested parties must submit firm bids. It was not possible to ascertain which funds are in the running.

Unicre is controlled by the main national banks, including BCP (31.16%), Santander Totta (21.86%), BPI (21.01%) and Novobanco (17.5%).

The sale of Unibanco is expected to be finalised in early 2026.

This transaction coincides with Unicre’s sale of its consumer credit and credit card business, operating under the Unibanco brand launched in 2011, to Novobanco. Announced last summer, the transaction is awaiting approval from the Competition Authority and is expected to be completed in the first quarter of next year.

As part of this transaction, Novobanco will acquire Unicre’s consumer credit portfolio, including credit cards, credit consolidation and personal credit, with a net value of €262 million. Novobanco will also acquire the Unibanco brand and other assets and liabilities associated with the consumer credit business unit.

Original Story: ECO | Author: Alberto Teixeira
Edition and translation: Prime Yield

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