NPL&REO News

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

Piraeus Bank completes a €300 million securitisation of NPE

31 October, 2025

Piraeus Bank has completes the securitization and transfer of a portfolio of non-performing exposures consisting of corporate loans, including bond loans and other receivables, with a total gross book value of approximately €300 million. Global law firm Hogan Lovells has advised the transaction, as international counsel.

The portfolio was part of the Solar portfolio, which had been classified as held for sale as of 30 June 2022 and was originally established as part of a joint initiative by the four systemic banks to manage non-performing corporate claims.

The notes issued in the context of the securitisation were acquired by an affiliate of the investment manager, Waterwheel Capital Management, LP. The servicing of the portfolio was assigned to Cepal Hellas AEDADP, a credit servicer licensed by the Bank of Greece.

This transaction forms part of Piraeus Bank’s ongoing strategic plan for the active management of non-performing exposures, further supporting its long-term growth objectives.

Original Story: Legal Desire |Author: PR Hogan Lovells
Edition: Prime Yield

Banks sell €300 million of NPL and REOs

29 October, 2025

Caixa has put a €100 million portfolio of bad debt up for sale. Meanwhile, BBVA has €20 million worth of land up for sale. Banks are continuing to clean up their balance sheets. Rating agencies and supervisors are praising the move.

As the end of the year approaches, banks are continuing their efforts to clean up their balance sheets. According to information gathered by ECO from market sources, several portfolios of bad loans and real estate with a total value of approximately €300 million have been put up for sale in recent weeks.

The sector has carried out a major clean-up of its balance sheets in recent years, an effort that has received widespread recognition from rating agencies and supervisors, as Morningstar DBRS pointed out this week. Nevertheless, banks are still trying to dispose of assets that are considered problematic.

Caixa Geral de Depósitos (CGD) is a case in point, with a portfolio of non-performing loans (NPLs) worth around €100 million up for sale. This is an unsecured portfolio, meaning there are no associated guarantees, so the amount receivable for this set of contracts is likely to be lower. The public bank has not commented on this operation.

Another unsecured NPL portfolio worth €170 million is also on the market, but it has not been possible to ascertain the institution that originated this portfolio.

In addition to bad debt, BBVA has also launched a real estate portfolio. Valued at close to €20 million, the portfolio comprises nearly forty real estate assets, primarily land, situated across the country.

Over the last decade, NPL have fallen by more than 15 points.

Ten years ago, NPL were one of the major problems affecting the national banking sector. In 2015, the sector recorded an NPL ratio of 17.5% of total credit — at the height of the banking crisis in Portugal, following the bankruptcies of BES and Banif, and with Caixa en route to recapitalisation.

A decade later, the problem has been solved. In June, NPL accounted for just 2.3% of the total, with the NPL ratio having fallen by over 15 percentage points during this period.

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

Spain’s ‘Bad Bank’ Could Extend Activity Past 2027

21 October, 2025

Spain’s asset management company from bank restructuring (Sareb), also known as the “bad bank,” will be able to continue operating if it has not managed to divest or transfer all its assets to Sepes by the scheduled liquidation date of November 28, 2027.

Sareb acknowledges that although its lifespan officially ends in two years—fifteen years after its creation—it is likely that by that date there will still be assets on its balance sheet that have neither been transferred to Sepes nor sold. “Therefore, Sareb will be a company in liquidation that must, to some extent, continue its liquidation activity unless there is some kind of change in this regard,” the FROB (its main shareholder, with more than 50% of the capital) confirmed in Spain’s Congress of Deputies, through statements made by its president, Álvaro López Barceló.

Sareb was created in 2012 following the financial crisis and the burst of the housing bubble, with the aim of orderly liquidating these assets over a 15-year period, until November 2027. It currently holds around 37,000 assets on its balance sheet and adds roughly 10,000 each year.

Strategic Plan

Sareb is expected to approve its new strategic plan in the coming weeks, focusing on the next two years before entering liquidation, according to informed sources. The new state-owned housing and land company is also expected to announce its own strategy soon.

In July, the Council of Ministers approved the transfer of over 40,000 Sareb-owned homes and nearly 2,400 land plots—capable of hosting another 55,000 homes—to Sepes, forming the core of a new large state-owned housing company. Earlier in January, Prime Minister Pedro Sánchez announced the transfer of 30,000 Sareb homes to the new public company—13,000 immediately—and another 10,000 in 2026, according to Efe.

In this context, Sareb aims to focus over the next two years on preparing and transferring assets identified for handover to the new public housing company while also continuing to divest a “significant” part of its remaining portfolio not transferred to Sepes, as stated by the FROB president.

New Scenario

Given this new outlook, Sareb is negotiating with its property management service providers, mainly Hipoges and Anticipa-Aliseda, to adjust their contracts following the transfer of a large portion of the “bad bank’s” assets to the new state housing and land company established by the government.

Original Story: La Razón | Author: J.Sanz
Edition and translation: Prime Yield

NBG sells Project Etalia A to Bain Capital

21 October, 2025

National Bank of Greece announced that it has entered into a definitive agreement with funds managed by Bain Capital, for the disposal of a portfolio of secured non-performing exposures (“NPE”) of consumer loans, mortgage loans, small business loans (“SBL”) & small & medium enterprises loans (“SME”) with total principal amount of c.€0.1 billion.

The transaction is being implemented in the context of the Bank’s NPE management strategy.

The consideration of the transaction amounts to 45% of the total principal amount of the Etalia A Portfolio. The transaction is expected to be capital accretive.

The transaction is expected to be completed by Q1 26. Following the completion of the transaction, Bain Capital is expected to assign the servicing of the portfolio to a loan and credit management company regulated by the Bank of Greece under the applicable legal framework.

Morgan Stanley & Co. International plc acted as financial advisor while Karatzas & Partners Law Firm served as external legal counsel to NBG.

Original Story: National Bank of Greece
Edition: Prime Yield

Bank of Portugal will analyse complaints against NPL buyers

20 October, 2025

If there is non-compliance with the rules, the BdP may issue determinations and recommendations, and may even apply penalties in administrative offence proceedings.

The Bank of Portugal (BdP) will now receive and analyse complaints from bank customers regarding companies that purchase non performing loans (NPL) sold by banks. This has become a common practice in recent years, the banking supervisor told Lusa.

Lusa questioned the Bank of Portugal about the new legal regime for credit transfers — the technical term for the process by which banks sell credit portfolios (typically bad debt) to other entities — to clarify exactly how the bank will intervene.

The BdP explained that, until now, these entities were outside its remit, but, with the new regime due to come into force on 10 December, the BdP will be responsible for supervising and monitoring the activities of companies that purchase loans from banks, as well as the entities that manage these loans. This will include ‘assessing complaints from debtors’.

While the new regime is not in force, the Bank of Portugal is not responsible for receiving and analysing complaints from bank customers about companies that purchase large credit portfolios from banks, or about companies subcontracted by these purchasers to manage the credits. Therefore, the court is the only alternative in the event of a dispute.

In early September, Lusa published a report on how banks have sold mortgage loans in recent years, leaving customers who were already struggling to pay for their homes unprotected.

The report covered the case of a customer who won a lawsuit against BPI, which had sold her loan to a Luxembourg-based company, but who continues to fight to keep her home to this day. The report also covered how the Supreme Court of Justice overturned two similar rulings on the sale of mortgage loans by banks in less than a year, deeming the transactions to be ‘fraud against the law’.

With the new regime in place, the BdP ‘will now have the power to carry out inspections and assess complaints from debtors’, it told Lusa.

If rules are not followed, the BdP can issue determinations and recommendations, and apply sanctions in administrative offence proceedings.

The BdP also has the power to revoke the authorisation granted to credit managers to operate in certain situations.

Under the new law, the central bank will also receive regular information on credit agreements sold by banks. It will be informed of which banks are making sales, the outstanding balances, the number of sales in each period, and the type of credit sold (mortgage or consumer). These loans must also be reported to the Credit Responsibility Centre.

Until now, the Bank of Portugal has not disclosed data on banks’ credit sales.

Lusa also questioned the BdP about what would happen if a customer with a credit that has been sold requested a new credit from another bank. In this case, Lusa asked, will the bank that grants the new credit be aware of the previous credit and account for it in the customer’s debt-to-income ratio?

The Bank of Portugal explained that under the current rules, selling the loan to a third party outside the bank’s supervision means that the loan disappears from the customer’s credit liability register. This means that the bank is unaware of the loan’s existence and will not consider it when assessing the customer’s solvency (unless the customer provides this information).

Under the new regime, however, sold credits will be included in the credit liability register to which banks have access.

Original Story: Jornal Economico | Author: JE/Lusa
Edition and translation: Prime Yield

National Bank of Greece agrees the sale of Project Etalia to EOS Group

17 October, 2025

National Bank of Greece had just announced that it has entered into a definitive agreement with funds managerd by EOS Group, for the disposal of a portfolio of unsecured non-performing exposures (NPE), named Project Etalia B, including consumer loans, small business loans (SBL), small & médium enterprises loans (SME) and large corportate with total principal amount of c.€0.1 billion.

The transaction is being implemented in the context of the Bank’s NPE management strategy.

The consideration of the transaction amounts to more than 25% of the total principal amount of the Etalia B Portfolio. The transaction is expected to be capital accretive.

The transaction is expected to be completed by Q1 26. Following the completion of the transaction, EOS Matrix Greece will undertake the servicing of the Etalia B Portfolio.

Morgan Stanley & Co. International plc acted as financial advisor while Karatzas & Partners Law Firm served as external legal counsel to NBG.

Original story: NBG
Edition. Prime Yield

Bank of Spain Flags €8.2 Billion in COVID Loan Guarantees as “Doubtful”

10 October, 2025

The Bank of Spain is monitoring around €8.2 billion in pandemic-era loan guarantees issued by the state-owned Instituto de Crédito Oficial (ICO), considering them at high risk of default, El Mundo reported.

According to the central bank’s latest Financial Stability Report (May 2025), roughly 9% of ICO-backed COVID loans are now classified as “doubtful,” meaning they may never be repaid. Another 8% remain under “special monitoring,” where credit risk has significantly increased.

The ICO program, launched in 2020 with up to €140 billion in state guarantees to support businesses, ultimately backed about €92 billion in loans. Defaults have already cost public finances €2.1 billion as of the end of 2024, and potential future losses could lift that figure beyond €8.6 billion.

Some of these losses may be offset by fees banks paid for the guarantees—estimated at around €2 billion—but the Bank of Spain warns the total cost could still exceed earlier projections by the fiscal watchdog AIReF, which in 2021 expected around €6 billion in bad loans.

Despite a decline in loans under special monitoring last year, the number of doubtful loans rose by 7.5%, prompting the Bank of Spain to continue close supervision of pandemic-related credit exposure.

Foto de J Shim na Unsplash

Original Story: El Mundo | Author: Alejandra Olces
Edition and translation: Prime Yield

Greece’s bad-loan front remains open according to Moody’s

9 October, 2025

International rating agency Moody’s describes Greece’s credit conditions as a thorn in the side of Greece’s credit rating, as while they have improved in recent years, they remain negative, with significant challenges on the lending front affecting the prospects of the economy and banks.

Despite the fact that banks have offloaded these nonperforming exposure (NPEs), they continue to remain in the system, while new loans are being issued that have not been tested in the economic cycle, as it points out.

Moody’s notes that credit conditions in Greece, which it rates as negative, have improved in the last three to four years, with a significant reduction in banks’ NPEs, which, however, remain higher than those of European bonds.

As it says, banks’ NPEs have decreased to 6 billion euros, or 3.8% of total loans (according to March 2025 data), from €47.2 billion (or 30% of loans) in December 2020.

Nevertheless, Moody’s points out that approximately €78.3 billion of nonperforming loans (NPL), which concern both households and businesses, remain in the hands of servicers and therefore affect the overall assessment of credit conditions in Greece.

The significant reduction in total credits reflects the removal of non-core assets from banks’ balance sheets, the securitization/sale of NPE portfolios and write-offs, Moody’s says.

Greek banks, however, have started to grant new loans, aiming to capitalize on the economic recovery and the positive effects of the Recovery Fund. According to the Bank of Greece, the net credit flow between June 2024 and June 2025 was significant, around €12.6 billion, it said.

“However, this new lending to the real economy, which mainly includes corporate loans as households continue to deleverage, has not yet been tested in a full economic cycle. This factor leads to the negative adjustment to our assessment of credit conditions in Greece,” Moody’s notes.

The agency, however, estimates that any potential risks to vulnerable borrowers are expected to be offset by the resilience of the business sector and new loans related to Recovery Fund projects, which will help banks’ performing loan portfolios continue to expand.

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

Bank Asset Quality Remains Solid Despite Declining Profitability

6 October, 2025

Portuguese banks continue to show robust asset quality, even amid falling profitability and pressures on financial margins caused by interest rate cuts by the European Central Bank (ECB).

According to the Bank of Portugal report, cited by ECO, the non-performing loan (NPL) ratio remained stable at 2.3% in the second quarter of 2025, while the net impairment indicator slightly decreased to 1%, signaling an improvement in credit quality.

By segment, the NPL ratio for non-financial corporations remained at 4%, while housing and consumer loans saw small declines, to 1.1% and 6.1%, respectively. At the same time, impairment coverage strengthened: rising to 61.3% for non-financial corporations, 36.9% for housing loans, and 61.2% for consumer and other loans.

The cost of credit risk remained historically low at 0.1%, reflecting lower expected credit losses. Capital ratios also remained solid — 20.4% total and 17.9% CET1 — well above the minimum required by European regulations.

In summary, despite declining profitability and margin compression, the Portuguese banking sector maintains a high-quality asset base and comfortable capitalization levels, which, according to the Bank of Portugal, enhances the resilience of banks in the face of the new monetary cycle.

Original Story: ECO | Author: Luís Leitão
Edition and translation: Prime Yield

Sabadell sells €435M in NPL to strengthen balance sheet amid BBVA takeover bid

3 October, 2025

The Catalan bank accelerates sale of non-performing loans and mortgages as part of its strategy to improve asset quality, says El Confidencial.

Banco Sabadell has recently completed the sale of approximately €435 million in loans, according to sources cited by Bloomberg. Spain’s fourth-largest bank is currently advancing a project known as “Project Medusa,” which involves the disposal of €260 million in unsecured loans.

These transactions are part of Sabadell’s broader strategy to clean up its balance sheet. The bank has ramped up its divestment of troubled assets as BBVA continues its takeover attempt, which saw a revised offer last week — a roughly 10% increase — in a final effort to close the deal after more than a year of negotiations.

BBVA is now proposing one ordinary BBVA share for every 4.8376 Sabadell shares, valuing the Catalan lender at around €17.1 billion — about a 2% premium over Sabadell’s market value as of last Friday.

A notable transaction within this clean-up includes the sale of €100 million in non-performing mortgages to Axactor ASA. Four additional smaller portfolios, each worth approximately €20 million, were acquired by firms such as Balbec Capital and Hipoges, the latter backed by KKR.

Original Story: El Confidencial
Edition and translation: Prime Yield

Hercules loans slowly making way to banks

2 October, 2025

Servicer doValue is paving the way for banks to repay part of the guarantees given by the Greek government in the context of the Hercules securitizations through the sale of two loan portfolios.

These are loans from Eurobank’s Cairo securitizations that were securitized through Hercules – that is, they were sold to doValue and have now been streamlined – i.e. they are being serviced.

Their transfer by the investors who had purchased these loans will allow the repayment of the guarantee given by the government through the issuance of senior notes, thus reducing the burden on the public debt. The senior notes are held by the banks on their balance sheets, which, in turn, once the transaction is implemented, will repay the government the guarantee corresponding to these loans.

The portfolios for sale are the Alexandria portfolio, worth 1.5 billion euros, which includes regulated loans of 2,700 large and medium-sized enterprises, and the Giza portfolio, worth approximately €200 million, which includes mortgage loans that are now considered serviced.

The two portfolios will be transferred to investors, to whom the relevant information has already been sent in order for them to express interest and then submit binding offers. The process is being run on behalf of doValue by doAdvice (a subsidiary of the Italian doValue Group) and the goal is to close the transactions by the end of the year.

The transfer of these loans to a third-party investor in turn paves the way for their return to the banks, which is the ultimate goal.

Revealing the importance that banks attach to the return of these loans is an analysis by the National Bank of Greece, which raises to €40 billion the loans that currently belong to funds and could gradually return to the market in the coming years, either as “cured” or as a mechanism for new financing, strengthening credit expansion.

According to National, cleaning up the balance sheets of Greek banks can offer a significant opportunity for new credit, as the loans managed by the servicers or the guarantees that these loans carry, namely real estate, will gradually begin to return to the market and to a healthy economy.

Original Story: Ekathimerini | Author: Evgenia Tzortzi
Edition: Prime Yield

Indotek buys major Spanish NPL property portfolio

23 September, 2025

Indotek Group, the Budapest–headquartered European real estate investment and asset management company, has acquired a diversified portfolio of 524 residential and commercial properties in Spain. The portfolio was acquired in a structured transaction comprising NPLs and real estate asset

The acquisition marks a strategic step in Indotek Group’s Iberian expansion and builds on over a decade of experience in European NPL and distressed asset transactions, targeting high–potential assets across multiple sectors.

Daniel Jellinek, CEO of Indotek Group, commented: “The acquisition is an important step in our strategic expansion in Western Europe and complements our existing portfolio in Spain. It also adds to Indotek Group’s successful track record in executing complex NPL and distressed asset deals with international partners and offers the opportunity to apply our value creation approach to underperforming portfolios.”

The acquired portfolio has a current market value of approximately EUR 43.5 million, with over 90% comprising residential assets, including 307 apartments and 89 houses, complemented by ancillary units such as parking spaces, outbuildings, and select commercial properties.

The portfolio is geographically diversified across Catalonia / Cataluña (40%), the Community of Madrid / Comunidad de Madrid (18%), the Community of Valencia / Comunidad Valenciana (15%), and Andalusia / Andalucía (11%).

Michael Reinmuth, Head of Transactions for Spain and Portugal at Indotek Group, said: “The transaction expands our Iberian presence beyond hotels and shopping centers, adding scale in residential and NPL assets with clear value–creation potential.”

Indotek is cooperating with Redwood, a local partner recently acquired by BCM Global, in evaluating, pricing, and clearing the portfolio and is actively exploring further NPL and distressed asset opportunities in Spain. In parallel, the Group is assessing new pipeline deals across Portugal, Italy, and selected Central European markets, aiming to leverage its established cross-border asset management and servicing capabilities.

“This deal marks a milestone in our international NPL strategy. After 18 months of preparation, it puts us on the Spanish NPL map with a transaction of significant scale and complexity,” added Anna Vavrinecz, Director of NPL Investments at Indotek Group.

Indotek Group is an established player in the Spanish real estate market, with a portfolio valued over EUR 230 million spanning hospitality, retail, and now residential and mixed-use assets. Its holdings include retail properties such as Espacio León shopping center in Castilla y León (acquired from Blackstone in 2024), Vilamarina in Barcelona, and Pueblo Bonaire Factory Outlet in Valencia. Its hospitality portfolio comprises seven seaside hotels with more than 1,680 rooms.

The transaction reflects Indotek’s European investment strategy, focused on revitalizing underperforming assets, diversifying cash flow, and pursuing value-add opportunities across its 12-country footprint.

The transaction was advised by DLA Piper (legal) and KPMG Madrid (financial) for Indotek Group. Alantra acted as the sell-side advisor, supported by Dentons London and Cuatrecasas Madrid as legal counsel.

Original Story: PR Newswire| Author: Indotek Group
Edition: Prime Yield
Image: Indotek Group

More than 13,800 houses listed on banks’ and servicers’ platforms

22 September, 2025

More than 13,800 vacant houses belong to banks and servicers from foreclosures.

The need to channel a large number of properties into the market is greater than ever, as limited supply is driving rental and purchase prices sky-high. In this context, banks, real estate management companies and the government are seeking to put more than 13,800 homes on the market to provide some “relief” to the housing crisis facing Greece, particularly in major urban centers.

Specifically, the sharp imbalance between supply and demand in the real estate market has led to rental prices increasing by 10.9% in just one year, while the overall housing sector rose by 6%, according to ELSTAT data.

This problem is further exacerbated by nearly 800,000 vacant properties, which remain unused. Of these, more than 25,000 belong to banks and real estate management companies, coming from foreclosures, and essentially constitute a “burden” for them as long as they remain idle.

Indeed, discussions have already taken place regarding the possibility of deferring the costs of legalizing these properties so that payment is not a prerequisite for their use. It is estimated that out of the 25,000 properties of all categories, around 13,800 are homes and apartments, with a total estimated market value exceeding €6 billion.

Bank-owned properties

All systemic banks, as well as Attica Bank, maintain at least one real estate platform, either managing the properties directly or operating as digital real estate agents.

The National Bank has two real estate platforms with different functions. The first is RealEstateOnline.gr, which provides access to properties owned by the bank, such as residences, plots, shops, offices, etc. It also provides access to the electronic auction platform for properties and movable assets, where customers can participate in auctions and request guarantees via internet banking.

The second platform is Uniko, the new digital real estate sales platform, operating as the first digital real estate agent in Greece with the support of the National Bank (49% stake). Its services range from finding a home, legal due diligence, certification and appraisal, to financing through the National Bank and digital contract completion.

Piraeus Bank, through Piraeus Real Estate, manages pbre.gr, where interested parties can find high-value properties, both residential and commercial.

Alpha Real Estate Services, part of Alpha Bank, manages and exploits properties owned by the bank and third parties, providing comprehensive services such as valuations, sales, leases, property management and project coordination. In addition, it has a presence in Southeastern Europe through subsidiaries.

At the same time, Alpha Property Management and Investments S.A., a group company founded in 2018, undertakes the valuation, management, utilization and sale of properties acquired by the bank mainly through non-performing exposures (REOs).

Eurobank’s findyourproperty.gr platform offers easy property search and support from experienced partners, as well as financing proposals to complete the purchase. It lists residential, commercial and investment properties such as homes, plots, shops, offices, warehouses, buildings and hotels.

The bank has also invested in the digital platform Prosperty, which creates integrated digital real estate ecosystems aimed at increasing transparency, speed and efficiency in property promotion and sales.

Attica Bank clients who are beneficiaries of the “My Home 2” program have access to properties ready for transfer from the portfolio of Resolute Cepal, through a recent collaboration of the two entities.

In addition, they have access to the My Home platform, developed for its clients by Ask Wire, offering customized searches enabling interested parties to locate available properties that meet the program’s requirements.

Platforms from servicers

doValue, Intrum, Cepal and QQuant are the four largest servicers in Greece, managing around 90% of non-performing loans, with a total value of approximately €70 billion.

Altamira Properties is a real estate platform from doValue, offering a comprehensive digital experience of searching for and acquiring properties throughout Greece. The platform targets both investors and individuals, providing easy, user-friendly and interactive property presentation, updates on new opportunities, and access to full property management services.

Intrum operates Intrum REO, which facilitates the management and sale of properties through an innovative business model, leveraging cutting-edge technology and an extensive partner network.

Cepal Group partnered with international company Resolute Asset Management Group to establish Resolute Cepal Greece Group (RCG), which provides comprehensive property management services, consultancy, technical and legal due diligence, as well as strategic planning for their utilization.

Original Story: Business Daily Greece | Author: Ελευθερία Τσιπιτώρη Edition: Prime Yield

Banks Accelerate sale of NPL portfolios due to ECB pressure

16 September, 2025

Spanish institutions have removed bad loans from their balance sheets, and sales are expected to increase in the coming months.

Spanish banks have reduced their non-performing loan (NPL) ratio below 3% for the first time since October 2008. According to financial sources, the European Central Bank (ECB) is pressuring institutions to remain below this threshold, which has driven an increase in the sale of portfolios of doubtful or failed loans (non-performing loans, or NPLs). As of June, Spanish banks reported an NPL ratio of 2.89%, according to data from the Bank of Spain—the lowest level since October 2008. To achieve this, they made a final sprint during the quarter, selling off portfolios and reducing the total volume of doubtful loans to €33.703 billion—€788 million less than in May, and €1.849 billion less than in March.

Although delinquency has long ceased to be a major concern for analysts and investors, the regulator remains closely focused and wants banks to take advantage of the current economic boom to minimize the volume of doubtful loans on their balance sheets. The most direct approach is selling portfolios to opportunistic funds, typically at a discount to the gross value of the loans. In these cases, banks draw from existing provisions or allocate new ones, recognizing losses but improving their balance sheets.

“In the first half of 2025, Spain’s NPL buy/sell market maintained a similar level of activity compared to the same period last year, dominated by unsecured portfolios and growth in the REO (Real Estate Owned) and PL/RPL (performing and reperforming loans, especially secured) segments. The increase in PL/RPL transactions indicates a growing appetite for lower-risk assets with higher recovery potential, likely tied to economic improvement and falling delinquency rates. Based on information from leading financial advisors—who are aware of projects launching after September—we expect a similar level of market activity in the second half of 2025,” explains Augusto Piñel, partner at Gómez-Acebo & Pombo.

Among the banks making strong efforts to reduce NPLs is Banco Santander, which ended June with a ratio of 2.91%, down from 2.99% in March and 3.05% in December. Sabadell also improved, dropping from 3.21% a year ago to 2.47%. Excluding TSB—which it sold to Santander (with the deal expected to close in 2025)—the figure fell from 3.8% to 2.81%. Unicaja improved from 2.9% to 2.2% over the year, a level similar to Bankinter’s 2.14%. BBVA lags behind, with a 2.9% ratio compared to 3% in December.

The rate at which new non-performing loans are appearing is slower than in the past, allowing banks to focus on removing existing doubtful loans from their balance sheets. Moreover, they are increasingly selling newer loans, gradually phasing out older ones—thereby reducing the discounts at which portfolios are sold. Additionally, more portfolios are being sold that contain loans not in default but that have experienced some payment issues (so-called reperforming loans, or RPLs). In the coming months, banks expect to continue this portfolio-selling strategy. In fact, several specialist advisors believe the trend will accelerate.

José Antonio Olavarrieta, partner at Deloitte, notes there is increasing activity with more transactions: “We expect a certain continuity in the types of portfolios being sold compared to the first half of the year, though with a higher number of deals, especially in the RPL and NPL segments (mainly unsecured and mortgage-backed),” he adds.

Greater Transparency

Ángel Pérez López, partner at Uría, highlights that Spain is still pending approval of the Draft Law on Credit Purchasers and Servicers. The country is delayed in transposing a European directive aimed at facilitating NPL sales and increasing transparency in the process. Brussels has already threatened to impose a fine.

“The regulation will be very important for the sale and management of NPLs. Once approved, this law—based on a directive from December 2021 and introduced in Spain with a draft bill in May 2024—will bring much greater certainty to the Spanish NPL market,” says Pérez López, who also notes more activity in RPLs than in NPLs. “Despite the decline in bank NPL ratios, Spain remains a relevant market, which has led to more selective strategies. Still, strong interest in high-yield assets suggests specialized investors remain active. Reperforming portfolios have shown steady momentum, with a slight uptick in interest due to their more controlled risk profile.”

The transposition of Directive 2021/2167/EU—which harmonizes the regulatory framework and strengthens protections—is expected to create a safer and more flexible market, driving increased institutional interest, summarizes Paloma Moreno de la Santa, team director at Baker McKenzie

Original story: El Confidencial | Author: Oscar Gimenez
Edition and translation: Prime Yield

Servdbet completes the sale of Solaris €1.3 bn NPL portfolio

15 September, 2025

Servedbet has successfuly completed the disposal of the Project Solaris NPL portfolio, with a total gross book value of approximately €1.3 billion. Alantra has advised the seller throughout the process.

Project Solaris is a secondary portfolio comprising nine granular secured and unsecured non-performing loan (NPL) portfolios, with a total gross book value of approximately €1.3 billion. The lion’s share of the assets, about €870 million, are portfolios in the Portuguese market, while the other €480 million correspond to portfolios in Spain.

According to Alantra, the transaction closed in 2025, with the winner bidder acquiring a majority stake through a tailored securitization structure. The buyer’s name wasn’t disclosed.

‘The deal was executed via a Portuguese STC securitization vehicle, under which the investor subscribed 80% of the notes backed by the portfolios, while Servdebt retained 20%. All proceeds were paid unfront to the seller. The structure was design to maximize flexibility and ensure alignment of interests, with Servdebt continuind as a servicer to drive future recoveries.’

Original Story: Alantra
Edition: Prime Yield

Image by Credit Commerce from Pixabay

NPLs at ECFs have fallen to their lowest level since May 2008.

10 September, 2025

The volume of doubtful loans at Spain’s financial credit institutions (ECFs) dropped to €2.404 billion in June, reaching its lowest level since May 2008, according to the latest data released by the Bank of Spain.

These institutions specialize in specific credit areas such as consumer loans, mortgages, credit cards, guarantees, leasing, and factoring, but unlike traditional banks, they are not permitted to accept deposits.

Most Spanish banks operate their own financial arms to support consumer credit, while other companies—including major supermarket chains and vehicle manufacturers—also run financing entities to offer credit to customers purchasing their products or services.

In June, the stock of doubtful loans held by these financial institutions decreased by €166 million compared to May, and by nearly €2.9 billion year-on-year. This brought their non-performing loan (NPL) ratio down to 5.42%, the lowest since December 2019, before the COVID-19 pandemic, down from 6.03% the previous month and 6.43% a year earlier.

This improvement was supported by an increase of €1.73 billion in new loans granted, pushing the total loan portfolio to €44.3 billion in June, although still €527 million lower than in June 2024.

While ECFs typically have higher delinquency rates than deposit-taking banks, their overall credit volume remains significantly smaller. For comparison, traditional deposit banks reported an NPL ratio of 2.89%, with a loan portfolio totalling €1.13 trillion.

Original Story: Europa Press
Edition and translation: Prime Yield

NPL Sector Reinvents Itself Amid Market Slowdown

9 September, 2025

Hipoges is preparing to enter the real estate development financing market, aiming to fill the gap left by traditional banks, which are increasingly constrained by European Central Bank policies. “Diversification has become a natural and strategic step,” says co-CEO Hugo Velez to ECO. Operating in four countries and managing over €50 billion in assets, the company is also eyeing expansion into France and a potential return to Brazil.

LX Partners, based in Luxembourg, is shifting focus toward sectors like self-storage — via its operator Perfect Space — and SME financing. Its newly launched fund, Five Credit, holds €300 million to support around 5,000 Portuguese SMEs, particularly in their green transition, offering faster and more flexible funding options than traditional banks.

The sector is far from the “golden era” of the last decade, when major banks offloaded billions in toxic assets. With NPL levels at record lows (below 5%) and a modestly growing economy, no strong market rebound is expected. Some players, such as Italy’s DoValue, have exited the Portuguese market. Others, like Hipoges and LX Partners, are adapting — and positioning themselves for long-term growth.

Original Story: ECO | Author: Alberto Teixeira
Edição e tradução: Prime Yield

Corporate lending drives bank loan growth in first half of the year

8 September, 2025

Greece’s four largest banks (Alpha, Eurobank, National and Piraeus), registered a net credit expansion of €4.7 billion in the first half of 2025 compared to the same period in 2024.

If one includes all group activities abroad, credit expansion reached €5.5 billion.

The expansion is due to the financing of projects partly funded by the European Union’s Recovery and Resilience Fund; also, banks emphasized credit to small and medium-sized enterprises rather than households.

The trend is expected to continue in the second half of the year.

The four banks’ total performing loan portfolio at the end of June was €132 billion from €127.3 billion at the end of 2024, despite a hit in the valuation of credit to shipping companies, as it is done in dollars and the dollar has lost ground compared to the euro.

At group level, Eurobank owns the largest performing credit portfolio (€48 billion, up from €46.3 billion at the end of 2029), of which €30.3 billion is in loans to Greek corporations and individuals; Piraeus Bank’s portfolio (€35.9 billion) focuses on domestic firms. So does Alpha’s, where loans in Greece accounted for €32.6 billion of the €34.4 billion in its overall portfolio.

Original Story: Ekathimerini | Author: Newsroom
Edition: Prime Yield