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

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

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)

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

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

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

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

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