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

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

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

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

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

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

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

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

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

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

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  

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

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

On August 13, the President of Portugal signed into law a new decree transposing EU Directive 2021/2167 into national legislation. The directive standardizes the rules for managing non-performing bank loans and sets requirements for credit purchasers.

Portugal missed the EU’s deadline for implementation — December 30, 2023 — prompting the European Commission to launch an infringement procedure. The case was referred to the European Court of Justice (ECJ) on February 12, 2024. Just a week later, the Portuguese government approved the long-delayed legislation in a Council of Ministers meeting.

The law aims to boost the secondary market for non-performing loans (NPLs) while ensuring that credit sales do not infringe on borrowers’ rights. It also enables credit servicers to market NPLs in other jurisdictions.

Portugal is not alone in the delay: six other EU countries — Bulgaria, Spain, Hungary, the Netherlands, Austria, and Finland — are also facing legal action for failing to implement the directive on time.

Original Story: Observador | Author: Lusa
Edition and translation: Prime Yield

European directive should have been transposed into national law by the end of 2023. Political turmoil explains delay.

The government has once again approved a bill transposing the European directive on bad debt into national law, which also harmonises the rules for managers and buyers of this type of non-performing debt. However, this transposition is already a year and a half behind schedule due to political instability.

On 3 July, the Council of Ministers met and “approved a draft law to transpose the European Directive, which harmonises the rules applicable to credit managers and credit purchasers. The law also supports the development of secondary markets for non-performing loans (NPLs) in the EU, while ensuring that the disposal of such loans does not prejudice the rights of customers (debtors),” as stated in a press release published on the Government’s official website.

This is the second time that the AD Executive has given the green light to the bill transposing the European directive on bad debt. The first was in February this year, but the legislative process was interrupted by the fall of the Government in early March. Now, this bill is expected to go to Parliament.

The truth is that the political instability felt in Portugal in recent years has delayed – and greatly – the transposition of European rules on non-performing loans into national legislation. Specifically, Directive 2021/2167 was approved by the European authorities in November 2021, with the transposition deadline ending at the end of 2023. In other words, Portugal is more than a year and a half behind in this area. That is why the European Commission decided to take Portugal to the Court of Justice of the European Union in February.

Directive 2021/2167 aims to foster the development of a well-functioning secondary market for non-performing loans by establishing rules for the authorisation and supervision of credit purchasers and managers.

Original Story: Idealista | Author: Vanessa Sousa
Edition and translation: Prime Yield

According to data from the Bank of Portugal, consumer credit fell by 8% to €714.9 million in April. Nevertheless, this figure for new loans represents a 1% increase compared to the same month last year.

The Bank of Portugal’s data reveals that consumer credit fell by 8% in April. Nevertheless, this figure for new loans represents a 1% increase compared to the same month last year.

The number of contracts fell by 8.6% to 135,043, representing an annual decline of 4.8%.

In terms of the number of new loans, the biggest drop was in credit card and overdraft agreements (-12% in one month), amounting to 71,822 agreements. This was followed by personal loan agreements, which fell by 5.1% in April to 45,059 agreements.

Finally, car loan contracts fell by 2.1% in April, amounting to 18,162.

In monetary terms, the largest decline continues to be in the ‘credit cards and overdrafts’ category, with new loans falling by 12.2% to 112 million euros.

Personal credit fell by 9.4%, with new credit standing at €320 million. Finally, new car credit fell by 4.6% in April, with the amount of new credit in this category reaching €238 million. Of particular note is the 32.7% drop in financial leasing, also known as ALD, for new cars.

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

The portfolio, which includes secured and unsecured positions involving around 22,900 loan agreements and approximately 5,600 customers, was sold to funds managed by a US-based asset manager.

Through a competitive process, BPI has completed the sale of a non-performing loan portfolio with a total gross value of around €82 million.

It was sold to funds managed by a US-based asset manager and includes both secured and unsecured positions, involving around 22,900 loan agreements and approximately 5,600 customers.

“This transaction reinforces BPI’s solid position, which maintains a low-risk profile,” the bank said in a statement.

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

The deal forms part of BPCE’s VISION 2030 strategic plan, designed to expand its operations in France, Europe, and beyond.

French lender Groupe BPCE has agreed to acquire a 75% stake in novobanco, a Portugal-based bank, from Lone Star Funds in a transaction valued at approximately €6.4bn.

The deal is the most substantial cross-border acquisition in the eurozone in over ten years and is part of BPCE’s VISION 2030 strategic plan, designed to expand its operations in France, Europe, and beyond.

Once finalised, the acquisition will make Portugal the group’s second-largest domestic retail market. Novobanco holds a 9% share in the individual customer segment and 14% in the corporate client sector within Portugal.

The bank serves 1.7 million individual clients and manages a corporate loan portfolio worth €17bn. Employing 4,200 staff, novobanco operates 290 branches and works with an extensive network of external partners.

In recent years, novobanco has become one of Europe’s more profitable banks, achieving a cost-income ratio below 35% and a return on tangible equity over 20%.

The acquisition offers BPCE geographical diversification by entering Portugal’s vibrant economy and enhances its balance sheet by increasing the share of variable-rate loans, thereby boosting its revenue structure.

This move follows the establishment of BPCE Equipment Solutions earlier in 2025 and an ongoing project to form a leading European asset manager with Generali. Following the acquisition, BPCE’s Common Equity Tier 1 (CET1) ratio is expected to stay above 15%.

BPCE will consult with employee representative bodies before signing the acquisition agreement. The deal is expected to close in the first half of 2026.

BPCE CEO Nicolas Namias said: “Novobanco possesses excellent fundamentals, strong growth potential and an already high level of profitability. For its part, BPCE is a major banking player in France notably thanks to the Banque Populaire and Caisse d’Epargne banking networks.

“With the acquisition of novobanco, BPCE would become a retail banking player in Europe and would actively participate in financing the Portuguese economy. The projected transaction marks a key stage in the execution of its “Vision 2030” strategic plan, announced close to a year ago.

“BPCE’s executive managers and employees are all particularly enthusiastic about the prospect of welcoming novobanco, its management and its 4,200 employees, in order to write a new chapter of growth, innovation and performance in Europe together.”     

Original Story: Future Banking | Author: Pradeep Bairaboina
Edition: Prime Yield

Portugal’s BPI has put another non-performing loan (NPL) portfolio up for sale, appointing KPMG as advisor.

The “Zinc” project consists of 99.8 million euros of NPLs, of which 77 million are unsecured and the remaining 22 million are considered risky but secured. This portfolio comprises NPLs from households (66%) and SMEs (34%) and is divided into two tranches.

 Tranche A is divided between households (58 per cent), SMEs (26 per cent) and insolvent SMEs (16 per cent). Tranche B, on the other hand, mainly concerns private borrowers with mortgage loans (93 per cent).7 The portfolio is quite granular, with an average loan size of around EUR 13.7 thousand. The private segment in tranche A has an average loan size of around EUR 7.3 thousand. Tranche B is secured by a number of real estate guarantees with a real estate value from the seller of around 37.6 million euros, 99% of which is classified as first lien.

The Bank has opened the non-vincible bidding for the month of April and expects to complete the sale process by mid-year.

Original Story: Jornal Económico | Author: Maria Teixeira Alves
Edition and translation: Prime Yield
Photo: jakub-zerdzick / Unsplashed