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

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

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

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.

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

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

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

The non-performing loan (NPL) ratio of Spanish banks fell below 3% in June for the first time since October 2008, according to historical data published by the Bank of Spain.

Furthermore, the NPL rate in June decreased compared to 3.11% in May and 3.43% in the same month of 2024.

In terms of loan volume, the stock of doubtful loans amounted to €36.291 billion, representing a reduction of €955 million compared to May and €4.599 billion compared to June 2024. This also marked the lowest amount of non-performing loans since June 2008.

The decline in the NPL ratio is also explained by an increase in the total volume of credit granted, which reached €1.220 trillion in June. This implies a rise of €23.113 billion compared to May and €27.848 billion compared to June 2024.

On the other hand, data broken down by type of institution show that the doubtful loan ratio for all deposit-taking institutions (banks, savings banks, and cooperatives) ended June at 2.89%, two basis points lower than in the previous month and 43 basis points lower than in the same period of 2024.

In absolute terms, these institutions recorded a decrease of €788 million in their doubtful loan portfolio, down to €33.703 billion. Compared to June 2024, this figure is about €4.129 billion lower.

Meanwhile, credit financial institutions saw their delinquency rate fall to 5.42%, 61 basis points lower than in May, although the year-on-year reduction is one percentage point.

Additionally, the volume of doubtful loans for these institutions stood at €2.404 billion at the end of June, €166 million less on a monthly basis. Compared to the same month last year, the doubtful balance decreased by about €479 million.

Finally, according to the Bank of Spain, total credit institutions’ provisions stood at €27.654 billion, a reduction of €330 million compared to May, while the year-on-year change showed a decrease of €1.598 billion.

Original Story: Europa Press
Edition and translation: Prime Yield

The deal, which could be closed for between 100 and 150 million, would be a cut compared to the 200 million asked for two years ago.

KKR is moving forward in the process of divesting Hipoges, its subsidiary specialising in the management of real estate assets in Spain. As reported by Bloomberg, the US fund is in exclusive negotiations with Pollen Street Capital, a British investment firm that also controls the servicer Finsolutia.

The sale process, which was reactivated at the end of 2023 with the mandate granted to Alantra, has entered its final phase. Although KKR’s initial objective was to reach a valuation of around 150 million euros, sources quoted by ElConfidencial suggest that the deal could finally close at around 100 million. In any case, both figures would represent a downward adjustment compared to the 200 million requested in a previous sale attempt that did not materialise.

After that failed attempt, Hipoges explored the possibility of acquiring Servihabitat – Lone Star’s real estate subsidiary -, an operation which also failed to come to fruition.

Hipoges’ situation has been conditioned by the recent transfer of assets from Sareb to Entidad Estatal de Suelo (Sepes), with the aim of allocating them to affordable rentals. This government decision directly affects the servicer, which in 2021 was awarded the management of a portfolio valued at €25 billion from the so-called ‘bad bank’.

In addition to Pollen Street, other firms such as doValue (owner of Altamira), J.C. Flowers (through Pepper Advantage) and Arrow Global Group (through Amitra Capital) have also shown interest in the transaction.

With a portfolio of more than €50 billion under management, Hipoges remains one of the leading real estate and financial asset servicing platforms in Spain.

Original Story: Iberian Property | Author: Alexandre
Edition: Prime Yield

The Bank of Spain has warned investors in the real estate market that the risk of default in the sector has increased.

This Monday, the Bank of Spain issued a statement warning of an increase in the risk of loan default by non-financial companies, largely driven by the construction and real estate sectors, as well as other services.

‘There has been a slight increase in the probability of loan defaults in recent quarters,’ the bank said in its biannual report on the financial situation of households and businesses. The report states that the probability of defaulting on bank debt has risen by 39 basis points since the third quarter of 2023, increasing from 2.14% to 2.5%. However, this figure remains 25 basis points below the 2022 average.

Of these 39 basis points, 31 rose in the fourth quarter of last year, while the remaining eight points rose in the first half of 2025. This trend was observed across companies of all sizes.

Nevertheless, the deterioration in credit quality was somewhat more pronounced among large companies, with a 51-basis-point increase in the probability of default from the third quarter of 2024 to reach 2.03%. This figure is approximately 50 basis points below the average for non-financial companies overall, according to Europa Press.

What has happened?

The recent increase in the probability of corporate default has mainly been driven by growth in the construction and real estate sectors, as well as other services. In fact, the average risk of default in these sectors has increased by 44 and 96 basis points respectively since the third quarter of 2024.

Conversely, credit risk has risen slightly in the trade and hospitality sectors, reaching nine and twelve basis points above the third-quarter 2024 probability of default in the first quarter of 2025.

Nevertheless, the Bank of Spain has warned that the data ‘do not indicate a significant increase in tail risk, as the proportion of credit classified in the highest risk category has remained at levels similar to those in 2022’.

Regarding the increase in risk in the construction and real estate sectors, the agency explained that the deterioration is due to ‘an increase in the risk associated with the credit balance, assuming a constant debt structure and borrower composition’.

Original Story: El Economista
Edition and transalation: Prime Yield

Photo: Jorge Fernández Salas at Unsplash

The volume of non-performing loans (NPL) fell to 37.926 billion, which is 10% less than a year earlier.

According to provisional data published by the Bank of Spain, the Spanish banking sector’s NPL ratio continued to fall in the fourth month of the year, reaching 3.18% — its lowest level since October 2008, when it stood at 2.92%.

This was also a decrease compared to March, when the default rate was 3.21%, and April 2024, when NPL accounted for 3.60% of the credit stock.

The volume of doubtful loans fell to €37.926 billion in April, which is €354 million less than in March and €4.22 billion less than in April 2024.

This decline in NPL is accompanied by an increase in the total amount of loans granted in Spain. During April, the total stock of loans granted was €1.193 trillion, representing an increase of around €2 billion compared to March, and around €22 billion compared to April 2024.

Breaking the data down by type of institution, the NPL ratio for all deposit institutions (banks, savings banks, and cooperatives) was 3.08% in April, which is three basis points lower than the previous month and almost 40 basis points lower than in the same period in 2024.

In absolute terms, this type of institution recorded a €351 million decrease in its NPL portfolio, bringing it to €35.201 billion. Compared to April 2024, this is about €3.702 billion lower.

Meanwhile, credit institutions saw their NPL ratio rise to 5.99%, an increase of 20 basis points compared to March, though the year-on-year reduction remains at over one percentage point.

The volume of NPL for this type of institution was €2.538 billion at the end of April, which is €15 million less than the previous month. Compared to the same month last year, the non-performing balance fell by around €527 million.

Finally, according to data from the Bank of Spain, provisions for all credit institutions totalled €28.548 billion in March, which was a decrease of €37 million compared to the previous month. The year-on-year variation showed a reduction of €1.49 billion.

Original Story: Diário Publico | Author: Europa Press
Edition and translation: Prime Yield

AltamarCAM Partners, through its management company Altamar Private Equity SGIIC, has officially launched and registered with the CNMV its new fund of funds for secondary investments: ACP Secondaries 6 FCR, with a target total committed capital of €1.3 billion. This vehicle is part of the global ACP S6 programme, which will also include parallel vehicles and complementary structures managed or advised by the group.

According to data from Lazard, the global volume of transactions in the secondary market reached $150 billion in 2024 and could reach $200 billion in the next two years. The launch of the new fund comes a few months after Altamar announced, last February, the closing of ACP Secondaries 5, after reaching €1.6 billion in committed capital. The firm is currently among the top 20 secondary fund managers worldwide, in a market dominated by Ardian. Altamar already manages more than €20 billion in assets and has set itself the goal of doubling that figure within five years.

ACP Secondaries 6 is designed to invest predominantly in secondary transactions in private equity funds, selecting mainly international underlying funds — buyouts, growth and venture capital — as well as complementary private assets, including infrastructure and distressed debt.

The fund’s investment strategy is based on three pillars: secondary transactions, co-investments and primary (on and opportunistic basis). Regarding the secondary transactions, the vast majority of investments will be made in the secondary market for private equity fund interests, where Altamar has extensive experience. As for co-investments: up to 20% may be allocated to direct co-investments with other funds or strategic partners. Last, a limited and selective exposure to primary transactions is envisaged.

In terms of geographical scope, ACP Secondaries 6 will take a global approach, with a primary focus on Western Europe, the United States and emerging markets, without setting minimum or maximum limits per region.

The fund may invest up to 100% in other venture capital entities in accordance with Law 22/2014 (LECR) or equivalent foreign entities, while also retaining the possibility of co-investing directly in target companies alongside such entities.

ACP Secondaries 6 also contemplates the creation of parallel vehicles to adapt to the regulatory, tax or structural requirements of different types of investors. All investments will be made under substantially equivalent conditions between the main fund and its associated vehicles.

This new strategy reinforces AltamarCAM’s position as one of the key players in the European secondary fund investment market, combining access to quality opportunities with a focus on global diversification and risk control.

Original Story: Capital Riesgo
Edition and translation: Prime Yield