Crédito Agrícola has just put up for sale a portfolio of non-performing loans (NPL) worth €93 million, the majority of which belong to small and medium-sized enterprises (SMEs), according to information gathered by ECO from market sources.

The sale includes a stake of secured operations, i.e. contracts with guarantees, 65 per cent of which correspond to NPL for SMEs, according to the same sources.

An official bank source confirmed that the ongoing market consultation process, which is expected to be completed in 2024, is part of the planned implementation of the strategy to reduce exposure to NPLs.

The group led by Licínio Pina has seen its assets decline recently due to high interest rates. In June, the NPL ratio reached 6.5%, up 0.3% from last year. This is more than double the national average of below 3%.

This was an increase of €36.4 million to 765.3 million, with over half (410.5 million) corresponding to SME NPLs. The portfolio on the market represents approximately 12 per cent of the NPL stock. By the end of June, the total amount of money set aside to cover NPLs was 293.3 million. This meant that 38.3% of NPLs were covered.

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