There is a tide slowly receding in the world of credit: that of non-performing loans (NPLs). And it risks leaving some vessels stranded. The more forward-thinking credit managers have already begun to reposition themselves.
“Fewer NPLs, more value-added services and investment in technology, especially artificial intelligence,” doValue’s CEO, Manuela Franchi, summarised to Corriere.
Bank balance sheets explain the phenomenon well. In the two-year period 2022–June 2025, the stock of impaired loans in Europe stood at €273 billion, but with divergent dynamics: the increase was driven by Germany with €14.4 billion and France with €11.8 billion, while flows declined in Spain and, above all, in Italy. Here, banking bad debts have fallen from €200 billion in 2015–2016 to €28.3 billion in 2025.
“We manage impaired loans; we do not buy them,” Franchi emphasised, distinguishing doValue’s model from that of other operators more exposed to refinancing costs.
The 2024–2026 industrial plan is progressing as expected: in 2025, profit rose to €25.3 million from €6.7 million in 2024, while gross revenues, at €580 million, increased by 21%. These results were also supported by the €2.7 billion in NPEs managed on behalf of BPER.
The group’s profile is also changing thanks to acquisitions. After Gardant, incorporated in 2024 and focused on UTPs (unlikely to pay), the German company Coeo is now arriving, which will strengthen the group’s international presence. Gardant has already generated €5 million in synergies, expected to rise to €10 million this year and €15 million in 2027.
With Coeo, the group will enter new markets – Germany, Scandinavia, the United Kingdom, Benelux, Austria and Switzerland – adding to Italy, Greece, Spain and Cyprus. The strategy of growth through acquisitions is not new: in the past, doValue acquired Altamira in Spain (2019) and Eurobank FPS in Greece (2020). New deals are possible after 2027, once the current structure has been consolidated.
At the same time, the group has invested heavily in technology to reduce costs and expand its portfolio. It is now increasingly focusing on UTPs and performing loans, as well as services for companies.
Germany will play an important role. Coeo specialises in small-ticket loans linked to digital markets, energy and telecommunications, and has developed its own artificial intelligence company for debt collection. After integration, the share of NPLs in doValue’s core business will fall to 45%, marking a shift away from an overly concentrated model.
Meanwhile, traditional activity continues to grow: the group has secured €8 billion in new assets and, over two years, has exceeded €24 billion, reaching the targets of the industrial plan a year ahead of schedule.
Artificial intelligence will mainly be used to improve recovery forecasts and automate processes, increasing margins towards 40%. The financial structure also remains under control: leverage fell from 2.4 in 2024 to 2.0 in 2025 and, despite the acquisition of Coeo for €350 million, it should stand at 2.2 this year before dropping below the level of 2 in 2027.
“Our traditional business remains central,” Franchi concluded, “but we are opening up new segments with higher growth rates, particularly in small-ticket loans.”
Original Story: Market Screener | Author: Alliance News
Edition and translation: Prime Yield