Novobanco has entered into a Non-Performing Loans (NPL) Sale and Purchase Agreement, without guarantees (unsecured) and related exposures (assets).

The announcement was made in a statement and the bank says that the contract was signed following the conclusion of a competitive sale process.

The completion this transaction, under the agreed terms, should have a positive impact on asset quality ratios, reducing the amount of NPLs by around €100 million and the gross NPL ratio to approximately 3.5 per cent (proforma to December 2024), reveals the bank led by Mark Bourke.

‘This is a significant milestone for Novobanco, enabling it to fulfil its strategy of convergence towards the EU average,’ in terms of the ratio of NPL to the total portfolio.

The transaction, carried out for 30.7 million euros, should have a positive impact on the 2024 income statement, contributing around €6 million to Pre-Tax Results and resulting in a 6 basis point increase in Capital Ratios.

The buyer and the name of the portfolio has not been disclosed.

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