Sale of credit portfolio pushes CGD’s NPL ratio to below 10%

Caixa Geral de Depósitos (CGD), the Portuguese public Bank led by Paulo Macedo has completed the sale of a €825 million  NPL portfolio, an operation that pushed the bank’s NPL ratio to below 10%.

During the presentation of 3rdquarter results, CGD highlighted “the improvement in asset quality, with NPL ratio reducing to 9.6%” (considering already the disposal of a portfolio concluded in October 2018)”. Excluding this operation, the NPL ratio of the Bank stood at 10.5% at the end of the period analysed.

“We are currently commited in continuing a sustained reduction of this ratio in order to align with the European average by 2020”, stated the board director José Brito during the press conference.

As to the amount of NPL, the State Bank has presented a reduction of about €1,300 million, given the “positive evolution of sales, write-offs and debt recovery”, according to CGD’s quarterly accounts.

In what concerns the discount applied to the portfolio, Paulo Macedo only said that “it was a figure slightly better that the ones the market has been transacting”. The manager also highlighted that this operation has attracted several entities, but did not disclose who was the final buyer.

Paulo Macedo said also that the Bank aims to achieve a NPL ratio below 7% and that it is continuing to sell NPL portfolios, also disclosing  that a new sale of a €250 million NPL portfolio in the household segment should be completed before the year ends.

Original Story: Jornal de Negócios | Rita Atalaia
Photo: Caixa Geral de Depósitos
Translation and Editon: Prime Yield