The targets set for the end of 2021 have been reconfirmed by the banks after the publication of the first quarter 2019 results.
More specifically, the NBG’s operational targets report a decrease of €11.5 bn, of which € 4.3 bn is the target for 2019. The target set to the end of 2021 is €2.4 bn NPLs and 4.3 bn NPEs (bank) and €4.7 bn (group). By achieving these goals, the NPE index will be decreased to low-level (low teens). At group level, a 5.9 €bn reduction will come from sales and securitizations, €2.2 bn from auctions and liquidations, €3 bn from debt recovery and adjustments and €400 m from NPL write-offs.
Alpha Bank: By the end of 2018 the bank’s NPEs were €21.9 bn at country level and 25.7 billion euros at group level. This year, NPEs will be reduced by €5.7 bn, and will reach €16.2 bn. According to the plan, the next sales include €0.1 bn corporate loans in 2019, €3.8 bn SME loan portfolio secured by RE assets, and securitization of retail loan portfolio with collateral in residential property (Project Neptune and Project Orion).
Eurobank: The drastic NPE reduction plan predicts that at the end of this year they will come down to €6.6 billion. At the end of 2018 the bank had €16.7 billion NPEs. The target is to reduce this number to €5,5 bn by 2021. This year a €10.1 bn reduction will come through two securitizations, the Pillar Project (€2 bn mortgages) and the Cairo project (€7 bn denounced loans).
Piraeus Bank: The bank sticks to the original plan to reduce its NPEs with sales, securitizations and organic actions that amount to €15.1 bn by the end of 2021. More specifically, €6 bn NPEs will be securitized in 2020-2021. For this year, the reduction is estimated to reach 3.5 €bn. In 2020 the reduction amount will reach 6.4 bn. euro and in 2021 5.2 bn.