21 March, Finanza Report
IBL Banca, the group specialised in the financial sector operating on salary- and pension-deducted loans, is preparing for its debut in the NPL management, a market that, according to Equita Sim, should see transfers from banks for additional 43 billion bad loans in the next two years as a consequence of the ECB addendum.
The bank has signed a binding agreement for the constitution of a joint venture with Europa Factor. Th new company will be dedicated to the purchase and management of NPL portfolios, with a focus on the financial and banking segment. The business will use as a special vehicle company Credit Factor Spa, equally owned by IBL and Europa Factor.
The closing of the operation is subject to the authorization by Banca d’Italia which it’s expected by the end of the summer.
The business plan is mainly oriented towards the purchase operations of small ticket credits, namely exposures for small nominal amounts.
IBL Banca, whose core business is represented by the issuance of salary-deducted loans, has already concluded in the past two years purchase operations for performing credits portfolios. With this agreement, the bank is expanding its activities to NPLs. Considering the new guidelines from the ECB, the Italian NPL market “is registering an increasing interest from international companies and a growth of the transactions. The joint venture with Europa Factor will allow us making a step forward in our business diversification strategy”, explains the IBL Banca Ceo, Mario Giordano.
The partnership is aimed at integrating the expertise of IBL Banca in salary-deducted loans with that of Europa Factor, which can rely on a consolidated experience in purchasing NPLs and that has developed advanced management software to optimize the phases, processes and collection rates of the credits.
Source: Finanza Report
Translator: Cristina Ambrosi