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The turning point for NPL

23 April, Monitor Immobiliare

The announcement was welcomed unanimously as it doesn’t happen so often. Intesa Sanpaolo accomplished a double operation concerning non-performing loans – the 10.8 billion-NPL transfer and the joint venture with the Swedish Intrum for the servicing part – which is seen as the start of a new era for the Italian banking system.

Anticipating the regulator

Intesa Sanpaolo anticipated the regulators’ new requirements expected by September. In this way, the NPL ratio of the bank went below 10%. In addition, it managed to sell at a price equal to little less than 29% the nominal value, nearly the double of the current average prices on the market. Even though each operation is different, the bank will be an example for the others for what concerns the transactions of the sector. The operation had an immediate impact on the Stock Exchange.

After the transfers by UniCredit (to Fortress) and Mps (to Cerved), Intesa Sanpaolo transferred to Intrum 51% and kept the remaining 49%. A new market segment is taking shape which is attracting the international investors and might help to solve the issues of the Italian banking system. Banks play an essential role in the domestic economy, especially for what concerns small and medium businesses, whose survival is strictly connected to banks’ funding.

More oxygen to real estate

The news will be beneficial also for the real estate sector. According to an analysis by Unimpresa, in fact, almost 43% of the bad loans are backed by real estate. Of the total funding issued by banks and not repaid by companies, about 127 billion euro, over 54 billion are referred to the real estate and construction sectors. Construction represents over 27% of the total bad loans with approximately 35 billion euro, while real estate is 15% with 18 billion.

According to the report, the total companies’ impaired credits are worth 127.4 billion, while the total loans not repaid are 163.5 billion, having decreased by almost 40 billion in the last 12 months.

Source: Monitor Immobiliare

Translator: Cristina Ambrosi

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