22 December, Market Insight
The clearance operations of bad loans by Unipol Banca has started. Unipol Gruppo Finanziario (Ugf) holds 57.75% of the capital and UnipolSai Assicurazioni the 42.25%.
In the last days, the extraordinary meeting of Unipol Banca has given the green light to the proportional division of the 2.94 billion euro gross portfolio of bad loans (587 million net of adjustments), as it was announced last June. The two shareholders of the banks have also launched the transfer of a portfolio held by the bank.
The NPL portfolio (leasing loans and loan guarantees excluded) will be transferred to a newco created just for this purpose, UnipolRec, which will absorb also the staff working at the management of these credits. The vehicle created will have a capital of 290 million (before completing the Unipol Banca operation, the company will be capitalized pro-quota by the two shareholders for 300 million) as well as the debts originating from the split.
Moreover, the newco will receive the whole quota of Unipol Reoco, the company operating in real estate promotion.
We must remind also that in the first semester of 2017, it was decided to raise the coverage level up to 80% for bad loans and up to 40% for the unlikely to pay. The main adjustments caused exposures for 390 million.
Once cleaned up the bad loans, Unipol Banca might merge with another bank. At 10:50 today the stocks rose by 0.9% at 3.9 euro, while the sector index lost 0.1%.
Source: Market Insight
Translator: Cristina Ambrosi