5 August 2019
Moody’s stated Banco Montepio’s sale of non-performing loans to Panorama Jubilante, worth 321 million euros, would lower its exposure to bad debts by up to 220 basis points. The bank reported a NPL ratio of 14.3% at the end of March, compared to 14.4% in December, well below its peak of 21% in 2015. Nevertheless, the figure is well above the average 9.6% for Portuguese banks as a whole.
Moody’s notes that “as part of its risk mitigation strategy”, Banco Montepio has been reducing its NPL exposure through sales of NPL portfolios and write-offs.
The non-performing assets ratio (NPAs, NPLs plus real estate assets) fell to 21.2% at the end of December 2018 from 24.1% the year before.
Original Story: Notícias ao Minuto
Photo: Global Imagens
Adaptation/Translation: Richard D. K. Turner