npl-reo Market News: Spanish Real Estate Intelligence

Novo Banco Has Sold 55% of its Portfolio of Properties Since 2017
11 February 2020 In the years between 2017 and 2019, Novo Banco reduced its stock of properties by approximately 55%. As a result, the bank managed to dispose of €1.5 worth of non-productive properties, taking advantage of favorable market conditions. Just five of the properties sold accounted for sales of 250 million euros. Furthermore, Novo Banco offloaded about one-third of the assets through portfolio sales, including Viriato and Sertorius in Portugal, and Albatroz in Spain. Novo Banco also sold large plots of land for real estate development, such as Herdade da Matinha, in Alentejo, Olivais Norte in Lisbon, the Quinta Seabra Gomes in Vila Nova de Gaia and Alameda das Antas in Porto. Original Story: Jornal Econômico - Maria Teixeira Alves Translation/Summary: Richard D. Turner
CGD’s Non-Performing Loan Exposure Falls to 4.7%
3 February 2020 CGD has managed to reduce its exposure to NPLs by 7.9 billion euros, down by 75%, since December 2016. The bank, which created a strategic plan to reduce its bad debts in 2016, saw its NPL ratio fall from 15.8% four years ago to 4.7% now. If one only takes into account loans that are more than 90 days overdue, the ratio drops to just 2.8%. The bank's CEO will have to submit a report to the European Directorate-General for Competition later this year. The requirement is based on Brussel’s approval of an almost €5 billion injection of public funds in 2017. In December 2019, CGD had a total stock of non-performing loans of €2.7 billion, 4.7% of its total portfolio. That is below the European Banking Authority’s maximum target level of 5% and well below the average for Portugal’s banks as a whole (8.3%). The ratio, however, is still well above the European Union average of 2.9%. Original Story: Jornal Econômico - Maria Teixeira Alves Translation/Summary: Richard D. Turner
Portugal’s Banks Continue Efforts to Reduce Exposure to NPLs
7 January 2020 Portugal’s banks continued their efforts to reduce their exposure to non-performing loans in 2019, as the overall NPL ratio fell to 7.7% at the end of the third quarter. According to a report by the Bank of Portugal, however, those same banks still have €21.736 billion in NPLs on their balance sheets. During the first nine months of the year, the country’s banks lowered their non-performing loan exposure (NPE) by a total of €4.12 billion, decreasing the overall NPL ratio by 1.7%. On the other hand, the overhang of bad debt is a problem that stems from Portuguese businesses rather than its residents. The NPL ratio for debts contracted by individuals stood at 4% at the end of September, compared to 15.7% in the corporate sector.

Em português

Os bancos que atuam em Portugal continuaram seus esforços para reduzir sua exposição a empréstimos não produtivos em 2019. O rácio geral de NPLs caiu 7,7% no final do terceiro trimestre. De acordo com um relatório do Banco de Portugal, no entanto, esses mesmos bancos ainda têm € 21.736 milhões em NPLs em seus balanços. Durante os primeiros nove meses do ano, os bancos do país reduziram sua exposição a empréstimos vencidos (NPE) em um total de € 4.120 milhões, reduzindo o índice geral de inadimplência em 1,7%. Por outro lado, o excesso do crédito malparado é um problema que provém mais das empresas portuguesas quanto ao seus residentes. O índice de inadimplência contraído por pessoas físicas atingiu 4% no final de setembro, ante 15,7% no setor corporativo. Original Story: Economia Online - Alberto Teixeira Translation/Summary: Richard D. Turner