• Transaction / Assets
  • Seller
  • Buyer
  • € MM

Deutsche Bank Sells €430M NPL Portfolio To Oaktree

21 October 2016 – Expansión

The Spanish subsidiary of Deutsche Bank, led by Antonio Rodríguez Pina, has cleaned up the majority of the non-strategic assets that it has been holding in its NCOU (Non-Core Operating Unit) division. According to sources at the entity, the portfolio includes non-performing loans to SMEs, residential mortgages that have been refinanced and structured credits, amounting to €430 million in total. According to a document submitted yesterday by Deutsche Ban SAE to Spain’s National Securities and Exchange Commission (CNMV), this transaction forms part of the bank’s strategy to “substantially reduce the assets of that division before the end of 2016”.

Sources familiar with the operation confirmed that the US fund Oaktree will be the buyer, following a competitive process in which, according to Deutsche Bank “the main investment funds and entities specialising in the sector have participated”.

According to data from Deloitte, Oaktree is, along with Lone Star and HSH, one of the largest buyers of problem assets, with more than €5,000 million in Europe, followed by other players such as Bain Capital, AnaCap and Apollo.

This operation will allow Deutsche Bank “to save costs in terms of the resources it dedicates to the management of this portfolio and, at the same time, reduce its capital requirement”, according to the statement submitted to the CNMV.

Robust results

Despite the delicate situation that the German parent company is facing at the moment, Deutsche Bank in Spain is reporting robust results. At the end of last year, it reported earnings of €91 million compared with losses in the previous year year, according to data from the AEB. Nevertheless, during the first half of this year, the bank has slowed its growth earning just €24.65 million, which represents a decrease of 32% with respect to the same period last year.

Original story: Expansión (by D. B.)

Translation: Carmel Drake