Specialization and Concentration as main drivers of NPL market

Unipol engaged 2 transactions with BPER involving

  • Sale of the entire shareholding in Unipol Banca to BPER Banca for €220m in cash 
  • Purchase by UnipolRec of a portfolio of the BPER Banca Group non-performing loans wth a gross value of 1.3€bn for a payment of €130m

This is quite representative of the most relevant trends that are going to shape Italian banking system and NPL market in 2019, after the significant volumes exchanged in 2018, above 100Bn according the latest report of Credit Village NPL observatory. 

We see that non core operations are being disposed as well as and sometimes together with NPE Portfolios as seen in Banco BPM – Eliott deal and Intesa Sanpaolo- Intrum JV  in recent months and previously in Unicredit – Fortress deal (project FINO). 

Rumors on additional deal are quite recurring in these days and it is quite likely to see more of this kind of JV transaction later on these year.

On the other hand we also seeing larger quantities of distressed assets being transferred under management of specialized players acting on behalf of investors as well as of banks.

  • Cattura.JPG

The servicing market analyses provided by Banca Ifis in its latest market watch shows strong concentration in the management of the assets disposed between 2015-28.

Looking at servicing market including both assets sold and remained on banks’ balance sheet we see that the top 3 special servicers accounts for some 62% of total market

Sp ServicerNPE AUMMkt Share

Sources: dobank and Cerved AUM as of 30 June 2018 from PWC’Italian NPL Market ;Tersia AUM from press release(10.8bn sold by Intesa +30bn formerly under management by its servicing platform).

The lower burden of bad debts on Italian banks is also expected to boost M&A process.

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GLG – Gerson Lehrman Group – Council Member

About Massimo Famularo

Investment Manager and Blogger Focus on Distressed Assets and Non Performing Loans Interested in Politics, Economics,
This entry was posted in Entering Italian NPL Market, Italian Banks and tagged , , , , . Bookmark the permalink.

2 Responses to Specialization and Concentration as main drivers of NPL market

  1. Pingback: Newsletter 2019-29-03 | Massimo Famularo (ITA)

  2. Pingback: Npl, viva la Garanzia statale. Ma siamo sicuri che il rischio sia sparito? - ilSole24ORE

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