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.
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 Servicer||NPE AUM||Mkt Share|
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