Sabadell releases more unproductive assets in the midst of BBVA’s offensive. The bank has agreed to the sale of 350 million euros in non-collateralized debt to Axactor (unsecured in financial jargon). This is the Electron Project, made up of 274 million in debt with individuals and 77 million from companies and which has had Deloitte as an advisor, according to market sources.
Banks have internalized the sale of unproductive assets – debt and real estate – as a common and almost industrialized process to clean up balance sheets and keep delinquencies at bay, but their placement is accelerating in recent months before the future regulation comes into force. on the sale and management of debt and servicers.
On this occasion, Sabadell closes the transaction with an old acquaintance to whom it transferred the Maui Project in the first part of the year – a portfolio of 120 million exposure, made up of 90% consumer loans – and with whom it has closed multiple operations in the past. The Norwegian fund was awarded, for example, the Galerna portfolio in 2018 with 900 million in bad loans.
Mortgage sales
The entity has resolved, at least, two other portfolio transfers to the Balbec fund for a total grouped volume of 440 million euros, in their case of mortgages up to date with payments that in the past were refinanced or had some impact on the payment of amortization installments, or that the bank had counted as “under special surveillance.”
In the case of Axactor, the transaction crystallized after the fund has cashed in with the recent divestment of uncollateralized loans with a gross nominal value of 3.7 billion euros. These are 14 portfolios dating back to before 2019 that have been sold to, precisely, obtain liquidity with which to undertake new acquisitions.
The Norwegian specialist has positioned itself among the largest investors of non-performing assets in the national market. Among other operations this year, a BBVA portfolio with 270 million in doubtful consumer loans, from the Estoril Project, has also been awarded, and was established with the Genoa operation of 1,500 million in failed loans to real estate developers placed by Sareb.
During the last year, it closed investments in portfolios that grouped 25.46% of the global volume of all portfolios transacted in the market by banks and funds. Only Cerberus surpassed this mark, with 36.89% acquired directly or through its subsidiary GCBE, according to estimates by the consulting firm Atlas Value Management. The third most active player was Fortress, with another 7.79%.
Troubled assets
At the end of September, Sabadell’s exposure to problematic assets amounted to 6,155 million and it had 3,564 million in provisions against possible losses, 57.9%. Of the total, 5,283 million corresponded to non-performing financing and another 872 million in real estate assets. The total weight of non-productive assets is equivalent to 1.1% of the bank’s total assets, with a specific non-performing loan ratio of 3.6%, lower than the 4.1% a year earlier.
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