Abanca removes new unproductive assets from the balance sheet. the bank will transfer nearly 140 million euros in two different operations that include healthy loans that suffered some incident in the last year and others financing with defaults. On the one hand, the bank has sold to the American fund Balbec Capital 60 million in refinanced and restructured mortgages (reperforming, in specialized jargon). The operation has been closed in Spain and is a continuation of the Xallas Project, with which a portfolio with similar assets and with a gross joint nominal value close to 80 million euros was transferred to the same fund.
In Portugal, the transfer of another 78 million is finalized in parallel in credits unsecured defaulters to Servdebt Capital Asset ManagementIberian asset management and recovery firm. This is what is called operation or Gaia Project.
About twenty divestments
So far this year, the entity has also closed the placement of a portfolio of 60 million in delinquent debt without mortgage guarantee to the Polish Kruk, in the portfolio Ezaro. In recent years it has completed around twenty similar divestments also in favor of KKR, EOS Spain or the North American fund CarVal Investors, among other investors.
Abanca has stood out especially in the credit segment reperformingwith five transactions closed in just four years. This is a type of asset of increasing importance in a market dominated by unsecured non-performing financing, after banks left behind the voluminous drain on real estate.
The portfolio transferred to Balbec integrates current mortgages with individuals, guaranteed by residential properties spread throughout Spain. For its sale, it has been structured through securitization, where the bank maintains the administration of the “healthy” loans and transfers them to a servicer when they become delinquent.
The segregation of unproductive assets and their subsequent sale is part of the routine management of entities to improve the quality of the balance sheet and transfer debt recovery to specialist firms, also freeing their teams from these functions.
In the case of Abanca, it has paced the cleanup of its balance sheet as it has also integrated entities during its acquisition career. The last one was completed last July, with Eurobic. But since Banesco entered Spain in 2012 with the acquisition of Banco Etcheverría and was awarded Novagalicia Banco (the current Abanca), the group has added Popular Servicios Financieros, the Portuguese business of Deutsche Bank, the activity in Spain of Caixa Geral de Depósitos and Novo Banco, Bankoa and Targobank.
At the end of September, kept its delinquency ratio limited to 2.6% -in 1,312 million-, with a provision piggy bank of 1,024.9 million and that covers 78.1% of the damaged assets. Its ratio is even lower and stands at 2.3% if Targobank and Eurobic are not taken into account.
Its exposure in foreclosed assets also remains very contained, with 433.13 million at the end of September, which represents just 0.2% of the group’s balance sheet and is backed by provisions that cover 63.3% of the risk.
#Abanca #places #million #unpaid #refinanced #loans #Balbec #Servdebt
