Non-Performing Loans

Securitisations of non-performing loans using state guarantee schemes in Italy and Greece have been the main tool European banks have used to dispose of NPLs so far this year, a Debtwire anaylsis shows.

European banks have been preparing for a new wave of bad loans due the COVID-19 crisis. In the first quarter of 2020, Europe's largest banks set aside more than EUR 21.5bn of provisions to cover losses from bad loans, up 207% from EUR 7bn in the same period in 2019, as they brace for a financial fallout due to the virus.

The volume of non-performing loans of Spain’s six largest banks decreased further during  1Q20, but the banks have still set aside record levels of provisions to cover losses from an expected surge in bad loans due to the coronavirus pandemic.

The COVID-19 outbreak has effectively halted non-performing loan portfolio sales in Europe. With a total volume of loan sales of EUR 3.8bn, according to the new Debtwire European NPLs – 1Q20 report.

NPL Chart of the Week: 21 January 2020

NPL Chart of the Week: 07 January 2020

NPL Chart of the Week: 09 December 2019

NPL Chart of the Week: 03 December 2019

NPL Chart of the Week: 25 November 2019

NPL Chart of the Week: 23 September 2019

NPL Chart of the Week: 10 September 2019

NPL Chart of the Week: 27 August 2019