MPS sells non-performing exposures for about eur 1.8 billion and continues derisking process
NPEs for EUR 3.8 billion sold in 2019
Pro-forma1 Gross NPE ratio at c. 12.5%, reaching Plan’s 2021 target of 12.9% two years in advance
Siena, 30 December 2019 – MPS Group continues its derisking process and finalises three more impaired loan disposal transactions, for a total of about EUR 1.8 billion. These transactions are in addition to the previous ones concluded in the course of the year and bring the total of non-performing exposures sold by the Group during 2019 to c. EUR 3.8 billion.
The deals concern, in particular:
- the disposal, without recourse, of non-performing loans (NPLs) for approximately EUR 1.6 billion to illimity Bank S.p.A. . The portfolio is mainly composed of unsecured NPLs owned by Banca MPS and MPS Capital Services;
- two transactions, for a total of c. EUR 0.2 billion, relating to the disposal without recourse of unlikely-to-pay exposures (UTPs), mainly secured loans to corporate customers, owned by Banca MPS and MPS Capital Services.
With these agreements, which are in addition to the previous ones concluded during the year, MPS Group pro-forma2 gross NPS ratio comes to c. 12.5%, reaching the 2021 Restructuring plan target of 12.9% two years in advance.
The completion of these transactions, therefore, represents a further and significant step forward in accelerating the derisking process envisaged by the 2017-2021 Restructuring Plan and in complying with the commitments made with the European Commission.
1 Proforma as at 30 September 2019, including, in addition to these transactions, disposals already perfected at 09/30/2019 but awaiting deconsolidation
2 See footnote 1