On December 31st, Banco Montepio announced the sale of a non-performing loan portfolio, with over 10 thousand contracts and a gross value of 253 million euros, in order to reduce exposure to non-performing loans.
At that time, the bank expected that the operation would have an immaterial impact on the accounts, but in the statement released today complements the information with the sale value and points to a positive impact of 1.5 million euros.
“Banco Montepio informs that on the 29th December 2021, and after a competitive sales process, entered into purchase and sale agreements relating to a portfolio of non-performing loans, in the form of direct sale to entities LX Investments Partners III (based in Luxembourg ), BTL Ireland Acquisitions II Designated Activity Company (based in the Republic of Ireland) and BTLP Acquisitions I Unipessoal, Lda (based in Portugal)”, recalls the document nto.
The gross amount sold was 253 million euros, in a portfolio that included 10,318 contracts, with and without guarantee, recorded in the balance sheet and off the balance sheet.
The novelty is that “the sale value of the loan portfolio totaled 58.4 million euros, translating, after the total derecognition of loans, an estimated positive impact on Banco Montepio’s results, after the tax effect, of 1.5 million euros”, and the NPE ratio will be reduced by 1 percentage point as a result of the decrease in non-performing exposures.
Immediately, says the institution, the transaction contributes to an increase of 3 basis points in the total capital ratio of Banco Montepio, “consolidating the strategy initiated by the board of directors of continuous reduction of non-performing assets and strengthening of capital ratios”.
The bank led by Pedro Leitão recorded losses of 14 million in the first nine months of the year, which translated into an improvement compared to the negative result of 57 million euros in the same period.
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