UBI Banca follows up on what was communicated on 1st August 2018, and informs that the sale of 95% of the mezzanine and junior notes to institutional investors has been completed, a successful transaction in terms of timing and content, despite the adverse market conditions. Consequently, as at 30th September 2018, UBI Banca will proceed with the accounting deconsolidation of the securitized bad loans whose nominal value (gross book value) at the beginning of the year was €2,75 billion, corresponding to a gross book value of €1,6 billion about. Pro-forma data as at 30 June 2018, taking into account the transaction that has just been completed, the ratio of gross non-performing loans falls to approximately 11% and that of net non-performing loans to approximately 7,1%.
The sale of the mezzanine and junior tranches results in an after-tax loss of €43,8 million (€65,3 before tax), which will be recognized in the group results as at 30 September 2018. At the capital level , this loss will be largely offset by the reduction in RWA relating to the bad loans sold. No further negative impacts are expected on the capital ratios, also factoring in future updates of the LGD following the aforementioned sale. The application to obtain the guarantee from the Italian State (GACS) on the senior notes, which are wholly held by UBI Banca, has been presented and the administrative procedure is awaited.
