Ubi Banca gets rid of around 900 million Npl and reduces the ratio on non-performing loans by one percentage point, which drops from 10,4 to 9,4 per cent. This was announced by the bank, specifying that the sale of disputed factoring receivables was finalized for approximately €157 million gross, subject to deconsolidation as early as the second quarter of the year. The binding offer from Credito Fondiario was also accepted for the sale of a leasing portfolio classified as non-performing, for a gross nominal amount of approximately € 740 million on 31 October 2018.
The overall impact of the two transactions on the income statement in the second quarter of the year will be approximately €104 million gross (approximately €70 million net) to be accounted for under the item “loan adjustments”.
The overall ratio of gross non-performing loans to total gross loans, calculated on the data as at 31 March 2019, stands pro-forma at 9,4% compared to 10,4% recorded at the end of March 2019. Furthermore, the bank continues, they continue recoveries through internal management at a sustained pace, expected to contribute significantly in the year to the further reduction of the stock of non-performing loans.
The Ubi Banca share was up by 1,29% to 2,5 euros when the Ftse Mib floated at +0,18% in Piazza Affari around 11:16 on Monday morning.
“The agreement signed today constitutes one of the most important deals in Italy in the leasing sector, in which Credito Fondiario has been operating since 2015 and in which it has made no less than five acquisitions” commented Guido Lombardo, head of investments at Credito Fondiario.
The acquisition will be structured in accordance with the law on securitization and provides for the acquisition of the entire portfolio by Credito Fondiario to be completed through the use of a vehicle company for the securitization of the receivables present within the portfolio and a leasing company for the purchase of reports and goods. The completion of the transaction will be divided into two phases, to be concluded respectively by September 2019 and by December 2019.
