The BCC Iccrea Banking Group has completed a new idea involving the sale of impaired loans for a total Gross Book Value equal to 300 million euros, referring to a large number of debtors and financial institutions.
Details of the Transaction
The sale involves a selection of non-performing loans, including non-performing loans and UTPs, from more than 2,500 borrowers. This move saw the active participation of 72 banks belonging to the Group, including 71 BCCs and the parent company BCC Banca Iccrea. The intent was to relieve the group’s balance sheet of the most difficult loans, thereby improving risk indicators.
Impact on Ratios
Thanks to this transaction, the BCC Iccrea Group was able to record a significant improvement in its performance indicators. Specifically, the gross NPL ratio fell by 30 basis points to 3.6 percent. The net NPL ratio also saw a decline, standing at 1.0%, a result that not only exceeds the national average but also ranks among the best in the Italian banking scene.
Capital Strengthening
In addition to improving risk indicators, the transaction had a positive impact on the group’s capital. With an estimated increase of about 7 basis points, the CET1 ratio rose to 21.1 percent and the TC ratio to 22.2 percent at the end of the year 2023, testifying to the financial strength achieved by the group.
The transaction thus confirms the BCC Iccrea Group’s commitment to proactive and strategic risk management, laying the foundation for sustainable growth and long-term financial strength.
Mauro Pastore, General Manager of BCC Banca Iccrea, commented : “The transaction concluded anticipating the strategic objectives set in the NPL Plan 2023-2025 and placing us among the best national players in terms of net NPL ratio confirms the great attention paid by the Group to the rigorous and proactive management of credit risks. We are extremely pleased with this result achieved together with the Affiliated Banks, especially considering that only four years ago the Group’s pro forma gross NPL ratio was 14.5 percent and net NPL ratio around 7.5 percent, values at the time almost double the national average of significant banking groups.”
Blogger and Investment Management Advisor with focus on Distressed Assets & NPL. Massimo is Chief NPL & Fintech Editor at Credit Village Magazine.