The Sale Of Non-Performing Loans In Spain Fell By 63% In 2019 To €22 Bn

Economy at a glance: the bank of Spain forecastsThe Bank of Spain

The sale of non-performing loans (NPLs) in Spain totalled € 22 billion in 2019, 63% lower than the 60 billion registered the previous year, according to data from Prime Yield’s ‘Keep an Eye on the NPL & REO Markets’ report.

Looking ahead to 2020, the firm expects sales volume to stabilize at around 20 billion euros. It also flags that these portfolios do not only include mortgages but also unsecured consumer loans, so unsecured portfolios, granted to companies and households.

Prime Yield considers there are “many interesting opportunities” in this market, which is “one of the most mature NPLs” in Europe. Therefore it is expected that the sales volumes of this type of portfolio will stabilize throughout 2020, in line with the trend and activity levels registered in 2019.

The stock of NPLs in Spain continues to drop and stands at € 61.5 billion, according to Bank of Spain data for the third quarter of 2019. The NPL ratio was 3.4%, close to the European average of 2.9%.