How Banca Ifis is enjoying the NPL boom
Banca Ifis outlines pessimistic system scenarios for Npls and thus amplifies forecasts that will increase the business of the Fürstenberg bank
The total stock of impaired loans to be managed in Italy, expected to grow by 5% at the end of the year to 338 billion, will rise further in 2021 to a total of 385 billion euros.
This is the pessimistic scenario contained in the Banca Ifis Npl Observatory, presented yesterday at the 'Npl Meeting The New Wave' conference in Cernobbio (Como).
THE SCENARIOS THAT MAKE BANCA IFIS CELEBRATE
The bank, which is active in the management of impaired loans, expects a “probable further increase in 2022”. A positive scenario for Banca Ifis, which operates precisely in the NPL sector: 44% of the 2020 NPE stock in Italy is managed by 6 servicers, including Banca Ifis itself, which therefore wallows in a big way with the growth of NPLs.
SYSTEM NUMBERS
From 2013 to 2019 the 'servicing' sector achieved double-digit average annual growth rates, over 10%, in terms of revenues, assets under management and investments.
DETERIORATION RATES
According to the Venetian bank, the deterioration rate in Italy will rise from 1.3% in 2020 to 2.8% in 2021 "due to the economic contraction" of the current year.
RELATIONSHIPS
In this way, the ratio between NPE (the set of impaired loans, which includes non-performing, substandard and overdue loans) and total loans disbursed will rise from 6.2% in 2020 to 7.3% in 2021. In particular, Banca recalls Ifis, “2020, thanks to the disposals of NPL portfolios, records an improvement index compared to the past”.
THE WORDS OF COLOMBINI
"As for the other markets, the non-performing loan market will enter a new economic cycle that will see an increase in non-performing exposures on banks' balance sheets". This is the prediction of Luciano Colombini, CEO of Banca Ifis. During his speech at "The New Wave" – ninth edition of the NPL Meeting of Banca Ifis, the Italian reference event for the non-performing loans and bank restructuring market held in Villa Erba in Cernobbio (Como) – Colombini he underlined how the financial system is nevertheless well positioned compared to the previous crisis “because the banks have implemented detection / monitoring systems and active methods of managing NPE loans in the various stages of deterioration. Npl operators – he explained – are in fact a real industry with about 8 thousand employees and 230 billion euro of NPE under management, capable of intervening in the various phases of the credit process to contain deterioration and maximize NPL recoveries ". A scenario in front of which the CEO of Banca Ifis is optimistic. “For the months to come – he said – we want to look with confidence at the signs of recovery capable of activating new virtuous circles for our economy. We must not run away from the market but adapt the price estimates to the new situation ".
THE PROPERTY OF BANCA IFIS
With the release of the authorization by the ECB , the president of La Scogliera, parent company of Banca Ifis, Sebastien Egon von Fürstenberg, last May transferred the bare ownership of approximately 51% of the share capital to his son Ernesto Fürstenberg Fassio of the company and related voting rights. This was announced in a press release from La Scogliera, in which it is specified that Ernesto Fürstenberg Fassio is the new indirect controlling shareholder of Banca Ifis. President Sebastien Egon von Furstenberg holds ordinary shares in the holding, representing 22.65% of the share capital, in full ownership.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/banca-ifis-npl/ on Thu, 01 Oct 2020 08:29:26 +0000.