CGD hires KPMG to sell 1,800 million euros of NPL

  • ECO News
  • 27 November 2017

The bank headed by Paulo Macedo continues making an effort concerning non-performing loans. CGD has chosen KPMG to help sell 1,800 million euros in mortgage, business and real estate credit.

Caixa Geral de Depósitos (CGD) is on the market to sell portfolios of non-performing loans (NPL). The bank headed by Paulo Macedo has chosen KPMG to help alienate 1,800 million euros in mortgage, business and real estate credit, ECO ascertained, in an operation to be performed between this year and the end of next year. This sale is part of the financial institution’s strategy of relieving the weight of defaulted loans, which still harm the bank’s profitability.

CGD wants to sell 200 million euros in mortgage credit, 200 million in real estate and 1,400 million euros in credit to companies, as part of the process of reducing risk-weighted assets, in order to relief the pressure on capital ratios. This sale will be advised by KPMG, ECO ascertained. Officially, CGD is not making any comments.

This operation joins other CGD has been performing. In July, CGD has sold 476 million euros in non-performing loan to the private equity fund Bain Capital Credit. In what was the fund’s first purchase in the Portuguese banking, the financial institution headed by Paulo Macedo was able to sell “mostly bilateral real estate loans from small and medium enterprises and some large companies”.