CGD is close to concluding the sale of two NPL portfolios
The bank headed by Paulo Macedo wants to sell two NPL portfolios this year. "The proceedings are well under way", CGD stated in the conference call for the quarterly results.
Caixa Geral de Depósitos (CGD) will sell two nonperforming loans’ portfolios this year, in an effort to continue decreasing this “burden” that still weights in on the bank’s profitability. The information was disclosed to investors and analysts in the conference call for the first quarter results. According to the bank headed by Paulo Macedo, the proceedings “are well under way”. The amount that will be allocated for the sale was not disclosed.
“We are selling two NPL portfolios”, stated CGD’s manager, José Brito, during the conference call explaining the results of the first three months of 2018. It was during that period that the State bank went from losses to earnings of 68 million euros, a result that was justified by the positive contribution of the bank’s activity in Portugal.
"We are selling two NPL portfolios. ”
Both proceedings are “well under way”, the bank’s manager stated. Nonetheless, both sales will not be concluded at the same time. “We foresee that the first proceeding will be concluded in the end of the second quarter”, stated José Brito, adding that the second sale “should be delayed to July or August”. Although it did not move forward with a number for these sales, CGD assures they will “undoubtedly have an impact on the upcoming quarters”.
The State bank, as well as other Portuguese banks, has been making an effort to reduce the weight of toxic assets from its balance. According to the quarterly results, the financial institution reduced its NPL levels by 600 million euros in the first three months of 2018. Since January of 2017, this reduction has ascended to 3.3 billion euros.
