Banca MPS: disposal of a non-performing loan portfolio for about Euro 290 mln

The disposal process of non-performing loans continues in line with the 2015-2018 Business Plan

Banca Monte dei Paschi di Siena S.p.A. (“BMPS”) signed a binding agreement for the disposal without recourse (“pro-soluto”) of a non-performing loan portfolio to Kruk Group, debt collection company active in the European non-performing loans market, founded in Poland and with an overriding interest in Eastern Europe, Spain and Germany, recently also active in Italy in the acquisition of consumer products.

The assigned portfolio is composed of over 40,000 borrowers with a gross book value of circa Euro 290 million (circa Euro 350 million including default interests and/or other charges that are transferred along with the capital). The allotted non-performing loans are unsecured consumer credits, personal loans and credit cards originated by Consum.it, which was merged into Banca Monte dei Paschi di Siena in November 2015.

The sale determined a slightly positive impact on the income statement and no significant effect on the capital ratios of BMPS.

The disposal is consistent with the BMPS 2015-2018 Business Plan, which provides for a circa Euro 5.5 billion structured multiannual non-performing loan disposal programme, of which approx. Euro 2 billion already concluded in 2015 and approx. Euro 1 billion to be carried out in 2016. The Group is committed to increasing and accelerating the disposal plan within regulatory requirements.

Administrative and managerial benefits are expected to come from the sale of the consumer credit portfolio, thanks to the decrease in the number of positions to be managed.

This disposal, which will be completed by 30 June 2016, was launched in April 2016 and met by a strong interest from investors.