Eurobank Set to Sell Non-Performing Loan Portfolio for €232 Million

Greek lender Eurobank is preparing to sell a mixed portfolio of non-performing loans (NPLs) worth €232 million, as detailed in its first-quarter financial statements. This portfolio, known as Portfolio Leon, includes housing, business, small business, and consumer loans.

At the end of 2023, Eurobank classified Portfolio Leon as held for sale, initiating negotiations with potential investors. The bank also recognized an additional impairment loss of €55 million, which impacted its 2023 financial results.

In March, Eurobank revised the portfolio’s scope, adding loans with a gross book value of approximately €240 million. This adjustment increased the portfolio’s total gross book value from €398 million to €638 million. According to the financial statements, the expected sale price of the portfolio is €232 million, which is 36.3 percent of its gross book value. Consequently, the impairment provision stands at €406 million.

The expansion of Project Leon by €240 million, with these loans reclassified as held for sale, reduced the group’s non-performing exposures (NPEs) by €0.2 billion to €1.3 billion. This reduction lowered the NPE ratio from 3.5 percent at the end of 2023 to 3 percent. The coverage ratio of NPEs by provisions increased to 92.6 percent from 86.4 percent at the end of 2023.

Moreover, as part of its NPE management strategy for 2024-2026, submitted to the Single Supervisory Mechanism (SSM) last March, Eurobank stated that its aim was to achieve an NPE ratio of 3.2 percent by the end of 2026. The bank has already reached this target.

By fLEXI tEAM