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Banca Ifis, agreement with Mediobanca on handling bad loans

(Alliance News) – Banca Ifis Spa announced on Monday that it has signed a long-term partnership with Mediobanca Spa on the management of bad loans.

According to the agreement, Banca Ifis acquires from Mediobanca, for an amount of 100 million euros, Revalea Spa, a company created in 2022 due to the default of non-performing loans as a result of the acquisition of portfolios of non-performing loans, an activity that is not longer part of the Mediobanca group’s main activities.

“The partnership has a strong industrial value as it consolidates Banca Ifis’ position as a reference operator in the market for impaired loans in the segment of small unsecured bonds and allows MBCredit Solutions, a company in the Mediobanca group specialized in credit management, to focus on the main activity of management and collection, to be able to count on constant business volumes for the next few years”, we can read in the memo.

The two institutions have in fact signed a multi-year service agreement, which stipulates that MBCredit Solutions will continue to support Banca Ifis in the management and recovery of non-performing and doubtful loans by making its professional and industrial expertise available to the partner. to forward flow agreement on NPLs derived from Compass consumer credit.

Revalea’s impaired loan portfolio, with a nominal value of €6.8 billion and a net book value of €256 million, is characterized by 89% unsecured loans from the banking sector, of which 64% are personal loans and the rest corporate loans.

Once the operation is completed, Revalea’s team of 22 professionals will reinforce that of Banca Ifis.

The transaction is expected to be completed in the fourth quarter of 2023.

This will result in an improvement of Mediobanca’s CET1 of around 10 basis points and for Banca Ifis a reduction of around 40 basis points.

“The deal is consistent with our desire to increase our exposure to businesses with lower capital absorption and higher fee content, in line with our usual prudent approach to taking and managing risk, and allows us to further enhance the expertise that MBCredit has acquired over the years. Solutions in the management of non-performing loans in synergy with the lending activities carried out by the Consumer Banking division”, commented Alberto Nagel, CEO of Mediobanca.

“This transaction seals a long-term strategic partnership with Mediobanca and strengthens our leadership in a key sector for the group. The acquisition of Revalea demonstrates Banca Ifi’s capacity to be a competent and qualified partner for the Italian and European banking system.” , said Ernesto Fürstenberg Fassio, president of Banca Ifis.

With this transaction, we deliver the NPL purchase targets in the 2022-24 business plan, increasing our owned portfolio to approx. €30 billion in nominal value and a total book value of €1.8 billion, and we are strengthening our organic growth with a significant acquisition transaction”, said Frederik Geertman, CEO

CEO of Banca Ifis.

Banca Ifis trades in the green at 14.39 euros, while Mediobanca rises 0.7% to 10.10 euros per share.

By Chiara Bruschi, journalist at Alliance News

Comments and questions to redazione@alliancenews.com

Copyright 2023 Alliance News IS Italian Service Ltd. All rights reserved.

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