Volksbank reduced its portfolio by selling a package of bad mortgage loans, with a total value of ER 495 M, reads a communique. The bank sold this portfolio to a consortium of foreign investors, comprising Deutsche Bank, AnaCap Financial Partners LLP, H.I.G Capital International Advisers and APS Holding SE. “The reduction of the bad loans portfolio represents another key moment of our repositioning strategy. At the same time, we continue to focus on increasing the profitability of the business,” said Benoit Catel, President Volksbank Romania. Following the transaction, Volksbank reduced the non-performance ratio to a comfortable level under 8 percent, 3 times smaller than the average of the banking system in Romania. The portfolio includes bad loans (guaranteed loans with delays longer than 90 days) in Romania, of which 84 pc are retail real estate loans, the remaining 16 percent representing corporate financing. The portfolio comprises in total 3,566 loans and the pertaining guarantees: mainly residential properties, commercial spaces and lands. The sale of the bad loans portfolio does not influence the profit of 2014 or the capital; Volksbank Romania continues to have a strong solvency ratio above 20 percent. The parties involved in the transaction agreed to keeping confidential other details about this sale.
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