Italian Npl Market
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The Italian NPL market
Why investing in Italy?
April 2011
PwC
Foreword & Content
Foreword
Given the recent increase in activity on loan portfolios in a number of key banking jurisdictions across Europe, including Italy, and the complexity of the Italian NPL market, we thought useful sharing the main features of the current market and the reasons on why this market might be interesting from an investor perspective. As per our extensive experience in advising both buyers and sellers in the main NPL deals arranged in Italy we would be happy to provide you with further insights on such market and on how turning your investment goals into a successful transaction. Kind Regards
Content
1.
The macroeconomic and real estate market environment
2.
The Italian banking system in a nutshell
3.
Do banks need to urgently sell
NPLs?
4. How big is the Italian NPLs market? 5. 6. The NPLs management Past NPLs transactions and investors interest 7. Closing remarks
Fedele Pascuzzi fedele.pascuzzi@it.pwc.com Antonella Pagano antonella.pagano@it.pwc.com Laura Gasparini laura.gasparini@it.pwc.com
PwC
April 2011 1
1
The macroeconomic and real estate market environment
Table 1: GDP data
GDP - percentage change on prev ious y ear
2009A Italy France Germ any UK Spain Euro Area (1 6 countries) -5,2% -2 ,6% -4 ,7 % -4 ,9% -3 ,7 % -4 ,1 % 2010F 1,3% 1 ,6% 3 ,6% 1 ,3 % -0,1 % 1 ,7 % 2011F 1,1% 1 ,6% 2 ,2 % 2 ,2 % 0,7 % 1 ,5% 2012F 1,4% 1 ,8% 2 ,0% 2 ,5% 1 ,7 % 1 ,8%
A slow moving economy but with a liquid Real Estate market
After a negative trend in 2009, Italian GDP recorded a positive result (+1.3%) and is expected to grow over the next couple of years, even if at a slow pace. Unemployment rate in 2010 stands at 8.5%, below Euro area average (10.6%) and is expected to remain stable 1 . In 2010 the amount of loans to Italian non financial institutions increased by 1.6%, versus an average of 0.4% of the Euro area
The Italian NPL market
Why investing in Italy?
April 2011
PwC
Foreword & Content
Foreword
Given the recent increase in activity on loan portfolios in a number of key banking jurisdictions across Europe, including Italy, and the complexity of the Italian NPL market, we thought useful sharing the main features of the current market and the reasons on why this market might be interesting from an investor perspective. As per our extensive experience in advising both buyers and sellers in the main NPL deals arranged in Italy we would be happy to provide you with further insights on such market and on how turning your investment goals into a successful transaction. Kind Regards
Content
1.
The macroeconomic and real estate market environment
2.
The Italian banking system in a nutshell
3.
Do banks need to urgently sell
NPLs?
4. How big is the Italian NPLs market? 5. 6. The NPLs management Past NPLs transactions and investors interest 7. Closing remarks
Fedele Pascuzzi fedele.pascuzzi@it.pwc.com Antonella Pagano antonella.pagano@it.pwc.com Laura Gasparini laura.gasparini@it.pwc.com
PwC
April 2011 1
1
The macroeconomic and real estate market environment
Table 1: GDP data
GDP - percentage change on prev ious y ear
2009A Italy France Germ any UK Spain Euro Area (1 6 countries) -5,2% -2 ,6% -4 ,7 % -4 ,9% -3 ,7 % -4 ,1 % 2010F 1,3% 1 ,6% 3 ,6% 1 ,3 % -0,1 % 1 ,7 % 2011F 1,1% 1 ,6% 2 ,2 % 2 ,2 % 0,7 % 1 ,5% 2012F 1,4% 1 ,8% 2 ,0% 2 ,5% 1 ,7 % 1 ,8%
A slow moving economy but with a liquid Real Estate market
After a negative trend in 2009, Italian GDP recorded a positive result (+1.3%) and is expected to grow over the next couple of years, even if at a slow pace. Unemployment rate in 2010 stands at 8.5%, below Euro area average (10.6%) and is expected to remain stable 1 . In 2010 the amount of loans to Italian non financial institutions increased by 1.6%, versus an average of 0.4% of the Euro area