Southern Europe’s NPL sales boom in three charts

Non-performing loan activity keeps growing in Spain, Italy and Portugal while sales in Europe reach record levels, according to Evercore.

Southern Europe accounted for the vast majority of European non-performing loan sales in 2018, with Spain and Italy now established as key markets and Portugal growing in importance.

The shift of sales from Northern to Southern Europe strengthened last year, as activity in Southern European countries accounted for 77 percent of the total real estate loan sales in Europe, which reached record volumes of €114 billion, research by investment banking firm Evercore shows.

Spain and Italy made up 66 percent of the total European sales, as banks in both countries have increased the size of portfolios in the market.

In line with a recovering real estate market, Portuguese loan sales increased over the past 12 months, although last year’s sales volumes in the country represent only 4.6 percent of total European NPL sales.