Europe’s banks identify another €100bn in non-performing loans

Tim Wallace
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EUROPE’S banks are sitting on more than €1.2 trillion (£1 trillion) in non-performing loans (NPLs), and the level is set to increase as they comb through their portfolios next year, PwC analysts said today.

The consultancy recorded an additional €100bn added to banks’ portfolios across Europe in the last 12 months, driven by rising volumes in Italy, Spain, Greece and Ireland.

However, the report also found institutions in the UK, German and France are all sitting on NPLs totalling more than €100bn.

“We don’t see a meaningful reduction in non-performing loans across Europe any time soon,” said Richard Thompson from PwC.

“Aggregate levels of NPLs could continue rise over the coming years, adding further to the already buoyant portfolio market.”

Britain has seen the most NPL sales activity, with portfolios totalling more than €13bn of sold this year.