2020-10-16 Italian Banks and NPL Market – English Update

Fintech Voice, the focus on fintech updates of Credit Village magazine will discuss the symbiotic relation between Fintech and Traditional banks: while in most traditional sectors, such as entertainment or retail, the advent of digital innovation has decreed the extinction of “dinosaurs” and the emergence of completely innovative new operators,, the financial services industry seems to be an exception to this paradigm.

Fire Group, approved the consolidated half-yearly financial report at 30 June 2020. Compared to first half of 2091 Ebitda is up by 16%, Asset Under Management up 15%
Operating costs down by 11%. The main objectives for the year in terms of cost consist of an increase in margins and the finalization of the investments foreseen in the industrial plan, equal to 17 million euro.

Workinvoice, the Italian fintech that created the first marketplace for the exchange of trade receivables and YouDOX, the DocuMI electronic invoicing and storage platform chosen by over 275,000 economic operators in Italy, have jointly presented AnticipaMI an integrated solution for electronic invoicing, credit management and advance payment.

Users of the platform will be able to take advantage of an extremely streamlined and simple process of assigning trade receivables: once the invoice to be assigned has been selected, and the debtors and receivables have been analyzed to define the collectability and certainty of the receivable, it will be assigned to institutional investors and the company will obtain 90% of the nominal value of the receivable in 48 hours (the balance upon payment of the invoice by the client). In addition, the analysis of debtors and the predictive risk assessment developed by Workinvoice will allow companies to have more useful information to select the clients to work with.

Zenith Service S.p.A. will play the role of Master Servicer in the first securitization in Italy carried out under the “Decreto Milleproroghe“. This is the structure that will allow the disposal of the impaired receivables of Banca Monte dei Paschi di Siena in favour of Amco Asset Management Company S.p.A. (“AMCO”) as part of the “Hydra Project”. (read more article)

The securitization operation consists of the granting by the special purpose vehicle company set up pursuant to Law 130/99 “HydraM SPV” of a loan with limited recourse in favour of AMCO and guaranteed by a portfolio of non-performing loans and probable defaults (the “Portfolio”) originating from Banca Monte dei Paschi di Siena S.p.A.. The Portfolio will be transferred to AMCO as a result of a partial corporate demerger.

Enel X Financial Services, an Enel Group company active in the design and promotion of innovative financial services, has signed a strategic partnership with SIA, a European hi-tech company leader in payment services and infrastructures controlled by CDP Equity, for the design and implementation of new mobile banking solutions.

Enel X Financial Services, is an electronic money institution (IMEL) authorized by the Bank of Italy in December 2018 that provides payment solutions to private and corporate customers, in full compliance with data protection and privacy regulations. It is also a regulated entity registered in the central register of the European Banking Authority (EBA) which contains information on payment and electronic money institutions

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Prelios and General Finance have signed an agreement to support companies in temporary liquidity crisis classified as UTP. In particular, General Finance will be responsible for providing liquidity through the management and demobilization of working capital, helping to provide new financial resources to companies in difficulty, a fundamental element in their recovery process.

The commercial agreement is part of Prelios Group’s growth path in the UTP credit servicing market – a segment in which it is one of the first mover in Italy – aimed at maximizing the return to bonis of creditor companies and businesses. The ecosystem that will be created with the signing of the agreement between General Finance and the Prelios Group aims to support businesses and, more generally, the country’s economy to cope with the current particularly difficult macroeconomic scenario, helping to ensure liquidity for the production chains.

The merger between Sia and Nexi has been finally approved. The first is the company that builds and manages infrastructure and technological services for payment systems controlled by Cdp through Cdp Equity; the second is in fact the former CartaSì listed in the top 40 of Piazza Affari and is controlled by the Bain, Avent and Hourglass funds.

At the end of a negotiation that lasted about a year and a half, the shareholders of the two companies signed a memorandum of understanding that identifies the path that will lead to the merger. The new group resulting from the merger will have a capitalization of more than 15 billion, will manage about 120 million cards with 2 million merchants and over 21 billion payments processed.

The European Banking Authority (EBA) has published its quarterly dashboard covering data for the second quarter of 2020 and summarizing the main risks and vulnerabilities of the EU banking sector. While capital ratios have held up well, there are indications that the crisis has begun to impact asset quality. As the cost of risk increased, profitability continued its downward trend.

The fully loaded CET1 ratio increased by 30bps to 14.7% and recovered about half of the decline in the first quarter. The increase in capital ratios was supported by a contraction in risk-weighted assets (RWA) due, among other things, to regulatory measures such as changes in the support factor for SMEs.

Duff & Phelps Real Estate Advisory Group (REAG) has published the latest edition of the Italian Real Estate Market Junction, which illustrates the trends of the main indicators of the corporate sectors, such as Tertiary, Industrial-logistics, Retail, Hospitality and healthcare, Residential.

In Italy, the volume of corporate investments in the first half of 2020 is around 3.5 billion euros with a variation of just under 35% compared to the first half of last year.This performance reflects the uncertain performance of the markets caused by the emergency health care due to the COVID-19 pandemic still in progress.

According to the European Payment Report prepared by Intrum the Italian Public Administration is paying its suppliers more regularly while in Europe the Payment Gap is growing,

The payment gap is the time that passes between the agreed payment time and the actual transaction. The longer this period lengthens, the more companies suffer: 61% of Italian companies accept unfavorable payment terms in order not to lose customers against a European average of 69% and 43%, voluntarily, extend payment terms against a European average of 41%.

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Pubblicato da Massimo Famularo

Investment Manager and Blogger Focus on Distressed Assets and Non Performing Loans Interested in Politics, Economics,

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