Irini Maragoudaki

October 20, 2016

Proprietary & Confidential Southern Europe Business Strategy prepared by Irini Maragoudaki

Page | 2

Click to edit Master title style

8%

45%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

NPLs' % in Greece

2008

2016

NPL Management

NPL Market Overview

• The Greek NPLs increased by more than ten times from 2008 to 2016, whereas the percentage of the population actively employed has fallen by more than 25%.

10%

25%

0%

5%

10%

15%

20%

25%

30%

Unemployment % in Greece

2008

2016


Page | 3


NPL Management

NPEs Resolution

ECB (SSM) ambitious plans for the reduction of NPEs of the 4 systemic Banks

• 40% reduction of NPEs by 2019

• Increase of performing portfolio

• Monitoring of targets achievement expecting the first results in the first quarter of 2017 105

62

Total NPLs Greece

2016 2019

~50% of total loans

~30% of total loans

In b

illio

n €

100

140

Performing Loans Greece

2016 20192016 2017 2018 2019


Page | 4


NPL Management

Key Factors of Potential Success

Mature Economic Environment

• Proper legal framework initiatives expected to be concluded by end of year 2016

• Adequate capital requirements and provisions, in view of generous write-offs

• Suitable long term modification products to accommodate customers needs and offer viable solutions


Page | 5


NPL Management


• Re-initiation of legal actions to tackle the moral hazard and discourage strategic defaulters

• Disincentives to other customer segments to follow strategic defaulters approach

Targeting to Strategic Defaulters

• Loan market restoration following institutional / legal actions on strategic defaulters


Page | 6


NPL Management


• Leverage foreign professional investors know how • Acquired expertise in loan servicing increases Banks’

operational efficiency • Subsequent advantage for borrowers stemming from

Servicer’s experience

Opening of NPL Market in accordance to SSM requirements from 2017

• Positive domino effect: • New money for the loan sale market • Increased transactions (supply and demand) • Subsequent price stabilization • NPE loan sale to serve as additional disincentive for strategic defaulters

Win-Win situation for

Banks, Servicers and

Borrowers


Page | 7


NPL Management

Strategy Going Forward

1. Efficient portfolio segmentation

2. Value added analysis of NPEs

3. Identification of areas with added value

4. Suitable solutions for customer’s needs

5. Categorization of strategic defaulters (decrease moral hazard)

6. Identification of viable corporates and support towards their competitiveness

7. Collateral management

8. Prioritization of initiatives in view of added value results

9. Identification and proper valuation of eligible portfolios for disposal

10. Achievement of €40 billion increase in performing portfolio

10 Key Strategic Initiatives for efficient NPE Management


Page | 8


NPL Management

Clayton Euro Risk Expertise

Strategic Initiatives for efficient NPE management Clayton Specialized Advisor - Group of Companies

• Evaluation and management of loan portfolios and collaterals

• Loans and Real Estate

• Hands on experience in the management of all types of loan portfolios and collaterals, either commercial and retail both in US and Europe

• Client base includes the major international investment funds

1. Advisory 2. Asset Manager - Servicer


Page | 9

Irini Maragoudaki

Real Estate

Transcript of Irini Maragoudaki