Secured Distressed Debt in Spain as of August 31st 2013

Download Secured Distressed Debt in Spain as of August 31st 2013

Post on 08-May-2015

242 views

Category:

Economy & Finance

0 download

Embed Size (px)

TRANSCRIPT

  • 1.Secured Distressed Debt Market Size in Spain as of August 31st 2013 Other Resident Sectors Boletn Estadstico del Banco de Espaa October 2013 Manuel Guilln i Sol Chief Executive Officer Barcelona, November, 28th 2013 www.mediterraneancapital.com Mediterranean Capital Management. All Rights Reserved.1

2. Copyright Todos los derechos reservados. Ninguna parte de este documento puede ser reproducido, almacenado en cualquier sistema de almacenamiento y recuperacin de datos, o transmitido en cualquier forma o por cualquier medio, electrnico, mecnico, mediante fotocopia, grabacin o cualquier otro, sin el permiso expreso previo por escrito de Mediterranean Capital Management S.L. Cualquier referencia a cualquier informacin, opinin o cualquier otro material contenido en el presente documento deber indicar claramente Mediterranean Capital Management como fuente. All rights reserved. No part of this document may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the express prior permission of Mediterranean Capital Management S.L. Reference to any information, opinion or other material in this document should clearly state Mediterranean Capital Management as its source.Mediterranean Capital Management, S.L. Rossell 253, 5th Floor 2nd Suite 08008 Barcelona Spain Tel. +34 932 553 130 Fax +34 932 553 109 info@mediterraneancapital.com Mediterranean Capital Management. All Rights Reserved.2 3. Disclaimer All data included in this document comes from official sources provided by Banco de Espaa (BdE) and International Monetary Fund (IMF), and quoted in the following documents: Methodological Notes on the Financial Accounts of the Spanish Economy; BdE, Madrid, 2011 Monetary and Financial Statistics Manual, IMF, Washington D. C., 2000 Boletn Estadstico, Octubre 2013; BdE, Madrid, 2013 Mediterranean Capital Management (MCM) and the author/s dont express their own opinion about the accuracy and/or precision of the data provided by BdE.This document does not contain any data, analysis or criteria used by MCM to build its market analysis and/or investment strategy. No investment guidelines can be deduced from this document. No investment commitments from our side will be made based in the opinions and/or analysis included in this document. We can follow or not any strategic direction reflected here. Our investment guidelines and decisions are strictly confidential. Mediterranean Capital Management. All Rights Reserved.3 4. Secured Distressed Debt Market Size in Spain as of August 31st 2013 Other Resident Sectors Barcelona, November, 28th 2013Executive Summary After two-years recession, non-performing loans across Spanish banks amounted to a record-high EUR180.94 billion ($247 billion) in August, breaking 12.12% of all outstanding loans (Boletn Estadstico, Octubre 2013). As expected Domestic Demand and GDP growth will continue almost flat in the coming quarters, consensus forecast indicate that the delinquency ratio will steadily increase in the forthcoming months. Bad loans amounted to EUR180.94 billion ($247,0 billion) in August. This increase was compounded by another decrease in total loans, to EUR1.49 trillion in August, as lenders reduced the amount they lent to the economy. According to advanced Bank of Spain official data, non-performing loans amounted a new record-high at 12.68% of all loans in September, up from 12.12% in August. Lenders reduced again the amount lent to the economy to EUR1,48 trillion. The decline in Spanish non performing loans since December 2012 is only due to the transfer of bad assets (NPLs & REOs) into a bad bank, called Sareb. Once the transfer is corrected, non-performing loans are still accumulating. Spains increase in the non-performing loans ratios are not limited to real estate, with significant deterioration of loan books across all economic sectors. Residential mortgages non-performing loans, which showed a stable path back in 2010/2011, are now increasing again. Source: elpais.com Mediterranean Capital Management. All Rights Reserved.4 5. Secured Distressed Debt Market Size in Spain as of August 31st 2013 Other Resident Sectors Barcelona, November, 28th 2013Secured Distressed Debt Market in Spain Summary I Spanish Credit InstitutionsAs of August 2013, total aggregated balance sheet of the Spanish credit institutions accounts for 3.163.079 M ($ M 4.299.257) of which 1.490.218 M ($ M 2.025.504) are loans to Other Resident Sectors.Banco de Espaa, August 2013 (data in M )Total Aggregated Balance Sheet3.163.079Loans Credit System General Government Other Resident Sectors ROW1.976.894 203.123 97.294 1.490.315 186.162Securities Other than Shares Domestic (1) ROW552.079 472.255 79.824Shares and Other Equities Domestic ROW274.959 186.087 88.872Unsectorized Assets Cash Other359.145 6.465 352.680As of August 31st 2013, total doubtful assets account for 186.264 M ($ M 253.170) . AS of June 30th 2013, total doubtful assets accounts for 182.302 M ($ M 247.784) and total arrears (1) portion of the doubtful assets account for 143.811 M ($ M 195.467).Loans Securities Other than Shares Shares and Other Equities Unsectorized Assets(1) Securities Other than Shares August 13 - Domestic Breakdown Total - Domestic Credit System472.255 58.197General Government294.675Other Resident Sectors119.383(1) Arrears: Includes non-performing doubtful loans which are those in respect of which some amount of principal, interest or any other contractually agreed expense is more than three months past-due or exceeds 25% of total debt (unless these loans are specifically classified as written-off assets) Source: Banco de Espaa, Boletn Estadstico; October 2013- Official data as of August 31st 2013 Mediterranean Capital Management. All Rights Reserved.5 6. Secured Distressed Debt Market Size in Spain as of August 31st 2013 Other Resident Sectors Barcelona, November, 28th 2013Secured Distressed Debt Market in Spain Summary II As of June 2013, mortgage loans account for 801.307 M ($ M 1.089.136) of the total loans to Other Resident Sectors. This represents a 53,4% of total loans to Other Resident Sectors and a 25,3% of the total aggregate balance sheet of the Spanish credit institutions.Total Loans Other Resident Sectors Banco de Espaa, August 31st 2013 (data in M )Other Resident Sectors Trade Credit1.490.315As of June 2013, total doubtful assets related to Other Resident Sectors account for 180.673 M ($ M 245.571).31.496Secured Loans Mortgage Loans Other Secured Loans832.009 801.307 30.702Other Fixed-Term Loans393.931Mortgage Loans Other Secured LoansDebts Repayable on Demand32.616Other Fixed-Term Loans Debts Repayable on DemandFinance Leases19.590Finance Leases Doubtful DebtorsDoubtful Debtors180.673Source: Banco de Espaa, Boletn Estadstico; October 2013- Official data as of June 30th and August 31th 2013 Mediterranean Capital Management. All Rights Reserved.6 7. Secured Distressed Debt Market Size in Spain as of August 31st 2013 Other Resident Sectors Barcelona, November, 28th 2013Secured Distressed Debt Market in Spain Summary III Total Loans Other Resident Sectors Banco de Espaa, Q2-2013 (data in M )Other Resident Sectors - Total Loans Financing of Productive Activity Agriculture, Hunting, Forestry and Fishing Industry (excluding Construction) Construction Services (Total) Wholesale & Retail Sale & Repairs Hotels & Restaurants Transport, Storage & Communication Financial Intermediation (excl. Credit Instit.) Real Estate Activities Other Services Other Financing to Households House Purchase & Renovation Mortgage Loans Renovation & Other Consumer Durables Other NPISHs UnclassifiedLoans by Sector Total AmountDoubtful Loans Total Amount1.519.123176.643 131.763 2.230 14.002 18.624 96.908730.765 18.974 122.351 64.195 525.245 73.594 31.683 42.331 65.252 198.431 113.9539.644 6.282 4.753 2.536 61.759 11.935738.10743.802 618.66331.916 582.887 35.77628.629 3.28826.762 92.683 6.754 43.4971.738 10.147 345 733% 11,6% 18% 11,8% 11,4% 29,0% 18,5% 13,1% 19,8% 11,2% 3,9% 31,1% 10,5% 5,9% 5,2% 4,9% 9,2% 6,5% 11% 5,1% 1,7%Source: Banco de Espaa, Boletn Estadstico; August 2013- Official data as of June 30th and August 31th 2013 Mediterranean Capital Management. All Rights Reserved.7 8. Secured Distressed Debt Market Size in Spain as of August 31st 2013 Other Resident Sectors Barcelona, November, 28th 2013Secured Distressed Debt Market in Spain Summary IV House Purchasing & Renovations (families & individuals) doubtful mortgages sum 31.916 M ($43.285 M) and account for a 18,1% of the total doubtful loans to Other Resident Sectors. After the massive transfer of assets to Sareb, doubtful loans related to Real Estate Activities (61.759 M $83.759 M) and Construction (18.624 M - $25.258 M) account for a 45,5% of the total doubtful loans to Other Resident Sectors.Percentage of Doubtful Loans vs. Total LoansTotal Doubtful Loans Other Residents Sector176.643M Source: Banco de Espaa, Boletn Estadstico; Oct 2013- Official data as of June, 30th 2013 Mediterranean Capital Management. All Rights Reserved.8 9. Secured Distressed Debt Market Size in Spain as of August 31st 2013 Other Resident Sectors Barcelona, November, 28th 2013Secured Distressed Debt Market in Spain Summary V Total relevant non-performing loans market in Spain (Other Resident Sectors) account for 176.643 M : Almost 112.299 M are non-performing loans secured with real estate assets: mortgage loans to Individuals & loans to Real Estate and Construction industries). Spanish Credit Institutions Aggregated Balance Sheet3.163.079Doubtful Mortgage Loans to Individuals31.916Loans to Other Resident Sectors1.490.315Doubtful Loans to Construction Services18.624Total Mortgage Loans801.307Doubtful Loans to Real Estate Industry61.759Mortgage Loans to Individuals618.663Doubtful Loans to the rest of the Other R