Scope Report on NPL Collections

April volumes fall 40% on the month but YTD performance stable

The 40% month-on-month decline in Italian NPL collections to April 2022 was appreciably larger than the 27% fall seen in the same period of 2021. But performance year-to-date has been quite stable: total collections are only around 2% lower than last year.

The share of collections stemming from judicial, DPOs and note sales has been comparable in both years. In April, note sales predominantly came from a single transaction, Maggese SPV S.r.l., representing 91% of monthly note sales proceeds. This is the second month in a row that note sales have been concentrated in one transaction. In the last 12 months, note sales were carried out on average for six transactions per month.

Through large note sales, transactions like Maggese SPV S.r.l., Aqui SPV S.r.l., Prisma SPV S.r.l. and Maior SPV S.r.l. have reached their peak in monthly volumes across the entire year. In fact, note sales have enabled Aqui SPV S.r.l. and Maior SPV S.r.l. to realise collections three times higher than their historical yearly averages, while Prisma SPV S.r.l. and Maggese SPV S.r.l. have realised collections four and six times higher, respectively.

Overall, these transactions are lagging original business plan expectations at closing as of the last interest payment dates. This report shows the performance of the Italian NPL securitisations rated by Scope on a deal-by-deal basis based on monthly servicing reports available to April 2022.