The gross value of the real estate assets that BBVA wants to get rid of amounts to around 13,000 million euros, adds the entity, stating that the operation will not have a „significant“ impact on its profit.
Spanish bank BBVA announced on Wednesday that it will sell the majority of its real estate assets to the US fund Cerberus Capital Management for some 4,000 million euros.
Through this operation, which should close in the second half of 2018, BBVA will cede to Cerberus 80% of a structure that brings together all these assets valued at approximately 5,000 million euros, the entity added.
The operation is the second of great draft announced in two days. On Tuesday, BBVA said it was willing to accept an offer of 2,200 million dollars (1,850 million euros) presented by Scotiabank to take over 68% of its subsidiary in Chile.
The operation announced this Wednesday will allow BBVA, the second largest Spanish bank, to take out of its accounts a large part of the „toxic“ real estate assets accumulated during the economic crisis (2008-2013).
The gross value of the real estate assets that BBVA wants to dispose of amounts to around 13,000 million euros, the entity adds, stating that the operation will not have a „significant“ impact on its profit.
„It’s very good news, because we let go of an activity that was causing us losses,“ a bank spokeswoman told AFP.
Spanish banks sharply accused the effects of the bursting of the real estate bubble in 2008, accumulating assets such as homes, plots of land or commercial premises of clients unable to repay their loans.
The crisis was of such magnitude that in 2012 the European Union had to consent to a rescue of the banking sector, which amounted to more than 41,000 million euros.
BBVA estimates that the transfer will have a „slightly positive“ impact on its own funds ratio, an indicator that measures the ability to cope with a crisis, and that was 11.2% at the end of September.
On the other hand, at the end of September, the rate of doubtful receivables from BBVA was 4.5%.