MONDAY, 21/11/2022 - Scope Ratings GmbH

Italian NPL collections: six-month judicial proceeds and DPOs below pre-Covid levels

Taking the last six months, judicial collections and DPOs were lower than the six months before the pandemic. Note sales have followed a more volatile path but the trend has been upward as servicers rely increasingly on this strategy to generate cash.

Note sales represented just 17% of total monthly collections in September, plunging from August's peak of 41% evidencing the unpredictability of this recovery strategy. A similar drop was seen in July 2021.

Overall collections on Italian NPL securitisations increased by 58% between August and September. Compared to previous years, September volumes were 22% lower than September 2021 but 5% higher than in 2020.

Total gross proceeds of pre-Covid originated transactions

Source: Scope calculations on servicing reports

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