MONDAY, 20/03/2023 - Scope Ratings GmbH

Italian NPL collections: fall in DPOs, note sales pushes judicial proceeds to 78%

Collections on Italian NPL securitisations fell 56% month-on-month in January, maintaining the pattern of the previous two years. January 2023 also saw the highest share of judicial proceeds since we started our monthly analysis in March 2020.

January NPL collections of EUR 116m were aligned with the last two years (EUR 106.2m and EUR 112.9m respectively in January 2022 and 2021), and showed a seasonal decrease after the usual collections peak in December. January typically has the second lowest collections of the year, after August.

In January 2023, judicial proceeds reached their highest share of monthly gross collections since we began our analysis, at 77.8%. That is 15% above the last 12-months average share and was mainly attributable to a substantial decrease in DPOs and note sales.

Total gross proceeds of pre-Covid originated transactions

Source: Scope calculations on servicing reports