The big bank continued to stomp the accelerator to reduce its exposure to brick in 2018. The six entities listed on the Ibex 35 -Santander, BBVA, Caixabank, Bankia, Sabadell and Bankinter- reduced its gross exposure to brick by 44,838 million euros, 45% less in 12 months, to 53,381 million. This is reflected in the annual accounts of last year of these entities, according to the calculations made by this newspaper. In the previous year, in 2017, they had already reduced their exposure by another 50%.
The big banks have carried out important operations to drain toxic assets in the last year, such as the sale of Santander to Blackstone or from BBVA to Cerberus. The reduction occurred both in foreclosed real estate, 52.9% lower, and in the risk per developer credit, 21.9% less (see chart).
In net terms, incorporating the impairment of value recognized by each of the banks, the total exposure in the last 12 months was reduced by 18,588 million, 33% less, remaining at 36,831 million.
Santander it was the entity that, in gross terms, most reduced its exposure to brick. Specifically, 55.9%, remaining at 15,145 million, mainly thanks to the drainage of foreclosures. In the first quarter of 2018, the so-called Quasar project, valued at 30,000 million, for which Blackstone acquired 51% of Popular's real estate business, composed of the portfolio of foreclosed and doubtful developer credit. Additionally, the entity sold a portfolio of 35,700 properties for 1,535 million to Cerberus, an operation that is expected to be completed in the first quarter of 2019.
In adjudicated entities, the entity chaired by Ana Botín reduced by more than 17,000 million and 5,000 million in net terms. In the case of gross lending credit, it stood at 4.812 million, 25.6% less.
In the case of BBVA, the reduction has been equally intense, of 51.5%, of 7,256 million in gross value, and of 40.7% in net value, remaining in 3,045 million. Much of the reduction is explained by the transfer to Cerberus of 80% of a company joint venture, called Divarian, in which toxic assets amounting to 5,000 million were included. "Effectively, on December 31, 43,900 assets worth 2,828 million euros would have been transferred to Divarian. 17,485 assets worth close to 900 million euros will be pending transfer, subject to specific authorizations in the process of obtaining them, "explains the bank in its annual report. In 2018, the sale of a portfolio of doubtful and unsuccessful loans by 1,000 million to the Canadian pension fund CPPIB was completed and an agreement was reached with Blackstone to sell the 25% stake in Testa for 478 million.
The reduction in brick exposure is mainly justified by the actions of the three largest entities, Santander, BBVA and Caixabank. This last bank, also tightened the accelerator and left in 10.573 million, 54.3% less, the set of foreclosed properties and financing the promotion. The entity chaired by Jordi Gual he starred in the sale of 80% of another megaportfolio, in this case of 4,000 million, to the American fund Lone Star, to which Servihabitat added, creating a new joint venture called Coral Homes. In the case of those awarded, in gross terms, it was reduced by 72%, limiting the portfolio of toxic assets by 4,569 million, or 3,432 million by applying the value adjustment for impairment.
Sabadell followed that same pattern of sale of assets, which included from the CAM, in this case to Cerberus with a gross book value of 9,100 million and a net of 3,900 million. However, the operation is not accounted for in the accounts of the entity last year, since it is expected that the transaction will not be closed until the third quarter of this year. Therefore, the entity chaired by Josep Oliu, saw reduced only by 18.4% its exposure to brick and 6% in foreclosed. In fact, it remained the second entity with the most toxic assets after Santander.
The situation of Bankia It is different from the rest, since its great clean was made after being demure in 2012, transferring the toxic part to Sareb. Last year it reduced its exposure by 17.9%, remaining at 5,079 million, of which 4,331 million are awarded. Much of that amount will go with the operation to Lone Star transmission of a portfolio of mortgage loans of doubtful collection for 3,070 million of gross accounting value, of which approximately 1,650 million are adjudicated. The operation is expected to close in the second quarter of 2019.
Finally, the context of Bankinter It is very different from the rest. Less exposed to the real estate business in the years of the crisis, the entity chaired by María Dolores Dancausa it only has 227 million in foreclosures, 12.7% less than the previous year, and unlike the rest, the developer credit has increased by 17.5% to 564 million.