Sondrio, Italy-based lender Credito Valtellinese SpA intends to dispose of €800 million of bad loans "as quickly as possible," with the aim of selling them by 2019-end instead of 2020, Reuters reported, citing CEO Luigi Lovaglio.
In June, Creval announced a new five-year business plan under which the Italian lender said it would restructure its commercial banking activities by placing its nonperforming loans legacy portfolio into a new noncore unit, and aim to reduce its noncore assets by about 80% to €400 million by 2023. The disposal of an €800 million portfolio was part of that strategy.
Creval reported a reclassified consolidated profit of €23.5 million for the first half, up from €824,000 earned a year earlier. Net interest income came in at €178.6 million, compared to the year-ago €178.9 million, while net fee and commission income fell 11.2% to €123.8 million.