NPLs consume capital, management time and attention. They decrease bank liquidity, profitability and capital, acting as a drag anchor to economic growth and the potentially viability of systemically important banks. Ultimate resolution, either through sustainable organic fix solutions and/or transfer to non-bank market participants, remains critically dependent on driving the quantum, pace and certainty of underlying NPL portfolio cash recoveries.
What we do
We have a proven track record of working with banks, borrowers, regulators, NPL portfolio investors and NPL portfolio funders, in capacity as principal and advisor, across the following areas:
Why KPMG?
- Proven track record in complex jursidictions. Our team has managed NPL portfolio resolution in excess of £20bn and has advised internationally on a further £100bn+ of complex debt restructurings. Jurisdictional experience includes Cyprus, Greece, Western Europe, the Middle East, Russia and West Africa
- Hands on approach. Our team consists of highly experienced senior international restructuring experts with a mix of banking and advisory backgrounds. We develop trust through working side-by-side with our clients and their stakeholders (in both capacity as principal and adviser) and can take executive management positions
- Proven capability with regulators. We have a deep understanding of the ECB’s approach to NPL management and provide immediate credibility with the ECB
- Market leading technology. We bring cutting-edge data capture, analysis and visualisation techniques to rapidly create and refine user-friendly NPL portfolio information and insight
- One-stop shop. We draw on our broad and extensive global network to tackle all areas of NPL resolution including complex insolvency, forensic asset tracing and recovery, achieving significant risk transfer, and capital optimisation
- Innovative fee structures. We deploy flexible fee structures to align interests with our clients and reflect the value we create
- Legacy. Our hands-on approach and training methodologies ensure ‘embedded’ knowledge is retained
We are dedicated to supporting the global non-performing loans (NPL) community maximise the value, pace and certainty of NPL resolution.
Our recent experience
Project Galby
Since 2014 KPMG has assisted a market leading systemic redress its €18bn+ NPL portfolio. Key activities have included:
1. NPL workout:
- > €11bn organic NPL ‘fix’
- Creating and running a 500 person NPL servicing ‘engine’
- Managing intensive regulatory oversight
- Develop legal / legislative framework
- Creation of foreclosure ‘engine’
- Creation of real estate management team
2. NPL Sales:
- €7bn of loan sales executed or in execution
- ‘Small ticket’ and ‘big-ticket’ perimeters sold
- Externalisation of servicing platforms
- Delivering regulatory solutions including SRT
- Developed arms-length senior financing market for portfolio sales
3. Financial & Operational Turnaround:
- Sale of non-core assets
- Raising equity
- Raising Tier 1 and Tier 2 bonds
- Public market listing
- Integration of external servicing engine ‘champion vs. challenger’
- Operational reorganisation and headcount optimisation