Mortgage Loans Reach €24.5 Billion Under Management by Servicers

Over €3.5 billion in non-performing loans were added to the portfolios of loan management companies during the first quarter of 2025. This increase is attributed to the securitization of non-serviced loans from Attica Bank and the sale of bad loans by PQH. According to data from the Bank of Greece, the nominal value of private sector loans managed by domestic loan servicing companies (Servicers) increased by €3.522 billion in Q1 2025, reaching €78.272 billion from €74.750 billion in Q4 2024. Specifically, the nominal value of managed business loans rose to €27.433 billion at the end of Q1 2025, up from €25.516 billion in the previous quarter. Of these managed loans to businesses, €10.090 billion pertains to small and medium-sized enterprises. Meanwhile, the nominal value of loans to self-employed professionals, farmers, and individual businesses decreased by €485 million compared to the previous quarter, settling at €9.618 billion by the end of Q1 2025. The nominal value of managed consumer loans increased by €439 million to €16.489 billion, while managed mortgage loans grew by €1.678 billion, reaching €24.447 billion. Currently, 18 Loan and Credit Management Companies operate in Greece, none of which have requested a license from the Bank of Greece for debt refinancing. Activity levels among existing companies vary significantly, with the top three companies holding an 85.9% market share based on the value of managed exposures, another three companies holding approximately 12.3%, and 12 companies showing minimal to no activity (none with a share greater than 1%). According to consolidated data from the Bank of Greece for 2024, the total active assets of Servicers amounted to €1.15 billion in December 2024, down €130 million from December 2023. Both the equity and liabilities (including provisions) of Servicers decreased compared to December 2023, to €738.7 million and €414.3 million, respectively. After-tax profits of Servicers fell by 14.3%, reaching €134.5 million from €156.9 million in 2023, due to an 11.8% decrease in revenue (2024: €606 million, 2023: €687 million). This decline was primarily due to reduced success fees as part of their portfolio matured and lower fee percentages in management agreements sold in the secondary market. Consequently, the total personnel and administrative expenses of Servicers as a percentage of revenue increased in 2024 compared to the previous year (53.6%, up from 47.4% in 2023), mainly due to reduced revenue. By December 2024, the total value of managed exposures by Servicers reached €87.4 billion, with 82% managed for funds and the remaining 18% for banks.