Post by account_disabled on Mar 13, 2024 6:23:55 GMT
The Asset Management Company from Bank Restructuring (Sareb) raised the accumulated losses of its financial and real estate portfolios to 11,621 million euros in 2022, 2,994 million euros more than what was recorded in 2021, as a consequence of the increase in interest rates and a new valuation of its assets, as stated in the annual activity report.
Of these losses, 9,995 million euros correspond to the financial assets unit (which includes the real estate assets from the foreclosure of financial assets, that is, the collateral that functions as guarantees for the awarded loans), while 1,627 million correspond to the real estate portfolio.
Sareb sources explain that their model requires that Phone Lead their assets have losses, that is, that the purchase price tends to be higher, in book value, than the sale price.
It should be noted that the company's mandate is to liquidate all 'toxic' assets transferred by financial entities since its creation in 2012, for which it has a period of 15 years, which expires in 2027, an objective that the entity may does not succeed, as the same sources have acknowledged.
Thus, Sareb points out that the increase in capital losses is motivated by financing costs , which have increased "considerably", following the repeated increases in interest rates that central banks are carrying out, with their corresponding negative impact on the accounting valuation of assets.
Likewise, it indicates that there has been a decrease in the appraisal values as a result of a new external valuation of the assets, while Sareb itself has carried out a more in-depth analysis of the value of the assets in its portfolios with the aim of approximating them. at their transactional value, although the value that Sareb actually obtains for the assets will depend on the price set in each operation.
Sareb also points out that during 2022 the deterioration of the portfolio of assets intended for social and affordable rental has not increased thanks to social management, which allows its value to be preserved. He estimates that, if this management had not been carried out, the deterioration would have increased by up to 350 million euros.
In this way, the accounting valuation of the entire Sareb portfolio shows the need to have established, at the end of 2022, an impairment fund of 11,621 million euros.
Likewise, the report states that the entity closed 2022 with net losses of 1,506 million euros , which represents a reduction of 7.4% compared to the 'red numbers' of 2021, when it lost 1,626 million euros.
Of these losses, 9,995 million euros correspond to the financial assets unit (which includes the real estate assets from the foreclosure of financial assets, that is, the collateral that functions as guarantees for the awarded loans), while 1,627 million correspond to the real estate portfolio.
Sareb sources explain that their model requires that Phone Lead their assets have losses, that is, that the purchase price tends to be higher, in book value, than the sale price.
It should be noted that the company's mandate is to liquidate all 'toxic' assets transferred by financial entities since its creation in 2012, for which it has a period of 15 years, which expires in 2027, an objective that the entity may does not succeed, as the same sources have acknowledged.
Thus, Sareb points out that the increase in capital losses is motivated by financing costs , which have increased "considerably", following the repeated increases in interest rates that central banks are carrying out, with their corresponding negative impact on the accounting valuation of assets.
Likewise, it indicates that there has been a decrease in the appraisal values as a result of a new external valuation of the assets, while Sareb itself has carried out a more in-depth analysis of the value of the assets in its portfolios with the aim of approximating them. at their transactional value, although the value that Sareb actually obtains for the assets will depend on the price set in each operation.
Sareb also points out that during 2022 the deterioration of the portfolio of assets intended for social and affordable rental has not increased thanks to social management, which allows its value to be preserved. He estimates that, if this management had not been carried out, the deterioration would have increased by up to 350 million euros.
In this way, the accounting valuation of the entire Sareb portfolio shows the need to have established, at the end of 2022, an impairment fund of 11,621 million euros.
Likewise, the report states that the entity closed 2022 with net losses of 1,506 million euros , which represents a reduction of 7.4% compared to the 'red numbers' of 2021, when it lost 1,626 million euros.