MADRID, March 30 (Reuters) - Spain's Sareb said on
Thursday its losses dropped by 7.4% to 1.5 billion euros ($1.6
billion) in 2022 compared to a year earlier thanks to higher
revenues from asset sales.
The so-called bad bank, set up to take on bad loans from the
financial crisis which enveloped Spain in 2012, has been
struggling since its creation as a slump in real estate prices
depressed the value of the loans and assets it holds.
But Sareb, which has a mandate to sell the assets it holds
in the 15 years from when it was set up, said on Thursday it had
increased its total revenues by 8% to 2.36 billion euros in 2022
thanks to retail sales and some big corporate transactions.
In the face of a higher rates environment, Spain's bad bank
is focused on accelerating its assets sales and reducing debt.
Sareb did not disclose the costs of servicing its senior
debt portfolio, which totals more than 30.48 billion euros. Last
year, it cancelled a record 3.2 billion euros of that debt,
which has shrunk by 40% since 2012.
A source told Reuters that the bank was expected to face a
bill of around 300 million euros in higher costs from rising
interest rates to service its senior debt in 2022.
This would have an impact on state coffers as the government
owns more than 50% of Sareb through its FROB bailout fund.
Sareb said it had cut its total asset portfolio in 2022 by
8.4% to 26.47 billion euros compared to 2021.
($1 = 0.9193 euros)
(Reporting by Jesús Aguado; Editing by Andrei Khalip and
Alexander Smith)
Messaging: Reuters Messaging:
jesus.aguado.reuters.com@reuters.net))
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.