05 July 2015, 23:41 / Finance

Banks are selling off problem debts of citizens

They don’t mind parting with ancient debts even at a price three times lower than Marie Mesropyan

Before selling debts to collectors, banks try to outsource them (the debt remains on the bank’s balance sheet) 4–5 times instead of the previous 1–2 times, Sequoia analysts indicate / A. Makhonin / Vedomosti

The average period of overdue debt in the portfolios of problem debts of individuals, which banks put up for sale, increased by one and a half times: from 650 days to 1000 days in the first half of this year, follows from the review of Sequoia Credit Consolidation. This led to a threefold drop in price: to 1% versus 2.7% in the first half of 2014.

Before selling debts to collectors, banks try to outsource them (the debt remains on the bank’s balance sheet) 4–5 times instead of the previous 1–2 times, Sequoia analysts indicate.

“In such cases, banks count on maximum debt repayment, and after that they no longer feel sorry for parting with a portfolio of bad debts. And while the debt remained on the balance sheet, it became increasingly outdated and, accordingly, became cheaper,” explains Sequoyah President Elena Dokuchaeva. In the first half of the year, transactions with obsolete debts increased by 40%. “This year the pool of ancient debts really prevailed,” agrees General Director of the First Collection Bureau (PCB) Pavel Mikhmel.

Banks put up for sale twice as much debt in the first half of the year: 178 billion versus 87 billion rubles. (first half of 2014). This is record growth over the past three years, according to Sequoia analysts. PKB’s figures are even higher – 235 billion versus 109 billion rubles. a year earlier. PKB takes into account all offers for six months, and Sequoia only takes into account what was sold. At the same time, large portfolios were put up for sale: OTP Bank (sold 17 out of 32 billion rubles), Orient Express (sold 12.5 billion out of 32 billion rubles), Svyaznoy Bank (sold 22 billion rubles). ), "Trust" (19 billion rubles), "Renaissance Capital" (put up 16 billion rubles), "Russian Standard" (sold all 22 billion rubles), "VTB 24" (put up 11 billion rubles).

“A number of banks are physically unable to process the increased volume of debts, others simply do not see the expediency of the costs of this,” explains Alexander Pakhomov, director of the department of distressed assets at VTB 24. According to the Central Bank, by May 1, the size of loans with payments overdue by more than 90 days reached 989.7 billion rubles. This is 9.5% of loans issued to individuals, the maximum since 2008, when the Central Bank began these observations. “This situation always entails an increase in sales volumes,” says Pakhomov. A problematic portfolio requires the diversion of funds to maintain reserves and puts pressure on capital, Dokuchaeva explains: “There are times when it is easier for a bank to even write off a debt and not receive anything than to keep it on its balance sheet.” Many banks are now unable to show profits, so everyone wants to sell debts, even cheaper, says a top manager of a large retail bank.