The global financial crisis started in 2008, and further aggravated by the sovereign debt crisis that affected the countries of South Europe in the period 2009-2013 (in particular Greece but also Spain, Portugal and Italy), caused a considerable increase in the amount of non-performing loans (NPL) on banks' balance sheets.
Due to these events, the banks, also under the pressure of the European Central Bank, have worked to speed up the de-risking process through the sale of NPL portfolios, and also by outsourcing, sometimes even through extraordinary spin-off of existing platforms, the management of their NPLs towards professional operators in order to achieve greater operational efficiencies and to focus on the core activity of origination and credit management.
With a consolidated history in the NPL management within important Italian banks even before the global financial crisis, doValue Group has developed over the years supporting the Italian banking system in particular in the critical context after 2008. After listing on Borsa Italiana in 2017, doValue Group has progressively diversified its activities: first of all in Italy becoming the leading player in the GACS securitisation market, then in Europe starting an important acquisitions program that has made the doValue Group the first operator in Europe with activities in Spain, Greece, Cyprus and Portugal.
Looking ahead, the long-term trends (megatrend) that will support the reference market of the doValue Group are related to five pillars:
the need for banks and institutional investors to manage an increasing amount of non-performing loans that will necessarily generate due to the economic and financial effects of the Covid-19 pandemic;
the need for banks to rely on solid, professional and specialised partners in the management of non-performing loans;
an increasing attention from the market not only for non-performing loans (NPL) but also an increasing importance of loans deteriorating but not yet deteriorated (UTP) which requires the development of strong skills and specific strategies;
an increasing specialization of Servicer activities together with a 360° capacity development;
the need of consolidating in the Servicer sector (that will lead to a new wave of M&A operations) to achieve greater economies of scale and a sharing of "best practices"
related to the different European markets.