Banco Primus SA, a Portugal-based bank fully owned by BPCE Financement of France, is exploring the sale of its remaining mortgage loan portfolio in Spain, worth less than €100 million ($105 million). The bank, which has been focusing on its core business of car loan financing in Portugal, is weighing its options regarding its presence in the Spanish market. The mortgage loan portfolio sale is part of the bank’s ongoing strategy to streamline its operations, which includes ceasing the issuance of new mortgage loans in both Spain and Portugal since 2011.
Banco Primus is said to be actively marketing its Spanish mortgage loans, but according to individuals familiar with the discussions, the bank has not yet made a final decision on whether to move forward with the sale or exit the Spanish market entirely. While it continues to assess opportunities for deleveraging its mortgage business, the bank has refrained from commenting on the potential closure of its Spanish operations following the loan sale.
At the close of 2023, Banco Primus had a total loan portfolio of €467 million, most of which is concentrated in vehicle financing. The ongoing deliberations reflect the bank's shift towards more specialized lending activities, particularly related to the financing of both new and used cars in Portugal. Despite its withdrawal from the Spanish mortgage market, the move underscores a broader trend in the industry where banks are re-evaluating their non-core businesses in favor of focusing on more profitable, niche sectors.
For now, discussions surrounding the sale of the mortgage portfolio continue, and Banco Primus has not ruled out the possibility of retaining its operations in Spain.
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