Intesa Sanpaolo S.p.A. (BIT:ISP) is marketing a bad loan portfolio worth up to €5-6 billion ($6-$7 billion), two people familiar with the matter said, as Italy's biggest bank steps up efforts to cut bad debts after buying Unione di Banche Italiane S.p.A. (UBI). Intesa Sanpaolo, which reports full-year results on February 5, 2021, is expected to update investors on its clean-up plans, as Italian banks brace for a new wave of pandemic-driven problem debts once government-support measures are lifted. Chief Executive Officer Carlo Messina told analysts when presenting nine-month results the bank would “deliver an impressive further (NPL) de-leveraging in the coming quarters.” The portfolio of loans being marketed comprises loans originated by both Intesa and UBI, the two people said.

One of them said the portfolio, which included also some leasing contracts, was divided into many sub-portfolios. A third source confirmed various loan pools were being marketed.