These efforts have started to bear fruit: According to end-September 2018 data 1, there is continued progress in the pace of NPE reduction - the stock of NPEs decreased by 4.7% compared to end-June 2018, reaching € billion or 46.7% of total exposures.
Despite the fact that this is a very high ratio the reduction amounts to 21% or € billion compared to March 2016, when the stock of NPEs reached its peak. The key driver of NPE reduction so far has been write-offs. Going forward, NPL sales (incl. securitisations) will play a more important role, coupled with collections, collateral liquidation and curing of loans.