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(Bloomberg) — European banks will offload 100 billion euros ($109 billion) of unwanted loans this year to cut costs and restructure their balance sheets, according to a report by PricewaterhouseCoopers LLP. Banks will jettison bad debts and loans that no longer fit with their business strategies, PwC said. That’s up from 91 billion euros last year and will be the biggest annual tally since Europe’s banks started downsizing after the financial crisis, said about 60 percent of more than 60 hedge funds, banks and private equity firms surveyed by PwC for the report. Loan disposals by banks have grown every year since 2010 as scrutiny by the European Central Bank and pressure from regulators to shore up balance sheets prompted lenders to restructure and downscale their operations. That’s provided a growing supply of assets for U.S. investment firms including Lone Star Funds, Apollo Global Management and Oaktree Capital Group LLC, which invest in distressed assets. “There remains very significant investor interest in acquiring banking assets as the sector continues its unprecedented and much-needed restructuring,” said Richard Thompson, a partner at PwC in London. “There is significant competition between the numerous investor groups looking to acquire assets and, as a result, we’ve observed price increases in the market, making it much more attractive for banks to sell.”

To contact the reporter on this story: Alastair Marsh in London at amarsh25@bloomberg.net To contact the editors responsible for this story: Shelley Smith at ssmith118@bloomberg.net Mark McCord