B2Holding improves its performance in South Eastern Europe in the last quarter of 2021

B2H in SEEThe Norway based B2Holding, owner of “Debt Collection Agency”, increased significantly its financial results in South Eastern Europe, shows the report for the last quarter of 2021. Revenues from the region rose by 30% compared to the same period last year to nearly EUR 16 million and earnings before interests and taxes (EBIT) – by nearly 90% to EUR 7.1 mln. 

Gross collection receivables has increased significantly to EUR 18.34 mln. This is above the level of the same period in 2020, exceeding their value from the pre-crisis 2019 (see the chart below). South Eastern Europe generates 14% of all EUR 1.974 billion receivables, that are remaining to be collected. In general the collection in the holding has increased significantly on all markets in the last three month of 2021. Collected secured receivables are 122% compared to the forecasts, and the unsecured receivables has doubled. 

In the fourth quarter 15% of B2Holding’s investments in the new portfolio were realized in South Eastern Europe, almost as much as their share in Northern Europe. Only Poland has a larger share of the new investments for the last quarter – 58% of the funds for new overdue debts portfolios were invested in the country. In the period October-December 2021 the companies of B2Holding have invested a total of EUR 54.76 mln. in the new portfolios. The majority of them are unsecured receivables (incl. 20% from forward flow agreements) and just 12% are secured. 

The non-performing loans (NPLs) market is expected to be more active in this year, compared to 2021. According to the European Banking Authority (EBA), European banks expect renewed growth in consumer credit over the next 12 months, but a decrease in the overall quality of consumer credit assets. The other reason is increase in NPLs as credit moratoria are lifted and the requirements for loss coverage for NPLs, which will stimulate the banks to sell more portfolios. 

 

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