B2Holding increase its portfolio investments in South Eastern Europe

Norway based B2Holding, owner of Debt Collection Agency (DCA), increased its investments in new portfolios of non-performing loans in South Eastern Europe (SEE) in the third quarter of the year. The Group also recorded a significant rise in the financial results from the region of SEE, according to the report for the period. 

For the three months from July to September B2Holding has invested more than EUR 8.7 mln in NPL portfolios in Bulgaria, Romania, Greece and Turkey (see the chart below), which is around 69% more than the Holding’s investments in the four countries, compared to the same period of 2020. 

Revenues for the third quarter exceeded EUR 14.7 mln or 34% growth on an annual basis. Total revenues for nine month (January-September) are EUR 37.9 mln – 43% growth compared to the same period of 2020. As a result, the share of the SEE region in the Holding’s total revenue increased by more than 4 percentage points to 15.5%. 

 

B2Holding significantly improved its profit margin in the region. Operating profit (EBIT) recorded a double increase to nearly EUR 4.8 mln. 

While investing in the new portfolios, the companies of B2Holding in SEE actively collect receivables, already acquired in the previous periods. Estimated remaining collection (ERC) are reduced by 20% per year and at the end of September their value is EUR 275 mln. 

“The positive trend we observed in the previous quarters in both Central and South Eastern Europe continued in the third quarter. I am pleased to see the continued resilience in our unsecured collection business, which represents more than 75% of our ERC. We have continued to focus on cost and scalability, achieving another quarter with operating expenses maintained at the lower level reached during the pandemic”, committed Erik Johnsen, chief executive officer of B2Holding. 

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