Debt Collection Agency (DCA) is number 1 by assets again and remains the leading company in the debt recovery sector in Bulgaria, according to its 2018 audited financial statement of the company, which is part of Norway-based B2Holding ASA.
At the end of 2018 DCA’s assets nearly doubled to BGN 118 million compared to BGN 62 million in 2017. This increase was due to the one of the largest NPL purchases in the deal between DCA and Unicredit Bulbank. At the second half of 2018 the bank sold a portfolio of unsecured and secured credits of individuals, small and medium enterprises and corporate clients with a nominal value of nearly BGN 500 million. The revenues of DCA also grew steadily – by almost 35% year-on-year to BGN 27.4 million. In addition the company ended 2018 with a profit after taxes of about BGN 8 million or a 28% increase on an annual basis.
Several large NPL deals have been signed for the last year, as some banks continued to write-off non-performing exposures accumulated during the crisis. After strong 2018 DCA expects further growth, proven by the very active season in the sector in the first 6 months of 2019. According to the Association of Collector Agencies in Bulgaria, in the past 2018 the volume of debt purchases in Bulgaria reached BGN 1.9 billion, compared to about BGN 800 million in 2017. The volume will reach a record of BGN 2 billion this year, according to the experts’ forecasts.
After zears of large portfolio deals, smaller portfolios are now expected, with more and more financial institutions expected to start relying on regular clearing of their non-performing claims through framework agreements (forward flow deals).
“DCA was among the first companies to introduce the forward flow deals in Bulgaria and is currently the absolute leader with 8 active contracts for regular transfers”, commented Dimitar Bonchev, chief executive officer of DCA.
More news read here.