Norwegian based B2Holding, owner of Debt Collection Agency (DCA), expects EUR 2.27 billion gross cash collection from purchased portfolios, to be collected in the future. The data is according to the end of 2018 and this is an increase of 46% compared to the fourth quarter of 2017.
The B2Holding Group has grown substantially to a 23-country pan European platform enabling the company to take full advantage of economies of scale and to allocate capital to the most prosperous markets. Current market trends with more attractive returns combined with a more focused growth strategy has reduced portfolio purchases in fourth quarter.
Current market trends with more attractive returns combined with a more focused growth strategy has reduced portfolio purchases in fourth quarter. The portfolio investment ended at EUR 167 million, down by 16% from fourth quarter 2017. Portfolios were purchased in all the Group’s main markets, with the highest activity in the Nordic markets.
In the last quarter gross cash collections from purchased loan portfolios and portfolio in Southeast Europe (SEE) are EUR 16.5 million, of which EUR 10.2 million are unsecured. An increasing is significant, almost double – in the last quarter of 2017 cash collections was EUR 8.5 million. Cost to collect in this region are EUR 5.8 million in Q4, compare to EUR 4 million in Q4 2017. The conclusion is clear – rising cash collection, and only 43% growth of costs.
For the full 2018 NPLs of B2Holding in SEE are EUR 53.5 million gross value, with EUR 20 million costs. Increasing is 116% compare to 70% more cost to collect.
Thanks to the region B2Holding has received EUR 16.5 million in revenues from acquired portfolios in the last quarter, including joint-venture contracts. This represents 18% of all Group proceeds as a result of acquired receivables (see chart).
As a result of the lower costs and portfolio expansion, EBIT of the Group increased in the last quarter by 8% on an annual basis to EUR 33.3 million. For the entire 2018 the growth was 40% to 140.5 million.
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