Ljubljana, 15 July (STA) - The Bank Asset Management Company (BAMC), managing more than EUR 800 millions in assets, generated EUR 57.7 million in profit after tax last year and EUR 228 million in turnover, according to an audited annual business report released on Monday. The bad bank's capital gains yield reached a record 28.8%, far over the required 8%.
The bank's capital increased by EUR 53.4 million to EUR 199.9 million last year. There was however a EUR 4.3 million gap between the capital increase and net profit, which BAMC attributed to the transfer of Koto, an animal waste managing company, directly onto the state.
At the end of the year, the bad bank managed EUR 830.1 million in fair value assets. The figure was 13% lower than in 2017. Loans accounted for 67% of the assets managed by BAMC, followed by real estate (22%) and investments (11%).
The profit generated last year is similar to that of the year before although the bad bank's sales decreased. The figures remained level because its entire portfolio remained at a same profitable level, while funding costs halved and overhead costs decreased considerably, the report says.
The bad bank's assets decrease by 13% or EUR 140.4 million to EUR 910 million. This has been attributed to a reduction in its loan portfolio and cash flow. At the end of the year, loans amounted to EUR 559.7 million, after decreasing by 15% compared to the beginning of the year.
The bad bank paid EUR 154 million in loans last year in addition to paying off early EUR 28 million in capital. "Partial repayment of financial liabilities with state guarantees is a key step in the fulfilment of BAMC's mission," the report says.
CEO Matej Pirc is more than happy with the results and said in the report that the figures "are a firm foundation for the implementation of our mission until the legally set end of BAMC's life in 2022".
He said that the bad bank, established in 2013, has so far repaid EUR 1.3 million in liabilities, adding that less than EUR 700 million still need to be repaid by the end of 2022.