15 February, Milano Finanza
DoBank will probably have enough to work on in the next few months. The company owned by Fortress, in fact, is very active in the non-performing loans market. After having closed 2017 with gross assets for 76.7 billion euro (compared to the 80.9 of the previous year), the bank is intending to grow by other 11 billion thanks to several operations in the pipeline. Over the past year, in fact, DoBank signed several agreements for important operations concerning bad loans portfolios: one is with Mps, three with the saving banks of Rimini, San Miniato and Cesena (the Berenice project), and with Rev. The management activity of the portfolios will start in the first quarter of this year: Rev and Berenice will start in February and Mps in March. The group led by Andrea Mangoni might also take other opportunities, as many banks have planned important operations concerning NPLs disposals: Sga (9.6 billion), Banco Bpm (9.5 billion), Rev (9 billion), Bper (4 billion), Credito Valtellinese (2.1 billion) and Ubi (1 billion). Hence, it’s likely that DoBank will take also other projects.
In the meanwhile, the group has closed 2017 with a net income grown by 3% and amounting 194.9 million and net profits of 45 million, growing by 11% compared to the previous year. Especially for what concerns profits from servicing, the core business of the group, amounting to 196.6 million, growing by 3% compared to the 191.8 million of 2016. This result was achieved thanks to “the increased collections as well as a slight increase of the average commissions, two elements that have largely compensated the reduction of the base fee, related to the decrease of the dimensions of the average gross managed portfolio, along with the slight decrease of the transfer compensations”, explains a memo. The data regarding the earnings from the collections is particularly interesting, as it amounts to 1.84 billion, growing by 8% compared to the net earnings for 1.69 billion registered in 2016. Whereas the operating costs have remained substantially stable, amounting to 124.8 million compared to the 124.1 of 2016. The increase in the personnel expenses have increased (+2% in 2017 compared to the previous year) due to the strengthening of the top management and the introduction of the new incentive system after the listing, these expenses are entirely compensated by the savings for the other costs, including the real estate expenses and the other general expenses. The Ebitda has risen to 9%, going from 64.3 to 70.1 million with an ebitda margin of 33%, growing by 2%. While the net financial position is positive with 38.6 million, improving in comparison with the 29.5 million of 2016. According to the memo, the improvement is due “the more effectiveness of the management activity and the capacity of the taking advantage of the improved economic situation”. Earnings for 2017 have represented the 2.4% of the managed assets at the end of the accounting period, increasing significantly by 2.1% compared to 2016. Considering these results, the distributions of the dividends for 0.406 euro per share has been proposed (70% of profits compared to the 65% estimated by the Ceo during the IPO).
During the conference call to present the financial results, Mangoni showed the trend of the sector. Concerning the sale of the NPL management platform by Intesa Sanpaolo and the exclusive negotiation with Intrum Justitia, the Ceo stated that he doesn’t see the operation as a threat, “as Intesa will keep a quota of 49%, it will be difficult for other banks to use this platform for the NPL management”. Mangoni judged positively the deal: “It proofs that banks need to outsource the NPL management rather than manage bad debts internally”.
Source: Milano Finanza
Translator: Cristina Ambrosi