19 October, Bebeez
SGA (Società Gestione Attività), a company owned by the Ministry of Economy and Finance, manages bad loans amounting to approximately 20 billion originated from the former Banca Popolare di Vicenza and Veneto Banca, along with 7 billion euro of unlikely-to-pay and past due credits. The company approved yesterday the guidelines for the new five-year business plan 2019-2023 which is based on three pillars:
diversified management between bad loans, unlikely to pay and past due credits: namely the so-called “gone concern” credits (to be collected) and the “going concern” credits (requiring a proactive management as they can return being regular credits), involving internal and external specialised professionals in order to optimise the collected amounts;
a proactive approach on the going concern holdings with the possibility to issue new funding to recover or preserve the company’s operations. It’s not by chance that SGA has launched the issuance of bonds for one billion euro in the past few months to obtain new capitals;
specialised professionals and innovative technologies for a business modal based on organisation, efficiency, flexibility and scalability.
Concerning the going concern credits, currently amounting to 7 billion, SGA stressed how these holdings require a proactive management focusing on the debtor, in order to recover and preserve the continuity of business and to normalise the financial position of the client, company or private. The objective is to maximise the value of the collection activities. For this purpose, SGA may issue new funding to favour the operational continuity of companies and the relaunch starting already from the reorganisation phase.
For what concerns the gone concern holdings, amounting to 12 billion, the approach must follow a strict procedure to maximise the value of the underlying guarantees, whenever present, and to optimise the judicial and extra-judicial collections. To achieve that, SGA is collaborating with the main players of the sector to use the economies of scale to achieve a standardised management of small NPE portfolios, maximising the collection performance, depending on the credit type, and optimising costs.
SGA, whose president and Ceo are respectively Alessandro Rivera, Treasury General Director, and Marina Natale, won’t just limit to manage its portfolio. As the memo disclosed yesterday reads, “SGA is intending to seek new opportunities on the market to achieve an adequate critical mass, leveraging the scalability of its business model. The objective is to maximise the economies of scale and to manage the collections efficiently and sustainably, obtaining new management mandates, especially in the going concern segment”.
Concerning the future SGA operations, the memo continues: “The plan for the next five years is based on a business model aimed at limiting costs and achieving an Ebitda margin equal to 35%, as well as a capitalisation with a Cet1 equal to 15%, which is an essential element to pursue new strategies and the expand our supporting activity to SMEs”.
Translator: Cristina Ambrosi