On April 24th 2018 DUTB Board of Directors approved the Annual report of DUTB for 2017 which explains the very successful business year.
In 2017 DUTB generated €434,7 milion of cash inflows and €67 milion of after-tax profit and thus considerably surpassed most of the key performance indicators set by the Government of the Republic of Slovenia in the Guidelines on the operations of BAMC. Successful and efficient operations also resulted in substantially reduced financial and operating costs.
€434,7 million of cash inflows were generated by asset sales and debt repayments in 2017, more than twice the statutory target of 10% with 21,5% of all assets' transfer value, thus being the most successful year in BAMC's history. While the loan portfolio remained the main driver of inflows with €322 million, almost €100 million of cash generated from the real estate portfolio confirmed BAMC's effectiveness and direction of repossessing real estate from collateral proceedings, managing and adding value to it for the sale at the appropriate time. Most notably, the large residential complexes of Celovški dvori in Ljubljana and Nokturno in Koper were almost completely sold in 2017, accompanied by the sale of numerous other commercial and business premises as well.
A record‑level after‑tax profit of €67,0 million has been generated in 2017, shooting the company's end-of-year equity up to €146,4 million and raising the EROE (economic return on equity, the average yearly return on invested capital with corrections) to 24,7%, high above the required 8% threshold.
The balance sheet was reduced by 23%, mainly on the claims part as additional real estate repossessions and movements in equity positions resulted in the latter two portfolios remaining at their last year's 'levels.
Surplus liquidity allowed BAMC to perform several early debt repayments ahead of schedule during the year, while the last two outstanding bonds, issued during the transfers of assets, were repaid at the end of the year. Part of the repayment had to be refinanced, with the terms on the new commercial loans being much more favorable, further reducing planned financial expenses and allowing BAMC greater flexibility in future debt management.
Also in the context of public finance consolidation, BAMC exerted a positive effect on reducing the state deficit in 2017. With its transactions BAMC has, in accordance with ESA methodology, which is monitored by the Ministry of Finance and the Bank of Slovenia, closed the year with a considerable surplus, exceeding the plans.
KPMG Slovenija, d.o.o., Železna cesta 8a, Ljubljana, performed the audit of the 2017 financial statements, and issued an unqualified opinion on 23 April 2018. The BAMC Board of Directors reviewed the audited annual report on 24 April 2017, and will send it to the Government of the Republic of Slovenia for approval at the BAMC General Meeting. The annual report has not yet been approved by the Government of the Republic of Slovenia.
BAMC's audited annual report for the year 2017 is available on this link: http://www.dutb.eu/SiteAssets/en/croporate_documents/BAMC%202017%20annual%20report.pdf