|Last year DUTB generated €67 million of profit||25.4.2018|
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
|Annual report for the financial year 2016||26.4.2017|
In accordance with the provisions of the Act Defining the Measures of the Republic of Slovenia to Strengthen Bank Stability (ZUKSB), Družba za upravljanje terjatev bank, d. d. has published the annual report for the financial year 2016.
The highlights of BAMC's operations in 2016 include the successful merger of Factor banka and Probanka and substantial cash flows generated from asset management operations, which exceeded the statutory goal. Cash generated from asset management in 2016 amounted to €369.2 million, corresponding to 18.3% of the transfer value of the assets and substantially exceeding the ZUKSB requirement of annual liquidation of at least 10% of the estimated value of the assets. Since its incorporation, BAMC thus generated cash flows of €862.8 million, meaning that 43% of the transferred assets' value was cashed.
BAMC reported a €7.8 million loss for 2016. The reported loss comes as a result of the fact that the operating result from loans was not sufficient to cover the financing costs and operational costs, in addition to the costs of the operational restructuring of BAMC as a result of the merger of Factor banka and Probanka. The merger also contributed to lowering the equity of BAMC, which amounted to €79.4 million as of the end of 2016. The decrease of equity was partly covered by the state's €50.0 million capital increase of BAMC's capital reserves. At year-end 2016, the Economic Return to Equity was 9.5%, which is higher than the target set by the Government of the Republic of Slovenia in the BAMC Operational Guidelines.
In 2016 BAMC fully repaid €369.0 million of its financial obligations toward the Ministry of Finance, which were acquired in the merger of Factor banka and Probanka, and successfully refinanced the matured bond. This importantly decreased BAMC's of financing costs for 2017 and subsequent periods.
KPMG Slovenija, d.o.o., Železna cesta 8a, Ljubljana, performed the audit of the 2016 financial statements, and issued an unqualified opinion on 25 April 2017. The BAMC Board of Directors reviewed the audited annual report on 25 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.
The information contained in this formal announcement will be posted on the official website of DUTB, d.d., Ljubljana, www.dutb.eu, for a period of at least five years from the date of the posting.
|Notice of accession to the agreement||21.4.2017|
In accordance with the Rules of Ljubljanska borza, d.d., Ljubljana, and applicable law, Družba za upravljanje terjatev bank, d.d. ("BAMC"), Davčna ulica 1, Ljubljana, hereby issues the following announcement:
By signing a statement of accession on 21 April 2017, BAMC formally acceded to the terms of the Service Agreement, signed on 22 March 2017 and amended by Annex 1 dated 21 April 2017 (hereinafter: "Agreement") by and between the companies ALTA Skladi d.d. (on behalf and for the account of mutual funds Alpen.SI, mixed flexible sub-fund - South East Europe, Alpen.Developed, equity sub-fund, Alpen.Emerging, equity sub-fund, Flexible mixed sub-fund ALTA PRIMUS and flexible mixed sub-fund ALTA SENIOR), KD Skladi, družba za upravljanje, d.o.o. (on behalf and for the account of KD Umbrella Fund KD GALILEO, MIXED FLEXIBLE FUND, KD RASTKO, EUROPEAN EQUITY FUND, and KD DIVIDENDNI, DELNIŠKI) and PRIMORSKI SKLADI, d.o.o., Koper (on behalf and for the account of the mutual fund PSP MODRA LINIJA – DEVELOPED MARKETS EQUITY FUND) as the ordering parties, and the companies PUBLIKUM HOLDING d.o.o., ALTA Invest, investicijske storitve, d. d. and ALTA Skupina, upravljanje družb, d. d. as the consultants.
The subject of the Agreement is the provision of consultancy services associated with the sale of shares issued by CINKARNA Celje, d.d. (hereinafter referred to as: "Company") listed under the ticker symbol CICG, ISIN code SI0031103805.
Pursuant to the provisions contained therein, the Agreement shall come into force and effect on the date it is signed or acceded to by the ordering parties who cumulatively hold at least 25% + 1 share of the Company's share capital, and on 21 April 2017 BAMC received notification from the company ALTA Skupina, upravljanje družb, d. d., confirming that the Agreement came into force and effect on the same day.
This notice will also be posted on the company website, www.dutb.eu, for 5 years following the date of publication.
|Sava transfer now formally concluded||9.8.2016|
Pursuant to the decision of the Slovenian Government of 28 January this year, the transfer of bonds and claims against Sava d.d. from the BAMC to SDH and KAD has been formally concluded. BAMC, which at the beginning of August handed over the necessary documentation and fulfilled all other obligations under the agreement, received the agreed payment on 9 August.
More information: http://seonet.ljse.si/default.aspx?doc=SEARCH&doc_id=61157
|The deadline for applications for the position of CEO of BAMC has expired||1.8.2016|
The deadline for applications for the position of CEO of BAMC expired on Friday, 29 July 2016. 10 candidates from Slovenia and abroad have applied. BAMC will not divulge the names of the applicants. The Nomination Committee will review the applications and based on its proposals, the non-executive directors of BAMC will select the best candidates based on their own judgment. The name of the selected candidate will be announced before the acting CEO's temporary mandate expires.
Today, August 1st 2016, BAMC launched a renewed website www.dutb.eu. You are invited to check it out.
|International call for applications for the position of CEO||11.7.2016|
Družba za upravljanje terjatev bank hereby issues this international call for applications for the position of Chief Executive Officer - CEO. A full-time employment contract will be signed with the selected candidate for a five-year mandate.
|BAMC has so far recovered almost a third of the value of transferred assets||31.5.2016|
After completing asset takeovers from banks undergoing measures to strengthen the stability of banks and concluding the process of setting up the organization in 2014, BAMC focused on managing the transferred assets in 2015. Cash generated from asset management in 2015 amounted to €356,2 million representing 22,0% of asset transfer value and thus highly exceeded the ZUKSB requirement of yearly liquidation of at least 10% of assets. From inception, BAMC thus generated €493,5 million of cash, meaning that almost one-third of transferred assets’ value was cashed.
BAMC’s core business is managing non-performing assets, mostly NPLs. Thus, BAMC’s operating and financial expenses have to be covered by realized capital gains and revaluation income in order to generate profit. BAMC recorded a net loss of €8,3 million in 2015. Hence, BAMC has not achieved the required 8% return on equity as required by the Guidelines on the Operations of the Bank Assets Management Company. The loss was the result of revaluations, as income from the increase in the fair value of assets due to revaluation was insufficient to cover all financial expenses and operating costs, despite the positive result of transactions. While realized inflows were mostly in line with expectations, the main difference to previous valuations originated in the lower and more distant estimation of cash flows from the remaining portfolio in future years as a result of economic, investor sentiment and other related factors.
Regardless of the net loss and equity decline in 2015 BAMC has, since its inception, increased the equity value by 20% compared to equity fair value after the takeover of assets from the four state-owned banks which includes the return of capital to the owner in various forms. The economic return on equity (EROE) indicator that takes into consideration also the return of capital to the owner, and therefore more appropriately and comprehensively measures BAMC’s performance, thus stands at an average yearly return on equity of 11.4% for the each of the two years of operations of BAMC.
In accordance with Article 15 of the ZUKSB, BAMC published a BAMC Report to the National Assembly of the Republic of Slovenia for the year 2015.