2013 and 2014
- The BAMC is established on 19 March 2013.
- A working organisation is put in place, which immediately begins making decisions in individual cases of corporate restructuring.
- The BAMC formally acquires non-performing claims from NLB and NKBM at the end of December 2013.
- The BAMC acquires non-performing assets from Abanka and Banka Celje in October and December 2014.
- The transfer prices are determined by the European Commission at the real economic value (REV), and not at fair value. The BAMC is not involved in setting the transfer prices of the assets being transferred.
- The BAMC finances the acquisition of the non-performing claims of the four banks through four bond issues with a total nominal value of EUR 1,563.2 million.
- In 2014 the BAMC purchases claims in the amount of EUR 38.6 million from Factor banka and Probanka at the agreed market value.
- The BAMC develops its own methodology for valuing individual asset classes in the first half of 2014.
- The BAMC estimates the fair value of its acquired assets: the figure at transfer is EUR 107.9 million less than transfer values. In accordance with accounting regulations, these losses are recognised as a repayment of capital to the state.
- The EU determines the estimated market value of the transferred assets on the date of transfer (how much the banks could sell the assets for themselves on the market).
- The BAMC liquidates assets in the amount of EUR 129.4 million in 2014, equivalent to 11.5% of its total acquired assets.
- In the second half of 2014 the BAMC speeds up the process of restructuring exposures to going concerns.
Highlights of 2013 and 2014
- The total gross value of the transferred assets is EUR 4.9 billion, with a transfer value of EUR 1,569.5 million.
- The difference between the estimated market value of the transferred assets and the transfer price is documented by the EU in state aid decisions with regard to the four banks in the amount of EUR 623 million.
- Net profit in 2014 amounts to EUR 36.4 million, while equity increases by EUR 17.2 million (from EUR 157.9 million to EUR 175.0 million). Return on equity stands at 21.9%.
- Of the approximately 100 cases in the portfolio, 49% have undergone financial restructuring by the end of 2014.
2015 and 2016
- In the quest for greater cost-effectiveness, the BAMC launches the centralisation of its portfolio management information system by migrating data to a unified system.
- In August 2015 the BAMC earns international certification of its anti-corruption compliance system from ETHIC Intelligence, a French agency.
- In November 2015 the government as the owner adopts a resolution on the absorption of Factor banka and Probanka by the BAMC on 1 January 2016.
- The BAMC repays its first maturing DUT01 bonds in full (in the amount of EUR 502.5 million) in December 2015, together with interest from all four bond issues (in the amount of EUR 45.5 million).
- Asset management generates revenues of EUR 356.2 million in 2015 (22.0% of the value of the transferred assets, which significantly exceeds the required annual revenues of at least 10%).
- The National Assembly adopts amendments to the ZUKSB in December 2015, the new act entering into force on 27 January 2016.
- In accordance with the new ZUKSB-A, in March 2016 the government amends the decree and regulations relating to the BAMC and also its articles of association.
- The absorption of Factor banka and Probanka increases the BAMC’s assets under management to EUR 1.5 billion as at 1 January 2016, a figure that then decreases during the year as a result of the liquidation of assets.
- The BAMC achieves significant progress in restructuring cases, strengthening its position as a key intermediary in restructuring in Slovenia.
- In the real estate portfolio, in addition to the additional acquisition of collateral assets, it concludes its first sales and lettings, and speeds up the sale of real estate.
- The BAMC closes 29 cases in 2016.
Highlights of 2015 and 2016
- ETHIC Intelligence issues certification after the successful introduction of a comprehensive programme that meets the recommendations of the Commission for the Prevention of Corruption and the Court of Auditors.
- The nominal value of DUT01 bonds amounts to EUR 505.8 million. The repayment is an important step in the realisation of the BAMC’s mission, as it thereby reduces its indebtedness, refunds invested money, and thus reduces the financial burden on the state and on taxpayers.
- The BAMC faces certain legal restrictions and inconsistencies in attaining its strategic objectives. It therefore actively involves itself in the drafting of numerous amendments to the ZUKSB addressing the most urgent obstacles to the implementation of its mission and strategic objectives.
- There is a change of asset structure after the absorption of Factor banka and Probanka. The portfolio becomes significantly more granular: in addition to almost 2,000 new smaller claims against debtors, there is an increase of 30% in the number of debtors that the BAMC addresses on an individual basis, while total assets under management are up 26% on the end of 2015.
- The BAMC intensively improves the value of distressed assets, seeks new owners for the assets, and concludes restructuring agreements in a number of cases.
2017 and 2018
- Amid surplus liquidity the BAMC prepays a syndicated long-term loan in the amount of EUR 168 million in February 2017.
- The BAMC passes its legal target for annual liquidation of at least 10% of the transferred assets by May 2017, and passes the mark of 50% of its cumulative generated revenues since its establishment.
- Amid surplus liquidity brought by the successful conclusion of several transactions, the BAMC prepays a syndicated long-term loan in the amount of EUR 70 million at the end of May 2017.
- A bilateral loan is prepaid in the amount of EUR 31 million in September 2017.
- The highest level of the Anti-Corruption Compliance System Certificate is awarded in October 2017.
- The BAMC repays its maturing DUT03 and DUT04 bonds in full in the amount of EUR 548.7 million in December 2017. On the same day it also repays a loan the amount of EUR 169.0 million.
- The BAMC generates revenues of EUR 434.7 million in 2017, equivalent to 21.5% of the transferred value of all assets, and more than double the legally stipulated target of 10%.
- A record net profit of EUR 67.0 million is generated in 2017, which almost doubles the BAMC’s equity to EUR 146.4 million.
- The balance sheet contracts by 23%, primarily on account of the loan portfolio, as additional acquisitions of real estate and revaluations in equity investments leave the value of these portfolios at the level of the previous year.
- The BAMC prepays part of a syndicated long-term loan in the amount of EUR 28.5 million in February 2018.
- In March 2018 the European Commission releases its Slovenia 2018 country report, stating that Slovenia made significant progress in 2017 in realising the recommendations in areas directly related to the BAMC’s work (sustainable resolution of non-performing loans and implementation of the BAMC’s strategy).
Highlights of 2017 and 2018
- The BAMC has its most successful year to date in 2017, as the majority of its revenues (EUR 322 million) are generated by the loan portfolio, while the real estate portfolio generates revenues of almost EUR 100 million.
- The record level of net profit in 2017 raises EROE (i.e. the average annual return on invested equity with adjustments) to 24.7%, well above the target of 8% stipulated by law.
2019 and 2020
- In February 2019 the board of directors adopts BAMC’s new business strategy for 2019 to 2022. The government approves it in its role as BAMC’s general meeting.
- The Court of Audit examines the credibility of the response report, and in March 2019 issues a post-audit report and a call to action. Based on this call, BAMC draws up a report on its actions, with an open deadline. This concludes the audit by the Court of Audit.
- In March 2019 BAMC repays €26.2 million in long-term loans in line with amortisation schedules.
- In April 2019 the government sets out new guidelines for the operation of BAMC, with changes in the areas of reporting, the provision of information, and approvals for strategically important decisions.
- In June 2019 the government in its role as BAMC’s general meeting decides that for the implementation of the national housing programme for 2015 to 2025, it is essential for BAMC to transfer the most suitable real estate to the Housing Fund of the Republic of Slovenia in return for consideration (at market value).
- In June 2019 BAMC repays €41.2 million in long-term loans in line with amortisation schedules, and makes additional early repayments in the amount of €15.0 million.
- In October 2019 BAMC signs a sale and purchase agreement with the HFRS for the transfer of three plots of land suitable for the construction of rental housing from BAMC to the HFRS.
- In April 2020 members of the board of directors discuss the government measures to alleviate the consequences of the economic shock caused by Covid-19, and accordingly pass a resolution stating that, in line with its powers, BAMC will ensure the implementation of measures at firms that it actively manages, while members of the board of directors will take a reduction in salary and bonuses in solidarity.
- BAMC’s board of directors is briefed on the firm’s preliminary unaudited 2019 results in May 2020. BAMC is seen to have performed well in 2019, and to have outperformed its targets. Its net profit for the financial year is €40.2 million according to the preliminary unaudited financial statements. BAMC’s shareholder equity increases to €242.1 million, equivalent to a 27.5% average annual return on invested equity including adjustments (EROE), whose target value in the guidelines is 8%. BAMC has operated cost-effectively: its ordinary operating costs are down almost €3 million (15%) on the previous year. The cost-to-income ratio stands at 1.71% in 2019, significantly lower than the target value of 2.06% set in the guidelines. The headcount is also smaller than forecast.
Highlights of 2019 and 2020
- BAMC acquires a new business strategy for 2019 to 2022, which is approved by the government.
- The Court of Audit concludes its audit for 2014 and 2015.
- BAMC again performs well in 2019, and outperforms its targets.