Friday, May 24, 2024

Mortgage portfolio overview (December of 2022 and full overview of 2022)

In 2022, we noticed €183,0M value of loans on our platform (10% lower than in 2021), with €11,8M produced in December. Estonia was the very best performing market when it comes to quantity, in December (€5,3M), and in addition in 2022 general (€69,2). Finland adopted with €2,2M (€22,0M for the final two years), whereas Latvia produced €23,6M (annual development of 19%) in 2022 and €2,0M in December. The Lithuanian yearly quantity was the identical at €34,5M (together with €2,0M in December) and German origination dropped over two occasions to €33,7M (€0,2M in December), as a full staff change came about and we adopted a extra conservative method.

Repayments in December amounted to €8,2M. The typical return was 8,9% with a complete of 62 loans (together with stage loans) repaid. The full repayments in 2022 have been €12,7M decrease than in 2021, at €104,7M, with common yearly returns remaining round 9,5%.


The default charge has elevated considerably when in comparison with the start of 2022, resulting from new defaults in Germany and Finland. German and Finnish default and late initiatives acquired essentially the most consideration final 12 months. Now we have halted new German loans in the interim, and carried out adjustments on the managerial stage to reorganize the enterprise.

With the true property market slowing down, we have now carried out a extra aggressive method in the direction of problematic debtors. That is very true in Germany, the place debtors are fast to offer exit dates, however usually fail to meet them. A few of our German debtors have cited our operational adjustments as an excuse to not pay their debt, and we have now consequently begun promoting the claims. We are actually very near finalizing the primary transaction. In Finland, the secured declare market is just not as superior and we due to this fact must deal with authorized battles with hostile debtors throughout enforcement proceedings.

Recoveries throughout 2022 have been distinctive – in complete €10,5M value of principal was recovered (€6,7M in 2021). Essentially the most profitable circumstances got here from Finland and Sweden the place 3 long-term defaults have been recovered (€6,0M). Exits haven’t but been finalized in Spain (within the largest default case in Spain, regardless of partial fee and notarized transaction, closing fee was not acquired from the client resulting from financing points) or in Germany (a few declare buy offers fell via on the final minute resulting from authorized obstacles). Nevertheless, we have now discovered the precise companions (specialist legal professionals, debt assortment companies, non-performing loans purchasers) in each market we function in, which can contribute to a rise in recoveries in 2023.

We count on the default charge to additional improve within the coming months, earlier than dropping within the third quarter of 2023. Our purpose is to to scale back the default charge to beneath 5,0% within the Baltics and beneath 15% in different markets, by the tip of the 12 months. We anticipate that there can be extra delays within the gross sales of latest residences, whereas the general actual property market transaction quantity will decline at the very least 20%. We additionally count on that financial institution financing can be restricted to solely the strongest market gamers.

As a part of our efforts to continually enhance our inside processes and techniques, we made a big change to our debt assortment staff in the beginning of 2023. Particularly, the standard debt assortment specialist was changed with a second default lawyer to extend the energy of our litigation staff. Our present exterior default lawyer can also be being modified in Germany. A extra target-oriented method to debt assortment is being carried out throughout the group which can see elevated debt declare gross sales and in addition exercises with non-public traders who’re on the lookout for problematic, excessive yield circumstances to put money into.


As of 19.01.2023  
Complete financed loans since 2014 €682,5M
Complete repaid loans since 2014 €389,5M
Complete excellent portfolio €293,0M
Complete excellent defaulted loans €63,5M 
Complete variety of excellent defaulted loans 181
Default charge (excellent loans) 21,2%
Partially recovered loans charge (excellent loans) 2,8%
Default charge (complete financed loans) 9,3%
Complete quantity of recovered loans (together with partially) €25,1M
Complete variety of absolutely recovered loans 141
Common return charge of absolutely recovered loans 9,0%
Extended loans (excellent loans) €68,7M
Extended loans charge (excellent loans) 23,4%
Common time from default to restoration 12,0 months
Write-off charge (complete financed loans) 0,006%

We’ll maintain you knowledgeable in regards to the credit score portfolio high quality on a month-to-month foundation.

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