During the second quarter of this year the Cyprus Asset Management Company’s (Kedipes) cash inflows dipped to their lowest point since the entity’s inception.
In the second quarter of 2020, cash inflows declined to €53 million, a reduction of 32 per cent over the previous quarter.
The drop is attributed to the measures to contain the coronavirus pandemic, a statement said.
Revenues from asset management (loans and real estate) came to €50.9 million or 0.7 per cent of Kedipes’ nominal portfolio value, amounting to €7.58 billion at the end of the first quarter.
Its cash position stood at €125.8 million at the end of June 2020.
Kedipes began operations in September 2018. It is the residual entity following the acquisition of the state-owned Cyprus Cooperative Bank’s performing loan book by Hellenic Bank. The state-owned asset management company is mandated to manage the co-operative bank’s portfolio, consisting mainly of non-performing loans, with a view to repay the €3.5 billion the state had paid in a bid to facilitate the transaction with Hellenic.
Commenting on the results, chairman of the Kedipes board of directors Lambros Papadopoulos said operations began recovering following the partial lifting of the two-month lockdown in Cyprus, with cash receipts in June corresponding to 60 per cent of the quarter’s total receipts.
Receipts are expected to peak in the next quarter, he added.
“The recovery continued with cash inflows in Q3 expected to exceed €80 million, the highest level this year, but will remain at lower levels by approximately 25 per cent compared to 2019,” Papadopoulos said.
The board also decided to pay the state €40 million, with cash total payments made to the state against the state-aid amounting to €160 million in 2020, and €280 million since Kedipes began operations.
Moreover, the entity transferred to the state real estate worth some €140 million as well as other assets such as art collections and coins collections totalling €1.3 million, which will be deducted from the total state aid.
Assets under management at the end of the second quarter of 2020 amounted to €7.79 billion, of which €126 million in cash, real estate of €648 million in nominal value, and performing loans totalling €553 million.
Total loans (nominal value) rose to €6.927 billion at the second quarter, compared to €6.9 billion in Q1, with the increase attributed to accrued interest which exceeded payments and write offs.
Total deleverage since the state-owned began operations amounts to 5.9 per cent; excluding accrued interest, total deleverage amounted to 15.7 per cent.