The Cyprus Asset Management Company’s (Kedipes) expects a 25 per cent drop in revenues at the end of 2020, compared to last year, the decline attributed to the slowdown due to the coronavirus situation.
Presenting the entity’s balance sheet for the third quarter of this year, Kedipes board chairman Lambros Papadopoulos said revenues were down 17.5 per cent compared to the corresponding quarter in 2019.
However, compared to the second quarter of 2020, third-quarter revenues were up 58.9 per cent, reaching €84.2 million.
In terms of cash inflows (€53 million) this year’s second quarter had been the worst since the entity’s inception in September 2018.
Kedipes assets at the end of Q3 had a nominal value of €7.695 billion. This included €145 million in cash holdings, €657 million in immovable property, and €569 million in performing loans.
During the third quarter Kedipes recovered and/or restructured loans worth €328 million – compared to €96 million the previous quarter.
The total nominal value of loans at the end of the third quarter came to €6.823 billion, down from €6.937 billion at the end of Q2.
According to Papadopoulos, from September 2018 to September 2020 the entity achieved a total deleveraging of 7.4 per cent.
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.