Kedipes posts record revenue of €440.8 million in 2023

The year 2023 marked the highest annual inflows since the establishment of the state-owned asset management company Kedipes in 2018, according to statements made on Tuesday by chairman Lambros Papadopoulos.

As of December 31, 2023, Kedipes’ cash inflows amounted to €440.8 million, compared to the revenue of €438.7 million recorded in 2022.

Moreover, in the fourth quarter of 2023, cash inflows reached €129.6m, a 38.2 per cent increase compared to €93.7m in the third quarter of 2023, and a 13.6 per cent increase compared to €114.1m in the fourth quarter of 2022.

The annual revenues for 2023 from the management of grants and real estate totalled €434.7m, equivalent to 6.5 per cent of the nominal value of the loan and real estate portfolio, amounting to €6.7 billion as of December 31, 2022.

Cumulative cash inflows from the inception of Kedipes on September 1, 2018, until December 31, 2023, amounted to €2.1bn.

Revenues from the management of grants and real estate were €2.025bn or 25.1 per cent of the nominal value of the portfolio of loans and real estate totalling €8.051bn as of September 1, 2018.

Operational expenses and expenses for the management of assets in the fourth quarter of 2023 amounted to €31.1m, a 17.3 per cent increase from €26.5m in the third quarter of 2023 and a 20.0 per cent increase from €25.9m in the fourth quarter of 2022.

The annual operational expenses and expenses for the management of assets for 2023 amounted to €108.9m, a 2.5 per cent increase from €106.4m in 2022.

The nominal value of grants amounted to €5.895bn at the end of the fourth quarter of 2023, compared to €6.023bn at the end of the third quarter of 2023 and €6.144bn at the end of the fourth quarter of 2022.

What is more, total restructuring or recovery solutions through the managing company doValue reached €232m for the fourth quarter of 2023, compared to €140m for the third quarter of 2023 and €179m for the same quarter of the previous year.

Total solutions for 2023 amounted to €654m, a 1.4 per cent decrease compared to €663m in 2022.

Cumulative solutions from the start of Kedipes’ operations until the fourth quarter of 2023 amounted to €3.922bn, or 53.2 per cent of the initial loan balance of €7.371bn.

In terms of asset details, at the end of the fourth quarter of 2023, the asset structure amounted to €6.56bn in nominal value, including cash of €164m, real estate with a total value of €471m, and serviced grants of €709m.

The overall deleverage from the start of operations on September 1, 2018, until December 31, 2023, stood at 20.4 per cent, excluding conventional loan interest, which reached 38.8 per cent.

Regarding the Asset Protection Scheme with Hellenic Bank, the conventional value of assets covered by the plan as of September 30, 2023, amounted to €1.4bn, showing a total reduction of 46 per cent from the plan’s inception.

The reference value of assets as of September 30, 2023, reached €1.08bn compared to €2.27bn at the beginning of the plan, indicating a total decrease of 52 per cent from the start date.

Within the framework of the plan, claims totalling €100.1m have been submitted by Hellenic Bank to date for the period from September 1, 2018, to September 30, 2023.

The previous claim until June 30, 2023, of €107.9m was reduced by €15.2m within the framework of the agreement for the resolution of disputes until June 30, 2023.

Subsequently, Hellenic Bank submitted a claim of €7.4m for the third quarter of 2023 concerning adjustments recorded in the financial results of the Hellenic Bank.

According to the Hellenic Bank, the adjustments made in the nine months of 2023 resulted from updates to the LGD (Loss Given Default) models, as revealed in the recent discussions in the House of Representatives, regarding amendments to the framework of auctions and the moratorium on auctions announced by the Cyprus Banking Association.

Up to today, payments of €97.4m, a share of 97 per cent of the total claims, have been made, including a payment of €13.7m in the fourth quarter of 2023 within the framework of the dispute resolution agreement and a payment of €5.5m in the first quarter of 2024 concerning the claim for the third quarter of 2023.

Moreover, payments from Hellenic Bank to the Republic of Cyprus, as the guarantor of the plan, amounted to a a total of €44.1m.

Meanwhile, a payment of €80m was made as repayment of state aid in the fourth quarter of 2023, bringing the total amount of state aid repayment in cash to €1.16bn since the inception of the organisation in September 2018.

At the same time, Kedipes maintains a reserve of €60m for future real estate purchases within the framework of the mortgage-to-rent scheme.