Posted in Finance, Press release |

AMCO: 1H23 results




  • Assets under Management at €36.1bn (+11% y/y), of which 66% NPLs and 34% UTPs
  • Double-digit growth (+14% y/y) in collections: €760m in the first half of the year
  • Collection rate increasing to 4.2% (4.1% in 1H22)
  • Revenues at €245m (+63% y/y) driven by new portfolios
  • EBITDA at €165m: +82% y/y with EBITDA margin at 67%
  • Net income up +131% y/y to €22.1m thanks to higher revenues
  • Strong capital structure: CET1 at 33.9%
  • AMCO’s long-term and short-term ratings confirmed, with stable outlook: Fitch (BBB/F2) and S&P (BBB/A2)
  • Consolidated access to capital markets: in early 2023, a €500m 4-year bond was issued with simultaneous repurchase of part (€400m) of the bond due in July 2023
  • In July the remaining €850m of the bond were repaid at maturity with available liquidity
  • Sustainability Report 2022 published on a voluntary basis

Milan, 27 July 2023 – The Board of Directors of AMCO – Asset Management Company S.p.A. met today and approved the 1H23 results.

The results confirm AMCO’s positive trend in profitability in the first half of 2023, with good collections’ performance (+14% y/y) achieved through an effective – and at same time sustainable – management model, net income up (+131% y/y) thanks to operating results – with EBITDA up 82% y/y – and after discounting loan provisions.


Business development

As of 30 June 2023, Assets under Management (AuM) reached €36.1bn (+11% y/y), composed of 66% NPLs and 34% UTPs. In terms of operational mix, 70% of the volumes are managed in-house and 30% in outsourcing.

The change in AuM reflects the natural portfolio dynamics as well as purchase agreements signed in the first half of the year, following competitive processes, totalling €0.8bn of loans[1].

The Cuvée Project reached €2.3bn[2] in gross Assets under Management, confirming the success of the first multi-originator platform launched in late 2019 to manage UTPs in the real estate sector.

In the first six months of 2023 AMCO successfully managed positions in several sectors. Among the most significant ones, in the real estate sector, was the support to the new recovery plan of the shopping centre Vulcano Buono, extending the debt maturities and agreeing to the investments to revamp the facilities, together with the other creditors, providing the area of Nola (Naples) with an important multi-functional space. Deals closed in the first half of the year also include an extra-judicial solution aimed at accelerating the transformation of the industrial area of Bagnoli (Naples), former Italsider, into an urban park.

Moreover, in the hotellerie sector, AMCO supported the reorganisation of Maritalia (Foggia), following the takeover by the new shareholder, becoming the only lender, with the refinancing and provision of a new credit line for the development of the hotel facility.

Operating activities – Collections

In the first half of the year, collections showed a double-digit growth (+14% y/y),totalling €760m, versus €667m in the same period of the previous year.

The annualised collection rate[3] in the first half of 2023 reached 4.2% (4.1% in the first half of 2022), confirming increased collection capabilities. Growth is linked to the strong performance (+67% y/y) of the Workout Division (NPLs) and collections related to big tickets.

The UTP Division recorded a decline in collections (-9% y/y) attributable to lower assets under management versus the first half of 2022 due to natural portfolio dynamics; the effectiveness of loan management is confirmed by the UTP Division’s collection rate, which stood at 6.1% (6.0% in 1H22).

The solid performance of collections and of the collection rate was accompanied by a collaborative and sustainable credit management approach: in fact, 94% of collections from UTPs result from extra-judicial activities, as well as 43% of collections from NPLs and 64% of collections from SMEs and private individuals.

Results as of 30.06.2023

Net income as of 30 June 2023 was €22.1m, up 131% versus €9.6m in the first half of 2022due to business growth, net of provisions for the lengthening of the expected recovery of a single-name file related to a multi-year project.

EBITDA (€164.6m) was up 81.7% y/y versus €90.6m in the first half of 2022. This trend reflects an increase in revenues mainly related to interest income from new portfolios. EBITDA margin stood at 67%.

Income statement – Main items

Revenues grew (+63.1% y/y) to €245m, with revenues from investments accounting for 92% of the total.  The remaining revenues originated from servicing activities. Servicing fees dropped slightly due to the natural dynamics of the off-balance portfolios of the former Veneto Banks, only partially offset by the fees related to the Cuvée fund. 

Interest income reached €173.6m (+72.5% y/y), mainly due to the contribution of new portfolios.

Other income/expenses from operating activities – which refer to cash recoveries (all cash-based) – rose sharply (+85% y/y) and are related to collections exceeding expected recovery plans.

Total costs amounted to €80.4m, up 34.9% y/y. In detail, net operating costs stood at €56.2m, up 40.1% y/y, due to increased legal and debt collection expenses, IT costs, inflationary dynamics, and higher outsourcing fees related to recoveries on the portfolio managed by external servicers.

Personnel expenses amounted to €24.2m (+24.3% compared to 1H22) due to an increase in headcount aimed at strengthening business, control and support functions, while maintaining high levels of operational efficiency.

As of 30 June 2023, AMCO’s employees were 413, 53 more than in the first half of 2022. 67% of staff is employed in business roles and the remaining 33% in central functions. Females account for 41% of total staff.

€/m1H221H23% change
Servicing fees21.820.1-8.2%
Interest income100.7173.672.5%
Other income/expenses from operating activities27.751.385.2%
Total revenues150.2245.063.1%
Personnel expenses(19.4)(24.2)24.3%
Net operating costs(40.1)(56.2)40.1%
Total costs(59.6)(80.4)34.9%
EBITDA margin60.3%67.2%n.m.
Net impairment gains/losses (42.9)(80.0)n.m.
Depreciation and amortisation(2.1)(2.7)27.7%
Other operating income/expenses9.3(4.7)n.m.
Net result from financial activities(7.7)1.5n.m.
Interests and fees from financial activities(31.5)(45.5)44.3%
Pre-tax income15.633.2113.6%
Income taxes(6.0)(11.1)86.1%
Net income9.622.1130.6%

EBIT stood at €78.7m. Net impairment gains/losses (-€80m) reflect provisions for the lengthening of the expected recovery of a single-name file related to a multi-year project. Interest from financial activities (€45.5m) increased by 44.3% compared to the first half of 2022 due to both an increase in debt outstanding and the growth in market rates that affected recent bond issuances (September 2022 and January 2023).

Income taxes stood at €11.1 million.

Balance sheet

The balance sheet structure proved once again solid. Loans to customers were €4,981m, up 13.5% versus June 2022 due to purchases mainly in the second half of 2022.

Cash and cash equivalents, including cash and Italian Government bonds, reached €1,067m, showing a €249m increase versus the first half of 2022, thanks to the cash generated by business operations. The excess cash is invested in Italian Government bonds accounted at Fair Value.

Financial assets stood at €500m and mainly consisted of the stake in the Italian Recovery Fund (IRF).

Financial liabilities as of 30 June 2023 amounted to €4,275m and consisted of unsecured bonds issued under the Euro Medium Term Note Programme (EMTN), with a maximum total amount of €6bn. The company has in place a Commercial Paper program with a maximum total amount of €1bn, currently unutilised.

The Net Financial Position (NFP)[4] is -€3,184m, improved from -€3,377m at the end of 2022, thanks to the cash generated by business operations and after the payment of new portfolios acquired in 1H23.

Loans to customers4,3895,0314,981
Cash and cash equivalents8187331,067
Financial assets622572500
Other assets285268250
Total assets6,1156,6056,798
Financial liabilities3,635 4,1344,275 
Tax liabilities444 
Provisions for specific purposes191614 
Other liability items917293 
Net equity (of which)2,3662,3782,413 
Share capital655655655 
Share premiums605605605 
Valuation reserves(52)(66)(53) 
Net income104222 
Total liabilities and net equity6,1156,6056,798 

Net equity as of 30 June 2023 totalled €2,413m.

CET1 ratio stood at 33.9%, with Total Capital ratio also standing at 33.9%5, as there are no subordinated bonds outstanding on the balance sheet. The very solid capital structure ensures the management of potential risks while providing flexibility for further business expansion. 

The Net Debt (NFP)/Equity ratio is at 1.3x.


New €500m 4-year senior unsecured bond issuance and Liability Management exercise

On 30 January 2023, AMCO  successfully issued a €500m 4-year senior unsecured bond due 6 February 2027. The new issuance was announced in conjunction with a Liability Management exercise in relation to the notes due 17 July 2023, that was successfully completed on 6 February with the repurchase of €400m, equal to the maximum acceptance value.

In July 2023, part of the available liquidity was used for the repayment of the remaining €850m of the maturing bond (17 July 2023), thus reducing the bonds  outstanding in the market by the same amount.

Fitch and S&P confirmed AMCO’s “BBB” rating with stable outlook

On 20 April 2023, Fitch Ratings confirmed AMCO’s  long-term “BBB” rating of and short-term “F2” rating, with a stable outlook.

On 29 May, S&P Global confirmed the long-term rating at “BBB”  with stable outlook and the short-term rating at “A-2”.

The Shareholders’ Meeting approved 2022 Financial Statements and appointed the Board of Directors

AMCO’s Ordinary Shareholders’ Meeting, that met on 20 June 2023, approved 2022 Financial Statements and appointed the new Board of Directors, increasing the number of members from 3 to 5: Giuseppe Maresca -Chairman of the Company-, Andrea Munari -Chief Executive Officer-, Antonella Centra, Ezio Simonelli and Silvia Tossini. The term of office of the Board of Directors will end with the approval of the 2025 Financial Statements.

DECLARATION BY THE EXECUTIVE RESPONSIBLE FOR THE PREPARATION OF CORPORATE ACCOUNTING DOCUMENTS I, the undersigned, Luca Lampugnani, in my capacity as executive responsible for the preparation of corporate accounting documents, hereby declare, in accordance with paragraph 2, Article 154-bis of the Testo Unico della Finanza (Italian Consolidated Law on Financial Intermediation), that the accounting information disclosed in this press release reflects documentary evidence, accounting entries and other records of the company.

[1] The main purchases finalised in the half-year were c. €430m (GBV) from BPER Group and c. €390m (GBV) from 78 banks belonging to the BCC Iccrea Group.

[2] As of 30 June 2023; calculated net of 1H23 collections and pro-forma for loans (€0.3bn) contributed in July. 

[3] Annualised collection rate calculated as the ratio of collections to (monthly) average GBV for the period.

[4] Calculated as: debt securities in issue less cash and cash equivalents.

[5] Managerial figure.