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Kedipes Achieves Strong Financial Performance in Q1 2024

loan management asset management

In Q1 2024, Kedipes achieved strong financial results with robust cash inflows of €144 million and repaid €140 million to the state, bringing the total state aid repayment to €1.3 billion. The company plans to repay an additional €60 million by June, showing a 35% increase in cash inflows compared to the same period last year.

What financial performance did Kedipes achieve in Q1 2024?

In Q1 2024, Kedipes reported strong financial results with robust cash inflows of €144 million and a significant €140 million repayment to the state, bringing the total state aid repaid to €1.3 billion. The company also plans to repay an additional €60 million by June and has seen a 35% increase in cash inflows compared to the same period last year.

Impressive Q1 Results and State Aid Repayment

In a notable development, Kedipes, the state-owned asset management company, reported robust cash inflows of €144 million during the first quarter of 2024. This performance underscored a strong start to the year and was complemented by a significant €140 million repayment to the state. The cumulative sum repaid in state aid has now hit a remarkable €1.3 billion. These figures emerged alongside the company’s Q1 2024 management results, which also hinted at an even brighter forecast for the upcoming second quarter. In a move that demonstrates its solid financial footing, Kedipes has disclosed plans to repay an additional €60 million in state aid by June.

Chairman Lambros Papadopoulos attributed the financial uptick to strategic moves, including the successful sale of a loan portfolio to the Bank of Cyprus and the offloading of a high-value property. Compared to the same period last year, the Q1 cash inflows leaped by 35 percent, and they also saw an 11 percent increase from the previous quarter. Excluding these key transactions, the regular cash flows remained steady at €80.7 million, mirroring the performance of Q1 2023.

Loan and Asset Management Success

Kedipes has experienced a windfall since its inception on September 1, 2018, with cumulative cash inflows reaching a staggering €2.24 billion. Most of the receipts, approximately €2.12 billion, came from managing loans and properties, which is notably 26.3 percent of the loans and properties’ nominal value at the company’s start. The original valuation of these assets was €8.05 billion.

The firm’s partnership with the managing company doValue yielded restructuring or recovery solutions worth €94.3 million in Q1 2024. These figures are a testament to the company’s effective management strategy which has seen a total of €4.01 billion in solutions since operations began, covering 54.5 percent of the initial loan balance of €7.37 billion.

Fiscal Management and Asset Protection

Continuing with Kedipes’ fiscal prudence, the operating expenses and asset management costs for the first quarter stood at €27.6 million. This represents a 11.3 percent decrease from the €31.1 million reported in the preceding quarter. Furthermore, the increase in net cash flows was impressive, registering at €109 million post-expenses and obligations, which is a 32.0 percent rise from Q4 2023 and a 39.2 percent uptick from Q1 2023.

Notably, the value of grants by the end of the first quarter of 2024 decreased to €5.82 billion, down from €6.127 billion the same time the previous year. Since its operations kicked off, the company’s total deleveraging stood at 21 percent, effectively reducing the share of leverage by 42.3 percent, excluding contractual interest.

Strategic Operations and Future Outlook

Kedipes, the administrative force behind the mortgage-to-rent scheme, has processed approximately 2,000 applications thus far. Of these, 1,382 have successfully passed the initial eligibility phase, and properties are now being subjected to technical due diligence. Efforts to streamline the process are ongoing, with notifications being dispatched to applicants who did not meet the preliminary criteria.

On a strategic note, the company has set aside €60 million for future property acquisitions as part of the mortgage-to-rent initiative. Moreover, Kedipes has taken a step towards operational optimization with a voluntary exit plan that led to 27 staff members departing, aligning with the company’s gradual staff reduction objectives. Currently, the company maintains a workforce of 313 dedicated staff members.

In summary, Kedipes’ performance in the first quarter of 2023 delineates a company on an upward trajectory, successfully balancing asset management with fiscal responsibility. The strategic sales and effective cash flow management have positioned Kedipes as a key player in the stabilization and growth of the state’s financial landscape.

What financial performance did Kedipes achieve in Q1 2024?

In Q1 2024, Kedipes reported strong financial results with robust cash inflows of €144 million and a significant €140 million repayment to the state, bringing the total state aid repaid to €1.3 billion. The company also plans to repay an additional €60 million by June and has seen a 35% increase in cash inflows compared to the same period last year.

What factors contributed to Kedipes’ impressive Q1 results and state aid repayment?

Kedipes’ impressive Q1 results were attributed to strategic moves, including the successful sale of a loan portfolio to the Bank of Cyprus and the offloading of a high-value property. Chairman Lambros Papadopoulos highlighted these actions as major contributors to the company’s strong financial footing, leading to a 35% increase in cash inflows compared to the same period last year.

How has Kedipes managed its loans and assets since its inception?

Since its establishment in September 2018, Kedipes has managed to generate cumulative cash inflows of €2.24 billion, with most of the receipts coming from managing loans and properties. The firm has achieved restructuring or recovery solutions worth €94.3 million in Q1 2024 alone, demonstrating effective management strategies and solutions totaling €4.01 billion since operations began.

What are Kedipes’ plans for future operations and strategic initiatives?

Kedipes has set aside €60 million for future property acquisitions as part of the mortgage-to-rent initiative and has processed approximately 2,000 applications so far. Efforts to streamline operations and optimize staff numbers are ongoing, with a voluntary exit plan leading to 27 staff members departing. The company’s future outlook remains positive, with a workforce of 313 dedicated staff members focusing on balancing asset management and fiscal responsibility.

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