Stock Groups

Italy’s doValue aims for 6% loan recovery rate by 2024 -Breaking

by Mike Robinson

[ad_1]


MILAN, Reuters – Italy’s most prominent debt recovery company doValue said on Tuesday that it will keep its loan portfolio at 160 billion Euros ($180.5 Billion) until 2024 and improve its collection rates to 6% (from 4%).

“The credit services sector is changing rapidly,” doValue declared in a statement. He also stated that changes are needed for companies in the industry.

“Transformation” means generating higher revenues per unit managed gross book value…and lower costs per unit managed gross book value.”

According to doValue’s new strategic plan, doValue plans to continue maintaining a stable loan portfolio. It will seek new deals for debt between 13 and 14 billion euros each year during the 2022-2024 period.

UniCredit’s Bad Loan Management Unit spun-off to create the company. The company said that it expects the increased collection rate will drive revenue up by 3-4 percent per year in the period 2022-2024.

doValue is also present in Spain, Greece and Italy. The company said its forecasts for growth were positive in each of the three markets. Greece was outperformed by strong new inflows.

It stated that Greece’s better recovery rates and margins would allow doValue increase its relative weight in the portfolio.

DoValue stated that it will invest in technology to improve productivity. It also plans to expand into data management, and debt collection.

Citi analysts noted Wednesday in a note that cumulative dividends for the period 2021-2024 are set by the company at least 200,000,000 euros. That is higher than market expectations.

(1 = 0.8862 euros)

Disclaimer: Fusion MediaWe remind you that this site does not contain accurate or real-time data. CFDs are stocks, indexes or futures. The prices of Forex and CFDs are not supplied by exchanges. They are instead provided by market makers. As such, the prices might not reflect market values and could be incorrect. Fusion Media is not responsible for trading losses that may be incurred as a consequence of the use of this data.

Fusion MediaFusion Media and anyone associated with it will not assume any responsibility for losses or damages arising from the use of this information. This includes data including charts, buy/sell signal, and quotes. Trading the financial markets is among the most risky investment options. Please make sure you are fully aware of all the costs and risks involved.

[ad_2]