APS Generated turnover EUR 46 million on Problematic Loans in 2019

APS Group (the Group, the Company), leader in non-performing loan investment (NPL), has published its 2019 Annual Report. With a turnover of EUR 46 million, the Group generated a consolidated profit of EUR 4.6 million. Transactions closed in Bosnia and Herzegovina, Montenegro and Hungary were some of the notable milestones of the last fiscal year. The total value of portfolios under management of APS has exceeded EUR 9.4 billion, reaching a historical maximum.

CEO and the owner of APS Martin Machoň stated: "Thanks to a series of recent successful transactions, APS is performing well. Last year, we succeeded with two large acquisitions in the Balkans. At the time of the transaction, the nominal value of the portfolio exceeded EUR 441 million and it was predominately secured by commercial real estate. Another two real estate acquisitions in nominal value of nearly EUR 100 million were concluded in Hungary."

Not only for this reason, an independent and strong real estate division was created within APS. The Group gained experience in real estate trading a few years ago when Mr. Machoň´s team succeeded in Austria and Romania.

During the first half of 2020 the Group has faced multiple challenges inflicted by the COVID-19 pandemic. With debt recovery and portfolio transaction moratoria in effect in many jurisdictions, temporary gaps in portfolio performance have impacted the 2020 bottom line and slowed down short-term expansion of APS. Repayment of bonds issued by the Company in 2018 on the Prague Stock Exchange has not been affected by the COVID-19 pandemic.

It is expected that in the post-COVID world, subsequent sudden increase of problematic loans may put a strain on banks as was the case with the previous economic crisis; this will generate new business opportunities for APS. "We stay optimistic, actively monitoring opportunities in Western Europe, Latin America, and Asia, even though the situation is not favorable to opening of new branches," says Martin Machoň.

APS is currently operating in 13 countries of the Central, Eastern, and Southeastern Europe. "These are the most active NPL markets. The macroeconomic results are telling – the reduction of problematic loans helped banks to achieve stronger positions and positively impacted economic growth in these countries. Cyprus can serve as a model example," the CEO of APS Investments Jozef Martinák says.

APS is active in investments, debt portfolios management and recovery, and in real estate, chiefly in the South and Southeastern Europe, where it provides complex services in the areas of consulting, management of receivables, investment, and asset management. The company was founded in 2004 and is headquartered in Prague, Czech Republic.