AMCO – FY24 Results
COLLECTIONS AT €1.5BN AND NET INCOME OF €29M
STRATEGIC PLAN: 2024 PROJECTS FINALISED; 2025 PROJECTS ALREADY LAUNCHED
- Assets under Management (AuM) at €32.2bn (-7% y/y) in line with dynamics expected in the Strategic Plan; 72% are NPLs and 28% are UTPs
- Collection rateat 4.4%; collections at €1.5bn
- Net income of €29m compared to negative result in 2023
- EBITDA at €237.1m (-22% y/y) due to the decrease in AuM, expenses to strengthen the corporate structure and strategic projects. EBITDA marginat 54.2%
- Capital ratios further improving: CET1 at 37.4%
- Maturing bonds were repaid with available liquidity: €250m in February 2024 and €600m in January 2025
- Investment grade ratings: S&P at BBB/A-2 with stable outlook; Fitch at BBB/F2 with positive outlook
- Binding agreement, signed in February 2025, to purchase 80% of the Exacta Group to strengthen AMCO’s systemic role in the management of impaired loans for the public interest
- First step of RE.Perform project: set up of a specialised team to manage residential mortgages aiming to facilitate households’ return to performing status. Sale of over €400m retail re-performing mortgages, contributing to the development of an efficient market in Italy
Milan, 13 March 2025 – The Board of Directors of AMCO – Asset Management Company S.p.A. met today and approved FY24 results.
“In March 2024, AMCO defined a new strategy in the Plan “We Produce Value”; over the last 12 months we worked to improve the projects included in our Plan, – explains Andrea Munari, AMCO’s CEO. – 2024 results reflect the strategic actions underway: AMCO closes the year with a positive net result, confirming the generation of liquidity and a solid capital structure. During the year, we strengthened our governance and implemented a new organisational structure, as well as other structural changes aimed at optimising both internal and outsourced credit management, with an increasingly data-driven approach.
The structure is now ready for the launch of new projects. In 2025 we launched the first step of the RE.Perform project and acquired Exacta, a company active in managing unpaid taxes of local public administrations. Over the course of this year, we will continue to work to strengthen AMCO’s systemic role for the public interest, supporting corporates and households’ financial recovery”.
2024-2028 STRATEGIC PLAN UPDATE
Projects finalised in 2024
The 2024-2028 Strategic Plan “We Produce Value” was published on 12 March 2024. In the following months, a number of projects included in the Plan were finalised as well as changes to the governance and to the organisation in order to adopt the most suitable organisational structure to pursue the defined strategic objectives.
Specifically, with the 30 December 2024 Shareholders’ Meeting, AMCO adopted the one-tier governance system. At the same time, the Board of Directors was strengthened with the appointment of 4 directors, thus increasing Board members from 5 to 9 and the percentage of women (55%)1, as well as ensuring a greater diversification of Board members’ skills.
The organisational structure was strengthened with the introduction of a Co-General Manager, to increase supervision of business areas and business support functions, and with greater delegation power to managers. The business model was changed with the evolution into two Departments (Turnaround & Strategic Finance and NPE & Outsourcing) that manage credit according to credit size aiming to optimize collections via greater industrialisation of credit recovery processes. As for outsourced credit management, as of 1 January 2025, the number of third-party servicers was rationalised – from 15 to 8 – chosen according to strict selection criteria focusing on specialisation and historical performance, with the aim of greater efficiency and recoveries’ optimisation.
During 2024, Level I, II and III Internal Controls were strengthened. Finally, the Capital Management Department was created to support strategic/financial decisions.
In addition, AMCO finalised its 2026 Sustainability targets – confirmed in the 2024-2028 Plan – based on the 4 pillars of the GSSE Strategy. Among the main targets achieved in Sustainable Credit Management there are: ESG criteria embedded in credit management strategies and the calculation of the energy label of 90% of the repossessed assets2. Targets included in the pillar Sustainable Development of Human Capital are: promotion of 10% of the female population, the calculation of the average gender pay gap and by groups of employees, as well as succession plans for 40% of top managers. As for the Environmental Protection pillar, in 2024 AMCO appointed a Mobility manager for the Milan office.
New strategic projects launched in 2025
In February 2025 AMCO launched the first step of RE.Perform, a project already included in the Plan aimed at facilitating residential mortgage clients’ return to performing status, with the aim of their financial recovery and access to new credit. The project envisages the creation of a dedicated unit within the NPE & Outsourcing Division. In parallel, AMCO sold a re-performingresidential mortgage portfolio for over €400m GBV. The transaction represents an industry benchmark and contributes to the creation of an efficient re-performingresidential mortgage market in Italy, in line with AMCO’s systemic role.
The DREAM Project was launched with the objective of the industrialisation of credit processes, to transform AMCO into a data-driven company, improving data quality and data analysis and laying the foundations for using AI to further optimise credit management.
With regards to strategic actions, on 24 February 2025 AMCO signed a binding agreement to acquire 80% of the Exacta Group, which manages unpaid taxes of local public administrations. The transaction, once finalized, will allow AMCO to acquire an operating platform with high-level technological know-how, which is complementary to AMCO’s current business to strengthen its systemic role in managing impaired loans for the public interest.3
FY24 RESULTS
Business performance
As of 31 December 2024, Assets under Management (AuM) reached € 32.2 bn4 (-7% y/y), in line with the dynamics expected in the Strategic Plan.
AuM consisted of Non-Performing Loans (NPLs 72%) and Unlikely to Pay (UTPs 28%). UTPs decreased due to higher collections than NPLs and due to credit classification changes. In terms of operational mix, 69% of volumes are managed in-house and 31% are outsourced. At the end of 2024, there were approximately 162 thousand positions under management.
Operating Performance – Collections
In 2024 Collections reached €1.5bn, down 11% y/y due to lower collections from big tickets compared to 2023, to the natural ageing of the portfolio, and to the increasing weight of NPLs versus UTPs.
Collection rate5 for the year was 4.4% (4.6% in 2023). The sound performance of both business divisions confirms AMCO’s effective credit management: the NPE & Outsourcing Division’s collection ratewas 4.3% (4.3% in FY23) while the Turnaround & Strategic Finance’s collection ratewas 4.5%, down from 5.0% in FY23 due to the lower collections from big tickets compared to 2023.
The solid performance of collections in 2024 is paired with a proactive approach to credit management: 94% of collections from UTP loans came from extrajudicial activities, as well as 29% of collections from NPL loans, in line with the GSSE Sustainability Strategy.
2024 Results
As of 31 December 2024, net income was €29m, compared to a -€388m loss in 2023, due to lower adjustments and debt reduction. EBITDA amounted to €237.1m (compared to €304.3m in 2023). The trend reflects the decline in revenues due to lower average Assets under Management and the increase in costs to strengthen the corporate structure and strategic projects. EBITDA marginis 54.2%.
Income statement – Main items
Revenues amounted to €437.7m, down by 10% y/y (€484.7m in 2023) due to lower interest from customers (€ 289.1m, -16% y/y) originated by the decrease in on-balance-sheet loans in line with the dynamics included in the Strategic Plan. Servicing Feesincreased by 13% to €46.1m due to the management of the off-balance sheet portfolio relating to the former Veneto banks.
Other income/expenses from operating activities – which refer to cash recoveries (all cash-based) – increased by 4% y/y and they are related to collections exceeding expected recovery plans.
Total costs amounted to €200.6m, up 11% y/y due to the strengthening of the corporate structure, both in terms of infrastructure and staffing. In detail, net operating expenses amounted to €147.4m, up 13% y/y, due to the increase in legal and recovery expenses (i.e. higher costs related to the management of leasing real estate and new legal actions), to IT initiatives and specialised consultancy services related to the Plan’s projects (i.e. DREAM Project), and to higher outsourcing fees related to recoveries on the outsourced portfolio.
Personnel expenses amounted to €53.3 million (+7% compared to 2023) due to staff increases to support the company’s development. As of 31 December 2024, employees were 444, i.e. 27 more than in 2023. 66% of staff are employed in business roles and the remaining 34% in central functions. Females account for 42% of total. The average age is 44.
| Euro/m | FY23 | FY24 | % change |
| Servicing fees | 40.8 | 46.1 | 13% |
| Interest income | 345.1 | 289.1 | -16% |
| Other income/expenses from ordinary operations | 98.8 | 102.5 | 4% |
| Total Revenues | 484.7 | 437.7 | -10% |
| Personnel expenses | (49.6) | (53.3) | 7% |
| Net operating costs | (130.8) | (147.4) | 13% |
| Total Costs | (180.4) | (200.6) | 11% |
| EBITDA | 304.3 | 237.1 | -22% |
| EBITDA margin | 62.8% | 54.2% | n.m. |
| Net impairment gains/losses | (523.8) | (113.5) | -78% |
| Depreciation and amortisation | (6.7) | (4.5) | -33% |
| Provisions | (8.5) | (1.5) | -82% |
| Other operating income/expenses | (1.6) | (1.3) | -18% |
| Net result from financial activities | (31.4) | 4.8 | n.m. |
| EBIT | (267.7) | 121.1 | n.m. |
| Interest and fees from financial activities | (89.6) | (69.2) | -23% |
| Pre-tax income | (357.3) | 51.9 | n.m. |
| Income taxes | (30.7) | (22.9) | -25% |
| Net income | (388.0) | 28.9 | n.m. |
EBIT was €121.1m, compared to a negative result of €267.7m in 2023. The balance of write-downs/write-backs is negative at €113.5m and reflects the periodic portfolio valuation process, offset by write-backs arising from the revaluation of the re-performingportfolio then sold. Interest from financial activities, at €69.2m, decreased by 23% from 2023 due to the decrease in outstanding debt for the repayment of matured bonds.6
Income taxes stood at €22.9m.
Balance Sheet
The balance sheet remained solid. Loans to customers amounted to €3,6187m, down from €4,235m in 2023 due to collections generated by recoveries from on-balance portfolios.
Cash and cash equivalents – which include cash and Italian Government Bonds – reached €1,218m (+79% y/y). The strong growth is due to the investments in Government Bonds done with cash generated from operations. This liquidity was then used for the repayment of the €600m bond matured in January 2025.
| Euro/m | FY23 | FY24 |
| Loans to customers | 4,235 | 3,6187 |
| Cash and cash equivalents (loans to banks, Government Bonds) | 679 | 1,218 |
| Financial assets | 441 | 391 |
| Other Activities | 232 | 191 |
| Total assets | 5,587 | 5,418 |
| Financial liabilities | 3,412 | 3,166 |
| Tax liabilities | 0 | 0 |
| Provisions for specific purposes | 25 | 27 |
| Other Liabilities | 128 | 159 |
| Net equity (of which) | 2,022 | 2,067 |
| Share Capital | 655 | 655 |
| Share premiums | 605 | 605 |
| Reserves | 1,184 | 796 |
| Valuation Reserves | (34) | (18) |
| Net income | (388) | 29 |
| Total liabilities and equity | 5,587 | 5,418 |
Financial liabilities as of 31 December 2024 were €3,166m and consisted of unsecuredbonds. A €250m bond maturing in February 2024 was repaid at maturity.
The company has a Commercial Paper program of up to €1 billion, which is currently undrawn.
Net Financial Position (NFP)8 is -€1,882m, improved by €828m compared to December 2023, thanks to solid operating cash flow. Net Debt (NFP)/Equity ratio was at 0.9x, down from 1.3x in December 2023.
Shareholders’ equity as of 31 December 2024 amounted to €2,067m.
Capital ratios are further increasing: CET1 was 37.4%9 with Total Capital Ratio also standing 37.4%, as there are no subordinated bonds.
RATING
On 30 October 2024, Fitch Ratings confirmed AMCO’s ‘BBB’ long-term rating and ‘F2’ short-term rating, improving the outlook from Stable to Positive.
On 21 May 2024, S&P Global confirmed AMCO’s ‘BBB’ long-term rating with a Stable outlook and ‘A-2’ short-term rating.
SIGNIFICANT EVENTS AFTER THE PERIOD
Repayment of a bond maturing in January 2025
In January 2025, a € 600m maturing bond was repaid by using part of available liquidity.
Binding agreement for the acquisition of the Exacta Group
On 24 February 2025, AMCO announced that it signed a binding agreement with the permanent capital platform Eulero Capital and the Oreglia familiy to purchase 80% of the Exacta Group, which is active in managing unpaid taxes of local public administrations.
AMCO launches the RE.Perform Project
In February 2025 AMCO launched RE.Perform: a project to support retail residential mortgage clients in their return to performing status, aiming at households’ financial recovery and their access to new credit. In parallel, AMCO signed an agreement with funds managed by AB CarVal for the sale of a re-performingloans portfolio with a size of over €400 million (GBV).
The Extraordinary Shareholders’ Meeting Approves Amendments to the Articles of Association
On 6 March 2025 AMCO’s Extraordinary Shareholders’ Meeting approved certain amendments to the Articles of Association aimed at a better execution of the projects included in the Strategic Plan. The amendments to the Articles of Association will become effective as of the date of registration of the shareholders’ resolution with the competent Company Registry.
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 company records.
1Higher than the 2/5 criteria set out in AMCO’s Articles of Association.
2Repossessedreal estate excluding leasing contracts.
3The transaction will be finalised by the first half of 1H2025, after obtaining authorisations from competent authorities.
4The figure as at 31.12.2024 includes more than € 400m AuM related to the RE.Perform Project transferred in February 2025.
5Annualised recovery rate calculated as the ratio of collections to average (monthly) GBV for the period.
6€250m in February 2024.
7Includes loans held for sale related to a portfolio of re-performingresidential mortgages under disposal.
8Calculated as: debt securities in issue at nominal value less cash and cash equivalents.
9Managerial data.
