After completing asset takeovers from banks undergoing measures to strengthen the stability of banks and concluding the process of setting up the organization in 2014, BAMC focused on managing the transferred assets in 2015. Cash generated from asset management in 2015 amounted to €356,2 million representing 22,0% of asset transfer value and thus highly exceeded the ZUKSB requirement of yearly liquidation of at least 10% of assets. From inception, BAMC thus generated €493,5 million of cash, meaning that almost one-third of transferred assets’ value was cashed.
BAMC’s core business is managing non-performing assets, mostly NPLs. Thus, BAMC’s operating and financial expenses have to be covered by realized capital gains and revaluation income in order to generate profit. BAMC recorded a net loss of €8,3 million in 2015. Hence, BAMC has not achieved the required 8% return on equity as required by the Guidelines on the Operations of the Bank Assets Management Company. The loss was the result of revaluations, as income from the increase in the fair value of assets due to revaluation was insufficient to cover all financial expenses and operating costs, despite the positive result of transactions. While realized inflows were mostly in line with expectations, the main difference to previous valuations originated in the lower and more distant estimation of cash flows from the remaining portfolio in future years as a result of economic, investor sentiment and other related factors.
Regardless of the net loss and equity decline in 2015 BAMC has, since its inception, increased the equity value by 20% compared to equity fair value after the takeover of assets from the four state-owned banks which includes the return of capital to the owner in various forms. The economic return on equity (EROE) indicator that takes into consideration also the return of capital to the owner, and therefore more appropriately and comprehensively measures BAMC’s performance, thus stands at an average yearly return on equity of 11.4% for the each of the two years of operations of BAMC.
In accordance with Article 15 of the ZUKSB, BAMC published a BAMC Report to the National Assembly of the Republic of Slovenia for the year 2015.