AMCO – Asset Management Company S.p.A. has officially unveiled its Strategic Plan for 2024-2028, aimed at bolstering the financial recovery of households and corporations by enhancing the management of impaired loans for the public benefit. Under the leadership of Dr. Giuseppe Maresca, AMCO’s Board of Directors has not only ratified the financial outcomes for 2023 but has also set the stage for a transformative agenda titled “We Produce Value,” reinforcing the GSSE Sustainability Strategy.
In a challenging macroeconomic landscape marked by uncertain inflation dynamics and positive real rates, AMCO’s plan presents a vision to derive value from the existing loan portfolio by optimizing recovery processes with a data-driven approach and proactive credit management. The plan is built on three pivotal pillars: operational efficiency to enhance portfolio value, innovative projects supporting financial recovery for households and corporates, and a systemic role in impaired loan management for the public interest.
AMCO aims for significant financial milestones within the plan’s timeframe, including a collection rate surge to 6.7% by 2026, leveling to 5% by 2028, profit generation across all years with €50 million in 2026 and €51 million in 2028, and a reduction in Assets under Management (AuM) to €32.3 billion in 2026 and €28.5 billion in 2028. The strategic approach also encompasses a capital-light model anticipated to yield substantial public interest value by eliminating outstanding debt and releasing capital, supported by a solid capital structure boasting excess capital of €1.8 billion by the end of 2028.
AMCO’s CEO, Andrea Munari, articulates the plan’s ambition to leverage the existing loan portfolio for value generation through enhanced operational efficiency and the industrialization of processes. The strategic initiative underscores new projects dedicated to managing impaired loans, emphasizing AMCO’s critical role in facilitating financial recovery for households and corporations, ensuring profitability, and contributing to the public interest throughout the plan’s duration.
Highlighting the preparation for the strategic plan, AMCO has updated expected collection estimates for its loan portfolio, reflecting the altered macroeconomic conditions and revised corporate governance structures to lay a robust foundation for future growth. These preparatory steps include the set up of multi-originator funds aimed at specific sectors or geographies, restructuring and industrial relaunch projects, and the project “RE.Perform” to assist retail mortgage clients in returning to performing status.
AMCO’s commitment to sustainability is evident through its GSSE Sustainability Strategy, sustainable governance, credit management, human capital development, and environmental protection. The strategy emphasizes the establishment of an ESG Board Committee, the appointment of ESG Ambassadors, the launch of the RE.Perform project, and various initiatives aimed at promoting diversity, inclusion, and environmental stewardship.
As AMCO embarks on this ambitious four-year journey, its strategic plan not only aims to optimize operational efficiency and financial recovery processes but also underscores its systemic role in managing impaired loans for the greater public interest, all while adhering to principles of sustainability and responsible governance.
Blogger and Investment Management Advisor with focus on Distressed Assets & NPL. Massimo is Chief NPL & Fintech Editor at Credit Village Magazine.