16 Aug 2022
Collectius grows AUM by 48% in 1H2022 as demand to offload bad debt rises in Asia
Singapore, 16 August 2022 - Collectius, the leading restructuring partner for financial institutions in Southeast Asia, recorded a 48 per cent increase year-on-year in assets under management to US$6.7 billion to round of a productive first six months of the year (1H2022) for the firm.
In that time, Collectius acquired six new non-performing loan (NPL) portfolios – including $800 million worth of NPLs from a Vietnam-based commercial bank announced in June which ranks as the largest single acquisition made by the firm to date.
“With economies in the region on a recovery path, it is important that we offer support to banks and other lending institutions to manage their bad debt portfolios so they can continue to dispense credit where needed and support economic growth. With stronger loan growth projections in 2022, we expect more banks and non-bank institutions to move NPLs out of their balance sheets to strengthen their ability to provide more loans,” said Gustav A. Eriksson, Group CEO at Collectius.
For 1H2022, Collectius recorded a 20 per cent increase in NPL portfolio acquired while revenue also rose 14 per cent to $20.6 million, compared to the same period last year. In its 2022 full-year forecast, the company targets to close at a revenue of $45-50 million which represents a 30-40% growth from FY 2021.
With loan moratoriums meant to support individuals and businesses through the pandemic ending in several countries in Southeast Asia, banks are starting to have a clearer picture on their NPL position. In recent times, Collectius has purchased banking NPLs from a global bank in Malaysia and a portfolio of personal and commercial NPLs worth $80 million from Kiatnakin Phatra Bank in Thailand.
Collectius believes the fabric of the loan market in Asia is changing with individuals and businesses getting credit not just from traditional sources such as banks and credit cards but also through various other channels. In recent months, Collectius has acquired NPLs from a Buy Now Pay Later (BNPL) firm in India, an automotive company that provides leasing options for European cars, a super app in Southeast Asia covering five regional markets, while also securing an to acquire 90,000 of its consumer NPLs in a joint purchase with World Bank member IFC.
Aside from acquiring NPLs, it also partners institutions that outsource their debt collection function to Collectius. These are referred to as ‘servicing clients’, and the segment recorded a 74% increase year-on-year with a total of 80 servicing clients onboarded as of June 2022.
As of end-June 2022, Collectius has a total client base of 110 financial institutions, and more than five million customers, across seven markets - Indonesia, Malaysia, Singapore, Vietnam, Thailand, Philippines and India.
In that time, Collectius acquired six new non-performing loan (NPL) portfolios – including $800 million worth of NPLs from a Vietnam-based commercial bank announced in June which ranks as the largest single acquisition made by the firm to date.
“With economies in the region on a recovery path, it is important that we offer support to banks and other lending institutions to manage their bad debt portfolios so they can continue to dispense credit where needed and support economic growth. With stronger loan growth projections in 2022, we expect more banks and non-bank institutions to move NPLs out of their balance sheets to strengthen their ability to provide more loans,” said Gustav A. Eriksson, Group CEO at Collectius.
For 1H2022, Collectius recorded a 20 per cent increase in NPL portfolio acquired while revenue also rose 14 per cent to $20.6 million, compared to the same period last year. In its 2022 full-year forecast, the company targets to close at a revenue of $45-50 million which represents a 30-40% growth from FY 2021.
With loan moratoriums meant to support individuals and businesses through the pandemic ending in several countries in Southeast Asia, banks are starting to have a clearer picture on their NPL position. In recent times, Collectius has purchased banking NPLs from a global bank in Malaysia and a portfolio of personal and commercial NPLs worth $80 million from Kiatnakin Phatra Bank in Thailand.
Collectius believes the fabric of the loan market in Asia is changing with individuals and businesses getting credit not just from traditional sources such as banks and credit cards but also through various other channels. In recent months, Collectius has acquired NPLs from a Buy Now Pay Later (BNPL) firm in India, an automotive company that provides leasing options for European cars, a super app in Southeast Asia covering five regional markets, while also securing an to acquire 90,000 of its consumer NPLs in a joint purchase with World Bank member IFC.
Aside from acquiring NPLs, it also partners institutions that outsource their debt collection function to Collectius. These are referred to as ‘servicing clients’, and the segment recorded a 74% increase year-on-year with a total of 80 servicing clients onboarded as of June 2022.
As of end-June 2022, Collectius has a total client base of 110 financial institutions, and more than five million customers, across seven markets - Indonesia, Malaysia, Singapore, Vietnam, Thailand, Philippines and India.
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