In 2022, the volume of credits entrusted to companies associated with UNIREC reached a record of 200 billion euros, marking an increase of about 40 billion compared to the previous year. The growth of these amounts saw a strong acceleration, with a +26% increase compared to +7% in 2021, returning to pre-pandemic levels. However, this increase in volumes does not seem to be reflected in an improvement in the profitability of companies in the sector, due to generally lower credit quality. These data emerge from the XIII Annual Report presented today in Rome at the UNIREC conference, titled “Credit Scenarios between Risk Management and Recovery Potential.” The report also marks the beginning of Marcello Grimaldi’s term as the new president of the association, elected yesterday for the 2023-2025 biennium.
Analyzing the data, the report highlights how 2022 saw contrasting trends: on the one hand, there was a decrease in portfolios managed in Own Account, which now represent a marginal percentage of the total. On the other hand, there was a significant growth in Third-Party Account portfolios, with volumes increasing by 50%, reaching 160 billion euros, compared to 106 billion in the previous year, now accounting for 80% of entrusted credits. In particular, operations involving credits entrusted by a third party, such as investment funds, represent 67% of Third-Party Accounts, amounting to 106 billion euros, a considerable increase compared to 57 billion in 2021. This data indicates the growing importance of investors in the sector, especially following the awarding of tenders for portfolios backed by Securitization Guarantees (GACS).
Looking at the composition of managed portfolios, Business to Consumer (B2C) has overtaken Business to Business (B2B), with 52% of the amounts concentrated in the former sector. Recovered amounts have increased significantly, reaching 15.6 billion euros, a 37% increase compared to 11.3 billion in 2021. The average recovery percentage on the total has remained solid, though slightly decreased, from 10% to 9% (a drop of 1 point compared to 2021). However, performances vary significantly depending on whether they involve Third-Party Account Originator (when the client is the original holder of the credit) or Third-Party Account Assignee (when the credit has been transferred to third parties). In the first case, the average performance reaches 23%, while in the second case it drops to 3% due to the complexity of the situations handled.
The average ticket for entrusted credits has also increased significantly, reaching 3,619 euros, up by more than a third compared to the previous year. This increase is largely due to the greater weight of credits entrusted in Third-Party Assignee Accounts, which tend to be of higher amounts, often from banks and financial institutions, with an average ticket of 6,693 euros. Even in the Third-Party Account Originator, the average value has risen to 1,893 euros (+28%). Data for the last three years (2020-2022) shows a stable picture, despite the increase in volumes: in some sectors, such as banking, utilities, and telecommunications, performances remain unchanged, while in others, such as the financial sector, performance has dropped from 18% to 12%, and in the Public Administration sector, there has been a reduction from 59% to 37%. In contrast, the insurance sector has seen a significant improvement in performance, rising from 11% in 2021 to 23% currently.
Credits entrusted in Third-Party Account Originator amount to more than 53 billion euros, with the utilities sector maintaining its lead in the number of cases managed (37% of the total), although with a decrease compared to 2021. Among the entrusted amounts, the banking sector retains the largest share (42%), though slightly decreasing, followed by the financial sector with 30%, which has seen a 10% increase. Utility cases have risen by 42%, reaching a value of 8.5 billion euros, likely due to the increase in energy costs. In parallel, the banking and financial sectors have seen a slight decrease in the average ticket, with values of around 4,000 and 2,000 euros, respectively.
In terms of performance, the Third-Party Account Originator related to the banking sector shows particularly high performance for positions in the pre-dbt phase (positions benefiting from the end term), with 92% success. As for amounts, the financial sector has achieved the best result, with a performance of 38%, followed by utilities (27%) and the banking sector (21%).
The Third-Party Account Assignee, which handles cases already subjected to previous recovery attempts, shows that 63% of amounts relate to bank credits. However, the utility sector is growing, with over 8 million cases and a value of 7.4 billion euros, double that of 2021, but with stable performance at 5%.
Own Account portfolios amount to 41 billion euros, a 24% decrease compared to 2021. Companies in the sector purchased credits worth 4 billion euros, a 60% drop compared to the previous year, but with a 16% collection rate, double that of 2021.
Territorially, 43% of credits entrusted in Third-Party Accounts are concentrated in Lombardy, Lazio, Campania, and Sicily, with Lombardy continuing to be the leading region, although with a slight decrease compared to the previous year.
The report describes a sector undergoing significant transformations, yet showing a certain resilience. Despite the reduction in the number of companies, which now stands at 1,018 companies (-3% compared to 2021), the sector continues to report positive revenues. In 2021, total revenues reached nearly 2.3 billion euros, marking a 42% increase compared to the previous year, although profitability has decreased. Sector profitability, expressed as the return on equity per unit of revenue, has fallen to 9.8% from 14% the previous year, with marked differences across company sizes. Outgoing president Francesco Vovk commented: “Numerous challenges await the sector, including the recovery of profitability. Despite this, the sector continues to generate important results for all stakeholders. I wish Marcello Grimaldi, the new president, good work in guiding UNIREC in the next two years, supporting companies in facing changes.”
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