The outlook for the debt purchase market remains positive, despite there being a temporary pause in the supply of debt portfolios according to d bt resolution specialist, Hoist Finance.
Chief Executive Officer Klaus-Anders Nysteen says he anticipates that banks will continue to divest portfolios and will do so at an earlier stage than historically. “The European estimated loan stock has decreased from EUR 1.2 trillion in 2014, to approximately EUR 635 billion in 2019,” he says. “This is good for the financial eco-system, and I am confident in the market for non-performing loans as all market participants have become more diligent and structured, which has resulted in favourable margin developments over the last year. There is also an increased amount of transactions in the secondary market, both for non-performing loans as well as for performing loans.”
“If we can offer customers and employees the best experience possible, both in the current challenging times as well as in the long run, I am convinced financial performance will benefit,” he continues. “This is why operational excellence will continue to be a priority in 2020, underpinning our capacity to deliver attractive returns going forward, while maintaining our focus of helping people keep their commitments.”
To coincide with the publication of its annual report, Hoist Finance also launched its new sustainability strategy which includes its continued commitment not to buy portfolios of non-performing payday loans.
Nysteen continued “To protect the most financially vulnerable people in society, Hoist Finance only buys non-performing loans from reputable banks with a sound credit policy and actively turns down portfolios from some parts of the consumer finance markets including pay-day loans and SMS loans,”