Link Administration, the publicly listed financial services company in Australia, said its Irish business had been hit by a runoff of bad debt.
ndrew MacLachlan, chief financial officer of Link Administration, recently informed analysts of the reduction in its portfolio of non-performing loans in Ireland. The Australian company operates its Business and Credit Management (BCM) business in Ireland, which manages non-performing loans.
“Banking and credit management had a difficult start to the year, although we are pleased to announce some good new clients during the six months,” he said. “Business continues to be impacted by NPL runoff [non performing loans]especially in Ireland.
In late 2020, MacLachlan told analysts that the growth prospects for a proposed combination of Link and fellow bad loan processor Pepper European Servicing were bright due to the “next cycle of non-performing loans in Europe post Covid”. The deal then fell through.
Last March, Vivek Bhatia, CEO of Link, told analysts he expected Ireland to be hit by a significant increase in non-performing loans.
However, last September MacLachlan said the new non-performing loan business pipeline remained “very subdued” in markets, including Ireland. At the time, the runoff profile of the loans contributed to its A$24.6 million revenue decline.