Reverta Group was €60.262 million in the red after 2014, but its annual loss was half that of 2013.
"Preventive provisions for unsecured loans made in 2013 allowed for decreasing of Reverta’s loss during the reporting period to €57.5 million as compared to a €136.4 million loss in the previous year. The loss mostly comprises provisions for impairment of the loan portfolio and net interest expense.
"Taking into consideration the fact that after the splitting of Parex bank Reverta received only low quality assets with long-term repayment difficulties, the Restructuring Plan already initially envisaged loss for the whole duration of Reverta’s operation," the company's management said in the report.
Reverta leadership said also that the company's operations were successful in 2014 and that the annual goals and targets have been met.
Last year, Reverta paid €85.2 million to the State Treasury or €27.9 million more than the year before. Of this amount €60 million was the principal sum and €25.2 million was interest on state aid. Between August 1, 2010 and the end of 2014, the Latvian state has received more than €500,000 euros from Reverta.
Between August 1, 2010 and the end of 2014, Reverta recovered €604.9 million from its distressed loan portfolio. Last year, the company recovered €93.2 million, including by selling off real estate holdings.
The distressed asset manager's assets contracted 35.1% in 2014.
The company's loan portfolio shrank 37.3% to 173.04 million euros at the end of 2014.
Reverta posted a loss of 136.448 million euros for 2013, and the group was €126.036 million in the red after 2013.
In fall 2008, Parex Banka, the second largest bank in Latvia at the time, sought government assistance to stave off financial trouble brought about by the global financial crisis. To support the failing bank, the Latvian government decided to take over a controlling stake from the bank's founders, major shareholders and executives Valerijs Kargins and Viktors Krasovickis.
In 2010, Parex Bank was split into a 'good' bank and a 'bad' bank. The good bank was called Citadele Bank and successfully continued the banking business, but the bad bank, left with the distressed assets and later named Reverta, ceased to provide commercial banking services and instead focused on restructuring of loans, recovery of debts and management of repossessed real estate.
