Pepper hit with €3.7m bill after tax appeal defeat
land, which have just been filed, show that the firm paid €3.7m last year as a result of an underprovision for corporation tax.
The accounts also show that pre-tax profits at the firm fell by a third last year to €5.6m as revenue from its loan servicing activities declined from €46m to €42m.
Pepper Ireland manages about €16bn of loans for customers including Danske Bank and Bank of Scotland.
“Adjusted for one-off non-recurring items, these are a strong set of financial results at a pre-tax operating profit level and continue to recognise Pepper’s position as one of the most successful servicers in the Irish market,” said Pepper Ireland CEO Cormac Ryan.
The €16.1bn of assets under management at the end of 2017 compared to €17bn at the end of 2016. However, during 2018 the company has secured significant additional servicing mandates, with lenders such as Leeds Building Society.
Last month, Pepper Ireland exited the residential mortgage market in Ireland, having entered the business in 2016.
It sold a €200m portfolio (face value) of mortgages, held by about 900 borrowers, to Finance Ireland, the company founded by Billy Kane, a former CEO of Irish Permanent. Finance Ireland is backed by the State’s Ireland Strategic Investment Fund.
The €200m of residential mortgages that Pepper had at the time the sale was announced last month compared to €113.1m in residential mortgages it had in issue at the end of 2017, and €27.6m at the end of 2016.
In 2017, Pepper also launched mortgage lending activity aimed at commercial properties and professional buy-to-let borrowers. It continues to be involved in that activity.