Pep­per hit with €3.7m bill af­ter tax ap­peal de­feat

Irish Independent - Business Week - - FRONT PAGE -

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.

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