Pepper Advantage Ireland, the mortgage services provider used by banks and investment firms, saw its operating profit rise by 42 per cent last year, recovering from a financial hit after erroneously undercharging a group of mortgage-holders on behalf of lenders.
Operating profit increased to €12.4 million in 2024, the company said in its latest annual financial statement.
Pepper last year used up €3.43 million of a total €4.55 million provision that had been set aside in 2023, after discovering it had undercharged some 2,500 customers. While it had informed the customers their interest repayments would increase in line with European Central Bank (ECB) rate hikes, it failed to bill them the correct amount.
The remaining €1.12 million was utilised this year, according to the company.
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Assets – mainly comprised of mortgages – under management fell to €20.4 billion at the end of 2024 from €22.8 billion a year earlier, driven mainly by borrowers paying down debt and some portfolio disposals by clients.
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In the year under review, Pepper serviced more than 100,000 residential and commercial loans in 2024, consistent with the prior year.
However, revenue rose almost 2 per cent to €67.9 million, driven by fees tied to the commencement of new loan-servicing business as well as fees tied to regulatory projects.
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“Pepper Advantage [Ireland]’s financial results for 2024 reflect both robust financial performance and the ongoing trust that customers place in our expertise. We grew our servicing mandates, onboarded new portfolios, and supported thousands of customers through a challenging economic environment,” said Niall Sorohan, chief executive of the company.
“While the majority of loans we service are regularly performing, I’m especially proud of the strides we made in helping over 1,000 households resolve long-term mortgage arrears in the first half of this year.”
Pepper Advantage Ireland paid a €17.1 million dividend to its immediate parent, Pepper Ireland Finance Holdings, last year, following on from a €14.1 million payment made in 2023.
The company’s UK-based parent, Pepper Advantage, was acquired by US private equity firm JC Flowers last February for an undisclosed amount.
