The Management Board of KRUK S.A. has released the financial results for the first nine months of 2021 today. The KRUK Group earned PLN 565m in net profit, more than sixteen times the figure posted for the same period last year. Recoveries from purchased portfolios totalled PLN 1,615m, up 20% year on year. Cash EBITDA came in at PLN 1,151m, an increase of 26% year on year.
‘The first three quarters of 2021 saw KRUK’s best performance to date. Our year-to-date net profit of PLN 565m has already surpassed the previous record full-year profit for 2018 by over PLN 230m. We have worked hard to deliver strong results, therefore I’m pleased with the achieved recoveries, cash EBITDA and profit,’ notes Piotr Krupa, CEO and President of the KRUK Management Board. ‘I’m satisfied with performance delivered in each country. The situation looks particularly good in our core business of buying and collecting unsecured retail debts in virtually all markets where we operate.
In the nine months to September 30th 2021, the KRUK Group posted revenue of PLN 1,341m, up 66% year on year. Revenue from servicing purchased portfolios was PLN 1,208m, up 79% year on year. This growth was driven by higher-than-expected portfolio recoveries and an upward revaluation of recovery projections, totalling PLN 224m, compared with PLN -203m in the nine months to September 30th 2020. The deviations between actual and projected recoveries in the first nine months of 2021 were PLN 271m, compared with PLN 160m in the corresponding period of 2020.
‘The third quarter saw the highest year-to-date interest income of PLN 252m,’ says Piotr Krupa. ‘This is an effect of further investments made by KRUK. Also, despite having raised the recovery projections and recognised upward revaluation of PLN 117m as at June 30th 2021, in the third quarter we again reported a favourable actual vs plan variance in recoveries, this time totalling PLN 58m.
In the nine months to September 30th 2021, KRUK invested PLN 935m, 728% more than a year earlier, mainly in unsecured retail debt portfolios in Poland, but also in Italy, Spain, Romania, the Czech Republic, and Slovakia.
‘We invested almost PLN 1bn in debt portfolios during the first three quarters of 2021, and we know from experience that the fourth quarter is usually the busiest period in terms of market transactions. We actively participate in auctions, and it is definitely too early to tell what our investments will total at the close of the year. At the end of October, we announced a win in an auction to purchase a large portfolio from one of Poland’s largest banks, with a nominal value of PLN 1.3bn. I’m confident this year will be an excellent one in terms of investments. Although 2021 is not yet over, we are already thinking about how to drive growth in 2022 and beyond,’ concludes KRUK CEO Piotr Krupa.
The deviations between actual and projected recoveries disclosed jointly with revenue decreases on early collections in collateralised cases and payments from original creditor