The KRUK Group has made an investment of PLN 230m to buy a portfolio of mortgage-backed debt with a total nominal value of PLN 710m from Getin Noble Bank S.A. This is the largest capital investment in a single debt portfolio in the Group's operating history, marking its official step into a new market segment − mortgage-backed debt.
“This high-value transaction is a milestone in our ongoing growth, launching KRUK into the market of mortgage-backed debt. Purchases of such portfolios have been transacted before, but the portfolio values were insignificant. We expect banks will now be more willing to auction non-performing mortgage debt. KRUK is well prepared to such auctions. We have access to financing and appropriate organisational resources enabling us to actively participate in this market's growth,” said Piotr Krupa, President of the Management Board of KRUK S.A.
The portfolio represents 63% of the total capital investment of PLN 367m made by the Group in new portfolios in 2013. In the same year, recoveries from purchased debt portfolios reached a record high of PLN 538m, compared with PLN 451m in 2012, with net profit at PLN 97.8m, relative to PLN 81.2m in 2012.
“We firmly believe that the portfolio we have purchased will add value to our Company and open up new opportunities. In line with our strategy, we are set to actively participate in all auctions of unsecured consumer debt, mortgage-backed debt and corporate debt that will come our way,” Mr Krupa added.