KRUK in 2023 – nearly PLN 3bn of new debt purchases and over PLN 3bn in recoveries

Recoveries from purchased portfolios posted by the KRUK Group for 2023 totalled PLN 3.062bn, up by 17% year on year. In the three months to 31 December 2023 alone, recoveries reached PLN 777m, up by 11% year on year and down by 1% quarter on quarter.

“For several years, I have consistently highlighted our achievement of record-breaking recovery levels, and 2023 was no exception. Surpassing the PLN 3bn mark, our recoveries demonstrated year-on-year growth across all markets. This outstanding performance is particularly noteworthy in the face of such challenges as high inflation and growing costs to service bank loan debt. The success can be attributed to our operational know how and experience, with an unswerving focus on continuous improvement. Notably, Spain and Italy saw the most significant progress in terms of recoveries, reinforcing their importance as key markets for us, alongside Poland and Romania,” says Piotr Krupa, CEO of KRUK S.A.

In 2023, the KRUK Group invested PLN 2.972bn in debt portfolios with a nominal value of PLN 14.5bn, compared with PLN 2.311bn of debt investments with a nominal value of PLN 13.7bn made in 2022. 90% of all these purchases involved unsecured retail debt. In the three months to 31 December 2023, KRUK invested PLN 983m in debt portfolios with an aggregate nominal value of PLN 4.4bn.

“We surpassed market expectations and more than delivered on our investment plan. I am particularly pleased with these results considering that the majority of our investments involve unsecured retail debt portfolios. Notably, 74% of our investments were made outside the domestic market, with Italy leading the way at nearly PLN 1bn. Also our investments in Poland rose markedly, as we allocated over PLN 770m to purchase domestic debt portfolios, a significant increase from the year before,” comments Piotr Krupa. “I will provide a comprehensive comment on our 2023 results in late February, but looking solely at recoveries and investments it was a great year for KRUK. For us, the thing of key importance is to grow in the markets holding strong potential for our core business, that of collecting unsecured retail debt. We have experienced robust growth in the Italian and Spanish markets, which, alongside the Polish and Romanian markets, will drive our further expansion. Additionally, at the end of 2023 we sealed an agreement to acquire our first debt portfolios in the French market, paving the way for KRUK to enter the new geographic territory in the years to come.”