KRUK increases investments in Poland
In the first quarter of 2018, KRUK invested over PLN 125m, of which two-thirds were bought in Poland, in new debt portfolios with a total nominal value of PLN 600m. The number does not include portfolios purchased at two debt auctions in Poland won in March – worth nominally PLN 728m. In Q1 2018, recoveries from purchased debt portfolios reached PLN 362m, a year-on-year increase of 17 per cent.
In the first quarter, KRUK purchased 35 debt portfolios with a total nominal value of PLN 600m for PLN 125m. The number does not include portfolios purchased at two debt auctions in Poland won by the KRUK Group in March – worth nominally PLN 728m.
‘The beginning of the year was above our expectations. We are finalising the details of further major transactions in Poland, which we have already reported on. Year to date, we have purchased debt portfolios with a total nominal value of PLN 1.3bn, and the auctions we have won will increase Q2 investments,’ said Piotr Krupa, President of the KRUK Management Board.
The first quarter’s investments were made predominantly in Poland (approximately 68 per cent) and in the five other countries where KRUK is present, namely Romania, the Czech Republic, Spain, Germany, and Italy, representing 13 per cent of the total expenditure made in the previous year.
‘We are pleased with the new investments made in Poland. We benefit from the lower competitive pressure and expect to see further rationalization of the market. After a very promising beginning of the year, our appetite is growing and our financial position permits further investments,’ said Piotr Krupa.
In the first quarter, KRUK recorded recoveries from purchased debt portfolios of PLN 362m, of which all was recovered as cash from clients, which was up 17 per cent year on year and represented 26 per cent of the result generated the year before.
‘In the first quarter, recoveries from debt portfolios purchased on our two key markets, that is Poland and Romania, were again high, having accounted for more than 80 per cent of the total. We continue our amicable strategy and offer our customers manageable repayment plans. Concurrently, in both markets we are intensifying our court litigation efforts with respect to the most difficult cases which have been considered unlikely to be resolved amicably. I believe this approach will result in further recoveries in the future. At the same time, Italy and Spain – the markets we have entered only recently – also delivered increasingly high recoveries. We are strongly focused on developing operations, enhancing processes, and improving efficiency in the new markets,’ said Piotr Krupa.