KRUK invests PLN 335m and recovers PLN 856m in Q1 2024
Recoveries from purchased portfolios posted by the KRUK Group for the three months to 31 March 2024 totalled PLN 856m, up by 18% year on year and 10% quarter on quarter. The deviation between actual and projected recoveries was PLN 105m*.
“2024 has begun on a highly positive note, and I'm pleased with the strides we've made in operational efficiency. Particularly noteworthy is our progress in amounts recovered from the Spanish market, where year-on-year recoveries have surged by over 80%. Italy has also seen a remarkable uptick with nearly 40% higher recoveries compared with last year, closely trailing behind Poland in terms of contribution to the Group’s overall collections. Recoveries were both higher and came in earlier than we had projected. Surpassing our expectations, actual recoveries for the first quarter of 2024 exceeded our accounting estimate by 14%**. We continue to record robust recoveries, underpinned by our focus on refining operational excellence and embracing technological advancements,” says Piotr Krupa, CEO of KRUK S.A.
In the three months ended 31 March 2024, the KRUK Group invested PLN 335m in debt portfolios with a nominal value of PLN 2.2bn, compared with PLN 524m of debt investments with a nominal value of PLN 2.8bn in the first quarter of 2023. 96% of all these purchases involved unsecured retail debt.
“As we embark on the new year, investments both domestically and internationally are under way, with approximately 40% of our funds allocated to the Polish market and Italy once again emerging as the key focus for our international expansion. After strong supply in the fourth quarter of 2023, we can see a subdued start of the year from the banking sector, but this is typical for our industry and we anticipate a supply of debt on a par with the previous year’s level throughout 2024. Bolstered by good access to financing and safe debt ratios, we stand primed for further investments,” continues Piotr Krupa. “In a notable development, we initiated debt purchases on the French market over the first quarter, accompanied by promising first collections from our local partners. While it's premature to say anything conclusive at this stage, the positive indicators from that market are certainly encouraging,” commented Piotr Krupa, CEO of KRUK S.A.
* The ‘deviation of actual recoveries from budgeted figures, decreases on early collections in collateralised cases, and payments from the original creditor’ item of the financial statements;
** The percentage deviation between actual and projected recoveries is determined as the ratio of ‘deviation between actual and projected recoveries’* to the difference between ‘actual recoveries’ and ‘deviation between actual and projected recoveries’*