KRUK invests PLN 565 million and recovers PLN 883 million in Q2 2024

Recoveries from purchased portfolios posted by the KRUK Group for the three months to 30 June 2024 totalled PLN 883 million, up by 14% year on year and 3% quarter on quarter. The deviation between actual and projected recoveries was PLN 103 million*. Recoveries for the first six months of the year totalled PLN 1,738 million, having increased 16% year on year to reach their highest level in the history of the KRUK Group’s half-year figures.

“It has been a very strong first half of the year in terms of recoveries. Notably, foreign markets accounted for 58% of the total sum we recovered. Among them, the highest recoveries recorded by our Group were those from Italy, following closely behind Poland. During the second quarter, we achieved recoveries that exceeded our accounting estimate by 13%**,” says Piotr Krupa, CEO of KRUK S.A. “As we continue our extensive technological transformation, we aim to further enhance our operational efficiency and data-driven decision-making processes. Our recoveries from portfolios in the French market are also showing promise. However, this remains a period of market testing for us, and we are carefully evaluating our next steps.”

In the three months ended 30 June 2024, the KRUK Group invested PLN 565 million in debt portfolios with a nominal value of PLN 3.6 billion, compared with PLN 653 million of debt investments with a nominal value of PLN 2.6 billion in the second quarter of 2023. In the six months ended 30 June 2024, the KRUK Group invested PLN 900 million in debt portfolios with a nominal value of PLN 5.8 billion, compared with PLN 1,178 million of debt investments with a nominal value of PLN 5.5 billion in the first half of last year. 98% of all the purchases involved unsecured retail debt.

 “Over 60% of our investments were directed internationally, with a predominant share of Italy. Our primary focus remains on unsecured retail debt portfolios, which constitute our core business. The market supply of such portfolios aligns with our projections, and we anticipate increased activity in the second half of the year. We maintain a safe debt level with robust access to financing, positioning us well for future investments,” commented Piotr Krupa, CEO of KRUK S.A.

Full data for the six months to 30 June 2024 will be published on 27 August 2024.

* 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.’