KRUK invests PLN 743 million and recovers PLN 864 million in Q3 2024

Recoveries from purchased portfolios posted by the KRUK Group for the three months to 30 September 2024 totalled PLN 864 million, up by 10% year on year and down by 2% quarter on quarter. The deviation between actual and projected recoveries was PLN 91 million*. In the period from January to September 2024, recoveries totalled PLN 2,602 million, up 14% year on year.

“In the third quarter, we achieved recoveries that exceeded our accounting estimate by 12%**. Most of the recoveries (60%) were recorded abroad. I am particularly pleased to see the improvement in recoveries in Spain relative to the second quarter. At the same time, we anticipated the impact of summer seasonality, which did materialise, particularly in Italy, Spain, and France, and resulted in lower total recoveries across the Group compared to the second quarter. It was a strong quarter in terms of recoveries,” said Piotr Krupa, CEO of KRUK S.A.

In the three months ended 30 September 2024, the KRUK Group invested PLN 743 million in debt portfolios with a nominal value of PLN 3.4 billion, compared with PLN 812 million of debt investments with a nominal value of PLN 4.6 billion in the third quarter of 2023. In the nine months ended 30 September 2024, the KRUK Group invested PLN 1,643 million in debt portfolios with a nominal value of PLN 9.2 billion, compared with PLN 1,989 million of debt investments with a nominal value of PLN 10.1 billion in the nine months ended 30 September 2023. 99% of all the purchases involved unsecured retail debt.

 “We are consistently executing our plan and I am pleased with the level of this year’s investments and the returns generated from those transactions. We made most of our investments outside Poland, although the domestic market still accounts for 33% of debt purchases. We focused on the assets of our core business, namely unsecured retail debt. The last quarter of the year is our busiest period, during which we will participate in numerous debt purchase tenders,” commented Piotr Krupa, CEO of KRUK S.A.

Full data for the three months to 30 September 2024 will be published on 29 October 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.’