In three days, the KRUK Group completed a transaction to purchase another large portfolio of consumer debt. This time, it paid PLN 36m to Santander Consumer Bank for unsecured debts with a nominal value of PLN 333m.
“Like our entry into the mortgage-backed debt market, this recent purchase of a debt portfolio from Santander Consumer Bank is good news to our shareholders. We continue to buy portfolios in the unsecured consumer debt segment, which we consider strategic. Debt supply at banks has remained strong, on a level comparable to that recorded last year. We intend to participate in every auction of unsecured, mortgage-backed and corporate debt portfolios, and our highly-efficient operational resources and excellent access to financing will help us pursue this direction,” said Piotr Krupa, President of the KRUK Management Board.
Recently, KRUK has made an investment of PLN 230m to buy a portfolio of mortgage-backed debt with a total nominal value of some PLN 710m from Getin Noble Bank. This has been the largest capital investment in a single debt portfolio in the Group's operating history, marking its official step into a new market segment − mortgage-backed debt.
“With a combined value of PLN 266m, these two transactions account for 70% of the total capital expenditure incurred last year. We don't want to slow the pace and are set to remain active participants in all our markets. Also, with our sights set on entering a new geographical market this year, we are closely looking at such countries as Spain, Germany and Turkey,” added Mr Krupa.
In 2013, the Group invested a total of PLN 367m in new debt portfolios. In the same year, recoveries from purchased debt portfolios reached a record high of PLN 538m, compared with PLN 451m in 2012, with net profit at PLN 97.8m, relative to PLN 81.2m in 2012.