Recoveries from debt portfolios purchased by the KRUK Group reached PLN 550m in the three months ended September 30th 2021 and PLN 1.6bn cumulatively in the three quarters of the year, representing year-on-year growth of, respectively, 22% and 20%. This marks the best nine months in terms of recoveries in the Group’s operating history.
‘This past quarter was another consecutive period when KRUK recorded a strong stream of recoveries and today, despite another wave of the pandemic setting in, we can see no signs that this trend could reverse. In each of our markets, including the Mediterranean countries with the seasonally weaker month of August, our performance was better than in the third quarter of 2020. I am greatly satisfied with this effect,’ says Piotr Krupa, CEO of KRUK S.A.
In the three months to September 30th 2021, KRUK invested PLN 289m in debt portfolios with an aggregate nominal value of PLN 1.5bn. The largest purchases were made on the Polish market, but the Group also invested in retail portfolios in Italy, Romania, Spain, the Czech Republic and Slovakia. Compared with the PLN 33m invested during the three months to September 30th 2020, there was an almost ninefold increase in investment spending. In the nine months to September 30th 2021, the Group’s portfolio purchases were in excess of PLN 933m.
‘With our third-quarter investments, we have expanded our portfolios mainly through the addition of bank debts, but also debts acquired from non-bank sellers, across all our operating markets. Year-to-date investments of PLN 933m are more than twice the amount spent throughout the entire previous year, with the busiest last quarter still ahead of us. The amount already invested confirms that we can effectively leverage debt sale auctions based on our mix of valuation capabilities, access to financing and operational efficiency. Looking at the Group’s half-year results, as well as the level of recoveries and new purchases in the three quarters, I am confident that 2021 will be a historically record-breaking year for KRUK, taking our business scale to the next level. Far from resting on our laurels, we remain focused on future growth,’ comments Piotr Krupa.
The report for the three and nine months to September 30th 2021 will be published on November 3rd 2021.