In 2014, the KRUK Group invested PLN 570m in 59 debt portfolios with a total nominal value of PLN 3.8bn. The value of investments grew 55% on 2013, surpassing even the Group's record level of PLN 569m reported in 2011, which was largely an effect of excellent performance in Q4.
In the last three months alone, KRUK Group companies acquired 25 debt portfolios with a nominal value of PLN 1.6bn for a price of PLN 215m, mortgage-backed debt accounting for more than a third of the purchases. In Q4 2014, total expenditure was up 162% year on year and five times the figure reported in the preceding quarter. The high level of expenditure in Q4 was driven by the purchase of a mortgage-backed debt portfolio from BZ WBK in Poland in a transaction worth PLN 70m and the purchase of a consumer debt portfolio from BCR, a Romanian bank, in a transaction worth PLN 27m.
Looking at the data for the year, the Company's debt purchases peaked in Q1, with PLN 269m invested in debt portfolios with a face value exceeding PLN 1bn. During the quarter, the KRUK Group also purchased a mortgage-backed debt portfolio from Getin Noble Bank in a transaction of historical importance. “
In 2014, we beat our record from three years ago, when we invested a total of PLN 569m in debt purchases. This past year we also sought to diversify our expenditure structure, making substantial investments in mortgage-backed debt, which accounted for more than a half of our expenditure in 2014. We can already see that this is a very attractive market, and we are ready to negotiate further transactions not only on the Polish market, but also in Romania, where we have secured a licence necessary to carry out debt purchase transactions,” said Piotr Krupa, President of the Management Board of KRUK S.A. “With investments worth over PLN 1.8bn in the last four years, we have been able to build a substantial portfolio base, which positions us well for the future. New geographical markets, a strong position in the consumer debt segment, the new mortgage-backed debt market and corporate debt are the foundations on which we intend to build to create value for our shareholders,” added Mr Krupa.