Recoveries in 2019 from the KRUK’s purchased debt portfolios amounted to PLN 1.78bn, representing the Group’s all-time record and a 13% growth on previous year. At the same time, the KRUK Group invested totally PLN 781m in new debt portfolios.
Recoveries in Poland and Romania account for the largest share of the KRUK Group’s total and rose nearly 7% year on year. The fourth quarter of 2019 saw continued marked growth in recoveries on the Italian market, which for the whole of 2019 went up 46% compared with 2018.
“We are closing 2019 with our best ever performance in terms of recoveries, posting an improvement of 13% year on year. In Italy, we were able to generate a significant increase in recoveries despite no new investments in the first three quarters of 2019,” said Piotr Krupa, President of the KRUK S.A. Management Board
Higher recovery amounts were also seen in 2019 in Spain and the Czech Republic.
In 2019, the KRUK Group invested PLN 781m in new debt portfolios with a total nominal value of PLN 8.3bn, mainly in Poland and Romania (43% and 33% of the total respectively). The lower-than-anticipated investment level was primarily driven by selective purchases of portfolios with higher rates of return and the temporary reduction of investments in Italy and Spain, but also by a lower-than-expected supply of portfolios in Poland.
In the fourth quarter, KRUK was active in six markets after it resumed investing in Italy, in line with its earlier announcements. As expected, the last quarter saw the largest transaction activity, and KRUK purchased debt portfolios with a nominal value of PLN 4.2bn, for PLN 389m.
“The investments we made in the last quarter alone almost doubled our invested value for three last quarters. The amount spent in 2019 was more than 40% lower than in 2018, although our investment appetite and financial capacity are still high. The new year means new opportunities, which we are going to capture,” added Piotr Krupa.
The KRUK Group has provided a preliminary estimate of the consolidated net profit of PLN 304m, 8 percent less than in 2018.
“Preliminary estimate shows that we were unable to increase profits in 2019. This motivates us to increase our efforts in 2020 and subsequent years” - summed up Piotr Krupa.
The estimate of the net result may change. The final results for 2019 will be released by the KRUK Group on March 5th, 2020.