KRUK in Q1 2025: PLN 923 million in recoveries from purchased debt portfolios and nearly PLN 230 million in debt portfolio investments

Recoveries from purchased portfolios posted by the KRUK Group for the three months to 31 March 2025 totalled PLN 923 million, up by 8% year on year and down by 1% quarter on quarter. The deviation between actual and projected recoveries was PLN 51 million in the first quarter of 2025*.

“Total recoveries in the first quarter were close to our operational targets and exceeded accounting forecasts. We continue to record the highest recoveries in Poland, with foreign markets representing 60% of total recoveries. I am pleased with the recovery levels achieved in Poland, Romania and Italy, as well as those recorded in Spain in February and March. We are working to improve aspects of the court-enforced collection process in Spain, also considering potential changes in the market environment. In the first quarter, we referred additional cases to the courts, accelerating this step. Overall, recoveries across all markets were 6%** higher than our accounting assumptions for the period,” said Piotr Krupa, CEO of KRUK S.A.

In the three months ended 31 March 2025, the KRUK Group invested PLN 229 million in debt portfolios with a nominal value of PLN 1.1 billion, compared with PLN 335 million of investments in debt with a nominal value of PLN 2.2 billion in the first quarter of 2024. A majority of the purchases involved unsecured retail debt.

 “At the beginning of each year, debt purchase tenders typically slow down, and this year is no exception. In the first quarter, our largest purchases were in Italy and Romania, though we also bought debt portfolios in Poland, Spain, and France. The level of our investments aligns with our assumptions,” concluded Piotr Krupa.

* 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’.