In the first quarter of 2015, recoveries from debt portfolios purchased by the KRUK Group amounted to PLN 187,3m, which represents a 22% increase year on year and is the best result on record for the KRUK Group in terms of recoveries from debtors.
"The strong start to the year in terms of recoveries is an effect of our successful investments made in the previous quarters. We have built a robust portfolio base, which generates a growing stream of repayments and positions us well for the future. Our previous investments will improve the Group's financial performance, mainly thanks to our consistent approach to implementing the unique amicable settlement strategy. We can see that the solution we favour, which allows debtors to repay their debt in manageable instalments, is gaining popularity with customers in all our markets," said Piotr Krupa, KRUK CEO.
The first quarter of the year was also successful in terms of investments. KRUK Group companies invested a total of PLN 43,9m to purchase 14 new consumer and corporate debt portfolios with an aggregate face value in excess of PLN 511m. In Q1 2015, expenditure grew 13% compared with the figure posted in the same period last year (excluding the mortgage-backed debt portfolio) as a result of KRUK's investment activity across markets.
"Despite the usual slow start of the year on the debt sale market, in the first quarter of the year we closed 13 consumer debt purchase transactions and we acquired a corporate debt portfolio in Romania. We enjoy the benefits of being the leader in several debt market segments, including unsecured consumer debt, mortgage-backed debt or corporate debt. This past quarter we also experienced the advantages of geographical diversification. Everywhere we operate banks and consumer finance institutions express their interest in selling delinquent debt portfolios. And the KRUK Group actively participates in all announced debt auctions," Mr Krupa noted.
Since 2011 the KRUK Group has invested a total of PLN 1,9bn in unsecured consumer debt portfolios, consumer mortgage-backed debt portfolios and corporate debt portfolios in four markets: Poland, Romania, Czech Republic and Slovakia. This year, KRUK is planning to purchase its first portfolio in Germany that will mark its entry into a Western European market. The KRUK Group will release its full Q1 2015 results on 10 May.