Recoveries from portfolios purchased by the KRUK Group came in at PLN 554m in the second quarter of 2021 and at PLN 1.07bn in the first six months of the year. This represents a 33% increase on the second quarter of 2020 and a 19% rise on the first six months of 2020, also marking the best quarterly and half-yearly recoveries in the Group’s history.
‘After an excellent first quarter, the second quarter proved even better. Let me remind you we started the year with recoveries breaking above the PLN 0.5bn mark, and from April to June we achieved an 8% year-on-year improvement. This strong trend in recoveries has continued in virtually all markets where we operate,’ noted KRUK CEO Piotr Krupa.
In the second quarter of 2021, KRUK invested PLN 484m in debt portfolios with an aggregate nominal value of PLN 2,764m. The largest investments were made on the Polish market, but the KRUK Group also invested in retail portfolios in Italy, Spain, Romania, the Czech Republic, and Slovakia. Compared with the PLN 23m invested during the second quarter of 2020, investment spending rose over twenty-fold this year. In total, the KRUK Group’s investments in the first half of the year were just under PLN 644m.
‘We invested primarily in portfolios sold by banks and non-bank financial institutions across all markets where we operate. We have reported a high level of investment spending so far, and I’m confident the second half of the year will be equally busy,’ noted Mr Krupa.
On July 9th 2021, KRUK allotted 650,000 Series AK4 bonds with a total nominal value of PLN 65m. Subscriptions for KRUK’s 5-year unsecured bonds with an annual fixed interest rate of 4.0% totalled PLN 158.3m, with the reduction rate at 59%.
We have just closed this year’s third prospectus-based bond issue dedicated to retail investors. Orders for over PLN 158m worth of KRUK bonds were placed by investors. As we could allot a maximum of PLN 65m in this issue, the reduction rate reached almost 60%. In total, we have issued bonds for retail and institutional investors with an aggregate nominal value of almost PLN 0.5bn this year, of which PLN 465m has been issued in the last couple of weeks. We appreciate the trust investors place in us. We have good access to funding, and we are set to keep the current pace of our investing activities and continue the strong trend on the operations front,’ concluded KRUK CEO Piotr Krupa.
The report for the first half of 2021 is due to be published on September 8th 2021.