KRUK signs contract to purchase a debt portfolio in France
On December the 20th 2023 KRUK announced that it has signed purchase agreement of forward flow unsecured retail debt portfolio from one of the largest banks on the French market, with a total nominal value of up to EUR 120 million (PLN 520 million, as translated at the mid exchange rate quoted by the National Bank of Poland on 20th of December 2023 ).
“France stands out as one of the largest countries in Europe, including in terms of population size, but also in terms of the non-performing loan volumes. Its population is almost 66 million, and the value of consumer unsecured NPLs in banks exceeds EUR 12 billion. This makes France one of the most attractive markets in Europe for KRUK, but we want to validate this potential. Drawing from our experiences in entering new markets, we plan to assess the viability of France by initially acquiring portfolios in collaboration with local servicers,” comments Piotr Krupa, KRUK S.A. CEO. “As always, we are thinking long-term and KRUK's sustainable international growth remains a priority. Currently, we are focusing on a select number of markets, with a keen eye on the growing potential of Italy and Spain. Simultaneously, we see an opportune moment to test the potential of the new market with a cautious approach, involving limited initial capital and operational commitment from KRUK. We have conducted numerous analyses and undertaken various other activities in relation to the French market. That mentioned, we believe the most effective way to understand the realities of a specific market is by establishing a presence through the acquisition of a debt portfolio. We view this stage as a continuation of exploratory work, refraining, for the time being, from establishing an organisation or planning any M&A projects. Decisions on further steps will be made once the attractiveness of the market is confirmed. Throughout our in-depth analysis period, investments in France will be made on a modest scale relative to the overall size of the Group. We are in a comfortable position as we do not need to enter a new market to grow our business, but we are securing the option to explore a country that could potentially evolve into one of KRUK's major markets in a few years.”
Full figures on investments and recoveries for the fourth quarter of 2023 will be published by January 10th 2024.