In the first quarter of 2016, recoveries from debt portfolios purchased by the KRUK Group reached PLN 216.5m, up 16% year on year. KRUK also made further investments. While the beginning of a year is usually a low season on the debt purchase market, the Group managed to invest PLN 64.1m, as much as 43% more than in Q1 2015.
“The first three months of the year confirmed our commitment to our stated objective of continuous efficiency improvement and consistent implementation of our unique strategy based on amicable settlements with debtors. It is already the fourth quarter in a row that recoveries from purchased debt portfolios exceeded PLN 200 million. We won’t rest on our laurels as we plan to expand our operations, including on our new markets: Germany, Italy and Spain. We already see that our unique strategy, combined with the diligence and effort of KRUK employees, is yielding fruit and will be increasingly appreciated in Western European countries,” said Piotr Krupa, President of the Management Board of KRUK S.A.
In the first quarter, the Group invested PLN 64.1m, purchasing seven portfolios with a total nominal value of PLN 412.9m, mostly on the Polish market.
“We see the investments made in the first quarter of this year as a very good promise for the coming months. While the debt purchase market usually peaks later during the year, we have already managed to invest 43% more than a year ago. This time, our main investments were made in Poland, including the purchase of a large portfolio of unsecured retail debt from Santander Consumer Bank S.A. for PLN 51.9 million. The other investments were made in Germany, Romania and the Czech Republic. Our extensive geographical presence and rich product portfolio allows us to participate in a very large number of auctions and select the best investment opportunities on seven European markets. We expect the debt portfolio supply to hit its record high in 2016,” added Piotr Krupa.
The capital expenditure recognised for the first quarter does not include the investment agreement concluded with PRESCO, providing for the acquisition of 100% of shares in Presco Investments s.à r.l., which together with the P.R.E.S.C.O. Investment I NS FIZ fund holds a debt portfolio on the Polish market. The debt portfolio comprises two million cases with a total nominal value of PLN 2.7bn. The price for the shares in Presco Investments is PLN 216.8m. It will be subject to adjustments provided for in the agreement, including for recoveries within an agreed period. The transaction is expected to be closed in the second quarter of 2016.