Grupa Kruk set to invest over PLN 2.5 billion in 2024, focused on unsecured retail receivables

Grupa Kruk is on track to invest at least PLN 2.5 billion by the end of this year, primarily targeting unsecured retail receivables, according to CEO and President Piotr Krupa.

Krupa highlighted that while a significant portion of these investments has been made outside Poland, the domestic market remains crucial for the company. “We anticipate allocating at least PLN 2.5 billion for investments by year-end, focusing mainly on unsecured retail receivables,” Krupa stated in a recent company announcement.

During the first half of the year, 61% of Kruk’s investments and 58% of repayments were related to the company’s operations outside Poland, as detailed in the company’s financial presentation.

“We have excellent access to financing, with banks increasingly supporting Kruk’s loan activities. In the capital markets, there is strong interest in Kruk’s bonds, and our implied margins have dropped to about 3%. Additionally, our robust cash flow reduces the need to increase debt,” Krupa noted. He emphasized Kruk’s strengthened international presence across its four major markets and pointed out that with a capitalization exceeding PLN 8 billion, the company holds a leading position in the sector. “This year is shaping up to be very strong for us,” he added.

In the first half of 2024, Kruk’s expenditure on purchasing debt portfolios reached PLN 900 million, marking a 24% year-on-year decline. The largest investments in new receivables portfolios were made in Poland (PLN 354 million) and Italy (PLN 245 million), according to the presentation.

Source: Grupa Kruk and ISBnews