KRUK registers a 15% increase in the value of the portfolios held in Romania, up to 335 million euros – Biz Magazine

KRUK Group, the largest debt management company in Central and Eastern Europe, with operations in seven countries, reported for 2023 portfolios totaling around 335 million euros, up 15% compared to 2022. KRUK clients have paid debts worth almost 150 million euros in 2023, 7% more than the previous year. KRUK SA is listed on the Warsaw Stock Exchange and currently has a market capitalization of almost two billion euros.

The company’s data show that the portfolios of non-performing loans on the balance sheets of Romanian banks represent around 3.3 billion euros, maintaining the downward trend of the last six years.

In Romania, unsecured retail and corporate debt portfolios worth 1.6 billion euros were sold in 2023, according to the company’s estimates. The nominal value of the portfolios entered into the management of KRUK Romania during 2023 amounted to almost 78 million euros, which represents 11% of the Group’s total investments, while the debts paid by KRUK customers in Romania have a weight of 21% in the total amount at Group level. The company’s market share, in terms of investments in unsecured debt portfolios in Romania, is estimated at 63%.

“The company’s performance has been significantly supported by digital transformation. Our main concern was to move the customer online, so that they have the freedom to manage their own debts and control over the payments made. In parallel, we automated business processes to increase operational efficiency, which provided us with an important competitive advantage. For its more than two million customers, KRUK is today a digital debt management tool. In total, we invested approximately 400,000 euros in digitization last year and we aim to increase the value by over 40% in 2024”, said Cosmina Marinescu, CEO of KRUK Romania.

The company’s investments in digital payment instruments ensured the increase in the volume of full voluntary payments and, thus, the degree of responsibility of Romanians in terms of assuming debts. In 2023, KRUK customers made 66% more online payments compared to the previous year, and their value increased by around 70%. The number of new eKRUK accounts registered in 2023 rose by almost 60% compared to 2022, and 75% more payment commitments were signed on the company’s platform.

Over the next two years, the company’s investments aim to increase digital and financial inclusion through training programs and social responsibility projects.