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Repayments to BEST Group remain high

Repayments of claims due to BEST Capital Group in the third quarter of 2020 amounted to PLN 80.1 million, and PLN 244.3 million in year-to-date terms, up by 20% and 29% respectively compared to the same period of 2019.

 

Total repayments from claim portfolios managed by BEST CG in the third quarter of this year amounted to PLN 89.3 million (+18% YOY), and in the nine months of this year they amounted to PLN 271.8 million (+25% YOY).

 

– The repayments from the managed claim portfolios have remained at a high level despite uncertain market conditions and the turmoil caused by the pandemic, which is a testimony to the high effectiveness of our debt collection strategies and of the organisational efficiency of BEST CG. With most of our team working remotely, we have been able to generate these excellent results thanks to our efforts in the recent years, such as investments in technology and process automation. The continuing high level of repayments from our portfolios is also thanks to our decisions to purchase claims in previous years – said Krzysztof Borusowski, President of the Management Board of BEST.

 

In the third quarter of this year, BEST CG purchased a claim portfolio with a nominal value of PLN 13.6 million for PLN 1.1 million. In year-to-date terms, the nominal value of the purchased claim portfolios was PLN 22 million, for which the BEST CG paid PLN 2.6 million.

 

– In our opinion, soon we will see a good time to buy new claim portfolios. We are closely monitoring the market situation and will make large investments as soon as the prices of the portfolios offered for sale allow us to achieve a satisfying level of profitability. Consequently, we must take into account the new environment in which the claims will be pursued, for example debt collection by court enforcement officers and the related costs. We believe that the claims market will see a major upturn in the second half of 2021, and the positive trend will continue throughout 2022. We want to prepare for some major purchases in advance by securing the financing. Therefore, we are closely monitoring the situation on the corporate bonds market, which was a major source of financing for our operations in the past. We are assuming that this will also continue in the future – announced Krzysztof Borusowski.

 

 

 

Repayments under claim portfolios and investments in new portfolios

(PLN million)

9M 2020

9M 2019

change YOY

3Q 2020

3Q 2019

change YOY

Repayments of portfolios held, including:

271.8

216.8

25%

89.3

75.5

18%

due to BEST Capital Group

244.3

190.0

29%

80.1

66.5

20%

Nominal value of claim portfolios acquired

22.0

231.2

(90)%

13.6

89.1

(85%)

Acquisition cost of new portfolios

2.6

18.6

(86)%

1.1

0.2

>100%

 

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