Debt purchaser PRA Group more than doubled the value of its investments in portfolios across Europe during the first half of 2016.
Its financial results show thatPRA Group made $240m worth of investments in European non-performing loan portfolios in the first half of this year, compared to $110m for the same period last year.
A total of $171m of these purchases in Europe were made in the first quarter of 2016 and another $69m in the second quarter.
The income statement of the report highlights an increase of almost $2m in legal collection fees spent in the UK and Poland for the second quarter of this year, doubling from the first quarter of 2016.
In Europe the company also reported a 36 percent growth of core cash collections in the second quarter of 2016, at $105m, compared to $77m for the same period last year.
Focussing on the UK during a conference call, PRA Group said that its collections strategy had not been strong enough and has now begun making investments to increase that activity.
Board members also discussed taking into consideration the effects of Brexit and the possibility of a recession by pricing its UK portfolios accordingly.
Commenting on the group’s performance as a whole, Steve Fredrickson, chairman and chief executive officer of PRA Group, said: “We are beginning to see signs that may indicate the credit cycle is turning which could ultimately increase the supply of nonperforming loans in the U.S. In Europe, we see a strong acquisition pipeline and strong cash collections in most markets.
“Global sellers are increasingly looking for buying partners that offer competitive pricing, a strong compliance system, and a reputation for treating customers respectfully. Given this view, we believe PRA Group is competitively advantaged as a buyer of choice.”
Former General Electric and KPMG employee, Pete Graham, will today take over the role of global chief financial officer from Kevin Stevenson, who will remain president and chief administrative officer of the company.