Encore Capital Group: 2nd quarter 2023 results

Encore Capital Group, a global leader in the debt purchasing market, with operations in North America, Asia, Latin America and Europe has released Q2 2023 data.

Total collections were $477 million decreasing compared to the same period in 2022 during which $497 million was exceeded

On the other hand, the acquisitions of new non-performing portfolios increased, with investments of $ 274 million, up 59% compared to the same period of the previous year.

Decrease in both revenues with $323 million (-9%) and in net income (GAAP), $26.3 million against 60.4 in April-June 2022.

“Encore’s second-quarter performance reflects consumer behavior across geographies different areas with stable performance in each of our key markets,” said Ashish Masih, president and chief executive officer. “With rates steadily rising in the US, we are seeing an increase in portfolio offerings as well as improving input prices. As a result, US portfolio purchases in the second quarter equaled our first quarter total of $213 million.” “Different situation in Europe where the market remains very competitive with pricing not yet fully reflecting the increased cost of capital caused by rising interest rates.Therefore in this context we continue to limit acquisitions with the Cabot subsidiary believing that this disciplined approach to purchases will best position us when European markets become more attractive”.

As a result of the continued disciplined execution of our strategy, Encore remains well positioned with the operational and financial capability necessary to capitalize on growing buying opportunities in the US market. Looking ahead, with more portfolio buying and yields strengthening in the US, we expect steady growth in ERC and earnings to continue. We also remain committed to the pivotal role we play in the consumer credit ecosystem and helping consumers restore their financial health,” Masih said.

Roberto Sergio

Managing Director of Credit Village, Roberto Sergio has more than 20 years of experience in NPL and distressed debt in the Italian and International market. He is the editor of the NPL column in Credit Village Magazine and the director of Credit Village's National NPL Market Observatory.

Credit Village is a leading company in the field of specialized publishing and event organization for the credit management industry and in all issues and aspects related to the NPE market, including ESG , M&A, Real Estate etc. Credit Village has been the first company in Italy to bring the culture of the credit management industry to the press, events and online, creating the largest community in the sector around itself.