PRA Group, Inc. has recently released its 10-Q report, providing a detailed insight into its financial and operational performance. PRA Group, Inc. is a global financial and business services company that focuses on purchasing, collecting, and managing portfolios of nonperforming loans worldwide. Its primary business involves the acquisition of accounts primarily consisting of unpaid obligations of individuals owed to credit originators such as banks, consumer finance companies, retailers, and auto finance companies. The company also offers fee-based services on class action claims recoveries.
In the third quarter of 2024, PRA Group purchased $350.0 million of portfolios, with $273.8 million in the Americas and $76.2 million in Europe. The total portfolio revenue was $276.7 million, reflecting a 13.8% increase year-over-year. Cash collections were geographically diversified and increased by 13.7% compared to the third quarter of 2023, reaching $477.1 million. As of September 30, 2024, the estimated remaining collections (ERC) were $7.3 billion, marking a significant increase of 22.1% from the same period in 2023.
In the U.S., portfolio purchases during the third quarter increased by 34.7% compared to the prior year period, reaching $231.2 million. PRA Group has made operational execution improvements to its U.S. call center operations and announced the decision to expand its work from home program and close three of its U.S. call centers by mid-2025 as part of its expense management initiatives.
In Europe, quarterly purchasing decreased by 4.0% in the current year period. However, PRA Group remains optimistic about its European market presence, leveraging its diversified operations across multiple European markets and maintaining a disciplined approach to portfolio investments.
The company's financial results for the third quarter of 2024 indicate a net income attributable to PRA Group of $27.2 million, marking a significant increase of 321.4% compared to the same period in 2023. The diluted earnings per share also showed a substantial increase of 322.6%, reaching $0.69. Additionally, the total portfolio purchases and cash collections for the year-to-date period also demonstrated notable growth, reflecting the company's strong performance in its core markets.
The market has reacted to these announcements by moving the company's shares -0.1% to a price of $24.18. If you want to know more, read the company's complete 10-Q report here.
