Business
Encore Capital Group Announces Second Quarter 2023 Financial Results
Global collections of $477 millionPortfolio purchases of $274 million up 59%, including $213 million in the U.S.Portfolio supply growth continues in U.S.
About this update from Encore Capital Group Inc
[{"type":"text","content":"Global collections of $477 millionPortfolio purchases of $274 million up 59%, including $213 million in the U.S.Portfolio supply growth continues in U.S. marketGAAP EPS of $1.08 SAN DIEGO, Aug. 02, 2023 (GLOBE NEWSWIRE) -- Encore Capital Group, Inc. (NASDAQ: ECPG), an international specialty finance company, today reported consolidated financial results for the second quarter ended June 30, 2023. “Encore’s second quarter performance reflected normalized consumer behavior and a stable collections environment in each of our key markets,” said Ashish Masih, President and Chief Executive Officer. “With lending and charge-off rates steadily rising in the U.S., the growth of portfolio supply and improvements in portfolio pricing continue. Consequently, MCM portfolio purchases in the U.S. in the second quarter matched our Q1 total of $213 million.” “In Europe, portfolio purchasing remains very competitive with pricing still not fully reflecting the higher cost of capital caused by higher interest rates. Against this backdrop, we continue to constrain Cabot portfolio purchasing and believe this disciplined approach to portfolio purchasing best positions us for success when Cabot’s markets become more constructive.” “As a result of the continued, disciplined execution of our strategy, Encore remains well-positioned with the operational capability and balance sheet required to capitalize on the growing portfolio purchasing opportunities in the U.S. market. Looking forward, with higher portfolio purchases and strengthening returns in the U.S., we expect the steady growth in ERC and earnings to continue. We also remain committed to the critical role we play in the consumer credit ecosystem and to helping consumers restore their financial health,\" said Masih. Financial Highlights for the Second Quarter of 2023: Three Months Ended June 30,(in thousands, except percentages and earnings per share) 2023 2022 ChangePortfolio purchases(1)$274,325 $173,007 59%Estimated Remaining Collections (ERC)$7,979,353 $7,559,820 6%Collections$476,522 $497,711 (4)%Revenues$323,044 $356,917 (9)%Operating expenses$234,972 $237,969 (1)%GAAP net income$26,305 $60,439 (56)%GAAP earnings per share$1.08 $2.29 (53)% ______________________ (1) Includes U.S. purchases of $213.4 million and $116.2 million, and Europe purchases of $61.0 million and $56.8 million in Q2 202...