Business
Encore Capital Group Announces Third Quarter 2020 Financial Results
GAAP net income up 41% to $55 million, or $1.72 per shareNon-GAAP adjusted net income up 42% to $74 million, or $2.31 per shareGlobal collections grew 8% to a
About this update from Encore Capital Group Inc
[{"type":"text","content":"GAAP net income up 41% to $55 million, or $1.72 per shareNon-GAAP adjusted net income up 42% to $74 million, or $2.31 per shareGlobal collections grew 8% to a record $540 millionEstimated Remaining Collections (ERC) grew 15% to a record $8.5 billion SAN DIEGO, Nov. 02, 2020 (GLOBE NEWSWIRE) -- Encore Capital Group, Inc. (NASDAQ: ECPG), an international specialty finance company, today reported consolidated financial results for the third quarter ended September 30, 2020.\n “The third quarter was an outstanding period for Encore as we achieved record global collections and ERC,” said Ashish Masih, President and Chief Executive Officer. “Many of our consumers are reaching out to us to assist them with their financial recovery. We deal with consumers in financial hardship every day and have been able to extend relief when appropriate and also help increasing numbers of consumers resolve their debts, which contributed to our record collections in the quarter. We are also servicing an increasing proportion of our consumers through our lower cost call center and digital collections channel, which continues to operate at a high level of efficiency. As a result, we added another quarter to our strong GAAP earnings growth over the past five years,” said Masih. “The CFPB’s new industry rules, released last week as expected, provide much needed clarity and create uniformity in the fair treatment of U.S. consumers in debt collection. The new rules are largely consistent with those proposed eighteen months ago and, as a result, we are well prepared to fully implement them with no significant incremental operational changes. Through these new rules, we remain very much aligned with the CFPB’s goal of making consumer financial markets work for consumers, responsible providers, and the economy as a whole,” added Masih. In September, the company implemented a new global funding structure which effectively combined the balance sheets of its Midland Credit Management (MCM) and Cabot Credit Management (Cabot) businesses to maximize the company’s financial flexibility. The new structure is expected to allow Encore to better leverage its global scale and allocate capital to the markets with the best returns, in addition to enhancing its access to capital markets and reducing funding costs. “Looking ahead, we believe more consumers than ever will need...