Business
Encore Capital Group Announces Third Quarter 2023 Financial Results
Global collections of $465 millionPortfolio purchases of $231 million including $179 million in the U.S.Portfolio supply growth and pricing improvement
About this update from Encore Capital Group Inc
[{"type":"text","content":"Global collections of $465 millionPortfolio purchases of $231 million including $179 million in the U.S.Portfolio supply growth and pricing improvement continues in U.S. marketGAAP EPS of $0.79 SAN DIEGO, Nov. 01, 2023 (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, 2023. “The third quarter was another period of strong purchasing for our U.S. business at attractive returns while our collections performance remained stable in each of our key markets,” said Ashish Masih, President and Chief Executive Officer. “The continued growth in U.S. portfolio supply, driven by credit card lending growth and rising charge off rates, has led to improved portfolio pricing and returns. As a result, our MCM business deployed $179 million in Q3 at an attractive 2.4x purchase price multiple(1).” “Our third quarter global collections of $465 million were in line with expectations and continue to reflect normalized consumer behavior and a stable collections environment.” “In Europe, the portfolio purchasing market remains very competitive. We continue to constrain Cabot portfolio purchases, reallocating capital to the U.S. market, as we believe European market pricing still does not yet fully reflect the higher cost of capital caused by higher interest rates.” “With growing supply and improving pricing in the U.S. debt buying market, we expect 2023 will be a record year of capital deployment for our MCM business at strong returns. Looking ahead, we see a robust supply pipeline in the U.S. for 2024 at even better returns.” “Given our outlook for the favorable purchasing environment in the U.S. continuing for the foreseeable future, we added approximately $175 million of liquidity since the end of the third quarter at attractive terms. Our ability to incrementally improve our purchasing capacity amid challenging capital market conditions is a testament to the strength of our global balance sheet.” “As a result of the continued, disciplined execution of our strategy and both higher portfolio purchases and strengthening returns in the U.S., we expect to see steady growth in ERC and earnings. We also remain committed to the critical role we play in the consumer credit ecosystem and to helping consumers restore ...