#United States #financial results #Norfolk #PRA Group #Nonperforming Loans

PRA Group Reports Fourth Quarter and Full Year 2024 Results

PRA Group, Inc. (Nasdaq: PRAA), a globally recognized leader in acquiring and collecting nonperforming loans, proudly unveiled its financial figures for the fourth quarter and the entire year of 2024. This period marks a transformative journey for the company as it capitalizes on strategic growth and enhanced operational efficiency.

Q4 2024 Highlights

The company reported net income of $18.5 million for Q4 2024, translating to diluted earnings per share (EPS) of $0.47, showcasing a remarkable improvement from a year ago.

In terms of asset growth, PRA Group achieved total portfolio purchases of $432.7 million and saw substantial cash collections amounting to $468.1 million. The estimated remaining collections (ERC) reached an impressive $7.5 billion, reflecting a robust and expanding portfolio.

The cash efficiency ratio stood at 58.0%, underscoring the company’s effective management of operational costs against cash collections.

Full Year 2024 Summary

For the full year, net income attributable to PRA Group, Inc. was recorded at $70.6 million, with diluted EPS reaching $1.79. Total portfolio purchases soared to a record $1.4 billion, up 22% year-over-year, while cash collections surged to $1.9 billion, marking a growth of 13% compared to the previous year.

The consistency in performance is evidenced by an adjusted EBITDA of $1.1 billion, demonstrating the financial strength and solid foundation established by the company over the year.

Transformative Strategies

Vikram Atal, the President and CEO of PRA Group, stated, "2024 was a transformational year reflecting decisive action and rigorous execution. We expanded our leadership team, delivered on our cash-generating and operational initiatives in the U.S., and further differentiated our European platform."

This proactive approach allowed PRA to effectively navigate challenges and optimize its portfolio acquisition strategies across North America, Europe, and Australia. With attractive pricing conditions globally, the company adeptly positioned itself to take advantage of the strong portfolio supply in the U.S.

2025 Financial Targets Update

Looking ahead, PRA Group has raised its portfolio purchases target for 2025 to $1.2 billion, alongside expectations for high single-digit growth in cash collections and maintaining a cash efficiency ratio of over 60%. The anticipated return on average tangible equity is projected to be around 12%.

PRA Group's commitment to returning capital to banks and other creditors is fundamental to expanding financial services available to consumers in various regions, including the Americas, Europe, and Australia. Through collaboration with clients, the company continues to demonstrate its expertise in resolving debt effectively.

For further insights or inquiries regarding PRA Group’s performance, stakeholders are invited to tune into the company's conference call today at 5:00 PM ET to discuss these promising results. The future looks bright as PRA Group remains dedicated to driving shareholder value and continuing profitable growth.