Encore Capital Group ( (ECPG) ) has released its Q3 earnings. Here is a breakdown of the information Encore Capital Group presented to its investors.
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Encore Capital Group is an international specialty finance company providing debt recovery solutions across various financial assets, operating with a unique Consumer Bill of Rights to support consumer financial health.
In its third quarter of 2024, Encore Capital Group reported strong financial results driven by favorable market conditions in the U.S., with significant increases in global portfolio purchases and collections.
The company achieved a 23% increase in global portfolio purchases totaling $282 million and an 18% rise in global collections reaching $550 million. Earnings per share (EPS) rose to $1.26, a 59% increase from the previous year. The U.S. operations, particularly Midland Credit Management, significantly contributed to these gains, capitalizing on high charge-off rates and lending growth. In Europe, the company’s Cabot business maintained a disciplined purchasing approach amid competitive market conditions.
Encore Capital also exited the secured NPL market in Spain, incurring a pre-tax loss of $8 million. Despite this, Encore raised its 2024 guidance, expecting global portfolio purchases to exceed $1,250 million and collections growth of approximately 15%, highlighting its commitment to aiding consumer financial recovery.
Looking ahead, Encore Capital Group is optimistic about its continued role in the consumer credit ecosystem, projecting sustained growth and operational excellence in the coming year.
