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Sep 30, 2022
Pra Group Q3 2022 Earnings Report
PRA Group reported a solid Q3 2022, driven by European operations and disciplined underwriting.
Key Takeaways
PRA Group reported a decrease in total cash collections and portfolio revenue compared to Q3 2021, but net income attributable to PRA Group, Inc. was $24.73 million, with diluted earnings per share of $0.63. The company continued to make portfolio purchases and repurchased shares.
Total portfolio purchases were $183.1 million.
Total cash collections reached $412.3 million.
Diluted earnings per share amounted to $0.63.
The company repurchased $25.0 million of common stock, representing 0.7 million shares.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
PRA Group anticipates increased supply in the U.S. market due to rising credit card balances and delinquency rates.
Positive Outlook
- U.S. credit card balances now exceed 2019 levels.
- Delinquency and charge-off rates are continuing to tick up.
- Company intends to remain disciplined in underwriting and portfolio purchases.
- Leveraging deep experience.
- Strong balance sheet and geographic diversity.
Challenges Ahead
- Total cash collections in Q3 2022 decreased 15.6%, or 10.7% on a constant currency-adjusted basis.
- The decrease was driven primarily by a 29.3% decrease in U.S. call center and other collections.
- Lower levels of portfolio purchases.
- Europe cash collections decreased by 11.2%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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