$6,007
$6,455
$6,754
$6,143
Estimated Remaining Collections ($M)
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2022 Annual Report
2022 Financial Results
2018
2019
2020
2021
Download
Form 10-K
Steve Fredrickson
Chairman of the Board
This Annual Report contains forward-looking statements within the meaning of the federal securities laws. These forward-looking statements involve risks, uncertainties and assumptions that could cause our actual results to differ materially from those expressed or implied by such forward-looking statements. See “Forward-Looking Statements” in the attached Annual Report on Form 10-K for the year ended December 31, 2022 for a discussion of the risks, uncertainties and assumptions that could cause our actual results to differ from those contained in our forward-looking statements.
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Proxy Statement
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Full Annual Report
LETTER FROM THE CHAIRMAN OF THE BOARD
LETTER FROM THE President and ceo
2022 financial
RESULTS
Form 10-K AND Downloads
Letter from the Chairman of the Board
For these reasons and more—notwithstanding the incredible journey of growth and development PRA Group has experienced in the past 27 years—I believe the best is yet to come. In 2023, as we continue to excel in our core portfolio purchase activities, we will also forge ahead on our strategic objectives, which include deepening and expanding our geographic footprint, driving a customer-centric operating environment, and exploring logical business adjacencies with new avenues for healthy, non-correlated growth.
Your board of directors is engaged and united in our vision for the future of PRA Group. I am excited to watch Vik and his team execute in 2023 for the benefit of 2024 and beyond.
Steve Fredrickson, Chairman of the Board
Our mission is to deliver nonperforming loan solutions that drive success through a long-term focus and customer care.
Vik Atal
President and CEO
To my fellow stockholders,
First and foremost, I thank everyone at PRA Group who has welcomed and supported me as I transition from a seat at the boardroom table into this new role. Over the last quarter century, Steve Fredrickson and Kevin Stevenson led PRA from infancy to industry preeminence. I step into their big shoes with humility and deep respect for all that they accomplished, and I extend my deepest gratitude for the wisdom and insights they have shared to prepare me for the journey on which we are about to embark.
I would also like to thank the entire board for their faith in my ability to guide PRA in this new chapter. My exposure to the company as a board member, and my most recent observations and interactions with our teams, leave me confident that PRA’s business rests on strong pillars:
This is an enviable situation for any incoming CEO—and particularly important as we position ourselves for an anticipated increase in the supply of nonperforming loan portfolios, while also navigating changes in the macro environment, including rising interest rates, reduced consumer liquidity, heightened competition, regulatory developments, and an accelerating shift in consumer preference toward digital interactions.
Let there be no confusion—our overall business objectives and strategic direction remain unchanged:
Letter from the President and CEO
Vik Atal, President and CEO
I am excited at the prospect of leveraging our team’s passion, focus, and experience to help drive PRA forward from this new vantage point. I don’t carry the CEO title—or its roles and responsibilities—lightly. There is no question that we have a lot to accomplish and significant opportunities ahead of us. Know that I and my management team are fully committed to ensuring PRA Group reaches its full potential.
I will end this letter the way I started it—with a deep sense of gratitude. It is my privilege to have this opportunity to serve you and each of our employees, customers, partners, and other stakeholders as PRA’s president and chief executive officer.
Thank you for putting your trust in me, in PRA Group, and in our future together.
Expanding products and market share
Our vision is to be the trusted leader, changing the world’s perception of the nonperforming loan industry.
Government Minister Lord Offord (right) commemorates PRA Group’s 10 years in the UK.
A growing team in Australia embraces PRA Group’s inclusive workplace culture.
We will maintain our capital allocation priorities, led by our core focus on purchasing nonperforming loans, supplemented with our expansion into our newer markets and continuing to actively explore opportunities to grow market share across clients, products, and geographies.
Modernizing collections and improving efficiency at all levels
These objectives will be supported by our emphasis on agility, speed to market, and harnessing our customer insights to drive optimal customer interaction across channels. Our global digital platform has been successfully expanded and is now established in all of our operating markets. Since 2019, excluding the pandemic years of unprecedented repayments, our global digital collections have increased by more than 80%. This is not just a win for PRA—our customers benefit from gaining a greater level of control and flexibility.
We are committed to driving our global brand and reputation with investors, sellers, legislators, and the media via consistent engagement, and to making an impact through our volunteer and philanthropic support of the communities in which we live and work.
Being a recognized and trusted brand
We are focused on attracting and retaining top talent while fostering an environment of diversity, equity, and inclusion, understanding that both are paramount to the success of our company.
Fostering a high-performing workforce
$5,700
2022
At December 31
$1,096
$1,065
$1,017
$908
2018
2019
2020
2021
$967
2022
Total
Revenues ($M)
$2,076
$2,015
$1,857
$1,640
2018
2019
2020
2021
$1,746
2022
Cash Collections Plus Fee Income
Cash Receipts
($M)
$183
$149
$86
$66
2018
2019
2020
2021
$117
2022
Our vision is to be the trusted leader, changing the world’s perception of the nonperforming loan industry.
Attributable to
PRA Group, Inc.
Net
Income
($M)
As a global leader in acquiring and collecting nonperforming loans, PRA Group, Inc. returns capital to banks and other creditors to help expand financial services for consumers.
As a global leader in acquiring and collecting nonperforming loans, PRA Group, Inc. returns capital to banks and other creditors to help expand financial services for consumers.
Over 25 years of redefining the nonperforming loan industry.
Over 25 years of redefining the nonperforming loan industry.
With nearly three decades in the business, we have successfully navigated and learned from each of the consumer credit cycles we’ve experienced. In a capital-intensive business like ours, low interest rates and easy commercial credit translate into higher portfolio prices and lower returns—trends that have been headwinds for us in the past several years. We now see both of those trends reversing themselves rather abruptly. We also continue to see strong indications that we are entering another period of credit normalization in the U.S. Federal Reserve data shows consumer savings balances declining, while credit card balances are surpassing pre-pandemic levels and charge off-rates are moving up from their historic lows. We anticipate this will lead to increased U.S. portfolio supply. Similar trends are also emerging in Europe.
As has been key to our success in past cycles, we pride ourselves on having one of the strongest balance sheets in our industry and a best-in-sector credit rating. As of year-end 2022, PRA has $1.6 billion of total borrowing capacity available under our credit facilities and $465.0 million available after considering borrowing base restrictions.
With a capable and experienced senior leadership team, we will continue to deploy this capital judiciously, with careful and disciplined underwriting. Our operations are efficient, our business is one of the most geographically diversified in the industry, and our relationships with banks and other creditors are strong worldwide.
As we look ahead, it is important to evaluate where we stand today. In 2022, our continued execution of PRA’s long-term strategy brought us strong results—not record-breaking, as they were in 2020 and 2021, but still considerable given the economic factors we’ve discussed often on our recent earnings calls. As you may remember, the unusually high levels of consumer liquidity in 2020 and 2021 drove U.S. delinquency and charge-off rates to historic lows, which, in turn, reduced the number and size of portfolios available for sale over those years. Nevertheless, the $850.0 million we invested in 2022 have brought our total purchases to $11.9 billion since our first full year as a public company in 2002. Our significant positions in markets around the world are helping us weather this trough in U.S. debt buying as supply gradually continues to build. Europe and South America have been recent bright spots for investing and profit generation. We believe that our teams in both regions are best-in-class, and we look to them to continue their strong performance.
To the stockholders of PRA Group, Inc.,
I want to start this year’s letter with a heartfelt thanks to my friend and colleague Kevin Stevenson for 27 years of service at PRA Group. As a co-founder, longtime CFO, and our CEO for the past six years, Kevin contributed so much to PRA, including most recently steering it successfully through the COVID-19 pandemic. On behalf of PRA’s board of directors and senior leadership team, we wish Kevin the very best.
PRA has been through plenty over the past 27 years, navigating diverse credit and economic cycles while achieving incredible growth and geographic expansion. The industry and regulatory oversight have matured, and we’ve seen and benefited from significant development in digital and data and analytics. Through it all, we have remained true to our core beliefs in conservative underwriting and disciplined purchasing, combined with an entrepreneurial drive to grow profitably. The board and I have full confidence that Vik Atal, as president and CEO, will ensure the lessons of the past remain ingrained while we pursue our vision for the future with dogged determination and excellent execution. Vik joined the board in the early days of both our European and digital collection journeys, and he has been a tremendous asset throughout. I believe that, in this principal role, his strong vision, integrity, market insight, energy, and leadership skills will unlock new opportunities to serve our customers, scale our business, and expand our reach around the globe.
• We are driven by a strong base of deeply experienced employees, including our leaders, who excel in their respective roles across every function and geography.
• We have developed trusted, long-term relationships with investors, sellers, and other key stakeholders around the world;
• We possess one of the industry’s strongest balance sheets, which gives us significant flexibility to invest globally, including in new markets and geographies where we already have significant market share;
• We operate with a disciplined, customer-centric focus, supported by our strong compliance environment; and
PRA Group leaders rang the Nasdaq closing bell to celebrate 20 years as a public company.
Over 25 years of redefining the nonperforming loan industry.
As has been key to our success in past cycles, we pride ourselves on having one of the strongest balance sheets in our industry and a best-in-sector credit rating. As of year-end 2022, PRA has $1.6 billion of total borrowing capacity available under our credit facilities and $465.0 million available after considering borrowing base restrictions.
With a capable and experienced senior leadership team, we will continue to deploy this capital judiciously, with careful and disciplined underwriting. Our operations are efficient, our business is one of the most geographically diversified in the industry, and our relationships with banks and other creditors are strong worldwide.
With nearly three decades in the business, we have successfully navigated and learned from each of the consumer credit cycles we’ve experienced. In a capital-intensive business like ours, low interest rates and easy commercial credit translate into higher portfolio prices and lower returns—trends that have been headwinds for us in the past several years. We now see both of those trends reversing themselves rather abruptly. We also continue to see strong indications that we are entering another period of credit normalization in the U.S. Federal Reserve data shows consumer savings balances declining, while credit card balances are surpassing pre-pandemic levels and charge off-rates are moving up from their historic lows. We anticipate this will lead to increased U.S. portfolio supply. Similar trends are also emerging in Europe.
Our mission is to deliver nonperforming loan solutions that drive success through a long-term focus and customer care.
Estimated Remaining Collections ($M)
Estimated Remaining Collections
LETTER FROM THE CHAIRMAN OF THE BOARD
LETTER FROM THE President and ceo
2022 financial
RESULTS
Form 10-K AND Downloads
•
We possess one of the industry’s strongest balance sheets, which gives us significant flexibility to invest globally, including in new markets and geographies where we already have significant market share;
We have developed trusted, long-term relationships with investors, sellers, and other key stakeholders around the world;
•
We are driven by a strong base of deeply experienced employees, including our leaders, who excel in their respective roles across every function and geography.
•
We operate with a disciplined, customer-centric focus, supported by our strong compliance environment; and
•
Cash Receipts
Total Revenues
Form 10-K and Downloads
$6,007
$6,455
$6,754
$6,143
2018
2019
2020
2021
$5,700
2022
At December 31
Estimated Remaining Collections ($M)
$1,096
$1,065
$1,017
$908
2018
2019
2020
2021
$967
2022
Total
Revenues ($M)
$2,076
$2,015
$1,857
$1,640
2018
2019
2020
2021
$1,746
2022
Cash Collections Plus Fee Income
Cash Receipts
($M)
$183
$149
$86
$66
2018
2019
2020
2021
$117
2022
Attributable to
PRA Group, Inc.
Net
Income
($M)