Kruso Kapital (KK) Q1 2025 earnings summary

Executive summary

• Net income for 1Q25 surged over 100% year-over-year to €1.9 million, driven by strong growth in pawn loans and the consolidation of the Portuguese subsidiary CEP.

• Total income rose 49% year-over-year to €8.3 million, mainly from increased pawn loan volumes, higher commissions, and CEP's contribution.

• Income before taxes more than doubled year-over-year, reflecting robust revenue growth outpacing cost increases.

Financial highlights

• Pawn loans reached €153.4 million, up 25% year-over-year, with approximately 98,000 pawn tickets outstanding.

• Net commissions increased 44% year-over-year, supported by more auction lots and rising gold prices.

• Loan loss provisions declined year-over-year due to a new lending policy and updated coverage ratios.

• Operating costs rose 27.7% year-over-year, mainly from higher personnel and administrative expenses linked to CEP consolidation.

• Total assets grew 5% from December 2024 to €215.4 million, with customer loans up 6.6%.

Outlook and guidance

• Cost of risk remains very low at about 10bps, despite the first-time adoption of a new lending policy.

• Total Capital Ratio (TCR) declined to 20.5% from 22% quarter-on-quarter due to increased RWAs, but remains well above regulatory requirements.