5/2/2025
The Board of Directors of Kruso Kapital approved the consolidated financial statements as at 31 December 2024 with an adjusted net profit of 4,746 thousand, up 35% y/y. The net accounting profit, which includes non-recurring components (expenses deriving from the IPO and the acquisition in Portugal, totaling 246 thousand net of taxes) amounts to 4,500 thousand, to which CEP (Pignus — Crédito Economico Popular), a subsidiary in Portugal, contributed only for the last two months of 2024.
As of December 31, 2024, there were about 76,000 pawn credit policies in Italy underlying 127.2 million jobs on an individual basis, 143.8 million at the consolidated level (121.4 million as at 31.12.2023), an increase on a quarterly basis due to the consolidation of CEP (16.4 million at 31.12.2024, for just over 15,200 policies). The y/y growth in employment on an individual basis was substantially driven by the volumes originated by the network in Italy. As part of pawn credit in Italy, 55 auctions were held, for assets deriving from the pledge (42 in 2023). The commercial performance of the business in Greece in 2024 improved compared to the same period of 2023.
The brokerage margin increased by 27.3% y/y (24.7 million vs 19.3 million at 31.12.2023), mainly due to the contribution of pawn credit in Italy, as a result of higher employment and higher margins. The business of auctioning works of art and collectibles represents less than 2% of the total brokerage margin as of December 31, 2024 (4.6% of the entire 2023), down y/y and characterized by a fourth quarter with lower than expected results and lower finalization of private negotiations than last year. The growth in interest income and active commissions on pawn loans has more than offset the increase in the cost of funding, which began to show signs of stabilization since the second quarter of 2024, thanks to an increase in profit margin (equal to 22% as a percentage of loans in 2024, in line with 1H 2024 and an increase compared to 2023 when it was equal to 19.8%). The 19.2% y/y increase in net commissions is driven by higher employment and the greater contribution of pawn auctions in Italy.
Credit adjustments remain insignificant, and declined in the fourth quarter due to a release of CEP following the alignment with Group policies.
The positive change in operating costs y/y is essentially driven by higher personnel expenses, which for 2Q24 and 3Q24 involve the accounting of the post-IPO LTI (for a total of 242 thousand), the wage increases for the new CCNL, the final balance of Kruso Kapital's bonus at the individual level on the 2023 result, a slight increase compared to the previous year and the higher personnel expenses also due to the greater number of resources for the subsidiary Art-Rite and the consolidation of CEP for the final two months of 2024. The number of Group resources was 144 as of December 31, 2024, up year on year (91 as of December 31, 2023). Other administrative expenses include non-recurring charges deriving from the IPO and the acquisition in Portugal of CEP (equal to 377 thousand as at 31 December 2024); net of these components, they increase due to the higher advertising expenses of Kruso Kapital, legal costs/consulting, expenses in ICT/digital pledge and running costs after IPO.
Cost Income net of non-recurring expenses fell to 67% compared to 70% in 2023.
Net profit increased by 56% y/y, with a positive contribution from the subsidiary CEP of 130 thousand, although characterized by some extraordinary costs, and a negative contribution from the subsidiaries ProntoPegno Grecia and Art-Rite equal to 589 thousand and 770 thousand, respectively.
Total assets, up 22% compared to 31 December 2023, are essentially composed of loans to customers for the pawn credit activity (up 18.5% compared to 31.12.2023) and goodwill for a total amount of 41.1 million, of which 28.4 million were generated by the acquisition of the former IntesaSanpaolo business unit completed in July 2020 and 11.6 million generated by the acquisition of CEP.
Financial liabilities valued at amortized cost include an auction surplus of 5.6 million, up by 24% y/y. The sub-heading debts to banks includes loans from Banca Sistema and 6 other banks, the latter equal to 35% of total inflows. Net Equity as at 31.12.2024 amounted to 49.5 million, an increase compared to 31.12.2023 (equal to 42.4 million) in addition to the profit for the period also due to the capital increase of the IPO with an impact of 2.5 million.
Total equity (Total Capital) as at 31 December 2024 on an individual basis amounted to 20.3 million (the same also in terms of CET1), with the Total Capital Ratio rising to 22% y/y (18.7% as of 31.12.2023), but falling on a quarterly basis mainly due to the acquisition of CEP (higher credit risks) and the expected higher operational risk. Based on a simulation concerning the overdue reclassification of part of the credits, in relation to what was requested by the Bank of Italy following the inspection of the Parent Company (see press release of 20.12.2024), the impact on the Total Capital Ratio would be c. 200 bps, bringing the mentioned coefficient to 20%.
