31/7/2025
The Board of Directors of Kruso Kapital has approved the consolidated financial statements as at 30 June 2025, reporting a sharp y/y increase (>100%) with net income at 4,391 thousand. The 1H25 net income includes the contribution by Pignus – Crédito Economico Popular (CEP), the Portuguese subsidiary consolidated in November 2024. On 30 June 2025, there were roughly 96 thousand pawn tickets underlying the 152.8 million loans, on the rise on a yearly basis, thanks also to CEP’s consolidation. With regard to the pawn loan business in Italy, 40 auctions of pawned assets were held in the period (33 in 1H24), against a higher number of lots y/y. Total income rose by 50% y/y (17.3 million vs 11.5 million on 30.6.2024), mainly driven by the contribution of pawn loans, as a result of greater loan volumes and higher profitability, higher auction commissions and CEP’s contribution, and to a negligible extent, thanks to the net income from financial assets measured at Fair Value following the issuance of a Credit Link Note.
Net interest income, standing at 6.6 million, grew y/y sustained by a higher interest income (+41%), driven by a higher loan volume, CEP’s contribution (consolidated in 4Q24) and higher margins, which more than offset the negative impact of the premium (0.4 million) tied to the portfolio purchased in January 2025 and recognized under interest income, the negative PPA impact (euro 0.6 million) and higher interest expense, although steered by a declining cost of funding in line with the evolution of the 3-month Euribor. Net fees and commissions, at 10.6 million, rose by 56% y/y, driven by loans, by CEP’s contribution, and to a significant extent by the higher contribution of pawn auctions and the higher number of lots y/y. Loan loss provisions, unchanged y/y, in 1Q25 were subject to the new lending policies, which, in addition to introducing a new loan classification, entailed also the adoption of new collective provisioning parameters.
Operating costs, at 10.6 million, rose 30% y/y driven by:
Income before taxes increased by more than 100% y/y, driven by the strong growth in revenues, featuring a faster rate compared to cost dynamics. Income from investments in associates, at 0.2 million non-recurring, stemmed from the partial payment tied to the earnout clause concerning the acquisition of Kruso Art, following an agreement with the former partners of the company. In the first half of the year, the Purchase Price Allocation process (PPA) was completed, in compliance with IFRS 3 – Business Combinations, regarding the acquisition of Pignus - Crédito Económico Popular finalized on 7 November 2024. As a result, the final adjustments were made to the balance sheet items that had been recognized on a provisional basis, with the recognition of a goodwill of 11.5 million corresponding to the purchase price net of the acquired net equity. The final allocation, at consolidated balance sheet level, called for the recalculation of customer loans, leading to an appreciation of 1.1 million, and the recognition of intangible assets represented by trademarks, totaling 0.4 million, as well as the recognition of the related liabilities for deferred taxes amounting to 0.4 million, combined with a reduction in goodwill totaling 1.085 million.
Net income came in at 4.4 million, reporting a y/y increase driven by the improved result of the ordinary management, and by the contribution from income from investments in associates, as described above, which more than offset the negative non-recurring impact from the PPA release (-0.45 million after tax). The P&L impact was generated by the reversal of the adjustments under the PPA:
Net of the above non-recurring items (earn out and PPA), the adjusted net income would come in at 4.7 million. Total assets, up roughly by 4% y/y, mainly comprised customer loans amounting to 152.8 million originated by the pawn loans business and by goodwill, totaling 40.1 million, of which 28.4 million generated by the acquisition of the ex IntesaSanpaolo business line Pegno, 1.2 million generated by the acquisition of the company Kruso Art (former Art-Rite) and 10.5 million generated by the acquisition of CEP (down from 11.5 million on 31.12.24 following the completion of the PPA process). Following the loan classification adopted at the beginning of 2025, out of total net loans amounting to 152.3 million (net of PPA), 28.9 million were classified as nonperforming on 30.06.2025 (0.5 million on 31.12.2024). More specifically, past due loans totaled 22.4 million (no past dues on 31.12.2024), UtP loans added up to 6.5 million (0.5 million on 31.12.2024), of which 0.4 million tied to positions under forfeiture or judicial freezing orders (0.5 million on 31.12.2024). When pawn loans are not redeemed, recovery is obtained by auctioning the assets pledged as a security (the organization and timelines are up to the individual company); hence, the reclassification was not due to an increase in credit risk, which remains very low (in spite of the impact from the first time adoption of the new lending policy in 1Q25, the Cost of
Risk on 30.6.2025 came in at about 10bps). Changes in Intangible assets y/y were due to the recognition of a large share of the premium generated by the purchase of a loan portfolio in January 2025, net of the share amortized over the period, and to the goodwill and trademark adjustments described above following the PPA process.
Financial assets measured at amortized cost included:
Financial liabilities designated at Fair Value refer exclusively to the issuance of a 2 million Credit Link Note in 2Q25, backed primarily by part of the Italian pawn loan portfolio secured by gold. Shareholders’ Equity on 30.6.2025 totaled 53.9 million, up compared to 31.12.2024 (totaling 49.5 million). On 30 June 2025, total own funds (Total Capital) on a stand-alone basis came to 23.0 million (the same in terms of CET1). Total Capital Ratio (TCR) rose to 23.6% over 31.3.2025 (20.4%, restated compared to what reported on 8 May 2025, i.e., 20,5%) and 31.12.2024 (22%). The q/q increase of TCR was due to the net income for the period, and to a lower extent to a slight reduction in RWAs, which went from 100.4 million on 31.3.2025 (also restated as indicated above) to 97.5 million on 30.6.2025 (92 million on 31.12.2024), as a result of the decline in NPEs. The TCR remains well above the minimum capital requirement.
