Intrum - Negative adjustments following third quarter 2022 revaluations of specific investment portfolios

As part of the third quarter 2022 revaluation process, Intrum AB (publ) (“Intrum”) has identified negative adjustments ranging from SEK 2.9 to 3.3 bn due to lowered collection expectations on specific investment portfolios that will negatively impact Intrum’s profit and loss account for the third quarter 2022.

The adjustments consist of the following items:

  • SEK 2.3 to 2.7 bn is related to the book value of specific secured portfolios, invested via joint venture arrangements. This adjustment is principally related to the Italian SPV which owns the portfolio that Intrum, together with partners, acquired in 2018.
  • As a direct consequence, Intrum will also recognise c. SEK 0.5 bn impairment loss on customer relationships and c. SEK 0.1 bn fair value loss on a related contract.

The impairments and fair value loss are non-cash items and will not impact Intrum’s key performance and leverage metrics as the former is adjusted as an item affecting comparability and the latter is recognised below the EBIT line and removed as a normalisation adjustment.

The negative adjustments to the Italian SPV will reduce the associated estimated remaining collections (“ERC”) from 2025 onwards by SEK 1.5 to 1.7 bn compared to the previous ERC forecast of SEK 7.3 bn. This is a reduction of c. 2% relative to Intrum’s total ERC forecast of SEK 82.0 bn as of the second quarter 2022.

Moreover, any sale to a third party of the stake in the Italian SPV currently held by Intrum’s co-investor would be considered as objective evidence and could potentially lead to a further adjustment of the book value.

As part of the quarterly revaluation process, Intrum has reviewed all other joint ventures, overdue receivables, REOs and intangible assets. As a result of this review, Intrum has concluded that no other negative adjustments are required as current and expected performance is at least in line with forecasts.

The final adjustments will be disclosed in the report for the third quarter 2022 which will be published on 27 October 2022 as previously communicated.

Currency exchange rate: 1 EUR = 10.89 SEK.

For further information, please contact:
Michael Ladurner, Chief Financial Officer
+46 8 546 102 02

This information is information that Intrum AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, at 00.00 on 26 September 2022.