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Kruk S.A. Earnings Release 2016

Jan 10, 2017

5678_rns_2017-01-10_dfd2a261-1ccf-47fc-a8d3-3cb9435cbcc1.html

Earnings Release

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Current Report No. 5/2017

Date: January 10th 2017

Subject: Expenditure and recoveries on debt portfolios purchased by theKRUK Group

Legal basis: Art. 17.1 of MAR - Inside information

Text of the report:

In line with the adopted disclosure policy, KRUK S.A. (KRUK, theCompany) announces that, in connection with the Company's strategy tostrengthen its position on the debt purchase market, the expenditure ondebt portfolios purchased by the KRUK Group (the Group) in Q4 2016 grewby 76% year on year, to PLN 347.25m.

The nominal value of debt purchased by the Group in Q4 2016 amounted toPLN 8.05bn.

The recoveries from the management of purchased portfolios grew in Q42016 to PLN 290.48m, that is by 32% year on year.

The aggregate expenditure on debt purchased by the Group in Q1−Q4 2016was PLN 1.28bn (with the nominal value of cases amounting to PLN16.44bn), up 163% on the four quarters of 2015.

The recoveries from the management of purchased portfolios in Q1-Q4 2016grew to PLN 992.30m, that is by 20% year on year.

The Company further announces that details concerning the financialresults achieved by the Company and the KRUK Group in the year of 2016will be given in the consolidated interim report for FY 2016.