PR Newswire | Aug 6, 2020 04:06PM EDT

08/06 15:05 CDT

PRA Group Reports Second Quarter 2020 Results NORFOLK, Va., Aug. 6, 2020

NORFOLK, Va., Aug. 6, 2020 /PRNewswire/ -- PRA Group, Inc. (Nasdaq: PRAA), a global leader in acquiring and collecting nonperforming loans, today reported its financial results for the second quarter of 2020. Net income attributable to PRA Group, Inc. was $57.9 million compared to $18.6 million in the second quarter of 2019. Diluted earnings per share were $1.26 compared to $0.41 in the second quarter of 2019. For the six months ended June 30, 2020, net income attributable to PRA Group, Inc. was $77.0 million, or $1.68 per diluted share, compared to $33.8 million, or $0.74 per diluted share, during the same period in 2019.

Second Quarter Highlights

* Record global cash collections of $509.9 million, an increase of 8%, or 11% on a currency adjusted basis, compared to the second quarter of 2019. * Record total revenues of $271.9 million, an increase of 8% compared to the second quarter of 2019. * Record income from operations of $111.3 million, an increase of 76% compared to the second quarter of 2019. * Cash efficiency ratio of 68.7% during the quarter compared to 60.4% in the second quarter of 2019. * Net income of $57.9 million, an increase of 211% compared to the second quarter of 2019. * Diluted earnings per share of $1.26, an increase of 207% compared to the second quarter of 2019. * Total portfolio purchases of $164.5 million. * Estimated Remaining Collections (ERC) of $6.4 billion.

"During June, we continued to see the same collection trends we reported in April and May. Cash collections were particularly strong in the U.S. and helped drive a global record during the second quarter. As discussed on our Q1 2020 conference call, due to various circumstances, we believe U.S. consumers have additional discretionary funds, and many are taking this opportunity to voluntarily resolve their debts. Demonstrating this, U.S. cash collections from PRA's digital channel grew over 90% from Q2 2019. Europe cash collections were similar to those in the second quarter of last year and well ahead of our expectations, so we are pleased with the results there as well," said Kevin Stevenson, president and chief executive officer. "We continue to see delayed investment volumes particularly in Europe but expect that to pick up later in the year as sellers have been moving forward with their sale processes more recently. We also anticipate a wave of charge-offs next year, and we will be well prepared to help our bank partners and provide our customers with the respect and solutions they have come to expect from PRA."

Cash Collections and Revenues

* The following table presents cash collections by quarter and by source on an as reported and currency-adjusted basis:

Cash Collection Source 2020 2019

($ in thousands) Q2 Q1 Q4 Q3 Q2

Americas Core $ 343,269 $ 305,780 $ 276,639 $ 279,902 $ 294,243

Americas Insolvency 38,685 43,210 40,801 45,759 49,770

Europe Core 115,145 131,340 126,649 118,917 117,635

Europe Insolvency 12,841 14,243 12,520 8,639 8,626

Total Cash Collections $ 509,940 $ 494,573 $ 456,609 $ 453,217 $ 470,274

Cash Collection Source

Constant Currency Adjusted 2020 2019

($ in thousands) Q2 Q2

Americas Core $ 343,269 $ 288,595

Americas Insolvency 38,685 49,721

Europe Core 115,145 112,928

Europe Insolvency 12,841 8,351

Total Cash Collections $ 509,940 $ 459,595

* Cash collections in the quarter increased $39.7 million compared to the second quarter of 2019. The increase was primarily due to a 37% increase in U.S. call center and other cash collections. This was partially offset by a decrease in Americas Insolvency cash collections since investment levels are not offsetting the runoff of older portfolios. For the six months ended June 30, 2020, cash collections increased $73.1 million compared to the same period last year. * Portfolio income was $248.3 million compared to $249.2 million in income recognized on finance receivables in the second quarter of 2019. * Changes in expected recoveries were a net positive of $19.8 million. This reflects $119.5 million in recoveries in excess of forecast from overperformance during the quarter, partially offset by a negative $99.7 million adjustment for changes in expected future recoveries as the Company has assumed the majority of the current quarter overperformance is acceleration of future collections and made additional cash forecast adjustments deemed appropriate given the current environment in which the Company operates.

Expenses

* Operating expenses in the quarter decreased $26.9 million compared to the second quarter of 2019. The decrease was primarily driven by a reduction in legal collection costs mainly as a result of the Company's decision to temporarily cease moving accounts into a legal eligible status in the U.S., along with the closure of courts in many of our European countries, as a result of the COVID-19 pandemic. In addition, there was a decrease in compensation and employee benefits from a reduction in U.S. call center staff as a result of efficiencies realized through technology, training, and data and analytics. * For the six months ended June 30, 2020, operating expenses decreased $26.6 million compared to the same period last year. * Interest expense decreased $0.6 million compared to the second quarter of 2019 primarily due to lower average interest rates. * The effective tax rate for the six months ended June 30, 2020 was 17.2%.

Portfolio Acquisitions

* The Company purchased $164.5 million in finance receivables in the second quarter of 2020. * At the end of the second quarter, the Company had in place forward flow commitments of up to $383.7 million with $272.3 million in the Americas and $111.4 million in Europe.

Portfolio Acquisition Source 2020 2019

($ in thousands) Q2 Q1 Q4 Q3 Q2

Americas Core $ 110,474 $ 172,697 $ 118,153 $ 168,185 $ 121,996

Americas Insolvency 14,527 20,772 22,650 26,311 26,092

Europe Core 34,247 60,990 218,919 64,728 136,344

Europe Insolvency 5,251 18,778 42,613 19,772 4,715

Total Portfolio Acquisitions $ 164,499 $ 273,237 $ 402,335 $ 278,996 $ 289,147

Conference Call InformationPRA Group, Inc. will hold a conference call today at 5:00 p.m. ET to discuss results with institutional investors and stock analysts. To listen to a webcast of the call and view the accompanying slides, visit https://ir.pragroup.com/events-and-presentations. To listen by phone, call 844-835-9982 in the U.S. or 412-317-5267 outside the U.S. and ask for the PRA Group conference call. To listen to a replay of the call until Aug. 13, 2020, call 877-344-7529 in the U.S. or 412-317-0088 outside the U.S. and use access code 10146542.

About PRA Group, Inc.As a global leader in acquiring and collecting nonperforming loans, PRA Group, Inc. returns capital to banks and other creditors to help expand financial services for consumers in the Americas and Europe. With thousands of employees worldwide, PRA Group, Inc. companies collaborate with customers to help them resolve their debt. For more information, please visit www.pragroup.com.

About Forward-Looking StatementsStatements made herein which are not historical in nature, including PRA Group, Inc.'s or its management's intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.

The forward-looking statements in this press release are based upon management's current beliefs, estimates, assumptions and expectations of PRA Group, Inc.'s future operations and financial and economic performance, taking into account currently available information. These statements are not statements of historical fact or guarantees of future performance, and there can be no assurance that anticipated events will transpire or that our expectations will prove to be correct. Forward-looking statements involve risks and uncertainties, some of which are not currently known to PRA Group, Inc. Actual events or results may differ materially from those expressed or implied in any such forward-looking statements as a result of various factors, including risk factors and other risks that are described from time to time in PRA Group, Inc.'s filings with the Securities and Exchange Commission including but not limited to PRA Group, Inc.'s annual reports on Form 10-K, its quarterly reports on Form 10-Q and its current reports on Form 8-K, which are available through PRA Group, Inc.'s website and contain a detailed discussion of PRA Group, Inc.'s business, including risks and uncertainties that may affect future results.

Due to such uncertainties and risks, you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of today. Information in this press release may be superseded by recent information or statements, which may be disclosed in later press releases, subsequent filings with the Securities and Exchange Commission or otherwise. Except as required by law, PRA Group, Inc. assumes no obligation to publicly update or revise its forward-looking statements contained herein to reflect any change in PRA Group, Inc.'s expectations with regard thereto or to reflect any change in events, conditions or circumstances on which any such forward-looking statements are based, in whole or in part.

PRA Group, Inc.

Unaudited Consolidated Income Statements

(in thousands, except per share amounts)

Three Months Ended Six Months Ended

June 30, June 30,

2020 2019 2020 2019

Revenues:

Portfolio income $ 248,284 $ - $ 510,306 $ -

Changes in expected 19,801 - 6,985 - recoveries

Income recognized on - 249,219 - 488,055 finance receivables

Fee income 2,639 2,707 4,848 9,081

Other revenue 1,186 131 1,555 798

Total revenues 271,910 252,057 523,694 497,934

Net allowance charges - (1,196) - (7,291)

Operating expenses:

Compensation and 70,472 79,808 145,643 159,453 employee services

Legal collection fees 13,742 14,297 28,314 27,356

Legal collection costs 19,507 33,121 53,954 68,350

Agency fees 10,343 13,013 23,719 27,045

Outside fees and 18,683 16,293 38,077 31,541 services

Communication 8,812 10,824 22,323 24,025

Rent and occupancy 4,471 4,491 8,955 8,854

Depreciation and 4,109 4,723 8,193 9,295 amortization

Other operating 10,491 10,926 22,696 22,511 expenses

Total operating 160,630 187,496 351,874 378,430 expenses

Income from operations 111,280 63,365 171,820 112,213

Other income and(expense):

Interest expense, net (35,416) (36,027) (72,627) (70,008)

Foreign exchange gain/ 683 (311) 2,966 5,953 (loss)

Other (1,582) 248 (1,658) (104)

Income before income 74,965 27,275 100,501 48,054 taxes

Income tax expense 14,137 5,075 17,237 8,942

Net income 60,828 22,200 83,264 39,112

Adjustment for net income attributable 2,914 3,581 6,215 5,266 to noncontrolling interests

Net income attributable to PRA $ 57,914 $ 18,619 $ 77,049 $ 33,846 Group, Inc.

Net income per commonshare attributable toPRA Group, Inc.:

Basic $ 1.27 $ 0.41 $ 1.69 $ 0.75

Diluted $ 1.26 $ 0.41 $ 1.68 $ 0.74

Weighted average numberof shares outstanding:

Basic 45,548 45,387 45,500 45,363

Diluted 45,987 45,495 45,886 45,457

PRA Group, Inc.

Consolidated Balance Sheets

(in thousands, except per share amounts)

(Amounts in thousands)

(unaudited)

June 30, December 31,

ASSETS 2020 2019

Cash and cash equivalents $ 115,741 $ 119,774

Investments 18,746 56,176

Finance receivables, net 3,351,532 3,514,165

Other receivables, net 15,532 10,606

Income taxes receivable 23,166 17,918

Deferred tax asset, net 64,548 63,225

Property and equipment, net 59,285 56,501

Right-of-use assets 58,213 68,972

Goodwill 444,507 480,794

Intangible assets, net 3,666 4,497

Other assets 42,888 31,263

Total assets $ 4,197,824 $ 4,423,891

LIABILITIES AND EQUITY

Liabilities:

Accounts payable $ 4,667 $ 4,258

Accrued expenses 72,871 88,925

Income taxes payable 31,226 4,046

Deferred tax liability, net 59,860 85,390

Lease liabilities 62,706 73,377

Interest-bearing deposits 120,520 106,246

Borrowings 2,580,068 2,808,425

Other liabilities 71,044 26,211

Total liabilities 3,002,962 3,196,878

Equity:

Preferred stock, par value $0.01, authorized shares, 2,000, issued - - and outstanding shares, 0

Common stock, par value $0.01, 100,000 shares authorized, 45,579 shares issued and outstanding at June 30, 2020; 100,000 shares 456 454 authorized, 45,416 shares issued and outstanding at December 31, 2019

Additional paid-in capital 70,065 67,321

Retained earnings 1,439,680 1,362,631

Accumulated other comprehensive loss (347,212) (261,018)

Total stockholders' equity - PRA Group, 1,162,989 1,169,388 Inc.

Noncontrolling interests 31,873 57,625

Total equity 1,194,862 1,227,013

Total liabilities and equity $ 4,197,824 $ 4,423,891

Select Expenses (Income)

(in thousands, Three Months Endedpre-tax)

June 30, March 31, December 31, September 30, June 30, March 31, December 31, September 30, 2020 2020 2019 2019 2019 2019 2018 2018

Acquisition/divestiture-related - - - - 227 223 - -expenses

Legal costs notassociated with - - - - - - 647 95normal operations

Noncash interestexpense - 3,247 3,217 3,157 3,128 3,071 3,042 2,986 2,958amortization ofdebt discount

Noncash interestexpense - 2,743 2,640 2,649 2,649 2,655 2,636 2,723 2,524amortization ofdebt issuance costs

Change in fairvalue on 3,284 2,039 1,247 1,126 1,645 349 673 (504)derivatives

Amortization of 351 349 407 400 418 347 907 994intangibles

Share-basedcompensation 3,063 2,857 2,809 2,974 2,620 2,314 1,600 2,361expense

Purchase Price Multiples

as of June 30, 2020

Amounts in thousands

ERC-Historical ERC-Current Current OriginalPurchase Period Purchase Period Total Estimated Period Estimated Estimated Price ^(1)(2) Exchange Rates ^(3) Collections ^(4) Exchange Rates ^(5) Purchase Price Purchase Price Multiple Multiple ^(6)

Americas Core

1996-2009 $ 930,026 $ 25,275 $ 2,876,410 $ 25,275 309% 238%

2010 148,193 16,361 527,054 16,361 356% 247%

2011 209,602 29,000 725,887 29,000 346% 245%

2012 254,076 35,475 661,919 35,475 261% 226%

2013 390,826 62,664 912,274 62,664 233% 211%

2014 404,117 99,011 891,394 96,700 221% 204%

2015 443,114 163,023 933,558 162,489 211% 205%

2016 455,767 301,974 1,099,686 287,328 241% 201%

2017 532,851 453,291 1,207,541 448,520 227% 193%

2018 653,975 670,175 1,340,743 657,985 205% 202%

2019 581,476 898,263 1,222,926 868,031 210% 206%

2020 283,041 543,573 580,673 543,573 205% 205%

Subtotal 5,287,064 3,298,085 12,980,065 3,233,401

Americas Insolvency

1996-2009 397,453 681 835,919 681 210% 178%

2010 208,942 868 546,829 868 262% 184%

2011 180,432 743 370,148 743 205% 155%

2012 251,395 495 392,466 495 156% 136%

2013 227,834 1,380 354,901 1,380 156% 133%

2014 148,420 2,088 217,662 2,074 147% 124%

2015 63,170 4,344 87,824 4,344 139% 125%

2016 91,442 14,160 115,267 14,146 126% 123%

2017 275,257 86,263 345,821 86,263 126% 125%

2018 97,879 81,259 130,790 81,259 134% 127%

2019 123,077 132,192 160,420 132,061 130% 128%

2020 35,298 44,941 47,686 44,941 135% 135%

Subtotal 2,100,599 369,414 3,605,733 369,255

Total Americas 7,387,663 3,667,499 16,585,798 3,602,656

Europe Core

2012 20,409 292 40,720 221 200% 187%

2013 20,334 148 25,132 110 124% 119%

2014 773,811 731,226 2,215,272 632,283 286% 208%

2015 411,340 308,026 733,076 273,940 178% 160%

2016 333,090 298,696 556,757 290,948 167% 167%

2017 252,174 218,286 359,556 197,823 143% 144%

2018 341,775 374,650 524,165 361,620 153% 148%

2019 518,610 668,732 782,184 637,980 151% 152%

2020 94,763 165,081 172,597 165,081 182% 182%

Subtotal 2,766,306 2,765,137 5,409,459 2,560,006

Europe Insolvency

2014 10,876 573 18,136 490 167% 129%

2015 18,973 4,220 29,099 3,534 153% 139%

2016 39,338 12,951 56,808 13,132 144% 130%

2017 39,235 24,680 48,839 22,626 124% 128%

2018 44,908 41,089 55,096 39,915 123% 123%

2019 77,218 85,331 101,282 79,841 131% 130%

2020 23,017 29,757 30,776 29,757 134% 134%

Subtotal 253,565 198,601 340,036 189,295

Total Europe 3,019,871 2,963,738 5,749,495 2,749,301

Total PRA Group $ 10,407,534 $ 6,631,237 $ 22,335,293 $ 6,351,957

(1) Includes the acquisition date finance receivables portfolios that wereacquired through our business acquisitions.

(2) For our non-US amounts, purchase price is presented at the exchange rate atthe end of the year in which the pool was purchased. In addition, any purchaseprice adjustments that occur throughout the life of the pool are presented atthe year-end exchange rate for the respective year of purchase.

(3) For our non-US amounts, ERC-Historical Period Exchange Rates is presentedat the year-end exchange rate for the respective year

of purchase.

(4) For our non-U.S. amounts, Total Estimated Collections is presented at theyear-end exchange rate for the respective year of purchase.

(5) For our non-U.S. amounts, ERC-Current Period Exchange Rates is presented atthe June 30, 2020 exchange rate.

(6) The Original Estimated Purchase Price Multiple represents the purchaseprice multiple at the end of the year of acquisition.

Portfolio Financial Information

Year-to-date as of June 30, 2020

Amounts in thousands

Purchase Cash Portfolio Changes in Total Portfolio Net FinancePeriod Collections^(1) Income ^(1) Expected Revenue ^(1) (2) Receivables as of Recoveries^(1) June 30, 2020 ^(3)

AmericasCore

1996-2009 $ 7,348 $ 5,560 $ (1,406) $ 4,154 $ 6,071

2010 3,678 3,536 (857) 2,679 2,486

2011 6,281 5,941 (2,248) 3,693 5,117

2012 6,802 6,093 (4,225) 1,868 11,070

2013 13,149 9,990 (8,009) 1,981 22,418

2014 18,121 14,251 (15,672) (1,421) 35,200

2015 32,948 19,999 (13,822) 6,177 66,386

2016 57,081 32,839 (755) 32,084 113,660

2017 108,504 50,175 17,559 67,734 200,463

2018 183,021 76,976 6,452 83,428 356,085

2019 175,029 95,119 14,877 109,996 448,861

2020 37,087 21,374 10,312 31,686 277,335

Subtotal 649,049 341,853 2,206 344,059 1,545,152

Americas Insolvency

1996-2009 197 $ 235 (38) 197 -

2010 269 312 (43) 269 -

2011 275 229 46 275 -

2012 546 458 174 632 -

2013 742 763 (20) 743 -

2014 1,378 1,789 (896) 893 262

2015 5,624 2,819 (219) 2,600 2,755

2016 7,709 2,060 (616) 1,444 11,164

2017 32,245 9,047 (2,692) 6,355 69,529

2018 15,394 4,655 3,010 7,665 66,722

2019 14,770 5,870 2,790 8,660 108,218

2020 2,746 1,098 (264) 834 33,190

Subtotal 81,895 29,335 1,232 30,567 291,840

Total 730,944 371,188 3,438 374,626 1,836,992Americas

EuropeCore

2012 591 454 137 591 -

2013 320 216 104 320 -

2014 72,661 54,323 2,336 56,659 166,870

2015 26,772 15,775 (213) 15,562 142,997

2016 23,270 13,529 (1,336) 12,193 167,532

2017 17,870 6,932 (1,285) 5,647 136,984

2018 35,776 13,293 3,562 16,855 234,775

2019 61,779 22,118 (2,085) 20,033 422,528

2020 7,446 2,966 1,348 4,314 91,298

Subtotal 246,485 129,606 2,568 132,174 1,362,984

Europe Insolvency

2014 410 320 (17) 303 192

2015 1,603 769 93 862 2,154

2016 4,064 1,700 (241) 1,459 9,262

2017 4,747 1,054 191 1,245 19,580

2018 4,845 1,521 (237) 1,284 33,977

2019 10,386 3,429 992 4,421 63,555

2020 1,029 719 198 917 22,836

Subtotal 27,084 9,512 979 10,491 151,556

Total 273,569 139,118 3,547 142,665 1,514,540Europe

Total PRA $ 1,004,513 $ 510,306 $ 6,985 $ 517,291 $ 3,351,532Group

(1) For our non-U.S. amounts, amounts are presented using the averageexchange rates during the current reporting period.

(2) Total Portfolio Revenue refers to portfolio income and changes inexpected recoveries combined.

(3) For our non-U.S. amounts, net finance receivables are presented at theJune 30, 2020 exchange rate.

Cash Collections by Year, By Year of Purchase^(1)

as of June 30, 2020

Amounts in millions

Purchase Cash CollectionsPurchase Period Price ^(2)(3) 1996-2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total

Americas Core

1996-2009 $ 930.0 $ 1,647.7 $ 295.7 $ 253.5 $ 201.6 $ 146.4 $ 101.8 $ 71.2 $ 45.7 $ 30.5 $ 23.3 $ 19.2 $ 7.3 $ 2,843.9

2010 148.2 - 47.1 113.6 109.9 82.0 55.9 38.1 24.5 15.6 11.1 9.2 3.7 510.7

2011 209.6 - - 62.0 174.5 152.9 108.5 73.8 48.7 32.0 21.6 16.6 6.3 696.9

2012 254.1 - - - 56.9 173.6 146.2 97.3 60.0 40.0 27.8 17.9 6.8 626.5

2013 390.8 - - - - 101.6 247.8 194.0 120.8 78.9 56.4 36.9 13.2 849.6

2014 404.1 - - - - - 92.7 253.4 170.3 114.2 82.2 55.3 18.2 786.3

2015 443.1 - - - - - - 117.0 228.4 185.9 126.6 83.6 32.9 774.4

2016 455.8 - - - - - - - 138.7 256.5 194.6 140.6 57.1 787.5

2017 532.9 - - - - - - - - 107.3 278.7 256.5 108.5 751.0

2018 654.0 - - - - - - - - - 122.7 361.9 183.0 667.6

2019 581.5 - - - - - - - - - - 143.8 175.0 318.8

2020 283.0 - - - - - - - - - - - 37.1 37.1

Subtotal 5,287.1 1,647.7 342.8 429.1 542.9 656.5 752.9 844.8 837.1 860.9 945.0 1,141.5 649.1 $ 9,650.3

Americas Insolvency

1996-2009 397.5 204.3 147.1 156.7 145.4 109.3 57.0 7.6 3.6 2.2 1.1 0.7 0.2 835.2

2010 208.9 - 39.5 104.5 125.0 121.7 101.9 43.6 5.0 2.4 1.4 0.7 0.3 546.0

2011 180.4 - - 15.2 66.4 82.8 85.8 76.9 36.0 3.7 1.6 0.7 0.3 369.4

2012 251.4 - - - 17.4 103.6 94.1 80.1 60.7 29.3 4.3 1.9 0.5 391.9

2013 227.8 - - - - 52.5 82.6 81.7 63.4 47.8 21.9 2.9 0.7 353.5

2014 148.4 - - - - - 37.0 50.9 44.3 37.4 28.8 15.8 1.4 215.6

2015 63.2 - - - - - - 3.4 17.9 20.1 19.8 16.7 5.6 83.5

2016 91.4 - - - - - - - 18.9 30.4 25.0 19.9 7.7 101.9

2017 275.3 - - - - - - - - 49.1 97.3 80.9 32.3 259.6

2018 97.9 - - - - - - - - - 6.7 27.4 15.4 49.5

2019 123.1 - - - - - - - - - - 13.4 14.8 28.2

2020 35.3 - - - - - - - - - - - 2.7 2.7

Subtotal 2,100.6 204.3 186.6 276.4 354.2 469.9 458.4 344.2 249.8 222.4 207.9 181.0 81.9 3,237.0

Total Americas 7,387.7 1,852.0 529.4 705.5 897.1 1,126.4 1,211.3 1,189.0 1,086.9 1,083.3 1,152.9 1,322.5 731.0 12,887.3

Europe Core

2012 20.4 - - - 11.6 9.0 5.6 3.2 2.2 2.0 2.0 1.5 0.6 37.7

2013 20.3 - - - - 7.1 8.5 2.3 1.3 1.2 1.3 0.9 0.3 22.9

2014 773.8 - - - - - 153.2 292.0 246.4 220.8 206.3 172.9 72.6 1,364.2

2015 411.3 - - - - - - 45.8 100.3 86.2 80.9 66.1 26.7 406.0

2016 333.1 - - - - - - - 40.4 78.9 72.6 58.0 23.3 273.2

2017 252.2 - - - - - - - - 17.9 56.0 44.1 17.9 135.9

2018 341.8 - - - - - - - - - 24.3 88.7 35.8 148.8

2019 518.6 - - - - - - - - - - 48.0 61.8 109.8

2020 94.8 - - - - - - - - - - - 7.5 7.5

Subtotal 2,766.3 - - - 11.6 16.1 167.3 343.3 390.6 407.0 443.4 480.2 246.5 2,506.0

Europe Insolvency

2014 10.9 - - - - - - 4.3 3.9 3.2 2.6 1.5 0.4 15.9

2015 19.0 - - - - - - 3.0 4.4 5.0 4.8 3.9 1.6 22.7

2016 39.3 - - - - - - - 6.2 12.7 12.9 10.7 4.0 46.5

2017 39.2 - - - - - - - - 1.2 7.9 9.2 4.8 23.1

2018 44.9 - - - - - - - - - 0.6 8.4 4.9 13.9

2019 77.2 - - - - - - - - - - 5.0 10.3 15.3

2020 23.0 - - - - - - - - - - - 1.0 1.0

Subtotal 253.5 - - - - - - 7.3 14.5 22.1 28.8 38.7 27.0 138.4

Total Europe 3,019.8 - - - 11.6 16.1 167.3 350.6 405.1 429.1 472.2 518.9 273.5 2,644.4

Total PRA Group $ 10,407.5 $ 1,852.0 $ 529.4 $ 705.5 $ 908.7 $ 1,142.5 $ 1,378.6 $ 1,539.6 $ 1,492.0 $ 1,512.4 $ 1,625.1 $ 1,841.4 $ 1,004.5 $ 15,531.7

(1) For our non-U.S. amounts, Cash Collections are presented using theaverage exchange rates during the cash collection period.

(2) Includes the acquisition date finance receivables portfolios that wereacquired through our business acquisitions.

(3) For our non-US amounts, purchase price is presented at the exchangerate at the end of the year in which the pool was purchased. In addition,any purchase price adjustments that occur throughout the life of the poolare presented at the year-end exchange rate for the respective year ofpurchase.

Investor Contact:Darby Schoenfeld, CPAVice President, Investor Relations(757) 431-7913Darby.Schoenfeld@PRAGroup.com

News Media Contact:Elizabeth KerseyVice President, Communications and Public Policy(757) 431-3398Elizabeth.Kersey@PRAGroup.com

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SOURCE PRA Group, Inc.