(Reuters) - European debt purchaser and manager Arrow Global Group Plc (ARWA.L) reported a 35.5 percent rise in first-half underlying profit after tax, driven by a jump in debt collections and revenue from asset management.
Arrow Global, which buys defaulted debt accounts from retail banks and credit card companies, said underlying profit after tax rose to 25.8 million pounds in the six months ended June 30, from 19.1 million pounds a year earlier.
Revenue rose 47.6 percent to 149.8 million pounds.
Arrow Global, which services portfolios in Britain, Portugal, Holland, Belgium, France and most recently entered Italy, said it would meet its earnings expectations for the full year.
“Pressure for continued banking reform across Europe is evident,” Arrow Global said.
The company expects further sales of non-performing loans and non-core assets across portfolios such as unsecured, secured, small- and medium-sized enterprises and commercial real estate, it said.
Separately, Arrow Global said it agreed to buy Mars Capital’s British and Irish mortgage servicing businesses for an enterprise value of 15.5 million pounds and announced a strategic partnership with investment management firm Oaktree Capital Management.
Reporting by Noor Zainab Hussain in Bengaluru; Editing by Amrutha Gayathri