KEY TAKEAWAYS
- Estonia’s loan recoveries improved showing the strongest performance (75%) since Q3 of 2015.
- This also outpaces the past year average of 64% ranging from Q4 of 2015 to Q3 of 2016.
- Finland also experienced a dramatic increase in recoveries. The 90% is well above every quarter since Q1 of 2014. This represents an increase of 38 basis points over the past year average of 52%.
- Spain and Slovakia each decreased compared to Q2 of 2016 with. The recoveries in those countries were 46% and 59% respectively.
- The average recovery among all four countries is just over 2/3 of the value of the principal.
PRINCIPAL RECOVERY RATES ACROSS MARKETS
Estonia and Finland have both managed to sustain an uptrend for the previous five quarters. Since Q3 of 2015 both countries have made measurable improvements in recovery performance. Spain has also illustrated a similar trend until this latest data. We’re hopeful this is a momentary lapse. Slovakia has been less predictable, however the country has the highest past year average recovery figure which is encouraging. The data in the table below is as of 11.12.2016.
| Quarter | 2014 Q1 | 2014 Q2 | 2014 Q3 | 2014 Q4 | 2015 Q1 | 2015 Q2 | 2015 Q3 | 2015 Q4 | 2016 Q1 | 2016 Q2 | 2016 Q3 |
|---|---|---|---|---|---|---|---|---|---|---|---|
 Estonia |
54% | 72% | 75% | 80% | 114% | 83% | 50% | 52% | 62% | 66% | 75% |
 Finland |
41% | 57% | 33% | 56% | 74% | 72% | 20% | 21% | 342 | 64% | 90% |
 Spain |
N/A | 19% | 13% | 19% | 34% | 28% | 34% | 42% | 30% | 101% | 46% |
 Slovakia |
N/A | N/A | 5% | 10% | 30% | 15% | 57% | 77% | 83% | 347% | 59% |
You can find additional related information about the recovery process from these articles:
- How are recovery rates measured?
- Why don’t you calculate the recovery rate on the principal balance?
