As we reflect on our performance on the second quarter of 2025, I want to extend my sincere appreciation to our investors for their continued trust in our mission. Your confidence enables us to pursue disciplined portfolio growth, invest in advanced recovery strategies, and navigate the evolving Spanish credit landscape with resilience and focus.
I’m pleased to share that we have successfully completed the audit of our annual accounts for the fiscal year 2024. This marks a significant milestone for Spanda Capital, as our first year operating in the Spanish market has been profitable. This achievement reflects the strength of our strategy, the dedication of our team, and the trust of our partners and clients.
I also want to recognize the exceptional dedication of our team. Their expertise, agility, and commitment to operational excellence have been instrumental in driving recoveries, optimizing portfolio performance, and strengthening our market position. It is their hard work that turns strategy into results—and I am proud of what we’ve achieved together.
Macroeconomic and Credit Environment – Q2 2025
Spain’s economy continued to show resilience in Q2 2025, with GDP growing at a solid 2.6%, supported by strong domestic demand and ongoing investment under the national Recovery and Resilience Plan. The labour market remained robust, with unemployment falling to 10.4%, and real wages rising modestly—both of which contributed to stable consumer spending.
Inflation eased to 2.3%, driven by lower energy and food prices, while the European Central Bank’s recent rate cuts improved overall credit conditions. This created a more favourable environment for both borrowers and lenders, with a modest uptick in consumer and corporate lending.
From a credit perspective, non-performing loans remained contained, though early signs of stress emerged in certain sectors, particularly among SMEs and hospitality. These dynamics reinforce the importance of disciplined portfolio selection and proactive recovery strategies in our business.
Portfolio Performance
I am pleased to share our Q2 2025 portfolio performance, which reflects the strength of our strategy, the resilience of our operations, and the dedication of our team.
We recorded Capital Expenditures (Capex) of €8.6 million, marking a 231% increase year-over-year compared to €2.6 million in Q2 2024. This significant investment underscores our confidence in the market and our commitment to expanding our asset base with high-quality portfolios.
Our Estimated Remaining Collections (ERC) reached €32 million, representing a 300% YoY growth from €8 million in the same quarter last year. This sharp rise highlights the effectiveness of our acquisition strategy, and the long-term value embedded in our portfolio.
In terms of operational performance, cash collections totalled €820,000, a 180% increase YoY from €293,000 in Q2 2024. This growth reflects our enhanced recovery processes and the continued optimization of our servicing platforms.
Operational Execution
We continue to strengthen our servicing infrastructure and operational reach. As of the end of Q2:
We are actively working with 8 third-party servicers, ensuring flexibility and scalability across jurisdictions.
Our outstanding balance under management stands at €595 million, a clear indicator of the scale and trust we’ve built in the market.
We are managing a total of 80,000 active cases, reflecting both the depth and complexity of our portfolio.
Outlook for Q3 and Beyond
Looking ahead, we anticipate continued growth in Q3, driven by the closing of several NPL acquisitions initiated earlier this year. While the traditional summer break in August will bring a temporary pause in deal activity, we expect a strong resurgence in the latter part of Q3, marking the beginning of the second semester transaction cycle.
Our top priority for Q3 will be to finalize transactions that were launched in Q2, ensuring a smooth transition from acquisition to onboarding and management of the assets. With a growing portfolio, operational excellence will be at the forefront of our agenda. We will focus on integrating newly acquired assets and initiating collection actions to unlock value efficiently and responsibly.
As we look ahead, we remain firmly committed to our long-term strategy of value creation through disciplined portfolio acquisition, operational excellence, and responsible recovery practices. Our focus is not only on financial performance but also on building a resilient, transparent, and sustainable business that delivers consistent returns across cycles.
We will continue to operate with integrity, transparency, and a data-driven mindset, ensuring that every decision we make aligns with the interests of our investors, partners, and the communities we serve. Thank you for your continued trust and support as we move forward with confidence and clarity.