IuteCredit reports unaudited results for 9M/2020

Back on profitable growth path in Q3/2020 heading towards pre-crisis levels


  • Loan payouts picked up towards pre-crisis levels.
  • Repayment discipline (Customer Performance Index, CPI) recovered almost to pre-crisis level.
  • Reinvestment of cash into performing installment loans and repayment of liabilities, after cash accumulation target was achieved in Q2.
  • Lowest level of interest-bearing liabilities since issue of IuteCredit bonds in August 2019.
  • Balance sheet back to growth at 97,5 million EUR (Q2/2020: 96,7 million EUR) following controlled contraction (Q1/2020: 105.6 million EUR).
  • Number of loans signed in period under review up y-o-y 21% to 162.125 (9M/2019: 134.479).
  • Principal amount of loans issued decreased y-o-y 23% to 80,5 million EUR (9M/2019: 105,0 million EUR).
  • Gross loan portfolio up 5% to 96 million EUR (31 December 2019: 92 million EUR).
  • Net loan portfolio down 10% to 71 million EUR (31 December 2019: 79 million EUR).


  • Expansion of Fintech services – Launch of My Iute App in Moldova as signing platform laying foundation for future payment services.
  • ATM-roll-out using 1-time-passwords enlarging cash-infrastructure and expanding payout capabilities.
  • Mastercard issuance in Macedonia continued to develop promisingly.


  • Interest and commission fee income up slightly 1% to 32,5 million EUR (9M/2019: 32,1 million EUR).
  • Net interest and commission fee income down 5% to 24,4 million EUR (9M/2019: 25,6 million EUR).
  • Total income up 26% to 42,3 million EUR (9M/2019: 33,6 million EUR).
  • Cost to income ratio at 26,6% (9M/2019: 38,8%), reflecting  temporary operational cost cutting.
  • EBITDA increased by 11% to 15,7 million EUR (9M/2019: 14,1 million EUR).
  • Net profit for the period decreased 33% to 3,8 million EUR (9M/2019: 5,7 million EUR).
  • Strong capitalization and resilient profitability exceeding Eurobond covenants.

Tallinn, Estonia, 29 October 2020. IuteCredit Europe (“ICE”), a leading European personal finance group, reported today unaudited results for 9M/2020.

IuteCredit has delivered a strong Q3. We made money. As forecasted in our H1 report, we indeed returned to the growth trajectory in Q3. With more than 30 million EUR in loans issued in Q3, we are seeing an almost complete recovery in our installment loan business to pre-pandemic levels. Albeit more cautious, selective on both our supply side and our customers’ demand side. At the same time, capital spending on the development of new technologies continued. New technologies started rolling out in October, first in the Republic of Moldova. Both MyIute app and the cardless ATMs will expand the scope of financial services and increase revenue.

The decisions we took in March and April in anticipation of the economic impact of the pandemic have paid off. Our focus was on the incoming cash flows, on learning how customers behave in the thoroughly bad times and on maintaining a steady course in the development of strategic technologies. Our internal momentum and the preconditions for future growth were preserved.

The weekly customer performance index looks since mid-June again like the heartbeat protocol of a healthy athlete. Even in Q2, cash inflows were sufficient to start accumulating in Group Treasury, while at the same time Group repaid interest-bearing liabilities. By 30 June, we completed bold maneuvering into secure, liquid, but nonproductive assets. The set target of 12% of the Group’s balance sheet in cash and liquid assets was achieved. We had also a net loan portfolio of 68 million EUR, 22 million EUR of buffers to cover potential loan losses, and interest-bearing liabilities of 75 million EUR. From Q3 onwards we started to reinvest the funds into performing installment loans. It is noteworthy that our interest-bearing liabilities consequently fell to their lowest level since the issue of IuteCredit bonds on the Frankfurt Stock Exchange in August 2019.

We are confident, even in the light of a possible “second wave” that the provisions are adequate, to counteract possible economic downturns and, as a result, the solvency of our customers. It should be kept in mind that the pandemic has not yet been contained. We do not expect serious lockdowns, although the number of positive tests is increasing again and infection rates are among the highest in Europe. We have marked as the most likely scenario, a gradual increase in demand for consumer credit until we return to pre-pandemic levels.

Looking ahead to Q4 and beyond, we are optimistic. We expect total assets at the end of the year to exceed the 2019 level of 106 million EUR. The 2020 total income and net profit should reach, despite challenging market conditions, almost the 2019 levels, respectively 50 million EUR and 7 million EUR,” said Tarmo Sild, Group CEO of IuteCredit.

The full unaudited report for 9M/2020 is available here: https://iute.com/wp-content/uploads/2020/10/201029_IuteCredit_9M2020_report-1.pdf

Earnings Call:

CEO Tarmo Sild and CFO Kristel Kurvits will comment on the unaudited 9M/2020 results by means of a presentation on 30 October 2020, 10.00 CET. The call will be held in English.

Please register here: emea.directeventreg.com/registration/9168897.

The corresponding presentation is available here.