Unaudited results for 3M/2022 – profit on growth in every country, digitalization in every country, acquisition of first bank

STRATEGIC HIGHLIGHTS

  • Total number of customers increased by 23,7% to 850 thousand (31 December 2021: 687 thousand).
  • Acquisition of controlling stake in Moldovan Energbank with twofold potential for additional revenue streams with Wallet (payments) services and growth of loan portfolio without increased FX exposure.
  • Group consolidated balance sheet and equity doubled as at 31 March 2022.
  • Increasing use of the digital customer journey with MyIute app being downloaded by 245 thousand customers (31 December 2021: 181 thousand customers).
  • Ongoing investment into New Core IT platform for management of customer experience and integrated loans and wallet service value streams.

OPERATIONAL HIGHLIGHTS

  • Loan payouts increased 27,9% to 41,7 million EUR (3M/2021: 32,6 million EUR).
  • Number of loans signed up y-o-y 127,0% to 73.987 (3M/2021: 32.589).
  • Balance sheet up 5,6% to 176,2 million EUR (31 December 2021: 166,8 million EUR).
  • Gross loan portfolio up 2,1% to 122,9 million EUR (31 December 2021: 120,4 million EUR) of which principal amount of loans increased 1,9% to 108,0 million EUR (31 December 2021: 106,0 million EUR).
  • Repayment discipline (Customer Performance Index, CPI30) significantly improved to an all-time high of 91,0% (3M/2021: 87,9%).
  • Net loan portfolio up 2,5% to 108,0 million EUR (31 December 2021: 105,4 million EUR).
  • Rollout of 63 cardless ATMs to date cuts intermediaries and reduces need for plastic cards and cuts plastic waste.

FINANCIAL HIGHLIGHTS

  • Interest and commission fee income up 22,0% to 13,1 million EUR (3M/2021: 10,7 million EUR) affected by steadily increasing payouts compared to the 18,3% increase in the average net loan portfolio.
  • Net interest and commission fee income up 17,4% to 8,8 million EUR (3M/2021: 7,5 million EUR) as a result of increased interest payments related to bonds issuances while cash position remained high.
  • Total income up 14,4% to 15,9 million EUR (3M/2021: 13,9 million EUR).
  • Cost to income ratio at 44,2% (3M/2021: 38,5%) mainly as result of expenses related to the acquisition of Energbank, recovering business activity and the related normalization of costs as well as strategic initiatives and consulting costs.
  • EBITDA adjusted for FX/revaluation up 21,3% to 6,2 million EUR (3M/2021: 5,1 million EUR).
  • Net profit at 0,6 million EUR (3M/2021: 1,1 million EUR).
  • Strong capitalization and profitability– Eurobond covenants exceeded.

Tallinn, Estonia, 24 May 2022. IuteCredit Europe (“ICE”), a leading European personal finance group, reported today unaudited results for 3M/2022.

“After joint efforts over the past three years, we acquired the first bank for the Group. The strategic acquisition of Moldovan Energbank opens a twofold potential of additional service streams for our retail customers and as a result revenue streams for IuteGroup. In doing so, we will evolve from a single service provider to multiple services provider that creates an extraordinary experience for our customers. In addition to the long-term value generation, the acquisition also has immediate rewards for IuteGroup. The consolidated balance sheet doubled to 300 million EUR and equity increased to 50 million EUR. Now, within the next two quarters, we intend at the bank to reshape corporate governance, set up internal communication lines and align organizations and business metrics with IuteGroup principles. Reshaping the service processes for our customers will naturally take a little bit longer until 2023. The true benefits of the bank for our customers and the subsequent returns from our customers to our income statement should become visible in the course of 2023.”

At the same time, the digitalization of IuteGroup for even more powerful services and the monet