IuteCredit, a European personal finance firm, has shared its unaudited results for the first 6 months of 2021.
As noted by the Mintos team, luteCredit has reported its operational, strategic, and financial highlights of its business, as well as comments from its Chief Executive.
Operational highlights for luteCredit are as follows:
- Loan payouts increasing YoY with “record-high months in May and June, with the Balance sheet up 6.1% to 123.7 million EUR”
- The number of loans signed up YoY 47.9% to 137,367 (6M/2020: 92.880) “steadily increasing as of June”
- The principal amount of loans issued “increased 49.7% to 74,723 million EUR (6M/2020: 49.914 million EUR)”
- Gross loan portfolio up 8.7% to 103.3 million EUR (31 December 2020: 95.0 million EUR)
- Repayment discipline (Customer Performance Index, CPI30) further improving to 86.9%
- Net loan portfolio “up 11.3% to 88.1 million EUR (31 December 2020: 79.2 million EUR)”
- EUR 3.0 million cash inflow “from the court-appointed liquidator of the business activities in Kosovo”
Strategic highlights
- Increasing geographical and product diversification
- Next successful steps for “an extraordinary customer experience in an IuteCredit ecosystem with additional services, such as insurance brokerage, certain data certificates, etc.”
- Strong growth in the “digitalization of IuteCredit countries towards a fully digital customer journey and the imminent breakthrough of online shopping”
Financial highlights
- Interest and commission fee income “up 3.0% to 23.4 million EUR (6M/2020: 22.7 million EUR) affected by steadily increasing payouts compared to the 13.9% increase in the average net loan portfolio”
- Net interest and commission fee income “down 1.1% to 17.0 million EUR (6M/2020: 17.1 million EUR) in connection with the bond issue related to expected business growth”
- Total income “”up 1.1% to 29.2 million EUR (6M/2020: 28.9 million EUR)”
- Cost to income ratio at 36.0% (6M/2020: 27.1%) “as a result of recovering business activity and the related normalization of costs”
- EBITDA “increased by 13.9% to 11.3 million EUR (6M/2020: 9.9 million EUR)”
- Net profit “more than doubled to 3.0 million EUR (6M/2020: 1.3 million EUR)”
- Strong capitalization and profitability exceeding Eurobond covenants
Tarmo Sild, Group CEO of IuteCredit stated:
“Q2/2021 is the first quarter of real growth we have eagerly expected since last autumn. Exceeding 29 m EUR for all financial services of the Group in H1/2021, we even achieved a new record in total revenue. The trend of irreversible and constantly accelerating digitalization is also reflected in the flourishing business of IuteCredit.”
Tarmo added:
“In the first six months of 2021, we generated more than 6% of total revenue from various services related to payments, cards, and cash transactions via IuteCredit’s proprietary ATMs that can be accessed easily and fast with a smartphone. All without the need for a debit or credit card. And even more, over 20% of all customers signings in the Q2/2021 were smartphone-based, using either one-time-passwords or biometrics.”
IuteCredit – founded in 2008 – is an established European personal finance company. The Group specializes in consumer credit through its 100% subsidiaries using equity and loan capital.
IuteCredit currently serves clients based in Moldova, Albania, North Macedonia, Bulgaria, and Bosnia and Herzegovina. IuteCredit’s loan products are unsecured consumer loans with maturities “between 1 month and 36 months and car-secured loans with maturities up to 60 months.”
The mission of IuteCredit is “to create an extraordinary experience in personal finance by exceeding customers’ expectations.”
Note: for more details on this update including additional comments from the CEO, check here.