European Personal Finance Firm IuteCredit Shares Latest Unaudited Operational, Financial Results

IuteCredit has shared its unaudited results for 9M 2021. The firm has released its operational, strategic, and financial highlights along with comments from the company CEO.

These details were provided to the AS Mintos Marketplace by IuteCredit, a cooperation partner of Mintos that provides investment opportunities via

Earnings call on 18 November

IuteCredit’s CEO Tarmo Sild and CFO Kristel Kurvits commented on the unaudited 9M 2021 results by (on November 18 2021).

Here are the Key Operational highlights:

  • Loan payouts increased y-o-y with record-high months in July and August with balance sheet up 11,5% to 130,0 million EUR.
  • Number of loans signed up y-o-y 33,3% to 216.046 (9M/2020: 162.125).
  • Principal amount of loans issued increased 52,7% to 122,9 million EUR (9M/2020: 80,5 million EUR).
  • Gross loan portfolio up 20,0% to 114,0 million EUR (31 December 2020: 95,0 million EUR).
  • Repayment discipline (Customer Performance Index, CPI30) improving to 86,7% (9M 2020: 84,2%).
  • Net loan portfolio up 24.8% to 98,8 million EUR (31 December 2020: 79,2 million EUR).
  • Total number of customers increased by 12,4% to 772.463 (31 December 2020: 664.130).
  • Increasing use of the digital customer journey with around 130 thousand loan applications via the MyIute app.
  • Continued diversification of income opportunities with revenue streams from wallet services.

Here are the Important Financial highlights:

  • Interest and commission fee income up 8,1% to 35,1 million EUR (9M/2020: 32,5 million EUR) affected by steadily increasing payouts compared to the 18,5% increase in the average net loan portfolio.
  • Net interest and commission fee income up 3,5% to 25,3 million EUR (9M/2020: 24,4 million EUR) in connection with bond tap in November 2020 issue related to expected business growth.
  • Total income up 3,2% to 43,6 million EUR (9M/2020: 42,3 million EUR).
  • Cost to income ratio at 38,0% (9M/2020: 26,6%) as result of recovering business activity and the related normalization of costs.
  • EBITDA adjusted for FX gains at 15,8 million EUR (9M/2020: 15,7 million EUR).
  • Net profit up 14,5% to 4,4 million EUR (9M/2020: 3,8 million EUR).
  • Strong capitalization and profitability exceeding Eurobond covenants.

IuteCredit’s CEO stated:

“IuteCredit made good money while growing and investing in future technologies and expansion in 9M 2021. In doing so, we ploughed a significant part of our extra cash (EUR 15 million by end of Q2) into a productive loan portfolio. At the same time, our equity buffers are beefing up and providing protection for bondholders‘ capital against risk incurred by lending to individual customers. As of 30 September 2021, IuteCredit accounted for nearly 150 thousand performing individual customers, who continued to repay their loans regularly per schedule. From defaulted customers, IuteGroup is recovering an average of 40% of the principal amount in cash within the first 180 days after the default.”

They added:

“Last but not least, we experienced overwhelming investor trust in us when our initially planned EUR 50 million bond offer was oversubscribed by EUR 35 million, while the bond coupon was reduced to 11%.”

They also mentioned the the positive operating cash flow, “rising customer demand and the supply from capital markets make us content. Based on the achieved revenues and balance sheet structure, we are confident to lift IuteGroup’s consolidated revenue in full-year 2021 to EUR 60 million (initially exceeding EUR 55 million) and to surpass the net profit in line with the original forecast of over EUR 6 million.”

They added:

“Regarding the previous announcement of rebuying loans, everything has gone according to the plan. We will keep a minimal presence on the Mintos platform, as we had a successful bond issue and there is currently no need for additional investments, but we will remain on the platform to set a benchmark on transparency, reliability, and the best risk-return ratio.”

IuteCredit – founded in 2008 – is a European personal finance firm. The Group is “specialized in consumer credits via its 100% subsidiaries using equity and loan capital.”

IuteCredit serves customers “currently in Moldova, Albania, North Macedonia, and Bulgaria as well as Bosnia and Herzegovina.”

IuteCredit’s loan products are “unsecured consumer loans with maturities between 1 month and 48 months and car-secured loans with maturities up to 72 months.” The mission of IuteCredit is to “create an extraordinary experience in personal finance by exceeding customers’ expectations.”

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