Latvia’s DelfinGroup, a Non-bank Consumer Lender, Reports Steady Growth in Q2 2022

DelfinGroup, a non-bank consumer lender in Lativa, reports revenue of €8.6 million in the second quarter, “an increase of 46% compared to the same period last year.”

The firm has provided the latest operational and financial information:

Pre-tax profit “increased by 30% to €1.96 million, while net profit was up by 47% to €1.22 million.” In addition, the company’s net loan portfolio “increased by 62% compared to the first half of the last year, reaching €53.8 million.”

Didzis Ādmīdiņš, Chairman of the Management Board of DelfinGroup, said:

“We have had a successful quarter. A strong team and correctly set goals ensured stable returns in all areas of DelfinGroup activities. The fastest growth has been achieved in the segments of consumer and pawn loans, which are so necessary for the functioning of any healthy economy. New consumer loans issued in the second quarter reached €15.4 million, an increase of 90% compared to the second quarter of last year, but Banknote pawn loans showed a 65% increase.”

Ādmīdiņš added:

“It should be noted that DelfinGroup continues to improve its technological toolset of data-based decision-making processes for assessing customer solvency. This process results in a good loan repayment culture and a stable low non-performing loan (NPL) rate of 1.6%.”

Ādmīdiņš continued:

“Currently, the company’s focus is on promoting circular economy and green thinking to create awareness among people about the economical use of resources and to popularize the ideas of the “second life” of goods. DelfinGroup is actively developing the branch network and online store of the Banknote brand so that people in Latvia are provided with the possibility of exchange of pre-owned goods throughout the country. It is rewarding that stable growth can be observed in this direction of the company’s activity as well – the volume of sales of pre-owned goods has increased by 24% compared to the second quarter of last year,”

DelfinGroup states that “continuing to adhere to the dividend payout frequency policy, which is unique to the Baltic stock market and beneficial to investors, since 1 January 2022, it has paid dividends four times for almost €4 million, or €0.0879 per share, which provides the company’s shareholders with an excellent yield.”

Furthermore, it is “expected to make two more dividend payments this year.”

DelfinGroup goes on to say, “in June 2022, it concluded a bond issue of €10 million and listed them on the Nasdaq First North alternative market of the stock exchange Nasdaq Riga. It had a historically low annual coupon interest rate for the company – 8%, with a maturity date of 25 November 2023. In addition, the company has registered a new private placement bond issue for €10 million with an annual coupon rate of 8.75% + 3M EURIBOR rate and a maturity date of 25 September 2024. Signet Bank organizes the placement of the bonds.”

Additional information on the financial results of AS DelfinGroup is available on the company’s website www.delfingroup.lv or on the website of the stock exchange Nasdaq Riga https://nasdaqbaltic.com/lv/.

As covered, DelfinGroup was “founded in 2009 and is the owner company of the loan originators Banknote and VIZIA.”

DelfinGroup is “the second-largest non-bank consumer lender in Latvia.”

Since its inception, the company has “issued more than €371 million of pawn loans and consumer loans, and the client base has reached 400 000 customers.”

Banknote offers personal loans and pawn loans (loans secured with personal property) “in its 93 branches across Latvia.”

VIZIA specializes “in consumer loans, focusing on medium-to-higher income customers and their financial needs in various life situations.”

Shares of DelfinGroup are “listed on the Nasdaq Baltic Main list.”

Since 6 May 2021, there “have been changes in the ownership structure, and some equity investors have overlapped with Mintos.”



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