Credifiel reports that the company increased its revenue by 24% in the nine month period ending September 2023 “compared to the same period last year, reaching €32.7 million1, a net profit of €5.7 million.”
The company further shares that its loan portfolio “increased by 74% versus the previous year, amounting to a total of €84.9 million. Non-performing loan (NPL) ratio for the period was 3.7% with a total coverage of 100%.”
The company’s gross profit margin “increased to 71%, which equals a gross profit of €23.4 million.”
Chairman of the Management Board of the Company Leonel Cravioto is positive about the results. He emphasized “that this year has started successfully, with growth & efficiency indicators increasing. Also, in accordance with the company’s long-term vision, the shareholders´ meeting has approved the capitalization of the shares´ premium and the 2021 retained earnings for a total of €16.5 million.”
As noted in the update:
“We continue to demonstrate high growth indicators in both lending and collecting, plus we are giving priority to our process of digital transformation in order to create efficiencies and make it easier for our clients to obtain credit products. We are pleased with our future as we have realized the huge interest in companies to provide us with funding that allows us to keep growing and achieving our objectives over the long term.”
For the first 9 months of the year, Credifiel has “issued 34 110 consumer loans for a total amount €48.1 million, an increase of 49% compared to the first nine months of last year. 92% of the company’s origination was in payroll loans, with the remaining 8% in direct debt loans, which are mainly oriented to retired employees previously working in government institutions.”
Credifiel grew its total equity up to 37% from total assets over the period, totalling €43.3 million, which represents 50% of its total loan portfolio.
As mentioned in the announcement:
“The results highlight that Credifiel has delivered on its promises to its shareholders and executed its strategy well, recording high efficiency and profitability ratios in the first 6 months of 2023. We have focused over the last 2 years under a conservative approach in order to have a better origination, portfolio quality and a tight expense view. As a result, the Group sustained a steady net loan portfolio while its key performance and efficiency indicators kept improving.”
As stated in a blog post, Credifiel was founded in 2005 “as one of the pioneers in payroll lending and since then has grown to be the Top 3 payroll loan provider in Mexico by expanding across smaller towns where banks do not have branches and people lack access to credit even though they fit the borrower profile.”
Credifiel’s customers are employees of government agencies and federal states. Public sector jobs, that are mostly unionized, “thus have a very low employee turnover, thus guaranteeing higher loan repayment rates.”