EQS-News

Iute Group reports unaudited results for 9M/2023 – Performing loans portfolio and revenue continued to grow – with fewer and better customers - Seite 2

• Interest and commission fee income up 21,4% to 68,8 million EUR (9M/2022: 56,7 million EUR) driven by Iute Non-Bank loan portfolio. Interest income from Energbank portfolio remained at the prior-year level considering consolidation as of Feb. 2022.
• Net interest and commission fee income up 14,0% to 48,1 million EUR (9M/2022: 42,2 million EUR) driven by Iute Non-Bank loan portfolio.
• Total revenue up 22,1% to 78,9 million EUR (9M/2022: 64,6 million EUR).
• Cost to revenue ratio at 41,7% (9M/2022: 44,5%).
• Adjusted cost to revenue ratio at 37,8%.
• EBITDA adjusted for FX and integration expenses related to Energbank up 33,6% to 33,8 million EUR (9M/2022: 25,3 million EUR).
• Net profit at 9,3 million EUR compared to 7,4 million EUR adjusted for one-off gains related to the acquisition of Energbank in the prior-year period.
• Strong capitalization and profitability – Eurobond covenants exceeded.

Tallinn, Estonia, 15 November 2023. Iute Group, a leading European personal finance group, reported today unaudited results for 9M/2023.

“Iute Group had another successful quarter thanks to its customers and the Iute teams in the Balkans and Estonia. As management, we are very proud of the strong results achieved, given the current developments and trends on the capital markets, monetary policies, and overall macroeconomic and geopolitical situation. However, it is not only the external environment that determines success or struggle. In other words, we have to take a number of factors into account when making decisions in order to continue to grow profitably. Faced with major challenges, we have resolved at the beginning of this year to focus on quality rather than quantity: Fewer is not only more but also better.

On the one hand, we saw a decline in the absolute number of performing customers with whom we maintain active and profitable business relationships for the first time. Historically, the performing customer pool (PCP) has always grown, but not this year, in which the PCP shrank by 11 thousand people or 3,7%. Moreover, there has been a decline in customers’ repayment discipline. Accordingly, the CPI30 fell from 90,5% to 87,3%. This means that during the period 873 thousand EUR out of every repayable million EUR were repaid on time or with a maximum delay of 30 days, whereas a year ago the number was 905 thousand EUR out of every million. To cut a long story short: At the end of the nine-month period, we have fewer customers who are even worse at repaying their loans.