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EQS-News: IuteCredit Finance S.à r.l.
/ Key word(s): Half Year Results/Half Year Report
Iute Group reports unaudited results for 6M/2023 Quality over quantity translates into moderate growth
OPERATIONAL HIGHLIGHTS
FINANCIAL HIGHLIGHTS
“Growing as a multinational fintech company is a demanding but rewarding process. As such, 2023 continues to offer challenges but also successes. In fact, Iute Group continued its moderate growth in Q2 2023, focusing on quality rather than quantity. In doing so, we continue to believe that this focused approach during present times takes precedence over shortsighted quantitative considerations, such as mere balance sheet size or growth figures. In the big picture, the business results for H1 2023 are slightly ahead of our expectations, despite the current environment. In contrast, internal changes, independent of external factors, could be somewhat faster. In H1 2023, Iute Group generated total revenue of 52 million EUR from financial services it offered to customers – well on track to exceed the 100 million EUR annual target. Moreover, the total assets of 348 million EUR at the end of June 2023 give us confidence that Iute will soon surpass the annual mark of 350 million EUR. Finally, the H1 2023 net profit of 7 million EUR is strong enough to achieve the annual net profit target of 12 million EUR. Iute Group completed a number of projects in H1 2023 including the launch of IutePay, the e-money institution in Albania. Here, the first customers paid for their coffee using only a QR code in the MyIute app, while the merchants used their smartphones as POS terminals. This example impressively shows how payment solutions can be leveraged within existing pocket infrastructure while breaking down the existing fee and cost structure for payment processing. We believe that Iute QR-based payments are a major milestone in the evolution of the Iute Wallet business to bring additional revenue streams to the MyIute ecosystem. Other projects are so far along that the team is eagerly awaiting the first results: customers’ reactions to the improved experience, changes in customers’ loan repayment performance, or significant reductions in operating expenses. Then there are projects that appear to require more effort and regulatory scrutiny before yielding tangible results. These include the establishment of new businesses, the wind-down of lending business in Bosnia, and the digitization of Energbank. On the financing side, we expect the European Central Bank and the U.S. Federal Reserve to continue to raise key interest rates through 2023. As a consequence, pressure on Iute Group’s cost of capital remains high. Here, regulatory pressure on earnings is increasing while yields on the loan portfolio are declining. The current annualized loan percentage rate is 47%, down from 47,7% a year ago. Loan repayment quality decreased from 91% to 88%. Therefore, the improvement in operational efficiency is being maintained. For example, total assets per employee increased by 8% in H1 2023, and total revenues per employee by 33%. The total cost/income ratio came from 45% to 43% and is thus still above our 40% internal target. Given the existing profitability, we are not yet inclined to reduce lending volumes. Last but not least, we are pleased to welcome 55 new shareholders among Iute Group’s employees. We have also redeemed the EUR 2019/2023 bonds. Both recent events represent significant milestones in the Iute story as we continue our journey to make money for our investors,” said Tarmo Sild, CEO of Iute Group. The full unaudited report for 6M/2023 is available under iutecredit.com/reports/. CEO Tarmo Sild and CFO Kristel Kurvits will comment on the unaudited 6M/2023 results by means of a webcast presentation on 23 August 2023, 10.00 CEST. Chief Legal Officer Kadi Raudsepp will participate as a special guest about driving business and financial performance in a changing regulatory environment. The webcast/call will be held in English. Please register in time to participate in the webcast/call at: The corresponding presentation will also be available on the Company's website prior to the earnings webcast/call. Kristel Kurvits, Group Chief Financial Officer (CFO) Iute Group is a fintech company established in 2008 in Estonia. The Group specializes in consumer finance, payment services, banking, and insurance products. It serves customers in Albania, Bosnia and Herzegovina, Bulgaria, Moldova, and North Macedonia. Iute Group finances its loan portfolios with equity, deposits, and secured bonds on the Regulated Market of the Frankfurt Stock Exchange and the Nasdaq Baltic Main List.
22.08.2023 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG. |
| Language: | English |
| Company: | IuteCredit Finance S.à r.l. |
| 14, rue Edward Steichen | |
| 2540 Luxembourg | |
| Luxemburg | |
| ISIN: | XS2378483494 |
| WKN: | A3KT6M |
| Listed: | Regulated Market in Frankfurt (General Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange |
| EQS News ID: | 1708105 |
| End of News | EQS News Service |
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1708105 22.08.2023 CET/CEST
