Having lived more than a month in turbulent and highly dynamic market conditions, with many countries under a state of emergency, lending companies on Mintos are now sharing their financial results of 2019 and the first quarter of 2020, together with comments on how the situation has evolved during the last month. This blog post is a follow-up of the earlier announcements by the lending companies.
We will add new announcements regularly, stay tuned for the latest updates.
1. IuteCredit: “We delivered good results in 2019 and all our obligations are met”
2. ID Finance: Reporting record operating income for its Spanish operations in 2019 and maintaining a strong position to face the challenges of 2020
April 23, 2020
IuteCredit: “We delivered good results in 2019 and all our obligations are met”
Tarmo Sild, CEO: “IuteCredit’s business is to offer an extraordinary experience to its customers, to serve its debt and equity investors, and to offer a challenging job with self-satisfaction to its team members
We delivered good results in 2019 in all our fronts, with a winning mix of technology, a team of 350+ people, and 100+ million EUR worth assets. Specifically, with regard to Mintos investors, I would like to state two facts.
First, all our obligations to our creditors have been met and everyone has earned interest with IuteCredit throughout our history since 2008, inclusive 2019 and the first quarter of 2020.
Second, no investor has pending payments or bad debt with IuteCredit, because we pay on time what is due. That includes money invested into Kosovo loans, which we have repaid to Mintos investors as a Group according to the loans’ schedules, regardless of the legally contested and non-transparent situation in Kosovo. We speak of real money, which you can check on your account statement and which is effectively disposable. IuteCredit is built on real money, from real money, for real money.
As for 2020, we continue doing business according to the general understanding that we shared in Mintos blog on March 19 and on April 9. Placing new loans on the Mintos Primary Market during Q2 is very unlikely as we are executing disciplined contraction of balance sheet and cash in. The markets have not stabilized and we do not expect them to stabilize any time soon.
We will continue investor reporting according to the previously announced schedule and Frankfurt Stock Exchange’s rules. Q1 2020 financial results will be released on May 4, 2020.”
April 23, 2020
ID Finance: Reporting record operating income for its Spanish operations in 2019 and maintaining a strong position to face the challenges of 2020
ID Finance, the global provider of online financial services, announces audited IFRS results for its Spanish operations for the financial year ended 31 December 2019. The same results are also found on the ID Finance Mintos page.
ID Finance Spain had a very strong 2019, more than doubling revenue and assets. We profitably scaled operations, with operating profit increasing 420% to €6.5 million. As a result, the balance sheet significantly strengthened with an equity to assets ratio of 16.4% at 31 December 2019.
Key financial highlights of 2019
• Revenue up 111% to €48.5 million
• Operating income up 420% to €6.5 million
• Net profit after tax €3.3 million
• Assets up 123% to €33.0 million
• Equity of €5.4 million
These results are due to a continued positive response from our customers to the convenience of our product. The quality of the product is reflected in a high Net Promoter Score of 63 compared to a consumer finance average of 32ⁱ.
Because of our client-centric approach, Moneyman has become a top alternative finance brand in Spain with 1.1 million registered users and a very high level of repeat business. Growing economies of scale with tight cost control are driving an increase in profitability. Combined with the parent company’s equity raise in 2019, ID Finance Spain is in sound financial strength.
“I am happy to report that we had a great year, ending 2019 on a high note. We achieved a significant milestone in revenues of €48.5 million for the year. After becoming profitable in 2018, earnings grew strongly in 2019. These excellent results were driven by the convenient and affordable financial products we offer to our customers, and by our talented team of dedicated professionals. In 2020, we’ll continue to expand our financial services” – said Boris Batine, Co-founder and CEO at ID Finance.
Outlook for 2020
COVID-19 is creating a rapidly evolving and uncertain situation. In terms of business continuity, we responded very quickly. All of our processes, products and customer support were invented to work continuously online. We continue to service our customers 24/7.
Being fully digital, our customers can interact with us online from home. With many people restricted from leaving their house, we continue to experience strong demand for our products. Our proprietary IT infrastructure allows us to adjust risk parameters and scoring algorithms very quickly to changing circumstances. This is a competitive advantage.
We have significant capital reserves and will continue to diversify our funding sources by expanding our direct lending program with credit funds and family offices, and a possible public bond issue. Thus we are well prepared and confident.
Moreover, across the countries where we have a presence, in cooperation with hospitals and social organizations, we are supporting people hospitalized and confined by COVID- 19. Specific projects include providing food and medicine to the isolated and elderly, and providing tablet devices so that they can stay in contact with their family.
“The company has been working as a team for over five years, and we have gone through several storms while continuing to conduct business. We have always been and remain the leaders of our industry, a stable company with large capital and a liquidity cushion. Our employees are not virologists and epidemiologists; we cannot predict how the pandemic will progress and when it will end. But as professionals in the finance area, we guarantee that ID Finance will thrive even in this challenging environment” – said Boris Batine, Co-founder and CEO at ID Finance.
i Source: ID Finance and delighted.com/nps-benchmarks