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. The company has further shared the following financial and operational updates and updated its company presentation.2
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.
For the first 9 months of the year, Credifiel 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.
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. As inherent security, the loan repayments are deducted directly from the employee’s payroll. To make sure their clients are creditworthy, Credifiel has a team of experts in security analysis that includes not only regular financial checkups but also details such as signature analysis and biometric identification in order to avoid potential identity fraud.
The security of Credifiel’s investment opportunities consists of a direct loan assignment complemented by an extra layer of pledges over loans listed on Mintos, which are established to secure investor claims. There is also a third-party trust provider securing the cash flows, and Mintos is the first beneficiary of the repayments coming from particular loan agreements.
Historically the company has originated more than 650 000 loans for a total amount of around €817 million. The company’s sustainability is based on a strong corporate governance, responsible lending, financial inclusion and social responsibility as our credits are focused mainly on people who have no access to banking services. The company has been profitable every year since its funding in 2007.
1 Figures converted according to the average EUR-MXN exchange rate of $18.409 MXN for the first six months of 2023, only for informative and comparative purposes.
2 This video is created and provided by Credifiel. Mintos is not responsible for the content in this video.