Everest Finanse publishes results for the first 3 quarters of 2020, exceeds 49% equity ratio

14.12.2020

mintosblog

Despite a challenging year and a slowdown of issuance at the beginning of the pandemic, Everest Finanse has found a way to maintain profitability by increasing revenue diversification from new lending and non-lending products. This allowed the company to increase their equity ratio above 49%, EBITDA is 12.3% for the first 3 quarters. 

Andrzej Dworczak, CFO of Everest Finanse Group, comments:

“It goes without saying that 2020 is not an easy year. The Covid-19 pandemic affected almost all industries, including the financial industry. The outbreak of the pandemic impacted the results of the banking sector in Poland. Reduction of interest rates by the Monetary Policy Council or the creation of additional reserves in anticipation of the post-crisis deterioration of credit portfolios are just some of the factors which contributed to the deterioration of Polish banks’ profitability. It was similar in the non-bank lending sector. The act on lowering the maximum amount of non-interest costs had a big impact and forced about 30% of the alternative lenders to retreat from the Polish market.

Only entities with a strong capital position and a diversified product range are able to survive on the market. Everest Finanse has a strong market position built on 20 years of non-bank lending experience. Despite the Covid-19 pandemic, the Everest Group’s EBITDA for the first 3 quarters of 2020 reached PLN 25.2 million (€ 5.7 million), or12.3%, increasing the equity ratio to 49.1%, a plus of 1.6% since the beginning of the year.

The chart below shows the sales of Everest Finanse products in 2020. Sales hit the lowest point in April, the month when the lockdown was announced in Poland. Starting from May, Everest Finanse has been steadily increasing its sales volume, reaching 2019 sales level in August and exceeding it in September. It is also worth noting that during the pandemic, Everest Finanse broadened cooperation with Biuro Informacji Kredytowej S.A., which allowed us to assess consumer credit risk even more effectively. This cooperation allowed us to grant loans to the best customers only, while controlling the quality of the portfolio and avoiding potential abuse.

The total value of collections from customers for Q2 and Q3 2020 was PLN 177.3 million (€ 39.9 million). Compared to the same period last year, a decrease of 5.3% was recorded. The decrease does not result from a deterioration in the quality of the portfolio, but from the low volume of loan sales at the beginning of the Covid-19 pandemic. The quarterly sales of financial products in the years 2015 – 2020 are presented below.

I encourage you to read the published financial statements of the Everest Finanse Group after three quarters of 2020.

I would like to take this opportunity to thank you for the trust you have placed in us since the beginning of our cooperation with Mintos.”

About Everest

Everest Finanse has been operating since 2000 in Poland and issues its loans under the Bocian Pożyczki brand. The company’s core business is providing loans in the traditional home credit model. In this space, Everest Finanse is among the top companies in the country.

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