Finko Group’s 2019 Financial Results and Business Update

Financial results

Finko Group, a technology-driven online and offline lender operating across multiple markets worldwide and the largest loan originator listed on the Mintos platform, has passed the €136 million revenue mark, recording substantial growth over the prior year. The Group’s net profit in 2019 amounted to €17.6 million. 

In 2019, Finko Group concluded the process of bringing all its brands across different markets under a single Finko Group entity. Supported by strong performance across all of its markets of operation, the Group issued a total of €366m worth of loans to its customers, seeing an increase of 90% (€173m) compared to 2018. Consequently, Finko Group’s end-of-year net portfolio reached €86 million, an increase of €40 million (88%) compared to the previous year.

The Group’s earnings before interest, taxes, depreciation & amortization (EBITDA) reached €35.8 million, an increase of 404% compared to the €7.1 million the year before. This translated into a materially improved EBITDA margin of 26%.

2019 has been our most profitable year since inception and we are well-positioned for further growth. We continued to invest in our IT and Risk functions and strengthened our footprint across all our operating countries. Our data-driven approach and experienced data science team has enabled Finko Group to build a sizable, well-performing, and profitable loan portfolio through the use of cutting-edge technological solutions. Obviously, the current Covid-19 coronavirus spread will have a short-term impact on our business operations, yet we have initiated a comprehensive contingency plan to mitigate all the detrimental effects, ” says the Finko Group CEO Janis Pizics. 

Group Guarantee

We are pleased to announce that after unifying all its brands Finko Group now provides a group guarantee for all loans issued under the Finko Group umbrella. This means that from now on JSC Finko Group, the ultimate parent company of the Finko Group companies, is fully obligated to fulfil any payments to Mintos investors related to loans issued by any of the Finko Group companies. The agreement between Finko Group and Mintos was signed at the beginning of March 2020.

Pending payments

Finko Group currently is the largest loan provider on Mintos with more than €97 million worth of loans listed on the platform. A portfolio of such size may at times create considerable variations in the weekly settlements with Mintos. This, combined with relatively long cross-border transactions and currency translations, has resulted in a protracted Pending payments status for some investments. Finko Group has already been successful in finding effective measures to minimize the pending payment issue. In the last week, the average period of pending payments has decreased from ten to five days and is expected to continue to decline towards zero. In this period, more than €7 million has been transferred from Finko Group to Mintos to cover these pending payments.

Covid-19 virus update

Similarly to other businesses worldwide, Finko Group’s operations have been affected by the new Covid-19 spread and subsequent government actions. Already for several weeks, the Group has been actively working on the contingency plan for each of its companies to ensure that all the operations can be provided remotely, if necessary. Finko Group is taking full responsibility for the health and wellbeing of all of its 1 276 employees, and all the measures required and supported by the WHO have been applied. The Group will continue to monitor the situation and will update Mintos investors on any Covid-19 related developments in each of its countries of operation. Potential increase in the demand for consumer loans is to be expected, yet, to maintain the good financial health of the current Finko Group’s credit portfolio, the company will implement enhanced measures to assess client creditworthiness. 

Future plans 

In 2020, Finko Group plans to continue its profitable growth expanding into new areas of the existing markets, as well as developing new product offers and loyalty programs. A significant focus will be placed on the diversification of funding sources. In March, the Group launched a private bond issue that is expected to be followed by a public bond issue in late April. Finko Group will continue to closely monitor the developments related to the Covid-19 pandemic and adjust its operations accordingly. 

Finko Group 

Finko, as a Group, lists loans on Mintos from five of its markets – Georgia, Armenia, Moldova, Russia, and Ukraine, covering a total population of approximately 195.5 million people. Across these markets, the Group has 1.5m registered users and over 600 000 active clients. Finko Group provides customers with two products – single payment loans and installment loans. To date, the Group has originated a total of €600 million worth of loans. Finko Group’s headquarters are based in Riga, Latvia, and the Group employs a total of 1 276 people. 

For more details please see Finko Group’s 2019 Financial report here.


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