IDF Eurasia’s Solva entity (legal name MFO OnlineKazFinance LLP), Kazakhstan’s leading non-banking financial institution in unsecured lending, has released its IFRS financial results for 2021. The company has provided the following operational and financial information:
Solva demonstrated solid growth across its asset base in both SME and consumer lending segments, while improving its loan portfolio quality and profitability compared to 2020 results.
Summary of 2021 financial performance
- Loan portfolio increased by 76%, reaching KZT 61.2 bn (€125.6 m) compared to 34.7 bn (€71.2 m) in 2020
- NPL ratio decreased from 6.51% in 2020 to 4.73% in 2021
- Total equity increased by 26%, reaching KZT 13.7bn (€28.1 m) compared to 10.8bn (€22.1 m) in 2020
- Total revenue increased by 26%, reaching KZT 20.6bn (€42.3m) compared to KZT 16.4bn (€33.7 m) in 2020
- Operating profit increased by 52%, reaching KZT 5bn (€10.3 m) compared to KZT 3.3bn (€6.8 m)in 2020
- Net profit increased by 57%, reaching KZT 4.4bn (€9 m) compared to KZT 2.8bn (€5.7 m) in 2020
- Net profit margin improved to 21.6% compared to 17.4% in 2020
Boris Batine, Co-founder of Solva Kazakhstan, comments:
“In 2021 we have seen a tremendous result, achieving significant growth in our loan portfolio with increased focus on SME segment, where Solva grew its loan book nearly three-folds. We aim to continue serving SMEs, where we see a growing market and high level of social impact generated by Solva.
The loan quality remains high, evidenced by a decrease in NPL levels across the lending book, demonstrating Solva’s strong risk-management practices. We also keep developing our credit intelligence platform and digital edge, which helps to analyze and estimate credit risk, and positions Solva as the leading fintech lender in the region.
Solva also demonstrated the ability to raise funding to fuel portfolio growth via diversified channels, tapping into both retail and institutional investor base. The Company solidified its position as a regular and trusted bond issuer on local exchanges with 2 new issues in 2021, where we have seen a higher portion of institutional demand due to assigned S&P Global Ratings agency international credit rating on the level of B/stable.
Solva’s outstanding performance is also a testament to strong management and operational team, which drives innovation and development within the Company, and keeps implementing best global fintech practices and ethical approach in Kazakhstan’s market, so that Solva remains the flagship digital lender in the region.”
About IDF Eurasia
IDF Eurasia is the market leader in online lending in Russia and Kazakhstan. The company operates under the brands’ Moneyman and Solva. IDF Eurasia makes borrowing money convenient and affordable to anyone with an internet connection. The company uses state-of-the-art technology in its decision-making system, adheres to principles of responsible lending and contributes to the sustainable financial development of society. IDF Eurasia has been recognized as the most innovative financial company by the Innovation Time Award. Solva has entered the list of top five major MFIs according to the National Bank of Kazakhstan.