IuteCredit: Pleasing Q1 2020 results and a financial report

Tarmo Sild, CEO of IuteCredit: “The Q1 2020 results were pleasing and almost in line with our targets. IuteCredit Group grew its loan portfolio at strong annual percentage rates, attracted more customers, and the customers maintained good repayment discipline.

All in all, that resulted in a net profit of 1,5 million EUR. Adjusted for exchange rate losses, our net result would have been 3,7 million EUR. Nevertheless, the 3M report is only a glance into the rear mirror. As a result of the challenges posed by the COVID-19 pandemic, the strategic and operational approach for the second quarter of 2020 and beyond is much more relevant.

Cashflow now has a decisive function to steering, for example, the volume and price of loans issued and our operating expenses. In other words, new loans to customers can be originated only to the extent where we have met the loan repayment targets (cash in targets) and operating expense cut targets first.

Group cash position reached close to 9 million EUR (8% of the balance sheet) by the end of March and the cash share of the balance sheet is expected to exceed 12% by end of Q2. This is a historically unprecedented level that reflects the actions above.

In an operationally extremely dynamic environment, the primary objective of IuteCredit Management is to maintain both equity and debt capital and to guarantee interest payments to debt capital investors. To reach that objective, the company must at minimum break-even during 2020. At the same time, we collect and analyze extensive data to set IuteCredit for the time after COVID-19. We are convinced that the demand for consumer credit, backed by individual earnings, will again grow in the future. The current challenge is to build a bridge from today to this future. IuteCredit is well-armed to both mitigate the financial impact of COVID-19 and grow in the new post-crisis normality.

Taking into account the unprecedented challenges for society as a whole in connection with the unpredictable development of the COVID 19 pandemic, we are convinced, with commercial prudence, that we will not be able to achieve our initial targets for 2020 as a whole. The economic impact of the pandemic cannot be determined in detail or reliably quantified at present, so we expect IuteCredit results to be below those of the previous year,” said Tarmo Sild, Group CEO of IuteCredit.”

View IuteCredit’s Q1 2020 financial report


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