SIA DelfinGroup publishes quarterly results, undertakes to implement ESG report for 2020

04.11.2020

mintosblog

DelfinGroup’s turnover in the 9 months of 2020 has increased by 4.3% YOY, reaching € 16.7 million, while profit reached € 3.16 million, as the company reports in its latest unaudited consolidated financial statements for the third quarter of 2020. 

In the 3rd quarter of 2020, the amount of issued loans was gradually increased and reached a total of  € 14.6 million, 71.4% more than in the previous quarter and 16% more than in the 3rd quarter of 2019. Throughout the COVID-19 pandemic until now, DelfinGroup has worked on product improvements to provide better customer service. Based on the Group’s conservative credit policy and its stable and reliable customer base, the ratio of non-performing loans (NPLs) has remained relatively low, ensuring stable portfolio quality.

DelfinGroup’s chairman of the Board Agris Evertovskis comments on the results: “DelfinGroup has shown great resilience in the first wave of the current pandemic and has been able to provide a service that promotes financial inclusion throughout the territory of Latvia and is important for a large part of the population, as evidenced by the growth of the loan portfolio. In addition, stable results have been achieved, justified by overall financial indicators. In addition to operational stability, I would also like to emphasize that DelfinGroup has important features that justify the high credit rating among other companies in the industry. We have a diversified income structure – approximately 35% of our income is generated by pawnshops with more than 312 thousand customers and more than 42% of the market share in Latvia in this stable business segment, which is driven by our network of 87 branches in 38 cities and towns of Latvia. We have a diversified funding structure – with a P2P platform Mintos, regular bond issues and equity, in a ratio of about 3:3:2.”

In the 3rd quarter of 2020, the shareholders of SIA DelfinGroup decided to increase the share capital to 4 million euros, transferring the profit of the previous periods to the share capital. The Company was also active in the field of investor relations and attracting financing. On 11 August 2020, bonds issue in the amount of € 5 million was listed on the Nasdaq First North exchange. At the end of the quarter, new and existing private and institutional investors fully subscribed for new unsecured bond issue in the amount of € 3.5 million with a coupon rate of 12% and a maturity date of 25 November 2022.

Didzis Ādmīdiņš, CEO and member of the Board, adds: “It is pleasure to announce that we are committed to implement ESG reporting best practices from 2020, aiming for even greater openness and transparency in our operations. We are already starting to report on employment rates, energy efficiency and the circular economy for the 9 months of 2020. We believe that one achieves what it measures. Our vision is to inspire other companies by setting an example of how to think and act in developing sustainable and responsible business practices, that are related to the environment, corporate governance and social aspects. It is a sensible move and it will add value to our investors and the wider community.”

On 25 August 2020, the members of SIA DelfinGroup made a decision to change the legal form to a joint stock company, which, in accordance with the Commercial Law, will be effective from 11 January 2021. As part of the reorganization, the corporate governance of the company will be strengthened by expanding the supervisory board with independent members and implementing corporate governance policies.

Following financial results of the Group were achieved in the 3rd quarter of 2020:

Position   €, million     Change*, %
Net loan portfolio

34.04

      +  7.9

Assets 

42.62

    +  11.4

Profit before tax

3.65

        –  2.0 

Net profit

3.16

        –  6.1


* Net loan portfolio and Assets compared to the amounts as at 31.12.2019.

    Net profit is compared to the respective period of the year 2019.

DelfinGroup unaudited interim consolidated financial statement for the 3rd quarter of 2020

DelfinGroup 2020 3rd quarter investor presentation

DefinGroup on Mintos

DelfinGroup joined Mintos in 2016. The current outstanding DelfinGroup’s portfolio on Mintos is €15 061 297. There are 76 238 investors with active investments in DelfinGroup loans with an average investment of €198 per investor.

About DelfinGroup

DelfinGroup is a licensed consumer lending company founded in 2009. The Group is represented by the Banknote, VIZIA, and Riga City Pawnshop brands. The Group’s core services are consumer loans, distance loans, pawnbroking loans. SIA DelfinGroup’s vision is to always strive for the highest recognition. The company’s management values are simplicity, accessibility, respect, progress, ambition, mastery, and focus on the clients.

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