Published: 2014-12-10 09:22:52 CET
Mash Group Oyj
Press release

Euroloan Group Oyj interim financial statement Q1-Q3/2014

Moving into its eight year, Euroloan's business continues to grow with improved operative profitability. Funding remains a key focus area for Euroloan's long-term business development. Total funding has increased to 41 million EUR, while the Group's solidity remains excellent.

Helsinki, Finland, 2014-12-10 09:22 CET (GLOBE NEWSWIRE) -- Euroloan’s business volumes have grown considerably from the previous year, with both turnover and earnings (EBT) for the first three quarters of 2014 surpassing the corresponding figures for the entire previous year. Assets have increased mainly in the form of current consumer receivables, which is the result of increasing lending volumes and a growing customer base. Demand outgrows supply in all markets, due to innovative marketing solutions, new sales channels, competitive rates and the popular online virtual credit card service. The balance growth of the group is strong and almost entirely due to the increase in current receivables assets.

Credit losses have decreased significantly over the last 18 months, and stayed at a much lower level than before due to improved customer selection and better scoring. The current business model has significantly lowered risks, and profits from continuing operations have improved considerably due to lower credit losses and lower variable costs due to continuous business process optimization. Customer loyalty has also improved significantly.

Euroloan Group has successfully strengthened its capital base, especially Tier 1 common equity. The group now has excellent solidity, which enables rapid future growth through debt leveraging with a low relative risk level for debt investors.

Currently, the growth of the business is constrained mainly by the availability of funding for growth, as sustained and rapid growth requires further capital. As Euroloan’s business is very scalable, due to Euroloan’s scalable cloud-based FinTech solution, any volume increase from the current level would cause a significant improvement in operational profit. Euroloan has mandated a group of four international financial service providers to raise capital to ensure the continued and rapid growth of the business.


Interim Unaudited Financial Statement 1.1.-30.9.2014

(Compared to the full-year audited statement for 2013)

BALANCE SHEET 30.9.2014 31.12.2013
   Intangible assets 11 664 119,90 10 232 471,69
  Tangible assets and investments 29 236,47 33 613,15
TOTAL NON-CURRENT ASSETS 11 693 356,37 10 266 084,84
  Current Receivables 27 640 954,17 16 049 744,57
  Cash and Bank Receivables 2 295 410,23 5 812 049,60
TOTAL CURRENT ASSETS 29 936 364,40 21 861 794,17
TOTAL ASSETS 41 629 720,77 32 127 879,01
  Share Capital 80 000,00 80 000,00
  Translation difference   59 381,30
  Invested unrestricted equity reserve 14 291 534,34 8 926 838,66
  Retained earnings 2 871 068,21 946 438,65
  Profit for the Financial period 618 555,34 321 876,30
TOTAL EQUITY 17 861 157,89 10 334 534,91
GROUP RESERVE 0,00 42 615,63
  Long-term liabilities 14 971 000,00 8 402 955,00
  Current liabilities 8 797 562,88 13 347 773,47
TOTAL LIABILITIES 23 768 562,88 21 750 728,47
TOTAL EQUITY & LIABILITIES 41 629 720,77 32 127 879,01



INCOME STATEMENT 1.1.-30.9.2014   1.1-31.12.2013
TURNOVER 7 703 019,74 * 7 442 717,14
Other operating income 2 673,46   2 596 606,09
Personnel costs -1 850 253,73   -1 691 766,10
Other business-related costs -3 999 803,05 ** -6 513 920,00
EBIT 1 855 636,42   1 833 637,13
Financial income and expenses -1 237 081,08   -1 392 914,78
EBT 618 555,34   440 722,35
Tax 0,00   -118 846,05
Net Profit 618 555,34   321 876,30

 * EUR 1 080 557 is not calculated in turnover but is generated by the current loan portfolio and realized after the reported financial period ends.

** includes EUR -735 774 one-time costs related to equity issue fees, launching international operations in Sweden and Poland and applying for the Credit Institution license


The interim financial figures provided are unaudited, and based on the Company management’s estimates of the situation with the information currently available and planned development. The estimates include, for instance, planned and partially realized one-time costs, investments, amortization and depreciation, financial and other costs. Calculated taxes, which have not been finalized at this point, and goodwill depreciation are not included. Unexpected events, decisions by authorities, service providers, market disturbances and other factors may affect the actual financial figures significantly compared to these estimates. The reader is advised to read the 2013 annual review and financial statement for the latest audited figures and more information about the Group. 

Expectations for the financial year

Turnover for the financial year 2014 is expected to be considerably higher than for 2013, excluding one-time events. The asset portfolio is growing and the average quality of receivables at the end of the year is expected to be better than at the end of 2013, with lower expected credit losses.

Events after the reported period – license application process in Sweden

Euroloan Finance AB, a Swedish subsidiary of Euroloan Group, started an application process in 2012 for a credit market company license in Sweden. “Euroloan has the long-term goal of becoming one of the most advanced online retail banks, and to secure funding by direct access to primary funding (deposits)” remarks Executive Chairman Mr. Tommi Lindfors. “Since the application process in Sweden started over two years ago, our business has grown and evolved significantly in many aspects, up to the point where reality had run far past what was documented in the original application. For example, the Group’s balance grew about 300% during the application process, which, though fully compliant with capital adequacy rules, caused the ICAAP calculations to change continuously. Changes in the core lending business from single loans to continuous loans, and other frequent changes required by new laws and regulation have compounded the differences between the original application and the current situation over time” Mr. Lindfors continues.

Core legislation and rules concerning financial institutions have changed several times during the process, further exacerbating the changes required to ensure compliance. The application material sent in swelled to over 2500 pages, which was no longer manageable, and which complicated the process to the point that Euroloan Finance AB asked the Swedish Financial Services Authority (SFSA) to clarify the situation. The SFSA made a decision not to approve the application in the current format, and highlighted several areas that should be improved, including internal inconsistencies in the massive material, the need for a clearer and more up-to-date plan with fewer changes over time, a more down-to-earth description of risk management and risk control processes and a more proactive approach.

“This decision and the list of improvement areas now enable Euroloan Finance AB to renew and simplify the application based on the current business model and existing rules, without legacy and version control issues. Thus Euroloan’s long-term strategy to fund its operations through deposits from the public remains intact, but the process will be delayed from the previously estimated schedule” Mr Lindfors concludes.

Euroloan Group PLC is a rapidly growing international FinTech (Financial Technology) group, headquartered in Helsinki, Finland with offices in Stockholm, Sweden and Warsaw, Poland. Euroloan has developed the most efficient business models and systems in the market, and is one of the leading service providers in key European markets. The company provides customers with real-time credit, enabled by a fully automated cloud service. Euroloan has consolidated its market position and increased its market share continuously from the time the company was established in 2007. More information about the company can be found at

         Jonas Lindholm, Group CEO, Board Director
         Phone: +358 10 217 1003