Published: 2019-04-18 15:55:29 CEST
ExpressCredit
Annual Financial Report

ExpressCredit publishes financial results for the year 2018 audited by BDO Assurance

ExpressCredit group's turnover for the 12 months of 2018 reached EUR 18.2 million. Group's loan portfolio as at the end of the year 2018 reached EUR 20.2 million.

Riga, 2019-04-18 15:55 CEST -- The Group's turnover in 12 months, compared to the same period of the previous year, has increased by 4.6%, while the company's loan portfolio has increased by 27.2% over the period.

On November 29, 2018, the shareholders of ExpressCredit decided to appoint SIA BDO Assurance to review the financial results of 2018. BDO is an international netweork of audit, tax, accounting and financial services firms with a history of more than 50 years reaching global revenues of EUR 7.56 billion in 2018. BDO ranks 5th-6th globally right after the Big Four audit companies. The auditor’s report is without objections which, in the Group’s opinion, confirms the continuously high quality of financial statements prepared by the company.

In 2018, ExpressCredit has been operating according to its mission of providing simple and affordable financial services to people throughout Latvia. During the period, several improvements were introduced to make the services even more welcoming for their customers. The company has increased the maximum loan amount to EUR 3000 in 2018 and to EUR 5000 in 2019, and now offers a wider range of loan repayment terms, for example, the loan can now be received with a loan repayment term of up to 5 years.

In 2018, SIA ExpressCredit subsidiary SIA ViziaFinance has also successfully implemented the distance loan project www.vizia.lv. In 2018, online brand Vizia received Google Review rating of 4.9/5 from clients for exceptional service.

According to the CRPC data, the total consumer loan portfolio of the Republic of Latvia in the first six months of the year 2018 has increased to EUR 255.3 million, which is an increase of EUR 12.5 million or 5.1% over six months period. By contrast, ExpressCredit has been able to increase its loan portfolio by 18% over the same period, thus growing faster than the market as a whole. In the pawnbroking loan segment, ExpressCredit's market share is 28.7% in terms of the loan portfolio and 39.1% in terms of loans granted, thus further strengthening the company's leading position in the lending market of the Republic of Latvia.

In 2019, the Group’s operations will be affected by the changes in the Law on Consumer Rights that came into force on January 1, 2019, and some of the changes will take effect on July 1, 2019. The company, despite the poor quality of the law, started to prepare for its application right after its promulgation. The company also strengthens its expertise and processes in activities related to the implementation of AML/CFT tighter requirements. The company predicts that new amendments in the law could result in market consolidation, increase in the amount of loans granted and the volume of loan portfolios, in both, the pawnbroking loans and consumer loan segments.

In March 2019, ExpressCredit became the only non-bank lender included in the Golden Level of the SRS In-Depth Cooperation Program. In total, 76 companies including 2 Latvian commercial banks qualified for this level as of March 20, 2019.

The company will celebrate 10 years in 2019. In line with the company's vision - to achieve the highest level of assessment, the company makes continuous investments to strengthen its team's expertise and improve its competitiveness.

By implementing business strategy and all planned activities, the following financial results of the Group were achieved in the year 2018 compared to the year 2017:

Position EUR, million Change %
Net loan portfolio 20.2 +27.2
Assets  26.7 +25.1
Net profit 4.55 +53.9

SIA ExpressCredit delivers audited consolidated statements for the year 2018.

SIA ExpressCredit submits investor presentation (in English) on the operational results of 2018.

Quarterly, half-yearly and annual data of SIA ExpressCredit can be conveniently accessed on a special purpose website: www.expresscredit.lv.

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SIA ExpressCredit is a licensed consumer lending company founded in 2009. The Group is represented by the brands "Banknote", "MoneyMetro" and "Riga City Pawnshop". The Group's core services are consumer loans, distance loans, pawn broking loans. The Group operates in 39 Latvian cities and populated areas, a total of 87 branches, employs more than 250 professionals and has paid 2.6 million euros in taxes for the year 2018. SIA ExpressCredit is a member of LAFPA and LTRK and has qualified for Gold level status of SRS cooperation program.

 

         Kristaps Bergmanis
         Phone: +371 29144168
         Fax: +371 67809194
         E-mail address: kristaps.bergmanis@expresscredit.lv


ExpressCredit_financial_statements_audited_2018_ENG.PDF
ExpressCredit_company_presentation_2018_ENG.pdf
ExpressCredit_corporate_governance_report_2018_ENG.pdf