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Kristaps Bergmanis

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Kristaps Bergmanis
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ExpressCredit financial results for the first half year 2018

SIA ExpressCredit publishes unaudited condensed unaudited financial results for the 1st half year 2018.

In the first half of 2018, the company's turnover amounted to EUR 9.2 million, an increase of 5.7% compared to the corresponding period in 2017, while the profit for the period was EUR 2.3 million.

In the first half of 2018, SIA ExpressCredit Group company SIA ViziaFinance successfully launched its operations under VIZIA brand name. VIZIA operates in online consumer loan segment. The creation of a new brand corresponds to the company's strategy to increase its market share in the distance lending market in Latvia.

SIA ExpressCredit delivers continues improvements in determining the solvency and creditworthiness of clients to provide only loans that are tailored to the client and comply with the legal requirements for solvency assessment. The company has successfully adapted several technological solutions that allow successful management of the company's risks with respect to creditworthiness assessment. Loans are issued to customers for whom, at the time of issuing the loan, the company has 100% confidence in ability to meet their obligations according to the terms of the loan agreement. Accordingly, in the 2nd quarter of 2018, only 13% of new customer loan applications were approved, while for repeat customers - 78%.

In the 2nd quarter of 2018, the company actively participated in the non-profit organization Alternative Financial Services Association of Latvia, which carried out educational and informational work related to sectoral legislative initiatives. The company advocates for principle of legal certainty and well-considered regulation of the industry. The company supports industry development initiative for promoting a wider exchange of information among market participants, which would provide the company with more information in assessing customer solvency.

Compared to the first half of 2017, profitability indicators have improved over the period of 2018. In addition, the positive impact on financial indicators was related to changes in tax regulations regarding the non-taxation of corporate income tax on reinvested earnings.

By implementing business strategy and all planned activities the following financial results of the Group were achieved in 1st half of 2018:

PositionEUR, millionChange*  %
Net loan portfolio17.59+11.02
Assets 22.81  +7.02
Net profit  2.27+57.51 

  * - comparison to the amounts as at 31.12.2017, except for net profit that is compared to respective period of the year 2017

On May 25, 2018, the Group performed the redemption of the bond ISIN LV0000801280 by prematurely repaying the principal amount of the bonds amounting to EUR 500 thousand. The redemption of the bonds included the termination of the commercial pledge commitments. As the next target for the company stands raising funding of up to 10 million euros at a rate of 10% -12%. Establishment of a new commercial pledge is considered for the financing purposes.

SIA ExpressCredit submits unaudited interim consolidated financial statement of the first half of 2018.

SIA ExpressCredit submits investor presentation for the operational results of 2nd quarter 2018.

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