November 2, 2020
SIA DelfinGroup publishes solid quarterly results and undertakes to implement the ESG report for 2020
SIA DelfinGroup publishes unaudited, condensed consolidated financial statements for the 3rd quarter of 2020 and undertakes to provide an ESG report on the company's performance in 2020.
DelfinGroup’s turnover in the 9 months of 2020 has increased by 4.3% compared to the corresponding period of 2019, reaching EUR 16.7 million, while the comparable profit reached EUR 3.16 million.
In the 3rd quarter of 2020, the amount of issued loans was gradually increased, which in total reached 14.6 million euros in the period, respectively, by 71.4% more than in the previous quarter and by 16% more than in the 3rd quarter of 2019. During the COVID – 19 emergency situation and now, DelfinGroup has worked and is actively working on product improvements to provide better customer service. Based on the Group's conservative credit policy and a 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 EUR 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 EUR 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 take place until 11 January 2021. As part of the reorganization, the corporate governance of the company will be strengthened, which envisages the expansion of the supervisory board with independent members and further progress in the implementation of the highest quality corporate governance policies.
Following financial results of the Group were achieved in the 3rd quarter of 2020:Following financial results of the Group were achieved in the 3rd quarter of 2020:
|Position||EUR, million||Change*, %|
|Net loan portfolio||34.04||+ 7.9|
|Profit before taxes||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 respective period of the year 2019.
DelfinGroup submits unaudited interim consolidated financial statement of the 3rd quarter of 2020.
DelfinGroup submits investor presentation for the operational results of the 3rd quarter of 2020.
SIA DelfinGroup is a licensed consumer lending company, founded in 2009. The Group represents such brands as Banknote, VIZIA and Riga City Pawnshop. Delfingroup creates and delivers customized financial solutions for people, focusing on an inclusive, environmentally friendly and socially responsible service. The Group's core services are pawnbroking loans, consumer loans, as well as senior loans, the terms of which are specially adapted for senior consumers. The Group operates in 38 Latvian cities and towns with a total of 87 Banknote branches, and the company is also represented in the digital environment with remote service provision - in the field of consumer loans and an online store. The company employs more than 270 professionals and paid 2.97 million euros in taxes in 2019. SIA DelfinGroup is a member of LTRK and has received the Gold level status of the SRS cooperation program.
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