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ID FINANCE INVESTMENTS, S.L. EQS-News: ID Finance Group Delivers €132m Revenues in First Nine Months of the Year after Record High Credit Originations of €282M

Directive transparence : information réglementée

08/11/2023 11:00

Issuer: ID Finance Investments, S.L. / Key word(s): 9 Month figures
ID Finance Group Delivers €132m Revenues in First Nine Months of the Year after Record High Credit Originations of €282M

08.11.2023 / 11:00 CET/CEST
The issuer is solely responsible for the content of this announcement.


  • New loans issued in Spain and Mexico climbed to a record high of €282m, despite the current challenging high-interest rates environment.
     
  • Spanish consumer lending business continues to be the main profit contributor to the Group, with a net profit of €7.3m in the first 9 months of 2023, thus further strengthening the business unit’s capital position.

 

8th of November - In a decisive demonstration of robust financial growth, ID Finance Group, leading Fintech in Spain and Mexico, today reported a staggering €130 million in revenue for the first nine months of 2023. Despite the challenging environment of rising interest rates, the Group has managed to register record high credit originations of €282 million, signalling significant strides in the Group’s operational and financial strategies.

Spain’s Impressive financial strength

The Spanish consumer lending business stands out as the main profit contributor to the Group, bringing in a net profit of €7.3 million in the first nine months of 2023. Credit issuance in Spain accounted for €191 million.

The good performance in this market has fortified ID Finance’s capital position with an increase of 4 percentage points in its equity position, climbing to 28%. This escalation reflects not only the strong performance and market demand but also underscores the Group’s dedication to maintaining a balance between aggressive growth and profitability.

Moreover, the levels of capitalisation and profitability achieved in Spain exceed the company's commitments set out in the terms of its ID Finance Spain Eurobond (listed on the Frankfurt Stock Exchange) to maintain an equity to assets ratio of at least 15% (currently 28%) and an interest coverage ratio of 1.5 times (currently more than 3.5 times).

Plazo, the Financial Wellness App by ID Finance

Furthermore, since the beginning of the year, the financial wellness app Plazo has continued to strengthen its position in the Spanish market, with a user base that now exceeds 150,000. In addition, Plazo has continued to expand its product offering and has already issued more than 12,000 credit lines. Strong improvement of Mexico's performance

Mexico, another key market for ID Finance, has witnessed favourable business development with new loans issued totalling €91 million, surpassing the previous year’s mark by 17%. The consequent revenue has resulted in a total of €42 million for the first nine months. Whilst showing sustained growth, the company keeps focusing on profitability and managed to deliver €0.8 million net profit, signalling great improvement in the credit portfolio quality.

Given the success of Plazo in the Spanish market, ID Finance has already launched a first MVP version of Plazo in Mexico, which is currently being tested to ensure the product is market fit and prepare it for scaling in this promising market.

Steady financial position to further drive growth

In an economic landscape marked by an overall decline in fintech funding, ID Finance Spain is well positioned for further driving growth after it successfully secured a €30 million investment from Kingsway Capital, a prominent UK-based asset manager. Similarly, the Mexican unit has fortified its financial position earlier this year with a $30 million debt facility agreement with US asset manager SR Alternative Credit.

These strategic financial partnerships are a testament to ID Finance Group's capacity to attract significant investment and debt facilities, thereby reinforcing its ability to continue expanding rapidly, even amidst challenging market conditions.

Boris Batin, co-founder of ID Finance, commented: “The remarkable performance of the first nine months of the year are the result of the dedication and effort of our team to offer the best financial solutions on the market to our customers. They reflect the efficacy of our business model alongside our ability to maintain sustained growth over time, while always focusing on preserving the financial stability of the company, and thus maximising the value of ID Finance for our shareholders. We are proud to lead the market with our commitment to responsible lending and look forward to continuing this trajectory of impressive growth and stability.”

 

 

About ID Finance

www.idfinance.com

ID Finance is the leading fintech in alternative lending in Spain and Mexico, specializing in providing innovative financial solutions. Always committed to responsible practices, the company consistently achieves solid financial performance while maintaining the highest standards in integrity and customer satisfaction. For six years in a row, the company has been listed among the fastest-growing companies in Europe in the FT1000 ranking. It In 2021, it launched its financial app, Plazo, in Spain, which offers transactional, savings, and credit solutions aimed at helping people gain greater control over their finances and improve their financial stability.

 

 

 

 

Press Contact:

Katia Ballano Göring
PR & Comms manager ID Finance
+34 649 799 327
katia.ballano@idfinance.com

 

 

 

 

 

Connect with us


IR contact:

Sergey Keselman
IR Manager
sergey.keselman@idfinance.com



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