Our 9M 2023 results, showing EUR 27.2 million net profit

In 3Q23, we maintained our strong liquidity and capital positions, and invested for the future while reaching an important milestone in our deposit portfolio.

Our consolidated unaudited financial results for nine months of 2023 show net profit of EUR 27.2 million. Throughout that period we onboarded new merchant partners, including new verticals, and are now present in more than 22.200 merchant partner stores in our main markets of operation – Bulgaria, Romania, and Greece. This impressive reach helped us become one of the leaders in terms of payment plans in all three countries. Additionally, strong performance can be seen in all of our business lines.

By the end of September 2023 we had serviced 1.7 million loan applications in Bulgaria, Romania and Greece, twice as many as for the same period of 2022. Moreover, 70% of applications for loans were made through self-service digital channels (compared to 48% for nine-month 2022 period) and thus contributed strongly to the business results. In Q3 2023 we disbursed nearly 500.000 loans for an amount of EUR 672 million – 28% more compared to the same period of 2022.

We reported nearly 50% growth in total assets as to the end of September 2023, reaching EUR 1.35 billion (from EUR 910 million at the end of September 2022). The loan portfolio increased to EUR 979 million at the end of September 2023 (36% growth compared to Q3 2022).

Based on such positive business performance, our revenue grew by 30% to EUR 150 million, mainly driven by 30% increase in net interest and supported by 26% growth of net fees and commissions income. This allowed operating profit for nine months 2023 to reach EUR 104 million.

Our deposit portfolio reached an important milestone of EUR 1 billion at the end of September 2023 – well outperforming the market and demonstrating a solid growth of 54% yoy. The main driver was the retail term deposits portfolio, where the increase was even higher, up 66% compared to September 2022.

The increase in our general expenses by 28% to EUR 72 million was mainly driven by accelerated growth of loan portfolio and investments into new business lines (neon card scale-up) and markets (Greece scale-up).

At the end of Q3 2023 we had a strong and robust position from both liquidity and capital sides. On a consolidated basis the liquidity coverage ratio (LCR) was 604% (significantly above regulatory minimum and banking sector average LCR of 242%) and the capital adequacy ratio (CAR) was 21.1%. Our operations are showing improving discipline in terms of cost management (48.5% cost to income ratio) and are combined with return on loan portfolio at 21.6%, allowing the return on equity to reach 20.0%. 

tbi is here to solve customer pains day in, day out. In doing so, we maintain our strong financial standing, while exercising prudent risk management. In the third quarter of 2023 our dedicated team worked non-stop delivering best-in-class solutions for our customers in Bulgaria, Romania, and Greece. We are constantly improving our product proposition and expanding our merchant network and we look forward to the year ahead with confidence.
Petr Baron
CEO of tbi fs, Founder-In-Residence

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