We report record net profit for 2022

About six years ago, we started one of the most ambitious business transformations in the region. The transition to a challenger bank in the customer’s smartphone seemed extremely difficult, but ultimately led to sustained success. Despite the uncertain environment, the focus on our customers’ needs, entering new markets and expanding the product portfolio have been consistently rewarded with excellent financial results. 2022 is no exception. 

Our consolidated unaudited financial statement for 2022 shows a record net profit of EUR 35.5 million – 29% more than the result for 2021 (EUR 27.5 million). We are quick to adapt to the changing market environment and consumer preferences, which has helped our retail and SME business grow above the market average and contribute positively to the bottom line.  

As one of the leaders in Southeast Europe in terms of alternative payment solutions (allowing users to reschedule their payments over time), in 2022 we served almost 1.3 million financing applications in Bulgaria, Romania and Greece and approved nearly 550 000 financial plans with a total value of 726 million euros (34% more than in 2021). The growth is due to the contribution of both segments – end customers and small and medium enterprises, in our markets in Bulgaria and Romania. 

We report impressive asset growth of 54% by the end of 2022, reaching €1.1 billion (a €380 million increase in 2022). Our loan portfolio reached EUR 778 million at the end of December 2022 (43% growth compared to 2021). In 2022, standard loans granted through our digital channels and service centers in Bulgaria grew by nearly 50%, compared to growth of 20% in 2021, thus contributing significantly to our record results. 

Thanks to this healthy growth, our revenues grew by 30% to 161 million euros. Thus, our operating profit for 2022 reaches 122 million euros, which marks a nearly 28% growth on an annual basis. We report an increase in total expenses by 30 % to EUR 79 million – this is mainly due to the accelerated growth of our credit portfolio and investments in new business lines ( the mobile application and the neon debit card) and markets (the expansion to Greece). Our pre-tax profit amounted to EUR 43 million. 

In addition, our deposit portfolio reached EUR 796 million at the end of the year, reporting a record growth of 63% – significantly ahead of the market. This result is mainly due to deposits in the end-customer segment, where our customer base has seen even greater growth – nearly 70% compared to 2021. Thanks to competitive returns for depositors and their trust, we have achieved a 75% increase in the market share of deposits in Bulgaria. 

At the end of the reporting period, we stand stable and secure in terms of our capital and liquidity. On a consolidated basis, the liquidity coverage ratio (LCR) is at the level of 592% (well above the regulatory limit of 100%), and the capital adequacy ratio (CAR) is 22.1%. Our activities for the period are also distinguished by a constant improvement in efficiency – the ratio of administrative expenses to operating income reaches 49.8%, and the return on serviced loans (ROWP) – 23.8%, which allows the return on capital (ROE) and return on assets (ROA) to reach 20.6% and 4%, respectively. These indicators place usonce again among the most efficient and profitable banks in Southeast Europe. 

[quoteblock content=”Despite the uncertain environment around the world, our business model continues to deliver rapid growth and profitability – our record financial results for 2022 are proof of that. This is the result of the efforts of our motivated team, which continues to develop the financing and shopping ecosystem that more and more merchants and consumers benefit from. With an eye to what awaits us in 2023, we continue to develop innovative products and services that will further improve everyday mobile banking (our mobile application and neon debit card are the best examples of this) and expand our partner network in Bulgaria, Romania and Greece. ” author=”Petr Baron” author_position=”CEO of tbi fs, Founder-In-Residence” author_avatar=”https://tbibank.com/wp-content/uploads/2023/09/PETR-1.png” section_id=””][/quoteblock]

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