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We ended Q1 of 2022 with a record profit

These challenging times demand from every business an even clearer vision, stronger team efforts and an unwavering focus on customers. In recent years, we have proven that we do all of this, and the results are there. The consolidated unaudited financial results for Q1 of 2022 show a record net profit of EUR 10.2 million – 40% higher compared to the same period last year. In the first three months of 2022, we continued to provide our Buy Now Pay Later (BNPL) solution to new partners, including companies in new sectors such as lifestyle and fashion. We also started offering BNPL in a new market – Greece, thus increasing our network of retail locations in which we are present to nearly 15,000.  

As one of the leaders in Southeast Europe in terms of consumer finance and BNPL, in Q1 of 2022 we served over a quarter of a million applications in Bulgaria and Romania and granted nearly 120,000 loans. Thus, we granted a total of EUR 154 million – 40% more than in the same period last year. Growth is noticeable both in the retail sector and in that of small and medium-sized enterprises in Romania and Bulgaria, with the bank’s assets reaching EUR 745 million (a growth of 5% compared to the end of 2021). The loan portfolio also increased and reached EUR 585 million at the end of March 2022 – 7% more than at the end of 2021. In the first three months of the year, the amount of standard loans granted through the various channels in Bulgaria – mobile application, online and office network, increased by 73% compared to the same period of 2021 and contributed significantly to the record result.  

Thanks to these positive business results, our revenue increased to EUR 36 million – primarily due to the 22% growth in net interest income and growth in fees and commissions. Thus, the operating profit for the first three months of 2022 reached EUR 29.3 million – with nearly 34% growth compared to last year. Also, our deposit portfolio reached €514 million at the end of the quarter, demonstrating healthy growth that is ahead of the market. At the end of the period, we have a strong and well-secured position in relation to capital and liquidity – the capital adequacy ratio is at the level of 21.4%, and the liquidity coverage ratio – 433% (more than 4 times above the regulatory limit).  

Our activities are supported by a constantly improving discipline in terms of cost management (49% administrative expenses to operating income). This allows the return on serviced loans to reach 25%, the return on assets – 5.5% and the return on capital – 24.4%. These indicators place us once again among the most profitable banks in Southeast Europe.

[quoteblock content=”The team has proven once again that our business model is resilient against market turbulence. These record results for the quarter come as no surprise as they are the result of our focused efforts on executing our ambitious BNPL and consumer finance plans. Since the beginning of the second quarter, we have already been active in Greece as the team is highly motivated and looking forward to our first results in our newest market.” 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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