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We report all-time record net profit for 2021

In the past years the world has faced unexpected challenges – when the impact of the global pandemic started weakening, the current tragic events in Ukraine followed. These times have been tough for every business organization around the world – yet some have proven to be more resilient than others. In that time,we launched plenty of new products and initiatives, focused on our customers, and continued developing a strong team on the main markets of operation. Success followed.  

Our consolidated unaudited financial results show all-time record net profit of EUR 27.5 million in 2021, 39% higher than the results in 2020. Throughout the year we onboarded new BNPL partners, including new verticals, and is now present in 14.000+ merchant locations. We were quick to adjust to changing market environment and consumer preferences, which helped both retail and SME business lines to grow above the market trends and contribute positively to the overall result.   

Being one of the leaders in South-Eastern Europe when it comes to consumer lending and alternative payment methods, in 2021 we serviced almost 1.25 million applications in Bulgaria and Romania and issued nearly 500 thousand payment plans. Growth can be seen in both retail and SME sectors in Bulgaria and Romania аs our total assets increased by nearly 30% reaching EUR 710 million, while the loan portfolio reached EUR 544 million at the end of the year. Romania, our largest business market, was the leader in terms of growth (38% for Romania; 32% all markets) and contribution to the overall business performance.   

Based on such positive business performance, our revenue grew by 24% to EUR 124 million, mainly driven by 14% increase in net interest income and impressive 70% growth of fees and commissions income. This allowed operating profit for 2021 to reach EUR 96 million with nearly 30% year-on-year growth. Profit before tax amounted to EUR 34.6 million with 50% growth compared to 2020. The increase in our general expenses by 19% to EUR 61 million was mainly driven by accelerated growth of loan portfolio and investments into new business lines and markets.   

Also, our deposit portfolio reached EUR 411 million at year’s end, demonstrating a healthy growth, well outperforming the market. In a market environment, where the big banks stopped offering deposits and even introduced negative interest rates, we maintained our position as one of the most trusted places for people looking for positive return on their savings. Particularly impressive growth was registered in Romania, where we increased our retail deposit portfolio by 53% while the overall market was shrinking.    

At the end of 2021 we had a strong and well secured position from both capital and liquidity sides – on consolidated basis the capital adequacy ratio (CAR) being at 23% and liquidity coverage ratio (LCR) – 376% (more than 3.5 times above the regulatory limit). Our operations with ever-improving discipline in terms of cost management (49% cost to income ratio) were combined with return on the working portfolio (ROWP) at 27% and allowed the return on assets (ROA) and the return on equity to reach 4.3% and 18.4%, respectively. It once again puts us among the most profitable banks in Southeastern Europe.  

[quoteblock content=”Our all-time record high 2021 results reflect the outstanding work from the entire tbi team, who constantly reinvents our cutting-edge products and services across all our markets of operations, satisfying our customers’ ever-changing needs. 2021 marks a milestone in our organization’s history: the entry of new markets, Lithuania and Greece. We look very confident towards 2022 to maintain our BNPL leadership position in Southeast Europe and continue challenging the established norms in the banking sector. And, of course, we will continue with our efforts in supporting colleagues and friends in Ukraine who are facing such difficult times.” 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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