Helsinki, Finland, 2014-11-19 08:43 CET (GLOBE NEWSWIRE) -- Volume growth in Q3/2014 was 113% compared to Q3/2013, down 4% from the previous quarter, as new customer acquisition was limited between mid-August and mid-September to ensure liquidity for a big bond repayment. Preliminary turnover growth in Q3/2014 compared with Q3/2013 was 75%.
“As our business model was completely changed in May 2013, this is the first time we get comparable quarterly figures from the previous year. Innovative marketing solutions, new sales channels, competitive rates and our well-received virtual credit card service, combined with our scalable cloud-based FinTech solution, have driven up the demand for our services so that demand exceeds our supply for the moment”, states Group CEO Jonas Lindholm.
“Thanks to our improved customer base and better scoring our credit losses have stayed at a much lower level than before. In the lending business, rapid growth ties up capital, and we could grow our business very much faster if there were no funding constraints – sustained and rapid growth requires more capital. This is part of the reason why we have mandated a group of four international financial service providers to raise capital for us”.
Euroloan Group has successively strengthened its capital base, especially Tier 1 common equity, and it is well prepared for the capital requirements of a credit institution. The group now has excellent solidity, with an equity ratio of close to 40%, which enables rapid future growth.
“In the long term, we aim to secure funding by direct access to primary funding (deposits), through our Swedish subsidiary, which has applied for a credit institution license in Sweden. According to our information, the license application is in the final stages of evaluation by the Swedish FSA. An approved license means that the Swedish Deposit Guarantee Fund covers deposits up to 100.000 euros per customer. Our business model has significantly lowered risks, and our profits from continuing operations have improved considerably. On the other hand, our business ties up more capital and there have been substantial one-time costs this year, related to the license process in Sweden, business development in Sweden and Poland, and costs related to the oversubscribed share emissions earlier this year”, the CEO concludes.
The annual review for this year will bring a new look in the financial statements, as the Group starts using the format for banks and financial institutions, according to the FSA standard. The interim data above contains unaudited figures, which may be different from those in the final, audited annual financial statement.
Euroloan Group PLC is a rapidly growing international FinTech (Financial Technology) group, headquartered in Helsinki, Finland with offices in Stockholm, Sweden and Warsaw, Poland. Euroloan has developed the most efficient business models and systems in the market, and is one of the leading service providers in key European markets. The company provides customers with real-time credit, enabled by a fully automated cloud service. Euroloan has consolidated its market position and increased its market share continuously from the time the company was established in 2007. More information about the company can be found at www.euroloan.com.
Contact information:
Jonas Lindholm, Group CEO, Board Director
Phone: +358 10 217 1003