Investor Relations

CEO’s message

Tarmo Sild, CEO of IuteCredit Europe


After joint efforts over the past three years, we acquired the first bank for the Group. The strategic acquisition of Moldovan Energbank opens a twofold potential of additional service streams for our retail customers and as a result revenue streams for IuteGroup. In doing so, we will evolve from a single service provider to multiple services provider that creates an extraordinary experience for our customers. In addition to the long-term value generation, the acquisition also has immediate rewards for IuteGroup. The consolidated balance sheet doubled to 300 million EUR and equity increased to 50 million EUR. Now, within the next two quarters, we intend at the bank to reshape corporate governance, set up internal communication lines and align organizations and business metrics with IuteGroup principles. Reshaping the service processes for our customers will naturally take a little bit longer until 2023. The true benefits of the bank for our customers and the subsequent returns from our customers to our income statement should become visible in the course of 2023.

At the same time, the digitalization of IuteGroup for even more powerful services and the monetization of data continues. Here, the number of MyIute app users had reached 245 thousand. In addition, IuteGroup is currently in the transition phase to a next-generation IT system that enables much better data management and conversion of data back into business.

By contrast, we felt the fresh headwinds in Q1 of the current financial year 2022. Inflation made itself felt throughout Europe, leaving less flexibility for loan repayments and constraining demand for new loans. Thus, we are more than satisfied that the quality of our customers is reflected in an all-time high CPI level through their loan repayment discipline, but we also have to note that our customers tend to be more conservative in assuming new liabilities. On the bottom line, new loan sales were not as strong as expected. The net loan portfolio only grew by 4 million EUR in Q1 (excluding the growth resulting from the acquisition of Energbank).

The Russian invasion and the war in Ukraine also had an adverse effect. Customer confidence in Moldova is limited and so their borrowing was more limited. In consequence, Albania has surpassed Moldova as of March 2022 as our largest consumer finance market in terms of its loan portfolio and revenue.

In summary, we are confident of achieving profitable growth again this year. We look forward to a strong 2022 and beyond. Our goal is to continue increasing our customer pool, expanding service value streams, continuing digitalization and our acquisition policy and eventually reach the 2022 revenue target of more than 75 million EUR with 300,000 performing customers. The initial annual net profit target has been already exceeded, therefore the new net profit benchmark is 16 million EUR

Why invest in IuteCredit?

IuteCredit Group – established in 2008 – is a leading European fintech company. The Group is specialized in consumer finance and payment services via its 100% subsidiaries. Iute serves customers currently in Moldova, Albania, North Macedonia, Bulgaria as well as Bosnia and Herzegovina under the MyIute and IuteCredit brands, while it is expanding its services, geographies, and brands ecosystem.

Group finances its loan portfolios with equity, with secured bonds that are on the main list of Frankfurt Stock Exchange and Nasdaq Baltic, and with deposits (as a bank inside a given country).

Experienced Management
IuteCredit was founded in 2008 in Estonia by Tarmo Sild and Allar Niinepuu. The pair opened business operations first in Moldova with confidence that success in Moldova would pave the way for other countries in the region. The company has since become the leading personal finance company in the Balkans.

A Proven and Stable Business Model
IuteCredit has a track record of delivering profitability and increased regulation over the last couple of years, even against the backdrop of the global pandemic. We offer our customers the financial resources they need for everyday life – installments, instant debits, and mobile payments.

A Strict Underwriting and Approval Process
We have built a strict data-driven underwriting policy to capture customers only with a targeted risk profile. From June 2020 to June 2021, we had a 57% approval rate on ca. 465,000 applications received.

Responsible and Socially Inclusive Lending
We provide affordable solutions in the field of essential personal finance. Our loans are with transparent terms and do not include hidden costs. By financing local events, as well as the environment and education sectors, we have positioned ourselves as an active stakeholder in the social life of the countries in which we operate.