Financial Services, Latvia

International Internet Magazine. Baltic States news & analytics Wednesday, 21.11.2018, 20:23

Profit of ExpressCredit non-bank lender in the first nine months of 2018 year has reached EUR 3.458 mln

BC, Riga, 02.11.2018.Print version
ExpressCredit non-bank lender in the first nine months of this year posted EUR 3.458 mln in profit, growing 54.3% from the respective period last year, according to the company’s statement submitted to Nasdaq Riga stock exchange.

At the same time, the concern’s revenue grew 4.7% to EUR 14.7 mln.


The company informed that in June 2018, the Latvian parliament has adopted legislative amendments that will have an impact on the companies operating in the consumer lending industry. The most significant change, effective as of July 1, 2019, will be the limit of the total cost of credit for consumer loans, which cannot exceed 0.07% per day. Also, as of July 1, 2019, a restriction on consumer lending advertisements will come into force. Approved amendments to the law also include several minor changes that ExpressCredit sees as adding value, such as access to information.


“As a result of these changes, the boundary between the classic banks and non-bank loans will actually be broken down. Company anticipates that there will be transformation of the services in the sector, and in the short term decline in turnover is expected, which will be partly offset by lower advertising costs, as well as a review of other costs. In the longer term, the market will move towards more sustainable development. Although the industry's loan portfolio will certainly grow in the long run, there will be separate customer groups that will no longer be able to receive the loan. This should be considered as a disadvantage of legislative planning, as some individual groups of clients will not be profitable to lend due to inherent credit risk. It is positively appreciated that various professional government institutions such as Consumer Rights Protection Centre and the Bank of Latvia consider the regulation for the sector more liberal,” the company said.


ExpressCredit welcomes the legislator's efforts to improve the exchange of information with borrowers' data, as well as intended positive changes in terms of solvency assessment rules. “Clearly, by eliminating the price as a competitive element, other product quality aspects will set at the forefront of a struggle as the elements of competition, where we see the benefits of competitiveness. We think that customers will less likely choose service providers by business type, rather will opt for a product that meets the customer's values, needs, and lifestyles,” the company said in its management report.


In general, the company sees the end of 2018 and 2019 tight and laborious, but the company also sees the enormous opportunities to be used. The company has successfully managed changes on several occasions and we are fully prepared for them at the moment.


ExpressCredit closed the first nine months of 2017 with EUR 2.241 mln in turnover.


ExpressCredit, established in 2009, operated under the name of Lombards24.lv until July 2012. The company’s bonds are included in the Nasdaq Riga debt securities list.






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