UAB NEO Finance Board report 217Q4 Vilnius 218-1-1
Press releases Social events October Training sessions for beginners and experts in P2P lending in Kaunas Special event with Practica Capital in Vilnius P2P platforms in Lithuania are the most regulated Read more Paskolų klubas granted loans for 1 Read more Comment on Paskolų klubas launch success Read more November Training sessions for beginners in P2P lending in Klaipėda, Šiauliai, Panevėžys December Training sessions for experts and beginners in P2P lending in Vilnius Special event with Business Angels Fund 2
Material events Evaldas Remeikis became a Chair of Fintech Lithuania Infobalt association group Shareholder equity raised to 1 921 53 EUR, total amount invested in company s capital exceeds 2.55M; A milestone of 1 million EUR of accumulated loans issued by the end of November, 217 A milestone of 1 million EUR loans issued per month in November, 217 3
P2P consumer loan market in Lithuania In 217 Q4 P2P consumer loan market size reached 5.46 million EUR. Compared to 216 Q4 year on year the issued loans volume grew by 82% from 2.99 million EUR. Paskolų klubas market share during 217 Q4 remained stable at 53% with 2.87 million EUR of loans issued. Monthly amount of issued consumer loans through all Lithuanian platforms reached a peak of 1.95 million EUR in December. Paskolų klubas reached a record of 1.2 million EUR financed in November. Compared to the same month in 216, Paskolų klubas issued loans volume grew by 145%. P2P consumer market, loans issued, million EUR 1.27 1.26 1.39 1.28 1.45 1.42 1.54 1.57 1.66 1.84 1.95.55.59.67.52 1.8.6.75.74.8.86.9 1.2.95 217-1 217-2 217-3 217-4 217-5 217-6 217-7 217-8 217-9 217-1 217-11 217-12 Paskolų klubas Market size 4
Borrowers In 217 Q4 low fees and brand growth attracted 3 922 new registered borrowers. At the end of 217 Q4 the number of registered borrowers grew to a total of 36 373. Compared to 216 Q4, the number of registered borrowers grew by 86%. In 217 Q4 the number of active borrowers grew by 716 users. At the end of 217 Q4 the number of active borrowers reached a total of 3 572. Compared to 216 Q4, the number of active borrowers grew by 24%. Registered borrowers Active borrowers 4 35 32451 36373 4 35 3572 3 25 2521 28925 3 25 2249 2856 2 2 1668 15 15 1 1 5 5 217 Q1 217 Q2 217 Q3 217 Q4 217 Q1 217 Q2 217 Q3 217 Q4 5
Investors In 217 Q4 investors trust, stable returns and transparent communication attracted 922 new registered investors to a total of 6 24. Compared to 216 Q4, the number of registered investors grew by 96%. In 217 Q4 the number of active investors grew by 672. At the end of 217 Q4 the number of active investors reached a total of 3 653. Compared to 216 Q4, the number of active investors grew by 13%. Registered investors Active investors 7 6 5 4 3 399 4516 512 624 4 35 3 25 2 15 27 2573 2981 3653 2 1 1 5 217 Q1 217 Q2 217 Q3 217 Q4 217 Q1 217 Q2 217 Q3 217 Q4 Investors have already earned 1 million EUR in returns. 6
UAB NEO Finance investments UAB NEO Finance, as a consumer credit provider, co-invests into loans together with investors. A policy of avoiding conflicts of interest is provided to every investor. In 217 Q4 UAB NEO Finance invested 261 thousand EUR. Since the launch in December, 215 UAB NEO Finance investments into loans reached 895 thousand EUR. 3 NEO Finance investments, K EUR 261 25 229 2 15 111 1 65 5 217 Q1 217 Q2 217 Q3 217 Q4 7
Revenues 18 UAB NEO Finance earns income from three revenue streams: Revenues related to P2P lending Revenue related to the issuance and processing of electronic money Investment income Income, K EUR It should be noted that the vast majority of revenues related to P2P lending activities are distributed throughout the loan period, and this income is obtained only by actual repayment of the monthly instalment of the consumer credit recipient. The company chose this type of income collection due to the requirement of the Law on Consumer Credit and because it has the maximum interest itself not only in origination of the loan, but also in the return of the principal and interest to investors. When an enterprise collects a brokerage fee in this way, the company's income in the financial accounting is deferred to future periods, therefore the company's income calculation procedure differs significantly from other market participants and therefore is not comparable. It needs to be emphasized that during the inspection of the company, the Bank of Lithuania noted that such method of collecting revenue is the only way in full compliance with the requirements of legal acts. 17 16 14 12 1 8 6 4 2-47 125 3 11 3 76 2 2 2 13 2 121 93 78 61 217 Q1 217 Q2 217 Q3 217 Q4 P2P income Electronic money income Investment income 217 Q4 217 Q3, % 216 Q4, % Income 17 125 36% 43 3% P2P income 121 93 3% 45 171% Electronic money income Investment income 3 2 19% 1 164% 47 3 57% -3-8
Overdue loans At the end of 217 Q4 out of 4736 issued loans - 284 loans, or 6.%, were overdue for more than 9 consecutive days. Respectively, out of 11.51 million EUR financed 737 thousand EUR or 6.4% were overdue more than 9 days. Paskolų klubas is highly concerned about loan repayments, therefore great effort was put in a recovery of payments from terminated loans. During 217 Q4 a total of 32 thousand EUR were recovered and distributed to investors. EUR, overdue >9 days, %. Amount recovered, K EUR 12.% 11.34% 35 32 1.% 3 8.% 25 23 6.% 5.96% 6.4% 2 15 17 4.% 2.% 2.15% 1 5 4.% A rating B rating C rating Total 217 Q1 217 Q2 217 Q3 217 Q4 9
Provision fund Paskolų klubas offers a Provision Fund" service, which allows investors to reduce their investment risk. If a loan defaults Paskolų klubas guarantees to repay the investor with all of the assets. During 217 Q4 the service covered 59 367 EUR. For liquidity risk management, Paskolų klubas calculates the sufficiency of funds to cover liabilities under Provision fund and holds these funds in a separate bank account. The purpose of this account is to ensure the company's internal cash flow management. In order to fulfill its obligations to investors, the company may, if necessary, use other assets of the company. The fund's growth amounted to 14 738 EUR. At the end of 217 Q4 there were 153 65 EUR of accumulated funds, and the total guaranteed amount was 1 381 864 EUR, resulting in 11% coverage ratio. Provision fund, K EUR Guaranteed amount, K EUR 18 16 14 12 1 8 6 4 97 117 139 154 16 14 12 1 8 6 4 743 939 1159 1382 2 2 217 Q1 217 Q2 217 Q3 217 Q4 217 Q1 217 Q2 217 Q3 217 Q4 1
Buybacks Paskolų klubas offers a buyback service. When an agreement with a borrower is terminated, investors have an option to sell their investment for 5-8% of it s face value to Paskolų klubas. In 217 Q4 investors sold 182 investments for 15 49 EUR. Buybacks 18, 182 12 16, 14, 12, 86 1 8 1, 8, 6, 425 565 1,755 12,444 15,49 6 4 4, 2, 5,593 2 217 Q1 217 Q2 217 Q3 217 Q4 Buybacks, EUR Buybacks, units 11
Secondary market Secondary market is a feature where investors can sell or buy investments. It allows investors to adjust their risk exposure in pursuit of aggressive returns, or sell a nonperforming investment. It also provides liquidity when an investor feels the need to cash out. During 217 Q4 secondary market turnover reached 16 78 EUR. Average transaction was 2.23 EUR. Secondary market 12, 1, 5244 6 5 8, 391 4 6, 2681 16,78 3 4, 2, 1712 38,41 52,975 68,26 2 1 217 Q1 217 Q2 217 Q3 217 Q4 Turnover, EUR Turnover, units 12
Main statistics Since launch till the end of 217 Q4 3653 Active investors 1,7,18 Interest received 3,145 Average amount invested 11,513,562 Issued loans 36,485 8,866,34 Investments sold in Outstanding principal secondary market 13