IPAS Indexo (IDX1R) investor relations material

Executive summary

• Achieved first consolidated profitability in Q1 2026, with net profit of EUR 142.5k, following the DelfinGroup acquisition and increased ownership to 72.07% by end of April.

• Group now includes scalable lending, pension management, and banking operations, with a customer base exceeding 546,000 accounts in Latvia.

• Total revenue reached EUR 12.7 million, driven by strong net interest income and growth across banking, pension, and lending segments.

• Focus on driving competition and positive change in the Latvian banking sector, with new product launches and digital services.

Financial highlights

• Consolidated Q1 2026 revenue: EUR 12.7 million; net profit: EUR 142.5k; loan portfolio: EUR 248.1 million, up 11% QoQ.

• Net interest income was EUR 10.8 million, the main revenue driver; cost-to-income ratio at 60–61.11%.

• DelfinGroup contributed EUR 1.9 million to group profits; Q1 revenue EUR 14.5 million, net profit EUR 2.8 million.

• Pension business net profit close to EUR 500,000; revenue EUR 1.35 million.

• Q1 provisions for expected credit losses increased to EUR 5 million at group level, reflecting strong loan growth.

Outlook and guidance

• Targeting operational break-even for the bank by end-2026, with continued focus on scaling loan book and expanding product offerings.

• Expecting to pay dividends starting from 2029, based on 2028 net profit (20% payout).

• Additional external capital required to achieve strategic objectives and support new product launches.