IPAS Indexo (IDX1R) Q2 2024 earnings summary

Executive summary

• Assets under management (AUM) grew 53% year-over-year to €1.15 billion, with client numbers reaching nearly 135,000 as of H1 2024.

• Pension business achieved profitability in H1 2024, with net profit after group expenses and strong cash flow supporting further development.

• Secured a banking license in May 2024; public launch set for August 28, 2024, marking the first new bank in Latvia in over a decade.

• Revenue for H1 2024 exceeded €2 million, driven by AUM and client growth.

• Nearly 6,000 shareholders as of June 2024, reflecting broad investor participation.

Financial highlights

• H1 2024 commission income was €2.02 million, with net profit at €154,632, and total AUM at €1.15 billion.

• Pension business profit (excluding bank costs) was €536,600 in H1 2024.

• Consolidated loss for H1 2024 was €1.96 million, mainly due to €2.11 million in bank development costs.

• Over five years, AUM grew 9x, clients 6x, and revenue 8.7x.

• Group equity increased to €13.15 million from €6.89 million year-over-year.

Outlook and guidance

• Bank launch scheduled for August 28, 2024, initially targeting Latvian private individuals, with SME and business banking to follow within 6–9 months.

• Mortgages to be introduced a few months post-launch.

• Long-term goal to reach 4-5% deposit market share in 4-5 years, with internal ambitions for higher market share.

• Profitability for the bank expected when balance sheet reaches several hundred million euros.

• Continued focus on client acquisition, AUM growth, and customer retention improvements.