Swedish fintech company Qred reports highest result so far
Today, Qred releases its interim report for this year’s first six months. Despite a quarter lined with the Corona pandemic, Qred reports its highest result so far. Thanks to a sustainable and resilient business model, credit losses have been kept under control, which has resulted in increased profitability.
Interim Financial Report January - June 2020
Results for the same period for the previous year are stated in brackets.
April - June 2020
- Operating income increased by 61% to SEK 77.1 m (48)
- Interest income decreased by 46% to SEK 28.9 m (53.6)
- Commission income amounted to SEK 45.8 m (0)
- Operating profit for the period amounted to SEK 32.6 m (9.9)
- Net income for the period amounted to SEK 32.3 m (8.6)
January - June 2020
- The number of active monthly users increased by 34% to 8 104 (6 029)
- Operating income increased by 74% to SEK 159.4 m (91.4)
- Interest income decreased by 12% to SEK 88 m (100.5)
- Commission income amounted to SEK 61 m (0.0)
- Operating profit amounted to SEK 20.4 m (17.4)
- Net income for the period amounted to SEK 19 m (15)
- The loan portfolio decreased by 28% to SEK 370.3 m (517.1)
Significant events during the interim period
- At the Annual General Meeting on June 30, Qred decided on a new common share issue aimed at the company's employees.
- Qred's bond has been listed on Nasdaq Stockholm.
- Qred has repurchased bonds with a nominal value of EUR 7.6 m. The average purchase price corresponded to 87 percent of the nominal value of the bonds. The purchase resulted in an income of SEK 9.4 million.
Significant events after the interim period
The Board has convened an Extraordinary General Meeting on September 8. The Board of Directors proposes to raise SEK 40 million through a directed issue of common shares and warrants.
Emil Sunvisson, CEO at Qred:
The outlook has varied greatly during the first half of 2020. In connection with the corona outbreak at the end of the first quarter, the outlook was bleak with an escalating pandemic and mass leaves of absence.
However, the situation has improved rapidly during the quarter. The credit losses related to the pandemic will likely not be as extensive as feared at the end of the first quarter. Demand for corporate loans has gradually recovered.
In the long run, we believe that the pandemic will further accelerate the digitalisation of financial services. In comparison with many economies in Europe, the Nordic countries have come a relatively long way. Many other markets are still waiting for the digital revolution in corporate loans, which opens up the possibility of broadening our offering in new geographies.
Through continued automation and investment in improved and new products, we are building a next-generation fintech company with technology and small businesses in focus.
To read the report, please visit Qred’s website or follow these links: report and presentation.
Andrea Romander
Head of Brand & Communications Qred AB
+46 730 926 607
andrea.romander@qred.com
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