Volume of intermediated loans has recovered to a growth path and we will start building a new innovative digital banking business
1.1.−
- Turnover was
5.5 million euros (5.8), decrease of 5.3% -
Profit of the reporting period was -
0.1 million euros (-0.7) -
EBIT was
0.5 million euros (-0.1) - EBIT margin was 9.7% (-0.9)
-
Earnings per share (EPS) was -
0.01 euros (-0.10) -
Intermediated loan volume was approximately
90.7 million euros (69.1) - Intermediated loan volume grew 31% compared to the same time period in financial year 2020
-
After the end of the reporting period, the company announced the conclusion of a combination agreement with
Evli Bank Plc , which provides for an arrangement wherebyFellow Finance Plc will merge with the company that will continueEvli Bank's banking services
CEO
During the first half of 2021, our volume of intermediated loans continued to grow steadily and recover from the recession caused by the 2020 corona pandemic. We exceeded the monthly volumes in intermediated loans which preceded the 2020 pandemic both in consumer and business financing at the end of the reporting period. As a result of the growth, our turnover grew in comparison to the second half-year period in 2020. The company's profit remained slightly negative. Profitability was, as expected, affected by investments in new personnel and implementation of new products in accordance with our strategy and the temporary interest rate ceiling for consumer loans enacted in
Out of our business segments, business financing, in particular, continued a strong and steady growth. We also embarked on a good growth path within Finnish consumer financing. Our volumes in intermediated loans on the overseas markets continued to be modest but we progressed as planned with projects to relaunch on the Polish and German markets during 2021: the interest rate ceiling enacted in
We implemented our renewed strategy, published at the end of year 2020, determinedly during the first half of the year. We launched our e-commerce payment solution in May and concluded significant cooperation agreements, which will enable us to offer our payment solutions in Finnish web stores to both consumers and businesses during autumn 2021. Our credit card project progressed as planned and we expect to be in a position to launch the card business during this year. We also launched a mobile application in August which will be a central service channel for our private customers going forward.
On the loan investor side, we invested strongly in institutional investors and are pleased to acknowledge that we gained several significant institutional investors to our peer-to-peer and crowdfunding platform during the first half of the year. We also succeeded in our strategic goal to increase the share of lower risk credits of our volume of intermediated loans. Credit risk management continues to be the cornerstone of our operations and we managed to decrease credit losses pertaining to credits originated by our subsidiary
We announced the conclusion of a combination agreement with
We continued to invest in strengthening our human resources and will continue this through strengthened capabilities particularly within banking operations and risk management as part of the
We believe that the banking operations together with the investments in new products in accordance with our current strategy will provide conditions for significant growth in the coming years.
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https://news.cision.com/fellow-finance-oyj/r/fellow-finance-plc-s-half-year-review-2021,c3403912
https://mb.cision.com/Public/18254/3403912/ba484bbc79fa3e0e.pdf
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