According to the consolidated unaudited interim report for the first quarter of 2024, the pension management company IPAS Indexo (hereinafter – INDEXO) had 131.1 thousand clients as of March 31 this year, which is 24% more than at the end of the first quarter of 2023, while assets under management grew by 61% over the year and reached 1.06 billion euros at the end of the first quarter of 2024.

In the first quarter of this year, INDEXO's pension business net profit before bank-related expenses, including capital raising costs, amounted to 181,3 thousand euros. Meanwhile, the consolidated financial result of the INDEXO Group in the first quarter, taking into account significant investments of the subsidiary company in the development project of the new bank, amounted to losses of 1.01 million euros.

"The first quarter for INDEXO was marked by intensive work in two directions simultaneously - we continued to strengthen our positions in the Latvian pension savings market, and at the same time, we are approaching the finish line in the process of establishing the new INDEXO Bank. Although we continue to make significant investments in attracting new clients, our pension management business has been profitable for the third consecutive quarter after client acquisition expenses. Meanwhile, in the process of establishing the new bank, we are currently awaiting decisions from regulatory authorities regarding the issuance of the bank’s license. We will be ready to commence the provision of new banking services within a few months after the license is issued," says Valdis Siksnis, Chairman of the INDEXO Board and one of the founders.

Also, in the first quarter of this year INDEXO was the fastest growing pension manager in the Baltics, attracting 3 084 new clients to 2nd pillar pension plans compared to 1 302 new clients attracted by the nearest market competitor. INDEXO continues to grow faster than the market, and in the 2nd pillar pension products, the company's market share at the end of this quarter reached 13.5%. A year ago, INDEXO's market share in 2nd pillar pension plans was 10.8%.

The increasing number of clients and the volume of assets under management have ensured an increase in pension fund management commission income in the first three months of this year to 0.92 million euros, compared to 0.65 million euros in the first quarter of 2023. The total income of the INDEXO pension business during the reporting period was more than sufficient to cover administrative expenses of pension fund management.

Thanks to the increase in the number of clients and the average salary, contributions received in INDEXO 2nd pillar pension plans increased by 35% – from 19.3 million euros in the first three months of 2023 to 26.1 million euros in the first quarter of 2024. INDEXO has exceeded 100 million euros in annual contributions at the 2nd pension pillar.

In addition to pension management activities, INDEXO continues to develop the new bank project, and during the first quarter, the company increased the capital of its subsidiary AS IDX1R by 10 million euros - this subsidiary will become INDEXO Bank after receiving the banking license. Currently, all documents for the bank license application have been submitted, questions from supervisory authorities have been answered, and INDEXO is awaiting a decision on the bank’s license. According to the licensing process schedule, INDEXO Bank plans to start the first pilot project of banking services, so the bank can be ready to launch this summer.

Considering that the bank's operations have not started yet, AS IDX1R does not generate significant income, but at the same time it is making significant investments in IT infrastructure development, licensing process, and other preparatory work necessary for the start of the new bank's operations. As a result, AS IDX1R incurred losses of 884.7 thousand euros in the first three months of this year.

The total result of the INDEXO Group, that is, consolidating the results of pension fund management and its profit and investments in the establishment of the new bank, amounted to losses of 1.006 million euros in the first quarter of this year. The equity of the INDEXO Group as of March 31 this year was 13.983 million euros.

About INDEXO

INDEXO is an asset management company licensed by the Bank of Latvia, which offers modern 2nd and 3rd pillar pension saving plans in Latvia. INDEXO is the fastest growing pension management company in the Baltics with more than 132 thousand customers and more than 1.05 billion euros of assets under management. 

INDEXO is a Nasdaq Riga Stock Exchange listed company with close to 6000 shareholders and has an aim to fight for a better financial environment in Latvia. INDEXO vision is to become a financial services group that empowers Latvia’s people to achieve prosperity by providing modern, personalized services. Additional information is available at www.indexo.lv.  

Contact information:
Ieva Bauma
IPAS “Indexo” Board Member, Marketing Manager
E: ieva.bauma@indexo.lv
T: + 371 28 636 789