|Emitents||Indexo, IPAS (875500AT8JI5HU41AY20)|
|Veids||2.2. Iekšējā informācija|
The consolidated unaudited interim financial report for the first quarter of 2023 of the pension management company IPAS Indexo (hereinafter – INDEXO) shows, that by the end of March 2023 the company has increased its client number by 43% year-on-year and grown its Assets under management by 32% year-on-year. By the end of the first quarter, the INDEXO client number stood at 105 900 and the Assets under management were EUR 656 million.
Over the first three months of this year, INDEXO was still by far the fastest growing pension management company in Latvia adding 25 896 new clients over the last 12 months, compared to only 5 935 new clients added by the closest competitor.
“Our core business in pension management has shown stable growth in the first quarter increasing assets under management from 585 million to 656 million euros, number of customers from 100 thousand to 106 thousand and compared to the first quarter of 2022 increased operating profit before client acquisition and investments from 310 to 382 thousand euros. That all was achieved despite challenging market conditions with high inflation reducing the real income of the population and volatile stock markets. In short, we have proven, that our business model is resilient in difficult times and we will realize more of our business potential as the overall situation improves,” says Valdis Siksnis, INDEXO Board Chairman and one of the founders of the company.
Due to higher client number and increasing salaries, the quarterly pension inflows have risen to EUR 19.3 million in the first quarter of 2023 compared to EUR 12.3 million in the first quarter of last year. The customer retention figure has improved from 93.6% to 94.18% from the first quarter of 2022.
Over the first three months of 2023, INDEXO continued strong progress on its new bank project. First of all, licensing package with the Bank of Latvia was updated and the documents are now being reviewed by the European Central Bank. Second, significant progress has been made in IT with key partners selected and integration of systems into the core IT structure of the company. Third, INDEXO is making progress in developing its banking demo application, which bring a new level of user experience and product innovation to the market. In addition, INDEXO is continuously adding new talent to its banking team.
The financial result of INDEXO in the first quarter of 2023 shows, that the operating income before client acquisition and other business project expenses reached EUR 381 530. INDEXO continues to invest heavily in new client acquisition and spent EUR 497 308 on its new client efforts, while other EUR 499 123 were invested in the development of the new INDEXO bank project. After these investments and personnel option expenses (non-cash item) the loss of the company in the first quarter was EUR 729 321.
Disclaimer: Bank (credit institution) license is subject to authorization granted by the European Central Bank based on the Bank of Latvia proposal.
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 Latvia with more than 108 thousand customers and more than EUR 680 million in assets under management.
INDEXO was established in 2017 by a group of 30 experienced business representatives and managers with an aim to fight for a better financial environment in Latvia. INDEXO vision is to become a financial services group, offering modern and customized services that empower Latvian people to take care of their financial wellbeing.
More information available at www.indexo.lv.