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, with strong fund performance and high-quality client growth.

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

• Bank will initially serve Latvian residents with daily banking, consumer loans, and term deposits; mortgages and SME services to follow within months.

Financial highlights

• H1 2024 revenue/commission income exceeded €2.02 million, up 45% year-over-year, driven by AUM growth.

• Pension business profit (excluding bank costs) was €536,600 in H1 2024; consolidated group loss was €1.96 million, mainly due to €2.1 million in bank development costs.

• Operating costs remained stable year-over-year, supporting significant growth in operating income.

• Over the past five years, clients grew 5.9x, AUM 9.2x, revenue 8.7x, and net profit 3x.

Outlook and guidance

• Bank launch scheduled for August 28, 2024, with plans to expand services to companies within 6–9 months.

• Targeting 4–5% deposit market share in 4–5 years, aiming to match pension business market share.

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

• Focus on growing both pension and banking segments, with new product features and investment services planned.