IPAS Indexo (IDX1R) Q3 2024 earnings summary

Executive summary

• Achieved 50% year-over-year growth in pension assets under management (AUM), reaching €1.215 billion, and 43% revenue growth in the pension business, with strong cash flow and high-performing pension plans.

• INDEXO Bank launched in August 2024, attracting over 10,000 customers and €9 million in deposits in its first month, setting a national record for customer acquisition.

• The group remains profitable in the pension segment, with normalized net profit of €832 thousand for 9M 2024, but overall group losses are driven by early-stage bank investments.

• The group is positioned to disrupt the concentrated Latvian banking market, with further service expansion planned for 2025.

Financial highlights

• Pension business commission income rose 43% year-over-year to €3.16 million for Jan–Sep 2024, with net profit of €336K and AUM per client at €2,317, up 31.4%.

• Group comprehensive loss for Jan–Sep 2024 was €3.56 million, mainly due to €3.9 million in bank development costs; EPS at (€0.78) vs. (€0.55) prior year.

• Total assets increased to €26.3 million as of September 2024, up from €7.2 million a year earlier.

• INDEXO Bank attracted 10,381 customers and nearly doubled deposits to €17.8 million in its second month.

Outlook and guidance

• New private customer services and mortgage lending, including refinancing, are planned for Q4 2024 and Q1 2025, with further retail and SME offerings through 2025.

• The group aims to continue rapid customer acquisition and market share growth in both pensions and banking, leveraging digital channels.

• No updated financial projections released; previous guidance remains, with a need to catch up due to a six-month delayed bank launch.