IPAS Indexo (IDX1R) Q4 2024 earnings summary

Executive summary

• Achieved a transformational year with the launch of banking services, strong pension revenue growth of 42%, and rapid client acquisition, surpassing 28,100 bank customers and €42 million in deposits by February 2025.

• Pension business turned profitable, with normalized net profit of €1.34 million in 2024, supporting further group development.

• INDEXO's 2nd and 3rd pillar pension plans are among the best-performing in Latvia, with a focus shift toward voluntary 3rd pillar plans.

Financial highlights

• Pension revenues grew 42% year-over-year; assets under management increased from €900 million to €1.34 billion, with client base up 12% to 142,000.

• Pension business normalized net profit was €1.34 million in 2024; commission income reached €4.44 million.

• Bank reported a loss of €6.16 million for 2024, reflecting startup investments; consolidated group loss was €5.38 million.

• Bank deposits grew 85.7% in Q4 2024 to €33 million; consumer loans increased 103.8% to €1.06 million.

• Third pillar pension annual revenue nearly doubled; annual contributions reached €9.3 million, with recurring rate now at €15 million.

Outlook and guidance

• Aims to reach group-level break-even in Q4 2024 or monthly break-even (before loan losses) in Q4 2025, requiring 55,000 customers, €42 million in deposits, and €40 million in loans.

• Focus on launching new products: Google Pay, Apple Pay, junior accounts, custody services, and mortgages by mid-year.

• Additional capital raising planned to support lending, product development, and regulatory projects.

• Updated long-term financial plans and forecasts to be published in the coming months.