We lately printed Bondora Group’s audited monetary outcomes for 2024. Since then, we’ve continued participating with our investor neighborhood by way of our annual CEO Q&A video, and now it’s time to dive even deeper into the financials and what it means.
On this publish, you may discover extra insights on key matters akin to our profitability, danger administration, debt administration, and restoration.
Learn on to find the small print behind Bondora Group’s 2024 monetary report and keep totally knowledgeable.
Additional strengthening the Supervisory Board
In 2024, we welcomed two new members to the Bondora Supervisory Board: Richard Groeneveld and Raimondas Berniunas. Richard brings intensive international govt expertise that may strengthen our monetary methods. Raimondas provides deep experience in danger administration, serving to guarantee Bondora’s resilience in dynamic market circumstances.
We additionally restructured the Supervisory Board to additional improve its capabilities by including extra banking experience, aligning with the necessities of the banking license software course of and Bondora’s long-term strategic targets.
All supervisory board members should meet the factors set by the European Central Financial institution (ECB). Our impartial members deliver intensive top-level managerial expertise in banking, significantly in danger administration, and have already handed the ECB’s rigorous match and correct evaluations. Learn extra in regards to the Supervisory Board right here.
Understanding the change in reported web revenue
In 2024, we reported a web revenue of €1.2 million, in comparison with €3.4 million the 12 months earlier than. The decline in web revenue and the rise in uncertain receivables in 2024 are primarily as a result of a one-off accounting adjustment associated to modifications in our payment receivable provision mannequin.
Particularly, the change pertains to Bondora Group’s personal payment receivables from debtors, moderately than the mortgage principal balances, that are held by traders.
To align with IFRS 9 requirements in preparation for our banking license software, we applied an enhanced anticipated credit score loss (ECL) mannequin. This new mannequin was utilized retroactively throughout the historic receivables portfolio, resulting in a better one-time provision expense.
Importantly, this transformation doesn’t point out a deterioration within the enterprise’s underlying profitability however moderately displays a crucial one-off alignment with the regulatory requirements of a supervised monetary establishment.
Bondora stays worthwhile and financially steady for the eighth 12 months in a row.
Bondora Group’s 2024 monetary report: The distinction between funding steadiness and mortgage portfolio
The funding steadiness (€567M) represents all investor funds on our platform, together with each invested quantities and uninvested money held of their accounts as of 31 December 2024.
The mortgage portfolio (€600M) refers to all lively mortgage principals excellent as of 31 December 2024.
The mortgage portfolio is deliberately increased than the funding steadiness to make sure adequate danger buffers and diversification inside the Go & Develop product. This construction safeguards investor returns.
Debt assortment and credit score danger administration efficiency in 2024
Bondora Group’s assortment processes turned considerably more practical in 2024, significantly in Finland, our largest credit score market. This was evident in each incoming money flows and the restoration price on defaulted balances, which improved by greater than 50% from the tip of 2023 to December 2024, a 1.5x improve in restoration effectivity.
Estonia, our second-largest portfolio, remained steady with persistently excessive restoration efficiency, reflecting the power of our automated and mature collections infrastructure.
We use Anticipated Credit score Loss (ECL) throughout each origination and portfolio modeling. In parallel, we observe restoration knowledge month-to-month, together with incoming funds, restoration charges, and restoration curves. This knowledge is then fed again into our origination and modeling processes to validate or recalibrate assumptions and keep accuracy.
How the common default price developed throughout all markets in comparison with 2023
The defaulted share has been step by step declining, reflecting regular and ongoing enhancements in portfolio high quality throughout markets.
Starting in 2022 and 2023, we began scaling with a extra sturdy, data-driven strategy. Since Q3 2023, we’ve achieved the widest optimistic unfold between mortgage defaults and rates of interest charged throughout all our markets because the begin of operations, demonstrating sturdy credit score danger administration.
A standout instance is the Netherlands, the place we’ve achieved wonderful danger efficiency in a brief timeframe, showcasing our enhanced skill to react shortly and successfully to early indicators of efficiency points.
The newest portfolio-level knowledge covers Q1 2024. Default price statistics for Q2 2024 and past will develop into accessible after Q2 2025, following the usual 12-month statement interval wanted for correct default classification. As soon as Q2 has ended, we are able to publish extra detailed statistics, together with restoration knowledge, on our weblog. So maintain an eye fixed out!
Bondora Group 2024 monetary report: Explaining the rise in intangible property
In 2024, Bondora Group’s intangible property elevated from €470,000 to €3 million. The rise is because of the capitalization of inside IT improvement prices, reflecting our continued funding in know-how and platform enhancements.
These are handled equally to externally bought IT techniques: they’re recorded as intangible property on the steadiness sheet and amortized over their estimated helpful life. For the reason that internally developed techniques are anticipated to supply advantages past the present reporting interval, they qualify for capitalization beneath accounting requirements.
This strategy can also be a part of our broader effort to align our accounting practices with these of regulated banks, in preparation for the banking license software.
Our subsequent steps
Our technique continues to concentrate on sustainable development, accountable lending, and delivering long-term worth. In 2024, we expanded into new markets, together with Lithuania and Denmark, strengthening our presence throughout 5 EU international locations. We invested closely in proprietary software program and automation, constructing an much more decisive aggressive benefit whereas retaining our operations lean and environment friendly.
With a staff of simply 188 individuals, we supported a 30% improve in loans issued and a 27% rise in funding quantity. This speaks not solely to the scalability of our platform but additionally to the belief traders proceed to put in Bondora, with over €1 billion invested since 2008.
Your belief fuels our development
Even throughout a 12 months of regulatory preparation and accounting mannequin updates, Bondora Group remained worthwhile for the eighth 12 months in a row. That consistency isn’t any accident. It displays the strong basis we’ve constructed and the boldness you’ve positioned in us as your funding associate.
Our long-term focus, technology-led strategy, and cautious market enlargement proceed to set Bondora aside. We’re not simply rising; we’re rising with goal and with you.
How your funding stays safe
At Bondora, defending your cash isn’t only a characteristic. It’s our basis. We’ve designed our Go & Develop product and platform with a number of layers of safety and good monetary safeguards:
- Diversified mortgage portfolios unfold throughout varied EU international locations, reducing publicity to regional dangers
- Sturdy restoration processes for non-performing loans
- Segregated consumer accounts that separate your funds from firm operations
- Liquidity buffers and controls to help withdrawals and stability
- 8 years of profitability and a capital-light enterprise mannequin that places clients first
Wish to know extra about how we shield your cash?
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Keep tuned to our weblog for extra knowledge and insights, so that you’ll at all times know the place your cash is working and why.