AB NEO Finance€¦ · Vytautas Bučiūnas, former Swedbank Head of Corporate Banking Division,...
Transcript of AB NEO Finance€¦ · Vytautas Bučiūnas, former Swedbank Head of Corporate Banking Division,...
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AB
NEO Finance
Sales report 2018Q3
Vilnius
2018-10-10
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Events
2
Shareholder equity increased by 300K. Total amount invested in company‘s
capital exceeds 3.18M;
400K EUR of bonds issued in July;
New TV campaign for borrowers was launched in August;
New clients „Viena sąskaita“, „Mano gilė“ signed up to PIS service;
NEO Finance legal form changed from limited liability company to public
company;
Vytautas Bučiūnas, former Swedbank Head of Corporate Banking Division,
Vice-Chairman of the Board, was appointed as new member of the
Supervisory board;
New feature auto-invest in the secondary market implemented in August;
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Management accounts
3
The vast majority of revenues related to P2P lending activities are distributed throughout the loan period. Management
accounts represent future broker fee income as the result of loans issued in specific quarter.
At the end of 2018 Q3 receivable broker fee amounted to 2.21 mln. EUR
* Broker fee income in the table is represented as a result of the loans issued at the same quarter, which will be received
throghout the loan period. E.g. 294 thousand EUR is a result of 3,928 thousand EUR issued, and will be received
throughout 60 months.
2018 Q3 2018 Q2 ∆, % 2017 Q3 ∆, %
Loans issued,K EUR 3,928 3,171 24% 2,396 64%
Broker fee income,K EUR* 294 219 34% 167 76%
Other income, K EUR 176 150 17% 80 120%
Total income, K EUR 470 369 27% 247 90%
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P2P consumer loan market in Lithuania
4
In 2018 Q3 P2P consumer loan market size reached 6.90 million EUR. Compared to 2017 Q3 year on
year the issued loans volume grew by 52% from 4.54 million EUR. “NEO Finance” market share
during 2018 Q3 stably grew to 57% with 3.93 million EUR of loans issued.
Monthly amount of issued consumer loans through all Lithuanian platforms did not surpass the peak of
2.38 million EUR reached in March. On the other hand “NEO Finance” reached a record of 1.42
million EUR financed in September. Compared to the same month in 2017, “NEO Finance” issued
loans volume grew by 60%.
Source: Data from Lithuanian P2P lending platforms
0.901.02
0.951.03
0.88
1.08
0.93
1.13 1.111.20
1.301.42
1.66
1.84 1.95
2.04
1.88
2.38
2.06
2.20 2.24 2.22 2.32 2.36
0.00
0.50
1.00
1.50
2.00
2.50
2017-10 2017-11 2017-12 2018-01 2018-02 2018-03 2018-04 2018-05 2018-06 2018-07 2018-08 2018-09
P2P consumer market, loans issued, million EUR
NEO Finance Market size
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Borrowers
5
In 2018 Q3 low fees and increasing brand
awareness attracted 3 866 new registered
borrowers. New TV campaign to attract
borrowers was launched in August. At the end
of 2018 Q3 the number of registered borrowers
grew to a total of 47 338. Compared to 2017
Q3, the number of registered borrowers grew
by 51%.
In 2018 Q3 the number of active borrowers grew
by 903 users. At the end of 2018 Q3 the number
of active borrowers reached a total of 5 949.
Compared to 2017 Q3, the number of active
borrowers grew by 138%. We are satisfied with
the results of current TV campaign, which
contributed to the record active borrowers growth
during a quarter.
36373
39992
43472
47338
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
2017 Q4 2018 Q1 2018 Q2 2018 Q3
Registered borrowers
3572
4320
5046
5949
0
1000
2000
3000
4000
5000
6000
7000
2017 Q4 2018 Q1 2018 Q2 2018 Q3
Active borrowers
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Investors
6
In 2018 Q3 investors‘ trust, stable returns,
transparent communication, timely management
reports and audited financial reports attracted
882 new registered investors to a total of 8
417. Compared to 2017 Q3, the number of
registered investors grew by 73%. We see a
growing traction with international investors, as
“NEO Finance” opened up for European
investors in March, 2018.
Investors have already earned 2.3 million EUR in returns.
In 2018 Q3 the number of active investors grew
by 604. At the end of 2018 Q3 the number of
active investors reached a total of 5 348.
Compared to 2017 Q3, the number of active
investors grew by 92%.
6024
6792
7535
8417
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
2017 Q4 2018 Q1 2018 Q2 2018 Q3
Registered investors
3653
4219
4744
5348
0
1000
2000
3000
4000
5000
6000
2017 Q4 2018 Q1 2018 Q2 2018 Q3
Active investors
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NEO Finance investments
7
“NEO Finance”, as a consumer credit provider, co-invests into loans together with investors. A policy
of avoiding conflicts of interest is provided to every investor. In 2018 Q3 “NEO Finance” invested a
record amount of 379 thousand EUR. Invested amount grew due to increased demand from the
borrowers.
Since the launch in December, 2015 “NEO Finance” investments into loans reached 1.59 million
EUR.
261
150162
379
0
50
100
150
200
250
300
350
400
2017 Q4 2018 Q1 2018 Q2 2018 Q3
NEO Finance investments, K EUR
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Overdue loans
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At the end of 2018 Q3 out of 8 393 issued loans - 667 loans, or 7.95%, were overdue for
more than 90 consecutive days. Respectively, out of 21.6 million EUR financed – 1.90 million
EUR or 8.81% were overdue more than 90 days.
“NEO Finance” is highly concerned about loan repayments, therefore great effort was put in a
recovery of payments from terminated loans. During 2018 Q3 a total of 80 thousand EUR were
recovered and distributed to investors.
2.82%
8.72%
15.91%
8.81%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
A rating B rating C rating Total
EUR, overdue >90 days, %.
32
38
50
80
0
10
20
30
40
50
60
70
80
90
2017 Q4 2018 Q1 2018 Q2 2018 Q3
Amount recovered, K EUR
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Recovery in 2 years
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2018 Q3 marks 24 month point for loans terminated during 2016 Q3.
During 2016 Q3 14 loans were terminated with remaining principal of 21 670 EUR. During 24
months 17 414 EUR or 80.4% from principal amount were recovered. Below the distribution
between “NEO Finance” and investors is presented.
It should be noted, that all third party legal costs incurred by “NEO Finance” related to
recovery process are covered first, while NEO Finance intermediary fees are covered on par
with investors.
21.0%
59.4%
80.4%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
Terminated: 2016 Q3
Recovery in 2 years as % of principal outstanding at termination
NEO Finance Investors
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Provision fund
10
“NEO Finance” offers a „Provision Fund"
service, which allows investors to reduce their
investment risk. If a loan defaults – “NEO
Finance” guarantees to repay the investor with
all of its assets. During 2018 Q3 the service
covered 91 150 EUR.
For liquidity risk management, “NEO Finance” calculates the sufficiency of
funds to cover liabilities under “Provision fund“ and holds these funds in a
separate bank account. The purpose of this account is to ensure the company's
internal cash flow management. In order to fulfill its obligations to investors, the
company may, if necessary, use other assets of the company.
The fund's growth amounted to 22 020 EUR. At the end of 2018 Q3 there were
212 809 EUR of accumulated funds, and the total guaranteed amount was
1 882 290 EUR, resulting in 11% coverage ratio.
154
178191
213
0
50
100
150
200
250
2017 Q4 2018 Q1 2018 Q2 2018 Q3
Provision fund, K EUR
1382
1557
1726
1882
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200
400
600
800
1000
1200
1400
1600
1800
2000
2017 Q4 2018 Q1 2018 Q2 2018 Q3
Guaranteed amount, K EUR
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Buybacks
11
“NEO Finance” offers a buyback service. When an agreement with a borrower is terminated, investors have
an option to sell their investment for 50-80% of it‘s face value to “NEO Finance” . In 2018 Q3 investors sold
3 032 investments for 49 464 EUR.
15,490 €10,661 €
26,384 €
49,464 €
1082
693
1708
3032
0
500
1000
1500
2000
2500
3000
3500
0 €
10,000 €
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30,000 €
40,000 €
50,000 €
60,000 €
2017 Q4 2018 Q1 2018 Q2 2018 Q3
Buybacks
Buybacks, EUR Buybacks, units
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Secondary market
12
Secondary market is a feature where investors can sell or buy investments. It allows investors to adjust their
risk exposure in pursuit of aggressive returns, or sell a nonperforming investment. It also provides liquidity
when an investor feels the need to cash out. During 2018 Q3 secondary market turnover was 123 259 EUR.
Average transaction was 16.84 EUR. A new auto-invest function was introduced in the secondary market in
August. The secondary market was not as active as in 2018 Q2 due to increased loan supply in the primary
market.
106,078 €118,408 €
179,184 €
123,259 €
5244
4506
5657
7321
0
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4000
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6000
7000
8000
0 €
20,000 €
40,000 €
60,000 €
80,000 €
100,000 €
120,000 €
140,000 €
160,000 €
180,000 €
200,000 €
2017 Q4 2018 Q1 2018 Q2 2018 Q3
Secondary market
Turnover, EUR Turnover, units
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13
Main statisticsSince launch till the end of 2018
Q3
5348Active investors
4,082 €Average amount
invested
2,335,278 €Interest received
21,602,085 €Issued loans
Investments sold in
secondary market
727,336 € 14,927,696 €Outstanding principal