Creditstar Group
Team Lendermarket

Creditstar Releases Q4 Financial Results, Posts €1.8m Profit

Creditstar Group AS, Lendermarket’s loan originator, recently released its Q4 2021 interim report, with the key takeaway being a net profit for the period of €1,856,000.

Creditstar is one of Europe’s leading digital consumer finance companies and boasts more than twelve years of experience within the market. The company has an in-depth understanding of the international consumer credit landscape, helping ensure that Lendermarket’s Buyback guarantees are fulfilled.

With that in mind, let’s explore some of the key outcomes from Creditstar’s recent financial report.

Creditstar Financial Performance – Brief Overview

As noted above, Creditstar generated a net income of €1,856,000 during Q4 2021. This was achieved thanks to a 5.38% increase in interest income compared to Q3 2021, helping the company produce a total of €8,047,000 in net interest income during Q4 2021. Ultimately, this proved to be the company’s highest interest income from any quarter during 2021.

Operating expenses and wages & salaries expenditure both increased slightly relative to Q3, meaning Creditstar produced an operating profit of €4,047,000 in the fourth quarter of 2021. This figure equates to a 12.7% decrease from the previous quarter.

From an assets perspective, Creditstar ended the year strongly with €5,980,000 in cash reserves. After taking into account customer loans and other assets, this equates to a total assets figure of €201,749,000 – a 7.96% increase from Q3 2021.

Finally, Creditstar raised equity of €3,850,000 during Q4 2021, helping produce a total cash flow for the quarter of €3,873,000.

Creditstar Q4 2021 – Key Takeaways

As the figures above highlight, Creditstar showcased stellar financial performance during Q4 2021, which is even more impressive considering the adverse macroeconomic factors prevalent in many European countries during that period.

The company’s net loan portfolio grew by 25% for the entire year, made possible through excellent client repayment and non-performing loan (NPL) levels.

Thanks to the digital nature of Creditstar’s business, the company was able to navigate the impact of COVID-19 efficiently whilst still seeing credit volumes grow throughout the year.

Creditstar also made its second bond issue of 2021 on the 1st of December, with this issue valued at €10,570,000. Six months prior, Creditstar had issued €23,570,000 worth of bonds, with the proceeds being used to expand the company’s credit portfolios and refinance maturing treasury notes.

Looking Ahead – Creditstar’s Roadmap for 2022

Using its solid Q4 results as a foundation, Creditstar looks to expand in 2022 and benefit from fantastic growth opportunities within its market.

Key areas that the company will focus on include growing credit volumes, expanding product offerings, solidifying the Creditstar team with additional hires, and continuing to appeal to high-quality loan customers.

Creditstar also seeks to capitalise on the continued growth of the e-commerce industry by optimising the user experience through automation and technological advances.

The impact of COVID-19 has sped up the digitisation of many industries, providing Creditstar with an exciting opportunity to grow the platform and reach new demographics.

To help with this, Creditstar is considering a further equity investment during 2022, which will be used to scale the business and help integrate the company into new markets. From a financial perspective, this equity raise will also solidify the company’s balance sheet and help optimise Creditstar’s cost of capital. 

Finally, any equity raise would also benefit Creditstar’s team, thanks to an options program and scope for exciting new additions to the company’s leadership.

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