We not too long ago printed Bondora Group’s audited monetary outcomes for 2024. Since then, we’ve continued partaking 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 submit, you’ll be able to discover extra insights on key matters reminiscent of our profitability, threat 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 world govt expertise that can strengthen our monetary methods. Raimondas provides deep experience in threat 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 utility course of and Bondora’s long-term strategic objectives.
All supervisory board members should meet the standards set by the European Central Financial institution (ECB). Our impartial members deliver intensive top-level managerial expertise in banking, significantly in threat 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 internet revenue
In 2024, we reported a internet revenue of €1.2 million, in comparison with €3.4 million the yr earlier than. The decline in internet revenue and the rise in uncertain receivables in 2024 are primarily resulting from a one-off accounting adjustment associated to modifications in our charge receivable provision mannequin.
Particularly, the change pertains to Bondora Group’s personal charge receivables from debtors, reasonably than the mortgage principal balances, that are held by traders.
To align with IFRS 9 requirements in preparation for our banking license utility, we carried out 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 reasonably displays a essential one-off alignment with the regulatory requirements of a supervised monetary establishment.
Bondora stays worthwhile and financially secure for the eighth yr 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 energetic mortgage principals excellent as of 31 December 2024.
The mortgage portfolio is deliberately greater than the funding steadiness to make sure enough threat buffers and diversification inside the Go & Develop product. This construction safeguards investor returns.
Debt assortment and credit score threat administration efficiency in 2024
Bondora Group’s assortment processes grew to become considerably simpler 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 top of 2023 to December 2024, a 1.5x enhance in restoration effectivity.
Estonia, our second-largest portfolio, remained secure with constantly excessive restoration efficiency, reflecting the energy 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 information month-to-month, together with incoming funds, restoration charges, and restoration curves. This information is then fed again into our origination and modeling processes to validate or recalibrate assumptions and preserve accuracy.
How the typical default price advanced throughout all markets in comparison with 2023
The defaulted share has been progressively declining, reflecting regular and ongoing enhancements in portfolio high quality throughout markets.
Starting in 2022 and 2023, we began scaling with a extra strong, data-driven method. 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 threat administration.
A standout instance is the Netherlands, the place we’ve achieved wonderful threat efficiency in a brief timeframe, showcasing our enhanced skill to react rapidly and successfully to early indicators of efficiency points.
The latest portfolio-level information covers Q1 2024. Default price statistics for Q2 2024 and past will grow to be obtainable 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 information, on our weblog. So preserve a watch 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 as a result of capitalization of inside IT growth prices, reflecting our continued funding in expertise 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. Because the internally developed techniques are anticipated to supply advantages past the present reporting interval, they qualify for capitalization underneath accounting requirements.
This method can be a part of our broader effort to align our accounting practices with these of regulated banks, in preparation for the banking license utility.
Our subsequent steps
Our technique continues to concentrate on sustainable progress, 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 nations. We invested closely in proprietary software program and automation, constructing an much more decisive aggressive benefit whereas conserving our operations lean and environment friendly.
With a workforce of simply 188 folks, we supported a 30% enhance 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 progress
Even throughout a yr of regulatory preparation and accounting mannequin updates, Bondora Group remained worthwhile for the eighth yr in a row. That consistency isn’t any accident. It displays the stable basis we’ve constructed and the arrogance you’ve positioned in us as your funding companion.
Our long-term focus, technology-led method, and cautious market growth proceed to set Bondora aside. We’re not simply rising; we’re rising with function and with you.
How your funding stays safe
At Bondora, defending your cash isn’t only a function. It’s our basis. We’ve designed our Go & Develop product and platform with a number of layers of safety and sensible monetary safeguards:
- Diversified mortgage portfolios unfold throughout varied EU nations, decreasing publicity to regional dangers
- Sturdy restoration processes for non-performing loans
- Segregated shopper 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 prospects first
Wish to know extra about how we shield your cash?
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Keep tuned to our weblog for extra information and insights, so that you’ll all the time know the place your cash is working and why.
