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Delfin Group Investor Presentation 2026
2238_rns_2026-03-03_f10105ca-30d3-4da3-8d2e-e90220dc97c6.pdf
Investor Presentation
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delfingroup
Financial report
Audited results for 2025
Ending 31 December 2025
delfingroup
delfingroup
Key highlights
- Strong business and financial performance throughout 2025
- Revenue growth of 24% in 2025
- Starting from Q2 2025 additional focus on cost discipline and optimisation
- ROE 35%. Cost to income ratio 40%. Profit before tax +35%
- After a unique transaction in the Baltic capital markets DelfinGroup becomes a part of INDEXO
delfingroup
Key results
- 2025 loan issuance: EUR 134.8m (+29% YoY); driven by strong online presence in Latvia & Lithuania. Q4 slightly below exceptional Q3, but in line with expectations.
- Net loan portfolio: EUR 144.4m in 2025 (+27%); above the guidance.
- Revenue: EUR 78.2m FY 2025 (+24% vs 2024).
- Profit before tax 2025: EUR 12.4m (record, +35% YoY); includes EUR 1.0m one-offs (tax refund + EIR recalculation).
Total loans Issued
Net loan portfolio
Total revenue
Profit before tax
*One-off effect of EUR 1 million.
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Cost discipline & efficiency
Strengthened cost discipline and efficiency to streamline operations and improve profitability.
- Termination of pawn and retail business in Lithuania.
- Closure of all 7 branches in Lithuania.
- Headcount in Latvia and Lithuania reduced by 42 FTEs.
- Overall shift of focus to consumer lending business which provides higher return on investment.
- Pawn and retail business continues to operate in Latvia as usual.
As a result, company managed to stay relatively flat on the administrative expenses which recorded only 4% increase in 2025, while Q4 2025 saw 9% decrease compared to last year.
Cost-to-income ratio LTM
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Consumer loans
- Consumer portfolio growth: Higher avg. loan size and term; net portfolio EUR 136.4m at end-2025 (+31% in 2025).
- Growth drivers: Issuance growth in Latvia and Lithuania. Latvia accounted for 89% and Lithuania 11% from total consumer loan issuance.
- Portfolio quality: Stable; NPL ratio 4.3%, comfortable vs. industry.
Consumer net loan portfolio
Average loan*
Weighted average term of loans issued
Non-performing loan ratio**
Average consumer loan balance for one client at the end of period.
*NPL ratio methodology changed from previous presentations. Current formula: loans 90+ days par due / gross consumer loan portfolio.
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Consumer loans
Lithuania
- Lithuania 2025: First full year of consumer lending (launched end-2024).
- Growth driver: Strong online sales channels supported origination and portfolio growth.
- Issuance: EUR 11.8m in 2025; EUR 3.6m in Q4.
- Net portfolio: EUR 7.7m at end-2025; +30% in Q4 2025.
- Focus in Lithuania: Online consumer lending only (sole segment).
LT consumer loan issuance
LT consumer net loan portfolio
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Pawn loans
- Pawn portfolio: Stable YoY; DelfinGroup is the clear market leader in Latvia.
- Average loan size: Up, driven by inflation and higher gold prices.
- Focus: Improving pawn segment profitability.
Pawn net loan portfolio*
Average pawn loan amount
- Active portfolio excluding portfolio part where collateral is available for sale.
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Retail of pre-owned goods*
- Pre-owned retail sales: EUR 19.4m in 2025 (+15% YoY); Q4 +4% YoY.
- Online store: +25% YoY sales growth in 2025. Online store sales accounted for 25% of total retail segment sales.
- Gold scrap sales: EUR 4.5m (+104% YoY) to unlock cash and reduce inventory.
Sales of pre-owned goods
Online store sales**
- Including directly purchased goods from clients and unredeemed items from pawnshop. Excluding wholesale of precious metals (scrap).
** data from previous periods restated by including the effect of bought back items.
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Banknote branch network
Efficiency of the branch network has been set as a focus in Latvia to secure sustainable business operations.
Banknote has extensive branch network across Latvia
- 88 stores in Latvia including 4 XL concept Banknote branches with wider store floor and increased product offering.
- One of the largest standard-format branches located at Lielā street, Liepāja, was converted into XL format branch.
- New, renovated and relocated branches in Riga, Ogre, Valmiera, Cēsis and Tukums.
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Strategy and outlook for 2026
In 2026 DelfinGroup plan to concentrate on increasing the loan portfolio in Latvia and Lithuania which will result in rise of profit for the company.
There are several initiatives to improve DelfinGroup product offering such as:
- Launch home equity loans: Unlock customer financing potential using real estate collateral; offer lower rates.
- Expand into lower-risk consumer segments: Provide more competitive offers to attract higher-quality borrowers.
Guidance 2026 - 2028*
| Indicator | 2025 result | 2026 target | 2027 target | 2028 target |
|---|---|---|---|---|
| Net loan portfolio EUR | 144 393 542 | 171 000 000 | 194 000 000 | 208 000 000 |
| Profit before taxes EUR | 12 412 576 | 14 600 000 | 18 700 000 | 22 300 000 |
| ROE | 34.9% | >30% | >30% | >30% |
| Cost-to-income ratio | 40.2% | <45% | <45% | <45% |
| Adjusted equity ratio | 24.7% | >20% | >20% | >20% |
- No potential synergies with INDEXO included
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DelfinGroup becomes a part of INDEXO group
In December and January INDEXO organized voluntary un mandatory DelfinGroup share purchase offers.
- After the voluntary offer INDEXO reached 67.42% ownership.
- After the mandatory offer Indexo reached 71.52% ownership and is the largest shareholder of DelfinGroup.
The mandatory offer completion marked a unique Latvian capital market transaction, where one listed company acquired another via a share exchange/purchase involving thousands of shareholders.
By joining INDEXO, the group will focus on synergy initiatives to develop INDEXO into a leading financial services group.
Shareholder Structure
After 26.01.2026.
| IPAS INDEXO | 71.52% |
|---|---|
| Minority Shareholders | 24.48% |
On 06.02.2026 in total 7,941 shareholders. 68% from Estonia, 27% from Latvia, 5% from Lithuania and 1% from other countries.
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Consolidated income statement
- Top-line growth was predominantly driven by consumer lending, with revenue increasing 25% y-o-y and 27% Q4-to-Q4.
- Credit loss expenses grew slightly faster than the portfolio but increase reduced in Q4, with stable development expected in 2026.
- Improved funding structure resulting in interest expense growth of 17% vs portfolio growth of 27% y-o-y.
- Two significant one-off impacts in Q4 totaling EUR 1M: a VAT tax refund for prior periods and adjusted phasing of EIR for 2025.
- Strong cost discipline and one-off positive impacts led to a 35% y-o-y increase in PBT.
| Income statement, EUR'000 | 2025 Q4 | 2024 Q4 | Change X |
|---|---|---|---|
| Total revenue | 20,940 | 17,353 | +21% |
| Cost of sales | -2,416 | -2,374 | +2% |
| Credit loss expenses | -5,370 | -4,060 | +32% |
| Interest and similar expenses | -3,474 | -2,891 | +20% |
| Gross profit | 9,679 | 8,028 | +21% |
| Selling expenses | -3,261 | -3,544 | -8% |
| Administrative expenses | -1,699 | -1,861 | -9% |
| Other operating income | 140 | 46 | +205% |
| Other operating expenses | -284 | -277 | +2% |
| Profit before tax | 4,577 | 2,392 | +91% |
| Income tax expense | -1,035 | -492 | +110% |
| Net profit | 3,541 | 1,900 | +86% |
| 2025 | 2024 | Change X | |
| --- | --- | --- | |
| 78,240 | 62,954 | +24% | |
| -9,701 | -7,028 | +38% | |
| -21,206 | -15,104 | +40% | |
| -12,763 | -10,911 | +17% | |
| 34,570 | 29,912 | +16% | |
| -14,408 | -13,215 | +9% | |
| -7,409 | -7,127 | +4% | |
| 406 | 181 | +124% | |
| -747 | -577 | +29% | |
| 12,413 | 9,174 | +35% | |
| -2,798 | -1,898 | +47% | |
| 9,615 | 7,276 | +32% |
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Consolidated balance sheet
| Balance sheet, EUR 000 | 31.12.2025 | 31.12.2024 | Change % |
|---|---|---|---|
| Fixed and intangible assets | 2,943 | 3,228 | -9% |
| Right-of-use assets | 2,938 | 2,653 | +11% |
| Net loan portfolio | 144,394 | 113,474 | +27% |
| Inventory and scrap | 2,947 | 3,990 | -26% |
| Other assets | 5,820 | 2,014 | +189% |
| Cash | 3,539 | 1,644 | +115% |
| Total assets | 162,582 | 127,003 | +28% |
| Equity | 30,144 | 24,929 | +21% |
| Share capital and reserves | 4,546 | 4,541 | +0% |
| Share premium | 6,891 | 6,891 | +0% |
| Other capital reserves | 274 | 223 | +23% |
| Retained earnings | 18,433 | 13,274 | +39% |
| Liabilities | 132,438 | 102,074 | +30% |
| Interest-bearing debt | 123,134 | 94,662 | +30% |
| Trade payables and other liabilities | 6,043 | 4,458 | +36% |
| Lease liabilities for right-of-use assets | 3,261 | 2,954 | +10% |
| Total equity and liabilities | 162,582 | 127,003 | +28% |
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Financial ratios
EBITDA margin*
Adjusted equity ratio**
ROE*
Cost-to-income ratio*
Cost of interest-bearing liabilities
Interest coverage ratio*
*Last 12 months figures.
**Including subordinated debt
Data for previous period of Q1 2025 restated as per corrections made in the audited annual statements for 2025.
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Capital markets & funding highlights
Bonds
- In September 2025 DelfinGroup launched a new bond issue of up to EUR 25 million with 9.5% coupon rate and 2 year maturity. The issue was finalized in January 2026 and the bond ISIN LV0000106649 was listed on Nasdaq First North bond market.
- Bond ISIN LV0000802718 was redeemed in full amount of EUR 10,995 million on 25 February 2026.
Banks
- At the end of 2025 DelfinGroup signed a new credit line agreement with Multitude Bank p.l.c. for EUR 17,25 million. 11 million euros were used to refinance existing credit line agreement with Multitude Bank p.l.c. and the remaining funds are used for further business development.
- After the receipt of the new credit line funds, total exposure to Multitude Bank p.l.c. lending facilities amount to 29.75 million euros.
Mintos
- Mintos risk score for VIZIA - 9.1 and Banknote - 8.6.
- Risk scores on Mintos remain as one of the best scores on the platform.
- Mintos exposure in Q4 2025 decreased by 2.9 million euros.
- At the end of 2025 launched revolving pool product on Mintos.
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delfingroup
Capital structure
Equity 30.1 m €
Subordinated bonds 10.0 m €
Mintos 30.1 m €
Unsecured bonds 61.7 m €
Banks 23.5 m €
DelfinGroup on Mintos
Since
2016
Active investors
80+ thousand
Investors from
100+ countries
Schedule of maturities
m €
*In nominal value
**Amount which has been subscribed from the initial placement on 31.12.2025.
*** Schedule of maturities at 31.12.2025. In January 2026 bank loan for EUR 11 million was refinanced with a new loan of EUR 17.25 million with maturity in 2028. On 25 February 2026 bonds worth EUR 9.5 million were redeemed.
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Dividends
Unique dividend distribution proposal in Baltics
Quarterly dividends
- At least 4 dividend payments per year
- Up to 50% from previous Q profit
Dividend yield 8.9%*
*Based on share price of EUR 1.288 on 31 December 2025 and including management's proposed dividends from Q4 2025 net profit.
| Dividend period | Dividend payment date | EUR/Share | EUR Total | Payout ratio*** |
|---|---|---|---|---|
| Q4 2025 | Upon shareholders approval** | 0.0391** | 1 777 975** | 50.00%** |
| Q3 2025 | 30.12.2025 | 0.0256 | 1 163 492 | 49.88% |
| Q2 2025 | 29.09.2025 | 0.0217 | 981 258 | 49.99% |
| Q1 2025 | 30.06.2025 | 0.0194 | 880 885 | 49.79% |
| Q4 2024 | 07.04.2025 | 0.0223 | 1 012 564 | 49.93% |
| Q3 2024 | 30.12.2024 | 0.0210 | 953 535 | 49.79% |
| Q2 2024 | 01.10.2024 | 0.0202 | 916 626 | 49.76% |
| Q1 2024 | 14.06.2024 | 0.0178 | 807 720 | 49.89% |
| Q4 2023 | 16.04.2024 | 0.0143 | 648 898 | 49.99% |
| Dividend period | Dividend payment date | EUR/Share | EUR Total | |
| --- | --- | --- | --- | |
| Annual | 11.07.2025 | 0.0092 | 417 739 | |
| Annual | 12.07.2024 | 0.0088 | 399 322 | |
| Annual | 17.05.2022, 15.07.2022 | 0.0552 | 2 501 642 |
Proposed dividends, distribution is subject to Shareholders meeting decision.
*Dividend amount paid from the net profit of the respective quarter. Q4 2025 distribution is set that all dividend payments from 2025 would be 50% from annual net profit.
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Share performance
- Share price changes since Q2 2024 due to the largest shareholder's public share offerings in which the shares were offered at a discount for a price of EUR 1.09 per share. Since then the share price has recovered to EUR 1.30 level.
- DelfinGroup investors have received additionally EUR 0.3884 per share in dividends since IPO.
| 31.12.2025 | DelfinGroup |
|---|---|
| Capitalization m € | 58.5 |
| EPS TTM € | 0.211 |
| P/E | 6.1 |
| ROE (LTM) | 34.9% |
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