Fintech
Rifco Reports Fourth Quarter Results
Red Deer, Alberta–(Newsfile Corp. – June 17, 2021) – Rifco Inc. (TSXV: RFC) (“Rifco” or the “Company”), is pleased to announce its consolidated results for the fourth quarter and the year ended March 31, 2021.
Annual Highlights
- Rifco reported year-to-date Adjusted Net Income before Taxes of $4.9M and $0.23 per share. This is 283% higher than the prior year. Adjusted Net Income before Taxes removes the effects of the non-cash change in provision for impairment and one-time strategic review expenses. Net income including these items and taxes, was $4.8M and $0.22 per share.
- The annualized Credit Loss Rate for the period decreased by 265 basis points to 4.41% from 7.06% in the comparable quarter. The Company believes this is partially a product of the operational improvements it has made, and the strength of the custom credit model, originally implemented in fiscal 2018.
- The year-to-date Credit Spread Rate improved 227 basis points over the comparable period from 10.42% to 12.69%. The Company believes the latest pricing model implemented alongside the custom credit model has contributed to improved Credit Spread.
- The Delinquency Rate (over 30 days) remains at an exceptionally low level of 2.74%. This is a decrease of 281 basis points over the prior year end.
- On November 27, 2020, Rifco declared a $0.35 per common share special dividend. The dividend was paid in cash on December 7, 2020 in the amount of $7.6M.
Fourth Quarter Highlights
- On April 15, 2021, Rifco announced the appointment of Roger Saran as President and Chief Operating Officer of Rifco National Auto Finance and also announced collaboration with autologiQ Inc. on ‘Easy Monthly Payments’ TM (EMP) program.
- Rifco reported quarterly Adjusted Net Income before Taxes of $1.1M and $0.05 per share. This compares favourably with the prior quarter’s Adjusted Net Income before Taxes of $0.7M and $0.03 per share and the comparable quarter’s Adjusted Net Income before Taxes of $0.7M and $0.03 per share. Adjusted Net Income before Taxes removes the effects of the non-cash change in provision for impairment and one-time strategic review expenses. Net income including these items and taxes, was $0.7M and $0.03 per share.
- Originations in the current quarter were $20.6M, a 15.1% increase over the prior quarter’s Originations of $17.9M.
While the Company is cautiously optimistic about recent and near-term results, the economic forecast in this COVID-19 environment is uncertain.
Annual Comparative Results
| Statements of income | For the year ended March 31, 2021 | For the year ended March 31, 2020 | ||
| ($,000’s, except per share, % of average loan receivables) | ||||
| Average loan receivables for the period | 203,647 | 225,252 | ||
| Financial revenue | 34,818 | 17.10% | 39,374 | 17.48% |
| Credit losses | 8,989 | 4.41% | 15,893 | 7.06% |
| Credit Spread | 25,829 | 12.69% | 23,481 | 10.42% |
| Financial expenses | 9,692 | 4.76% | 11,145 | 4.95% |
| Adjusted Net Financial Income before Operating Expenses | 16,137 | 7.93% | 12,337 | 5.47% |
| Adjusted Operating expenses | 11,229 | 5.52% | 11,057 | 4.92% |
| Adjusted Net Income (Loss) Before Taxes | 4,908 | 2.41% | 1,280 | 0.55% |
| Strategic review process | 500 | 0.25% | (700) | (0.31%) |
| Decrease (increase) in provision for impairment | 1,098 | 0.54% | (4,113) | (1.83%) |
| Net loss (loss) before tax | 6,506 | 3.20% | (3,533) | (1.59%) |
| Income tax (expense) recovery | (1,716) | (0.84)% | 651 | 0.29% |
| Net income (loss) | 4,790 | 2.36% | (2,882) | (1.30%) |
| Weighted average number of outstanding shares | 21,646 | 21,597 | ||
| Fully diluted basis | 21,646 | 21,597 | ||
| Adjusted Net Income before Taxes per Common Share – basic | $ 0.226 | $ 0.059 | ||
| Diluted | $ 0.226 | $ 0.059 | ||
| Net income (loss) per common share – basic | $0.221 | $(0.133) | ||
| Diluted | $0.221 | $(0.133) | ||
Quarterly Comparative Results
| Statements of income | Current Quarter 3 Months Ended March 31, 2021 |
Prior Quarter 3 Months Ended December 31, 2020 |
Comparable Quarter 3 Months Ended March 31, 2020 |
|||
| ($,000’s, except per share, % of average loan receivables) | ||||||
| Average loan receivables for the period | 194,058 | 197,611 | 224,580 | |||
| Financial revenue | 8,240 | 16.98% | 8,584 | 17.38% | 9,744 | 17.35% |
| Credit losses | 2,250 | 4.64% | 2,145 | 4.34% | 3,465 | 6.17% |
| Credit Spread | 5,990 | 12.34% | 6,439 | 13.04% | 6,279 | 11.18% |
| Financial expenses | 2,249 | 4.64% | 2,325 | 4.71% | 2,706 | 4.82% |
| Adjusted Net Financial Income before Operating Expenses | 3,741 | 7.70% | 4,114 | 8.33% | 3,573 | 6.36% |
| Adjusted Operating Expenses | 2,666 | 5.49% | 3,403 | 6.89% | 2,913 | 5.19% |
| Adjusted Net Income (Loss) before Taxes | 1,075 | 2.21% | 711 | 1.44% | 660 | 1.17% |
| Strategic review process | – | 0.00% | – | 0.00% | (537) | (0.96%) |
| Increase in provision for impairment | (182) | (0.38%) | (503) | (1.02%) | (3,924) | (6.99%) |
| Net income (loss) before taxes | 893 | 1.83% | 208 | 0.42% | (3,801) | (6.78%) |
| Income tax (expense) recovery | (193) | (0.40%) | (31) | (0.06%) | 771 | 1.37% |
| Net income (loss) | 700 | 1.43% | 177 | 0.36% | (3,030) | (5.41%) |
| Weighted average number of outstanding shares | 21,750 | 21,612 | 21,597 | |||
| Fully diluted basis | 21,750 | 21,612 | 21,597 | |||
| Adjusted Net Income before taxes per Common Share basic | $0.049 | $0.033 | $0.031 | |||
| Diluted | $0.049 | $0.033 | $0.031 | |||
| Net income (loss) per common share basic | $0.032 | $0.008 | $(0.140) | |||
| Diluted | $0.032 | $0.008 | $(0.140) | |||
Rifco, today, filed its annual financial statements and management discussion and analysis for the year ended March 31, 2021. The previously released financial statements and the related management’s discussion and analysis can be viewed at www.sedar.com or at www.rifco.net.
Non-IFRS Measures
Throughout this Press Release, management uses terms and ratios which do not have a standardized meaning under IFRS and are unlikely to be comparable to similar measures presented by other issuers. Specifically, management presents an Adjusted Net Income measure, along with related Adjusted sub-totals and ratios. These measures do not have any standardized meaning under IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. A full description of these measures can be found in the management discussion and analysis that accompany the financial statements for the period ended March 31, 2021.
About Rifco
Rifco National Auto Finance Corporation (“RNAF”), Rifco’s sole, wholly owned, subsidiary operates with a purpose to help its clients obtain a safe and reliable vehicle by providing alternative finance solutions. RNAF currently distributes its alternative finance products indirectly through select automotive dealer partners.
Rifco is built on a foundation of trust, respect, empowerment, accountability and passion which are exhibited by each and every member of the Rifco team, as we collaboratively pursue our collective vision and do so in a manner that is consistent with our purpose.
The common shares of Rifco Inc. are traded on the TSX Venture Exchange under the symbol “RFC”. There are 21.75 million shares (basic) outstanding.
CONTACT:
Rifco Inc.
Warren Van Orman
Vice President and Chief Financial Officer
Telephone: 1-403-314-1288 Ext 7007
Fax: 1-403-314-1132
Email: [email protected]
Website: www.rifco.net
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/87961
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As we close out 2024, the fintech industry continues to deliver headlines that underscore its dynamism and innovation. From IPO aspirations to groundbreaking regulatory milestones, today’s updates highlight the transformative power of fintech partnerships, regulatory evolution, and disruptive technologies. Here’s what you need to know.
Chime’s Quiet Step Toward Public Markets
Chime, the U.S.-based financial technology startup best known for its digital banking services, has taken a significant step by filing confidential paperwork for an initial public offering (IPO). As one of the most valuable private fintechs in the U.S., Chime’s move could potentially signal a renewed appetite for fintech IPOs in a market that has been cautious following fluctuating valuations across the tech sector.
With a valuation that reportedly exceeded $25 billion in its last funding round, Chime’s IPO could set a new benchmark for the industry. Observers note that its strong customer base and revenue growth may make it an appealing choice for investors seeking to capitalize on the digital banking boom. However, the timing and success of the IPO will depend on broader market conditions and the regulatory landscape.
Source: Bloomberg
ZBD’s Pioneering Achievement: EU MiCA License Approval
ZBD, a fintech company specializing in Bitcoin Lightning network solutions, has made history by becoming the first to secure an EU MiCA (Markets in Crypto-Assets Regulation) license. This landmark approval by the Dutch regulator positions ZBD at the forefront of compliant crypto-fintech operations in Europe.
MiCA, which aims to harmonize the regulatory framework for crypto-assets across the EU, has been a focal point for industry players aiming to establish legitimacy and expand their offerings. ZBD’s achievement not only validates its operational rigor but also sets a precedent for other fintech firms navigating the evolving regulatory landscape.
Industry insiders view this as a strategic advantage for ZBD as it broadens its footprint in Europe. By leveraging its regulatory approval, the company can accelerate its product deployment and establish trust with institutional and retail users alike.
Source: Coindesk, PR Newswire
The Fintech-Credit Union Synergy: A Blueprint for Innovation
The convergence of fintechs and credit unions continues to reshape the financial services ecosystem. Collaborative initiatives, such as the one highlighted in the recent partnership between fintech innovators and credit unions, are proving to be a potent force in delivering tailored financial solutions.
This “dream team” approach allows credit unions to leverage fintech’s technological expertise while maintaining their community-focused ethos. Key areas of collaboration include digital payments, personalized financial management tools, and enhanced loan processing capabilities. These partnerships not only enhance member engagement but also enable credit unions to remain competitive in an increasingly digital-first financial environment.
Industry analysts emphasize that such collaborations underscore a broader trend of traditional financial institutions embracing fintech-driven solutions to bridge service gaps and foster innovation.
Source: PYMNTS
Tackling Student Loan Debt: A Fintech’s Mission
Student loan debt remains a pressing issue for millions of Americans, and a Rochester-based fintech aims to offer relief through its cloud-based platform. This innovative solution is designed to simplify loan management and provide borrowers with actionable insights to reduce their debt burden.
The platform’s features include repayment optimization tools, personalized financial education, and seamless integration with loan servicers. By addressing the complexities of student loan management, this fintech is empowering borrowers to make informed decisions and achieve financial stability.
As the student loan crisis continues to evolve, solutions like this highlight the critical role fintech can play in addressing systemic financial challenges while fostering financial literacy and inclusion.
Source: RBJ
Industry Implications and Takeaways
Today’s updates underscore several key themes shaping the fintech landscape:
- Regulatory Milestones: ZBD’s MiCA license approval exemplifies the importance of regulatory compliance in unlocking growth opportunities.
- Strategic Partnerships: The collaboration between fintechs and credit unions demonstrates the value of combining technological innovation with traditional financial models to drive customer-centric solutions.
- Market Opportunities: Chime’s IPO move reflects a potential revival in fintech public offerings, signaling confidence in the sector’s long-term prospects.
- Social Impact: Fintech’s ability to tackle systemic issues, such as student loan debt, showcases its role as a force for positive change.
The post Fintech Pulse: Your Daily Industry Brief (Chime, ZBD, MiCA) appeared first on News, Events, Advertising Options.
Leading global payments platform SPAYZ.io has confirmed it will be attending iFX EXPO Dubai 2025 on 14 to 16 January. Exhibiting at Stand 64 at Trade Centre Dubai, SPAYZ.io’s team of professionals will be on hand providing live demonstrations of its renowned payment services for payment providers. Attendees will also receive exclusive insight into SPAYZ.io’s plans for 2025 alongside early early access to its upcoming plans for the new year.
SPAYZ.io delivers a host of payment solutions that leverage the latest technological innovations and open access to the fastest growing emerging markets across Africa, Europe and Asia. Over the past year, there has been huge demand for its Open Banking and local payment method services, alongside bank transfers, mass payouts, online banking and e-wallets.
Yana Thakurta, Head of Business Development at SPAYZ.io commented: “We look forward to once again participating at iFX Dubai to expand our network of partners and clients. It’s a fantastic way to kick off the year, connecting with thousands of industry leaders from FOREX platforms to trading companies, and everything in between.
“Our key goal for iFX Dubai EXPO 2025 is to expand our portfolio of solutions and geographies. We’re using this as an opportunity to partner with like-minded entities who share our ambition to provide payment solutions that are truly global.”
Come meet SPAYZ.io’s team at the Trade Centre Dubai at Stand 64. You can also book a meeting slot with a member of a team.
The post SPAYZ.io prepares for iFX EXPO Dubai 2025 appeared first on News, Events, Advertising Options.
Airtm, the most connected digital dollar account in the world, is proud to announce the addition of two distinguished industry leaders to its Board of Directors: Rafael de la Vega, Global SVP of Partnerships at Auctane, and Shivani Siroya, CEO & Founder of Tala. These appointments reflect Airtm’s commitment to innovation and financial inclusion as the company enters its next phase of growth.
“We are thrilled to welcome Rafael and Shivani to Airtm’s Board of Directors,” said Ruben Galindo Steckel, Co-founder and CEO of Airtm. “Their unique perspectives and proven track records will be invaluable as we continue scaling our platform to empower individuals and businesses in emerging markets. Together, we’ll push the boundaries of financial inclusion and innovation to create a more connected and equitable global economy. Rafael and Shivani bring a wealth of experience and strategic insight that will strengthen Airtm’s mission to connect emerging economies with the global market.”
Rafael de la Vega, a seasoned leader in fintech global partnerships and technology innovation, is currently the Global SVP of Partnerships at Auctane. With a proven track record of delivering scalable, impactful solutions at the intersection of fintech, innovation, and commerce, Rafael’s expertise will be pivotal as Airtm continues to grow. “Airtm has built a platform that breaks down barriers and opens up opportunities for people in emerging economies to connect to global markets. I am excited to contribute to its growth and help further its mission of fostering financial inclusion on a global scale,” said Rafael.
Shivani Siroya, CEO and Founder of Tala, is a pioneer in financial technology, renowned for empowering underserved communities through access to credit and essential financial tools. Her leadership in leveraging data-driven innovation aligns seamlessly with Airtm’s vision of creating more equitable financial opportunities. “Empowering underserved communities has always been at the core of my work, and Airtm’s mission resonates deeply with me. I’m thrilled to join the Board and work alongside such a dynamic team to expand access to financial tools that truly make a difference in people’s lives,” said Shivani.
The post Airtm Enhances Its Board of Directors with Two Strategic Appointments appeared first on News, Events, Advertising Options.
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