Fintech
Intrum AB – Year-end announcement 2021
- Seasonally strong fourth quarter, business activity not impacted by Omicron
- Continued positive economic sentiment, despite inflationary pressures and supply chain challenges
- Significant client wins and retentions, including a transformational CMS deal in the UK
- Delivery on key priorities; transformation program and organic growth
- Acceleration of case migrations and increase in global front office utilisation
- Scalability of the operating platform visible with robust cash revenue growth and stable cash costs driving margin expansion
Financial results in brief, October-December 2021 (October-December 2020)
- Adjusted EBIT increased to SEK 2,355 M (1,611)
- Cash EBIT increased to SEK 2,171 M (1,523)
- Q4 cash EPS increased to SEK 13.93 (9.00)
- Q4 cash RoIC increased to 12.0 per cent (8.7)
- Available liquidity at the end of the quarter was SEK 19.5 bn (17.1)
Full year 2021 (full year 2020)
- Adjusted EBIT increased to SEK 7,014 M (5,738)
- Cash EBIT increased to SEK 6,343 M (5,580)
- Cash EPS increased to SEK 28.98 (25.28)
- Cash RoIC increased to 8.9 per cent (7.7)
- Net debt/Full year cash EBITDA was 3.9x (4.0x)
Dividend proposal
The Board of Directors of Intrum AB proposes that the Annual General Meeting distributes a dividend to the shareholders of SEK 13.50 per share (12.00), corresponding to a total of SEK 1,631 M (1,450).
Presentation of year-end announcement
Anders Engdahl, President & CEO and Michael Ladurner, CFO, will present the results and answer questions in an audio cast with telephone conference at 9:00 a.m. CET. The conference will be held in English. To listen in, please dial:
+46 8 519 993 83 (SE)
+44 333 300 9264 (UK)
+1 646 722 4902 (US)
Comment by President & CEO Anders Engdahl
“For 2021 we saw growth of cash revenues of 4 per cent, also driven by a seasonally strong fourth quarter that has not been impacted by the Omicron variant. For the same period cash EBITDA grew by 6 per cent and cash EBIT by 14 per cent, demonstrating the operating leverage of the business.
Within the Credit Management Services segment’s gradual normalisation of new case inflows continues into the fourth quarter with improving inflows across the board, also in higher value financial services claims and the trend is set to extend into 2022. Our focus on client value proposition combined with high commercial activity has enabled us to win key new and retain important existing clients. Amongst others, Intrum UK won a transformational mandate from a major retail bank covering the outsourcing of the collections and recoveries functions for the bank.
For our Strategic Markets we observe a broad-based and sharp recovery from the pandemic, with a very strong finish to 2021. In Spain, particularly our real estate activities performed strongly with SEK 3.7 bn of RE sales in the fourth quarter and SEK 12.8 bn for 2021, which represents approximately 2.4 per cent of all pre-owned real estate sales in the country. In Italy we have seen normalisation of legal system effectiveness during the fourth quarter with significant opportunities for further growth, particularly in the UtP (Unlikely to Pay) area, with SEK 53 bn of AuM (asset under management) added to the platform in 2021. In Greece, the trajectory of strong performance continues.
The Portfolio Investments segment had record gross cash collections of SEK 11.8 bn (11.0) and a return to growth in terms of capital deployed of SEK 8.1 bn (5.1) at attractive returns for the full year 2021. The segment has significantly outperformed expectations during the year. Going forward we expect to continue to deploying capital in line with our double digit organic growth target.
The transformation towards ONE Intrum has progressed with significant operating leverage. Optimising resource allocation and focus on the modern, common platforms has enabled increased cash revenues by 10 per cent compared to pre-pandemic level, while keeping cash spend flat between 2019 and 2021. We end 2021 with four global front offices, covering 15 markets and c. 16 per cent of all Intrum calls globally per month. During 2021 we have also accelerated case migrations to the new operating platform, it is now our largest collection system and represents c. 20 per cent of all Intrum cases.
Our sustainability agenda is advancing towards the strategic targets. I am happy to see that both Intrum’s client satisfaction index – as well as our employee engagement index has increased for the third consecutive year, reaching the highest level to date. During the autumn we have completed a Human Rights Due Diligence in alignment with the United Nations Guiding Principles on Business and Human Rights, and we are now defining actions to mitigate risks.
Looking into 2022, our two key priorities remain unchanged – we will continue to deliver on transformation and organic growth. We foresee further normalisation in the CMS segment, boosted by our 2021 commercial successes starting to contribute as well as exploiting economies of scale of the ONE Intrum platform. In 2022 we expect a return of a normal seasonal pattern, with relatively weaker first and third quarters and stronger second and fourth quarters.”
Fintech
Fintech Pulse: Your Daily Industry Brief (Chime, ZBD, MiCA)
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.
Fintech
SPAYZ.io prepares for iFX EXPO Dubai 2025
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.
Fintech
Airtm Enhances Its Board of Directors with Two Strategic Appointments
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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