REG - ZAIM Credit Systems - Second quarter 2022 trading update

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01/09/2022 07:01

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RNS Number : 8180X  ZAIM Credit Systems PLC  01 September 2022

For Immediate Release

1 September 2022

Zaim Credit Systems Plc

("Zaim" or the "Group")

Second quarter 2022 trading update

Zaim Credit Systems plc (the 'Group' or 'Zaim'), the fintech group, announces
a trading update from its wholly owned subsidiary, Zaim-Express LLC, ('Zaim
Express') in respect of the second quarter of the financial year ended 31
December 2022.

 

Second Quarter 2022 Highlights(1):

·   Continued growth of the loans issued across all business lines

·   The growth was mainly due to the strengthening of the RUB (operating
currency) vs. GBP (reporting currency) by 27 %(2) in Q2 2022 vs. Q1 2022.

·   Total loans issued grew by 13% quarter-on-quarter and 47% year-on-year.

·   Loans issued online growth of 8% quarter-on-quarter and 38%
year-on-year.

·   Loans issued via mobile application grew 38 % q-o-q and 650% y-o-y

·   As a direct result of the economic situation the Russian local
authorities announced a half-year moratorium on collection of debt incurred
before 1 April 2022, which reduced the cash collection of the operations
slightly during the quarter.

·   As a direct response to this and in order to pre-empt any negative
impact on the Group, Zaim Express limited the amount of the loans issued
online.

·   Post period end the business continues to perform well with the overall
impact of recent events expected to be minimal on the long term prospects of
the business

 

Siro Cicconi, Zaim's CEO commented:

"Despite the economic volatility, demand for the Group services remains
strong. Due to the very strong appreciation of our operating currency (RUB)
relative to our reporting currency (GBP) we reported growth of the loans
issued across all business lines.

One of the significant factors that influenced our business performance was
the restrictions on collecting activities imposed by the government starting
from 1 April 2022.

In Q2 2021 we launched our branded mobile application that became an important
sales channel and significant growth driver of our business. In Q2 2022 the
mobile application was responsible for over 13% of loans issued, which is
almost twice as much as our physical store business.

The weighted average default rate increased from 21.9% in Q4 2021 to 26.5% in
Q1 2022 due to the lower collection receivables as a result of the government
moratorium on collection activities. Overall we are pleased with the
performance under the circumstances and we don't see this as a long term
worsening of collecting activity, it is expected that after moratorium will
end, a large portion of loans under default will be recovered and repayment
levels will return to the previous trend".

Second quarter 2022 trading update(3)

The table below presents the two main KPI's (loans issued and default rate)
for the last five quarters:

 

 Quarter Ended                                        June-21  Sept-21  Dec-21   March-22  June-22
 Loans Issued (£'000)                                 6,332    6,830    7,813    8,225     9,303
 Loans Issued Growth Rate QoQ                         24 %     8 %      14 %     5 %       13 %
 Loans Issued Online (£'000)                          5,405    5,677    6,501    6,909     7,463
 Loans Issued Online Growth Rate QoQ                  25 %     5 %      15 %     6 %       8 %
 Loans Issued via Mobile Application (£'000)          158      420      671      860       1,185
 Loans Issued via Mobile Application Growth Rate QoQ  n/a      167 %    60 %     28 %      38 %
 Loans Issued Offline (£'000)                         768      733      641      456       655
 Loans Issued Offline Growth Rate QoQ                 (4 %)    (5 %)    (13 %)   (29 %)    44 %
 Weighted Average Default Rate(4)                     24.5 %   22.7 %   21.9 %   26.5 %    See note(5)

 

Notes:

 

(1) All figures presented throughout this announcement represent unaudited
management information taken from the internally generated management accounts
of Zaim-Express LLC

 

(2 )Weighted average exchange rates of British Pound vs. Russian Rouble in Q1
2022 and Q2 2022 were 115.2839 and 84.1915 respectively

 

(3) Starting from our Q1 2022 trading update we are introducing the new
reporting segment - "Loans issued via mobile application". Starting from Q2
2021 loans issued via mobile application were accounted within "Loans Issued
Online" category. In the tables below loans issued via mobile application for
Q2 2021 to Q4 2021 are deducted from the previously reported loans issued
online, which explains the difference in the numbers of loans issued online
compared with previously reported for the respective periods

(4) Default rate is defined as no payment received after 120 days of the
origination of the loan

(5 )Data is not yet available for the quarter ended 31 June 2022 as the
earliest time to determine default rates is 120 days after the end of the
period

 

*Ends*

 

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Enquiries:

 Zaim Credit Systems Plc
 Simon Retter                        Tel: +44 (0) 73 9377 9849

 Siro Cicconi
 Alex Boreyko                        Tel: +7 925 708 98 16

                                     investors@zaimcreditsystemsplc.com
 Adviser: Beaumont Cornish Limited
 Roland Cornish / James Biddle       Tel: +44 (0) 20 7628 3396

 Optiva Securities Limited
 Vishal Balasingham                  Tel: +44 (0) 20 3137 1902

 

 

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 ("MAR").

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