ID Finance Spain H1 net profit grows by 25%, up to €5M

• Revenue increased 57% on a yearly basis mainly due to the positive performance of its lending activity in Spain.

• The positive evolution in this market has allowed ID Finance to further develop its financial wellness app Plazo, that has already surpassed 100,000 customers.         

ID Finance Spain, fastest growing fintech in Spain, has closed the first semester with a net profit of €5M, which is equivalent to a 25% increase on a yearly basis. Overall, the lending activity in Spain contributed to a 60% increase of revenue, up to €59M during the first 6 months of the year, compared to the same period of 2021.

With an equity to assets ratio of 23%, the company holds a strong and healthy equity position, that significantly exceeds the industry’s average level of around 15%.

In this regard, in May of this year, Fitch Rating improved ID Finance Spain’s outlook from negative to stable and affirmed the rating of the company’s non-guaranteed long-term debt -IDF Spain SAU 9,5% 20/23 Bond- listed on Frankfurt, at ‘B-‘ with a Recovery Rating of ‘RR4’.

Financial muscle to keep developing Plazo

Thanks to its overall strong position, ID Finance maintains its financial muscle to keep building the leading go-to financial wellness app in Spain. During the last months, Plazo has significantly expanded its cashback programme, after the partnership closed with Paylead earlier this year. In addition to the rewards for supermarket purchases, customers can now profit from up to 20% cashback when buying from prime brands (Uber Eats, Starbucks, Meller, Colvin, Delsey, Cool Mod, Gelati Dino, Phenix App, Ubeeqo, Perfume’s Club, among other).

In addition, and in line with Plazo’s commitment with people’s financial wellbeing, Plazo’s customers have the option to seek assessment to help them improve their professional situation and find a better job, aligned with their expectations.

Furthermore, Plazo is already working in the implementation of new, innovative lending solutions, thanks to another strategic alliance closed this year with Mambu, the leading cloud banking technology platform. The integration of this partner’s lending engine will allow Plazo to accelerate the expansion of new products and adapt it to the customers’ requests. In this regard, very soon new flexible features will be available on the app such as BNPL, instalment payments or salary advances.

Boris Batin, CEO of ID Finance Plazo, said: “The results of this first semester endorse our commitment with the financial stability of the company to guarantee its long-term sustainability. In addition, they give us further confidence to keep expanding the service offering of Plazo and help our customer achieve greater financial wellness. In this sense, we are pleased to see our customer base growing at a good pace”.