Creditstar Group sees annual profit drop to €7.3m citing move to IFRS
Creditstar Group, a data-driven European fintech, has reported a decline in profit to €7.3m (£6.3m) for 2024, down from €10m in 2023, as increased loan-loss provisions and one-off financing costs reduced bottom-line earnings.
The group’s 2024 results are its first consolidated results prepared under International Financial Reporting Standards (IFRS), with the net profit decline due to higher loan-loss provisions mandated under IFRS and one-off accounting transition expenses for moving to a new standard.
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Despite the decline in profit amid additional transaction costs, Creditstar maintained its 18-year profitability “streak”.
The European fintech reported that total interest income increased 17 per cent to €74m, while net interest income rose 16 per ent to €36.8m in 2024.
It also “substantially expanded” its net loan book by 27 per cent to €351.2m, while diversifying its funding channels.
Creditstar, which offers digital consumer credit in eight countries and investment products across 31 European markets, reported strong demand from retail investors during the period for its SmartSaver investment products due to higher returns.
The group said the launch of Vaults in March, which offers “enhanced” yields for longer commitments, attracted 16,000 customers in nine months, taking total SmartSaver investments to in excess of €100m.
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Customer funds directly finance Creditstar’s consumer loan portfolio and, in doing so, provide an additional source of capital at a lower cost compared to institutional debt markets.
“We absorbed all loan-loss provisions and IFRS transition expenses in 2024, setting a clean foundation for future results,” said Aaro Sosaar, founder and chief executive of Creditstar.
“Even after these adjustments, we delivered a €7.3m profit, substantially expanded our loan book, and diversified funding channels. These actions position us well for sustainable, disciplined growth.”
The group also reported having raised €33m through bond issues, with €24m in June and €9m in December, and secured a $10m (£7.5m) senior secured credit facility from Singapore-based investment platform Kilde.
In May this year, Creditstar completed a €46m multi-tranche bond placement in May this year, which is its largest to date.
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