The management of IPAS INDEXO (hereinafter – INDEXO) has adopted an updated strategy and financial plan for 2026–2029, which replaces the previous forecast. Group net profit attributable to shareholders is planned to grow from EUR 0.5-1 million in 2026 to EUR 37-42 million in 2029. DelfinGroup and the pension business are on track to deliver strong results. Consumer lending becomes the Bank’s main focus for the next 24-36 months. The Bank is expected to reach net profit in the fourth quarter of 2027, while more than doubling its loan portfolio to close to EUR 360 million by the end of 2027.
For 2028, Group net profit attributable to shareholders is projected at EUR 24-27 million, compared with EUR 30-34 million in the previous forecast. The main reason is higher loan loss provisions as the Bank focuses on fast growth in consumer lending.
Group forecasts
| Group, EUR million | 2026 | 2027 | 2028 | 2029 |
| Total income | 72 | 90-95 | 120-130 | 145-160 |
| Net profit attributable to INDEXO shareholders | 0.5-1 | 9-11 | 24-27 | 37-42 |
| Loan portfolio | 340 | 520-600 | 770-900 | 1000-1200 |
| Pension assets under management (EUR, billion) | 1.8-1.9 | 2.0-2.2 | 2.3-2.5 | 2.6-2.9 |
“Our strategy to build a strong local financial services group is on a good path. Our asset management business and DelfinGroup are delivering excellent results to shareholders. Two years ago we opened a bank. Today it serves more than 70,000 customers, and we have become a significant player in the Latvian consumer credit market, with over 12 per cent market share in monthly new lending. We see most of the mortgage refinancing flow in the market, and we are building on that strength with home equity lending, a product that lets homeowners put the value already in their property to work, and one we intend to grow. By the end of 2026 the Bank's loan portfolio is forecast to match DelfinGroup's. The Bank reaches net profitability in the fourth quarter of 2027 and becomes the Group's largest profit contributor after 2029. In the coming year we will enter the corporate lending market, significantly widen our range of lending products and accelerate the growth of the Bank’s loan book. All of this contributes to achieving our long-term goals,” says Henrik Karmo, CEO and co-founder of INDEXO.
The Bank: consumer lending first
The first two years have proved that there is room for a new bank in Latvia. Consumer lending has proved to be a very good opportunity for a new bank: it grows revenue fast and finances the development of other banking services, where scale takes longer to build. The Bank therefore focuses on this more profitable market segment, where it has good unit economics. Mortgage lending will increase gradually as the number of daily banking customers and their account balances grow.
The Latvian consumer lending market, including non-bank lenders, is worth around EUR 2 billion and is growing. Consumer lending will be the Bank’s main income driver. Consumer refinancing is the next product to launch.
Before the end of this year, the Bank will broaden the funding base for its loan book growth. It launches its deposit product for German savers through CHECK24 and starts to take corporate deposits in Latvia. This gives the Bank a strong base for launching SME lending and other new lending products for private individuals, which can be done without significant investment. The Bank will also broaden its daily banking offer to win a larger share of customers’ wallets.
The Bank’s standalone loan portfolio is planned to grow from around EUR 170 million in 2026 to EUR 850-950 million in 2029. Operating profit before expected loan losses turns positive in the first quarter of 2027 and net profit in the fourth quarter of 2027.
The capital needed from dilutive capital raisings to achieve the Group’s planned results is approximately EUR 10-13 million with the rest of the growth is funded by profits generated by the Group entities.
Changes from the previous forecast
Volumes are higher and income is on a higher growth trajectory than in the previous forecast. In 2028 the Group’s loan portfolio is planned EUR 60-100 million above the previous forecast (on comparable basis). Expected credit losses are also higher, driven by the fast-growing consumer loan portfolio.. Under IFRS 9, expected credit losses are recognised at origination while the related interest income is earned over the life of the loan. This timing effect is most visible in unsecured consumer lending, where expected credit losses are higher; on well-collateralised mortgages they are considerably lower.
Due to higher ECL, the expected Group profit attributable to INDEXO shareholders in 2028 is forecasted at EUR 24-27 million vs 30-34 million in our previous forecast. The lower expected net profit also reflects that the synergies related to Group funding cost optimization kick in later than expected and will be more gradual. The management continues working on delivering them and will report once significant milestones have been reached.
DelfinGroup and the pension business
INDEXO owns 72.03 per cent of DelfinGroup. Its net profit is planned to grow from EUR 11.7 million in 2026 to EUR 22.7 million in 2029, of which EUR 16.4 million is attributable to INDEXO Group shareholders.
In the asset management business we expect slightly lower volume of assets under management in 2028 than in previous forecast EUR 2.3-2.5 billion vs 2.68 billion and expect to reach the previous target in 2029.
Webinar on 14 October
INDEXO will present the plan and answer questions in a webinar on 14 October in Latvian at 9:00 EEST and in English at 11:00 EEST (10:00 CEST).
Registration for the webinar in English: indexo.lv/en/webinar-202610/
Registration for the webinar in Latvian: indexo.lv/vebinars-202610/
Registration for Swedish investors for the webinar in English: indexo.lv/se/webbinarium
About the INDEXO financial services group
INDEXO is a financial services group comprising pension management companies IPAS INDEXO, INDEXO Atklātais Pensiju Fonds AS, and INDEXO Asset Management IPAS, as well as INDEXO Bank AS and DelfinGroup AS.
The Group's pension companies manage EUR 1.7 billion for more than 162 thousand customers in Latvia. INDEXO Banka, a bank licensed by the European Central Bank, serves more than 70 thousand customers with deposits exceeding EUR 162 million and a loan portfolio before expected credit losses exceeding EUR 135 million. The Group reached profitability in the first quarter of 2026.
More information: https://indexo.lv/en/