According to the Unaudited Consolidated Interim Report for the first three months of 2025, IPAS Indexo (hereinafter – INDEXO) pension management business generated a profit of EUR 386 thousand, while the fast-developing banking business produced a loss of EUR 2.42 million due to significant investments in IT development and introduction of new services. The comprehensive loss of the consolidated INDEXO Group was EUR 2.03 million in the first quarter of 2025.
INDEXO pension business is advancing on a steady growth trajectory
Over the first quarter of 2025 INDEXO has added 2.4 thousand new customers to its pension business, bringing the total to 144.3 thousand customers at the end of March 2025, which constitutes a 10% growth year-on-year, while Assets Under Management (AUM) have grown to EUR 1 299 million at the end of March of this year, compared to 1 060 million at the end of the first quarter of 2024, a 23% year-on-year growth. The commission income has risen to EUR 1.2 million in the first quarter of 2025, a 33% year-on-year increase.
“Despite well-known global market turbulence, we remain steadily on course to grow the pension business of INDEXO and create value for our customers over long-term. Our pension business has had a robust growth with our monthly 2nd pillar contributions growing by 16%, rising from EUR 26.1 million in the first quarter of 2024 to EUR 30.2 million in the first three-month period of 2025, driven by an increase in customer numbers and growing salaries. We are also proud to have the strongest customer portfolio on the market - at the end of the first quarter of 2025, the INDEXO 2nd pension pillar customers had the highest industry average Assets Under Management per customer, amounting to EUR 9 942,” says Henrik Karmo, Chairman of the Management Board of IPAS INDEXO and one of the founders.
INDEXO 3rd pillar pension business experienced steady growth in Q1 – AUM increased from 37.64 million to 39.02 million or by 3.66%, and the client base grew by 5.64% from 16 539 to 17 471. During the first quarter, INDEXO also increased its focus on attracting corporate clients to 3rd pillar pension plans.
INDEXO Bank is rapidly growing its customer volume and makes significant progress in lending
For the INDEXO banking arm, the first quarter of the year was marked by two main highlights: impressive growth in the customer base and a significant increase in the consumer loan portfolio. During the quarter, INDEXO Bank's customer base increased by 10.5 thousand, reaching 31.6 thousand customers by the end of March. Simultaneously, the consumer loan portfolio grew by EUR 5.69 million, reaching EUR 6.67 million and client deposits increased by EUR 12.84 million to EUR 45.94 million. As of the end of March, the total assets of INDEXO Bank stood at EUR 55.7 million, reflecting a 25% increase over the quarter.
“Our goal is to create a financial services group owned by Latvian residents, working in the interests of local people, making strategic decisions right here in Latvia, and driving positive changes in the Latvian financial services market. INDEXO Bank enables the people of Latvia to use the most modern payment solutions with cards issued by a local bank. The main goals for the coming months are to start mortgage lending, introduce junior account offerings and to further increase the share of active customers. This means that in less than a year since the start of INDEXO Bank’s operations, we will have established a full range of essential banking services for private individuals,” says Valdis Siksnis, Chairman of the Management Board of INDEXO Bank and one of the founders.
Significant developments also after the Reporting Period
After the Reporting Period, INDEXO has raised EUR 2.76 million in its public share offering. The new capital will help INDEXO Bank to continue its growth, aiming to reach the break-even point at the group level (before provisions for credit losses) this year and start issuing mortgage loans within this month. To achieve the goals more quickly, an additional closed share issue may also be implemented within the authorization granted by the shareholders’ meeting.
Also, during April INDEXO continued its steady growth across its business lines with pension customer number reaching 144,6 thousand at the end of the month and AUM at EUR 1 262 million, reflecting the global asset market volatility.
As of the end of April 2025, INDEXO Bank's number of clients has grown to 33.4 thousand, client deposit volumes increased to EUR 47.5 million, while the amount of consumer loan portfolio has reached EUR 9.1 million. The Bank has also paid out EUR 94.9 thousand in interest to its customers during the month of April.
About INDEXO
INDEXO is a financial services group that includes pension management companies and INDEXO Bank.
INDEXO, an investment management company licensed by the Bank of Latvia, offers modern 2nd and 3rd pillar pension plans in Latvia. It is one of the fastest-growing pension managers in the Baltics, with over 144 thousand customers and more than EUR 1.3 billion assets under management.
INDEXO Bank, a credit institution licensed by the European Central Bank, serves over 33 thousand clients, with total client funds amounting to EUR 47.5 million and EUR 9.1 million in issued consumer loans.
Founded and headquartered in Latvia, INDEXO is a Nasdaq Riga-listed company with more than 6,400 shareholders. Its mission is to fight for a better financial environment in Latvia and strengthen the well-being of Latvian residents by providing modern and personalized financial services. For more information visit www.indexo.lv.
