The consolidated audited financial report for 2022 of the pension management company IPAS Indexo (hereinafter – INDEXO) shows, that the company achieved a record number of new customers last year. Over the course of 2022, some 32,200 new clients became participants of the INDEXO 2nd and 3rd pillar pension plans. At the end of the year, the number of INDEXO pension plan clients reached 99,700, which is by 48% more than at the beginning of the year. At the same time, the asset volume under management by INDEXO in 2022 increased by 25% to EUR 584.9 million.
INDEXO growth has been achieved despite a decline in Latvia’s 2nd pillar pension market from EUR 6 billion to EUR 5.68 billion. The market decline is explained by the drop of value in all significant share and bond markets.
“Last year’s most important event definitely were the first steps in development of the new INDEXO bank. In July, we successfully carried out the initial public offering (IPO) of INDEXO shares, raising the capital for development of the bank, and over the year we made significant progress that resulted in submitting the application for the banking license to the Bank of Latvia at the end of last year. This year we will continue the bank development process,” says Valdis Siksnis, INDEXO Board Chairman and one of the founders of the company.
Last year EUR 1.186 million were invested in development of the INDEXO bank, an experienced banking management team has been formed, foundations for the new bank’s IT infrastructure have been laid, work on customer service system development has been started and a subsidiary company AS IDX1R has been established, which, upon receiving the banking license, will become the new INDEXO bank.
“INDEXO was established more than 5 years ago, reacting to the high costs and low yield in the Latvian pension management market. I am very satisfied that with the results of our largest pension plans Izaugsme 47-57 and Jauda 16-50 we have changed the situation and have convincingly proved the advantage of low-cost passive asset management. This has helped to strengthen our position as the fastest growing pension manager. For example, we attracted more than 25,000 new customers for 2nd pillar pension plans, which is six times more than our nearest competitor. Over the past 5 years, the number of our customers has increased by 40% a year on average, and we will continue to make significant investments to attract new clients also this year,” continues V. Siksnis.
INDEXO market share in the 2nd pillar pension market in 2022 exceeded 10%. Thanks to increase of the number of customers and rising average wage, our monthly contributions to 2nd pillar pension plans increased by 55% – from EUR 4.2 million to EUR 6.5 million a month. Loyalty of INDEXO clients is growing regularly and in 2022 reached 94%. At the end of 2021, the share of loyal customers was 91.7%.
INDEXO profit from core activities, before costs for client attraction and bank development, was EUR 1.493 million last year. INDEXO last year invested EUR 1.579 million in attraction of new clients. Net loss after investments in the new bank development and client attraction in 2022 was EUR 1.271 million.
The Consolidated audited financial report of IPAS Indexo for 2022 is available below and will be made available on the INDEXO website: https://indexo.lv/en/for-investors/.
INDEXO invites to learn more about the 2022 results and other recent developments in a webinar, which will be held on March 1, at 13:00 local time.
To participate in the webinar, please register: https://nasdaq.zoom.us/webinar/register/WN_v5lm4FEVRb-coaX8T0_pCQ
After filling in the application form, a link to the webinar and information on how to join the webinar will be sent to the e-mail address provided.
Bank (credit institution) license is subject to authorization granted by the European Central Bank based on the Bank of Latvia proposal.