Now, more than ever, investors depend on Bondora to provide a simple way to grow their money online.

Key points:

  • Revenue increased by 96% to €20.3M
  • Net profit increased by 2,184% to €2.3M
  • Volume of issued loans increased by 158% to €156.8M
  • Total full-time employees grew by 11 people to a total of 65
  • Turnover grew by 171% in Spain

CEO comments on financial results

“We’re proud to report that Bondora made a net profit of €2.3M in 2019 – a 2,184% increase on the previous year. Our revenue also increased by 96% to €20.3M. This was driven by advancements in product development and marketing activities.” said Pärtel Tomberg, Bondora’s Founder and CEO. “Go & Grow has made investing easier than ever before possible, and our 2019 financial results are testament to this.”

Partel Tomberg Bondora Founder and CEO

122,000 people have invested over €371M and earned €44M

“Despite the growth in our financials, the team size increased by only 11 people. I am incredibly proud of every single person in the Bondora team, and their resilience to put the customer at the forefront of everything they do. We’re inspired to continue creating innovative services for our customers. Why should investing be any more complex than making a cup of coffee?”

This is Bondora’s third consecutive year of profitability, and the investor community now stands at more than 122,000 people. Since inception, they’ve invested €371M and earned €44M.

Outstanding financial performance

In 2019, Bondora invested heavily into building an excellent product, expanding marketing activities, and becoming a market leader in customer service. This resulted in an outstanding financial performance. The key metrics are summarized below:

    2019    2018Change
Revenue 20 258 046 10 311 26896 %
Net Profit   2 283 561       99 9842 184%
Equity   3 364 994   1 442 820  133 %
Return on Equity (ROE)      68 %       7 %879%
Return on Assets (ROA)      30 %       3 %1069%

Return on Equity (ROE) = Net Profit / Equity

Return on Assets = Net Profit / Total Assets

Bondora and COVID-19

Bondora was launched 12 years ago in the middle of the global financial crisis. Since then, Bondora has operated through severe recessions in Estonia, Finland and Spain.

“Having grown Bondora through harsh economic circumstances, we were well prepared for the new environment. It’s in our DNA.” said Pärtel Tomberg. The foundations of Bondora are built on five pillars:

1. 100% online. Bondora’s full range of services are online. The teams continue to work remotely over secure connections to support customers across the world, no matter the circumstance.
2. Risk buffers. Within Go & Grow, all returns above 6.75% p.a. serve as a risk-buffer. Our historic return is 10.7% p.a. (including recessions), the difference between the two is a reserve for investors.
3. Strong diversification. There are over 125,000 personal loans in the Go & Grow portfolio with different loan lengths, customer segments and risk categories – all reducing investors exposure to individual volatility.
4. Automated loan repayments. Our borrowers use an online interface where their repayments are processed automatically. If necessary, they can extend the loan schedules to adjust to their new financial circumstances.
5. Sustainability. Bondora has been profitable since 2017 and is well capitalized. We do not have cut back on any of our services, even if the situation were to persist.

Looking forward

Investing remains the focal point of Bondora’s product offering, but we are exploring new opportunities to serve our rapidly growing customer base.

“In 2020, we expect our revenue to remain largely on par with 2019 and profits to be around the €1M mark. Our core focus this year is to maintain and improve the portfolio quality. In combination with this, we will continue to invest in our existing products and expand the product line.” Pärtel commented.

Disclaimer: This text was originally written in English. All translations were done based on the original English document. Even though we try our best to provide accurate translations, there might be slight differences due to the different languages and cultural nuances.