The Road to 1 Billion – Bondora Proudly Reports a Profitable 2020

Bondora

Despite an unprecedented year in the global financial markets, Bondora announces its 4th consecutive year of profitability.

Investing made simple

Key highlights:

  • Revenue increased by 5% to €21.4M
  • Net profit stood at €3.4M—a 16% profit margin
  • Originations totaled €68.4M
  • Recoveries increased by 50% to €7.9M
  • 44,738 new investors joined Bondora in 2020
20192020Change
Revenue (EUR)20 275 60121 379 772+5%
EBITDA (EUR)2 577 7923 945 362+53%
Net profit (EUR)2 396 6593 427 040+43%
Return on Equity62%47%-24%
Return on Assets28%33%+19%
Average number of employees6577+18%

161,000 investors have invested over €426M and earned more than €52M in returns.

 A year in review

Despite the uncertainty in the market, our loan originations in Estonia remained steady throughout the year, totaling nearly €50M in 2020. At the beginning of the pandemic, we temporarily decided to stop issuing loans in Finland and Spain. Despite demand continuing to increase, Bondora chose to step back and assess the situation. As our risk models are updated continuously, Bondora was able to build any changes in payment behavior into credit risk decisions. An in-depth assessment of the loan portfolio was essential for long-term sustainability.

At the same time, Bondora was able to cut back significantly on operating expenses to maintain profitability. Specifically, we reduced marketing costs substantially in 2020.

After assessing the data and with high confidence in our understanding of the market situation, Bondora restarted issuing loans in Finland toward the latter end of 2020. Originations in Spain are expected to resume in 2021, together with expanding into a new European market.

Along with sustainable origination figures, 2020 was a record year for Bondora in recoveries. We recovered close to €8M throughout the year, which is approximately 50% more than 2019.

CEO comments on financial results

“We’re gearing up for growth,” Pärtel Tomberg.
“We’re gearing up for growth,” Pärtel Tomberg.

“Our core focus in 2020 was sustainability. Not only for consistency in our financials but for the customers who use Bondora day-in and day-out. Our priority was to give them certainty in an otherwise turbulent time. Building trust with our community is a lifelong commitment. And on that note, I’d like to thank all our loyal investors for their continued trust and support. You are the visionaries spearheading the financial revolution from the ground up.

Equally important are our people who make everything happen. 2020 would not have been possible without the efforts of every single person in the Bondora team. They’ve all shown incredible grit and persistence to keep pushing in times of uncertainty.”

Referring to plans for 2021 and beyond, he continues, “We’ve been meticulous in optimizing our core business, internal tools, and processes. Now we’re gearing up for growth. As well as scaling our existing services for customers across Europe, our sights are set on solving the core problem. The average person cannot invest if they simply have no money to spare. That’s why we’re building a powerful new service for customers that will help them cut their costs and grow their money. All with a couple of clicks. We’ll share more information on this in the coming months.”

Live Q&A with Pärtel Tomberg

Similar to last year, there will be a live Q&A for our financial results with Pärtel Tomberg, Bondora CEO and founder. The event will be live on YouTube today at 4 pm EEST. Send in your questions for Pärtel to answer here, and remember to tune into our YouTube channel at 4 pm today.

See you there!

You can read the full 2020 Financial Report here.