Iute Group’s first-half profit increased sharply

Iute Group, a banking group offering credit, payments, and insurance brokerage services in Southeast Europe, has published its unaudited results for the first six months of 2025, showing strong growth. Iute’s revenue rose to 59.5 million euros, and net profit increased by more than half year-on-year to 6.7 million euros.

“Iute Group continued to pursue its long-term vision of becoming a fully digital bank with the most widely used super app in each of our operating markets,” said Tarmo Sild, CEO of Iute Group. “We made meaningful progress despite macroeconomic volatility and intensifying competition. Iute Group is on track to meet its full-year revenue and net profit targets,” he added.

Iute Group’s revenue grew by 10.9% year-on-year to 59.5 million euros. Net profit rose by 63% to 6.7 million euros. The customer base remained stable at 260,000 active customers. At the same time, the CPI30 repayment index improved from 86.4% a year ago to 87.9%. “Typically, each percentage point improvement in CPI30 equates to approximately 1 million euros in incremental cash flow per 100 million euros of loan portfolio,” explained Sild.

The Group’s growth was also supported by efficiency gains from digitalization – for example, in the non-bank business, fully automated loans accounted for 30.5% of all new payouts. In Moldova, Energbank has entered the testing phase for the Group’s proprietary lending software.

In addition to lending, payment services and insurance intermediation gained momentum. “In the first half of 2025, Iute Group significantly expanded its insurance offering with the start of partnerships with Allianz and GrECo. Revenues from insurance intermediation nearly doubled year-over-year, contributing to the diversification of revenue streams,” commented the CEO.

In June, Iute Group successfully completed the early refinancing of its 2021/2026 Eurobond. At the same time, the company issued new senior secured bonds maturing in 2030 with a total volume of 140 million euros, exceeding the initial target of 125 million euros. The new bonds with an annual interest rate of 12% were listed on both the Tallinn and Frankfurt stock exchanges. “We are grateful for the continued trust of our investors and remain focused on delivering attractive returns on this solid foundation,” said Sild.

The number of active customers remained below target, and Iute is committed to strengthening its value proposition and growth of active customers in the coming quarters. “It is clear that our business model follows a clear economic logic: We invest capital, technology, and expertise to create services that deliver tangible value to our customers. That value translates into willingness to pay – and therefore into revenue,” added Sild.

In July, international rating agency Fitch Ratings affirmed Iute Group’s long-term issuer credit rating at B- with a Stable Outlook and assigned the same rating to the new 2025/2030 bonds. Also last month, the Central Bank of the Republic of North Macedonia granted a licence to IutePay as an electronic money institution, enabling the company to provide digital payment solutions across the country.

Iute Group is a fintech company established in 2008 in Estonia. The Group specializes in consumer finance, payment services, banking, and insurance products. It serves customers in Albania, Bulgaria, Moldova, and North Macedonia. Iute Group finances its loan portfolios with equity, deposits, and secured bonds on the Regulated Market of the Frankfurt Stock Exchange and the Nasdaq Baltic Main List.