DGAP-News: Ferratum Oyj: Ferratum Group publishes restated interim results for 2018 due to adjustment on credit loss provisioning in connection with IFRS 9 adoption


Nachricht vom 14.03.201914.03.2019 (www.4investors.de) -


DGAP-News: Ferratum Oyj / Key word(s): Quarterly / Interim Statement

Ferratum Oyj: Ferratum Group publishes restated interim results for 2018 due to adjustment on credit loss provisioning in connection with IFRS 9 adoption
14.03.2019 / 08:17


The issuer is solely responsible for the content of this announcement.
Ferratum Group publishes restated interim results for 2018 due to adjustment on credit loss provisioning in connection with IFRS 9 adoption

Helsinki, 14 March 2019 - Ferratum Oyj (ISIN: FI4000106299, WKN: A1W9NS) ("Ferratum" or the "Group") announces restated unaudited results for the 3 months ended 31 March 2018, ("3 Month"), the 6 months ended 30 June 2018 ("6 Month"), and the 9 months ended 30 September 2018 ("9 Month"). These restatements are required following a review of the implemented risk provision model and assumptions that were implemented as per 1 January 2018 as part of the adoption of IFRS 9 accounting standards for the Group's 2018 fiscal year.

As of 1 January 2018, Ferratum Group adopted the accounting standard IFRS 9 Financial Instruments which covers, among others, impairment of accounts and loan receivables and introduced an expected credit loss model, replacing IAS 39. The overall impact to the credit loss provisions as at 1 January 2018 was calculated and reported as part of the interim results for the first 3 months ended 31 March 2018 as an increase of EUR 9.3 million as follows:

 
31 Dec 2017 IAS 39
1 Jan 2018 Reported
IFRS 9 - reported impact
 
GBV*
Credit Loss Provisions
NBV**
GBV*
Credit Loss Provisions
NBV**
GBV*
Credit Loss Provisions
NBV**
Current
216,988
(10,159)
206,829
158,368
(4,695)
153,673
58,620
(5,464)
53,156
1-90 days due
29,895
(7,668)
22,227
72,398
(17,649)
54,749
(42,503)
9,981
(32,522)
91-180 days due
20,904
(9,228)
11,676
21,474
(12,768)
8,706
( 570)
3,540
2,970
> 181 days due
68,456
(51,782)
16,674
84,004
(52,988)
31,016
(15,548)
1,206
(14,342)
 
336,243
(78,837)
257,406
336,243
(88,100)
248,143
-
9,263
9,263

 

* Gross Book Value of Accounts Receivables
** Net Book Value of Accounts Receivables

 

The reported overall impact of the IFRS 9 adoption on equity was lower than the increased credit loss provisions, as the adjustment was offset by the impact of deferred taxes of EUR 1.7 million reflecting the timing difference of recognizing the loss allowance in accounting and taxation.

Accordingly, the adoption of IFRS 9 was previously published to have resulted in a one-off accounting charge of EUR 7.6 million which was debited directly to the equity of the Group as at 1 January 2018.

During the 2018 annual closing, the Group carried out a full review of the implemented credit loss provisioning model and came to the conclusion that the model has to be enhanced to be more accurate in the following aspects:

1. The parameters of default definition has been tightened from 91 to 61 days past due date for Primeloan, SME loans and PlusLoan, therefore aligning with the parameters set for Credit Limit.

2. Data extraction, discounting and mathematical modelling for Credit Limit, Primeloan, SME loans and PlusLoans has been corrected for accuracy.

These points impact the basic methodology of the credit loss provisioning model and are therefore to be applied for the full year 2018 as well as the opening balance 2018. In accordance with IAS 8, the Group has corrected the misstatement in opening balance related to IFRS 9 adoption as follows:

 
1 Jan 2018 Reported
1 Jan 2018 Restated
IFRS 9 - restated impact
 
GBV*
Credit Loss Provisions
NBV**
GBV*
Credit Loss Provisions
NBV**
GBV*
Credit Loss Provisions
NBV**
Current
158,368
(4,695)
153,673
158,368
(12,810)
145,558
 
8,115
8,115
1-90 days due
72,398
(17,649)
54,749
72,398
(20,720)
51,678
 
3,071
3,071
91-180 days due
21,474
(12,768)
8,706
21,474
(12,734)
8,740
 
(34)
(34)
> 180 days due
84,004
(52,988)
31,016
84,004
(53,485)
30,519
 
497
497
Sum
336,243
(88,100)
248,143
336,243
99,749
236,495
 
11,649
11,649

 

* Gross Book Value of Accounts Receivables
** Net Book Value of Accounts Receivables

 

The restated credit loss provisions increase the one-off accounting adjustment of the credit loss provisions from EUR 9.3 million by EUR 11.6 million to EUR 20.9 million. The overall impact of the IFRS 9 adoption on equity is lower than the increased risk provision, as it is offset by the deferred taxes reflecting the timing difference of these reserve changes on profitability. After deducting deferred tax effects of EUR 5.8 million an adjustment of EUR 15.1 million is to be debited directly to the equity of the Group as per 1 January 2018 instead of the previously reported EUR 7.6 million.

In addition to the restatement of the opening balance adjustment as per 1 January 2018 for equity, deferred taxes and the value of accounts receivables, the Group has also restated all subsequently published interim results and balance sheets as follows:

Consolidated Statement of Financial Position
31 Mar 2018
30 Jun 2018
30 Sep 2018
 
Restated
Restated
Restated
ASSETS
 
 
 
Deferred income tax assets
8,187
10,123
10,029
Total non-current assets
41,441
46,641
48,701
Accounts receivable - loans to customers
254,597
269,989
294,237
Total current assets
398,472
448,486
460,776
Total assets
439,913
495,127
509,476
EQUITY AND LIABILITIES
 
 
 
Total equity
95,417
93,374
98,369
Total equity and liabilities
439,913
495,127
509,476
 
 
 
 
Equity ratio %
21.7
18.9
19.3
Net debt to equity ratio
2.20
2.47
2.56

 


The above described corrections on the IFRS 9 credit loss provisioning model trigger also changes in the recorded impairments (credit losses) in the income statement in the reported interim results as follows:

 
1 Jan 2018 - 31 Mar 2018
1 Jan 2018 - 30 Jun 2018
1 Jan 2018 - 30 Sep 2018
 
Restated
Restated
Restated
REVENUE
61,442
124,232
190,194
Impairments on loans Restated
(18,986)
(42,162)
(65,400)
Impairments on loans Reported
(18,866)
(40,609)
(63,996)
Difference
(120)
(1,553)
(1,404)
 
 
 
 
Operating profit
10,048
16,591
25,429
Profit before income tax
6,506
8,175
13,706
Income tax expense
(976)
(1,227)
(2,055)
Profit for the period
5,530
6,948
11,650
 
 
 
 
Earnings per share, basic
0.26
0.32
0.54
Earnings per share, diluted
0.25
0.32
0.54

 

Based on the more accurate IFRS 9 model Ferratum Group has a stricter risk forecast model that improves substantially the quality of expected earnings in the foreseeable future.

Following the adjustments to the risk provisioning model outlined above, Ferratum considers its procedures on calculating expected credit losses as fully compliant with IFRS 9 and a highly sophisticated version of a credit loss prediction model.

About Ferratum Group:

Ferratum Group is an international provider of mobile banking and digital consumer and small business loans, distributed and managed by mobile devices. Founded in 2005 and headquartered in Helsinki, Finland, Ferratum has expanded rapidly to operate in 25 countries across Europe, Africa, South and North America and the Asia-Pacific region.

As a pioneer in digital and mobile financial services technology, Ferratum is at the forefront of the digital banking revolution. Ferratum's mobile bank, launched in 2016, is an innovative mobile banking platform offering a range of banking services, including real time digital payments and transfers, within a single app. It is currently available in five European markets. Ferratum has approximately 2.0 million active and former customers who have an account or have been granted one or more loans in the past (as at 31 December 2018), of which over 792,000 customers have an open Mobile Bank account or an active loan balance in the last 12 months.

Ferratum Group is listed on the Prime Standard of Frankfurt Stock Exchange under symbol 'FRU.' For more information, visit www.ferratumgroup.com.

 

Contacts:

Ferratum Group
Dr. Clemens Krause
Chief Financial Officer & Chief Risk Officer
T: + 49 30 921005844
E: clemens.krause@ferratum.com
Ferratum Group
Emmi Kyykkä
Head of Group Communications & Investor Relations
T: +41 79 940 6315
E: emmi.kyykka@ferratum.com
Ferratum Group
Paul Wasastjerna
Head of Fixed Income Investor Relations
T: + 358 40 7248247
E: paul.wasastjerna@ferratum.comUK / European media enquiries:
Smithfield, A Daniel J Edelman Company
Alex Simmons | Brett Jacobs
T: +44 20 3047 2543 | +44 20 3047 2537
E: asimmons@smithfieldgroup.com
E: bjacobs@smithfieldgroup.com
 

 

 












14.03.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de

Language:
English
Company:
Ferratum Oyj

Ratamestarinkatu 11 A

00520 Helsinki


Finland
Phone:
+49 (0) 30 9210058-44
Fax:
+49 (0)30 9210058-49
E-mail:
ir@ferratum.com
Internet:
https://www.ferratumgroup.com
ISIN:
FI4000106299
WKN:
A1W9NS
Listed:
Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange

 
End of News
DGAP News Service




787443  14.03.2019 











Aktuelle Nachrichten aus der 4investors-Redaktion

26.03.2019 - Gamigo: Anleihe wird aufgestockt
26.03.2019 - Steinhoff International will bei KAP Industrial aussteigen
26.03.2019 - JDC Group: Great-West Lifeco wird neuer Großaktionär
26.03.2019 - Co.Don: Neuer Vorstand
26.03.2019 - Wirecard Aktie explodiert - Anwaltskanzlei entlastet das Unternehmen
26.03.2019 - Wirecard Aktie: Der Untersuchungsbericht ist da
26.03.2019 - MyBucks: „Finanziell angespannte Situation”
26.03.2019 - RIB Software: Auftrag von Heinz von Heiden
26.03.2019 - Aves One: Profitabilität soll weiter steigen
26.03.2019 - BHB Brauholding kündigt Dividende an


Chartanalysen

26.03.2019 - Medigene Aktie: Und wie geht es nun weiter?
26.03.2019 - Bayer Aktie: Verkaufssignal oder Bärenfalle?
26.03.2019 - BASF Aktie: Gelingt jetzt wieder die Wende nach oben?
25.03.2019 - Baumot Aktie: Jetzt entscheidet sich sehr viel!
25.03.2019 - Paragon Aktie: Das wird jetzt sehr interessant
25.03.2019 - Mologen Aktie stürzt weiter ab: Wackelt jetzt die Kapitalerhöhung?
25.03.2019 - Bayer Aktie: Das könnte dramatisch werden
25.03.2019 - Commerzbank Aktie: Achtung, das könnte was werden!
22.03.2019 - Steinhoff Aktie: Das sind sehr interessante Beobachtungen!
22.03.2019 - Commerzbank Aktie hält wichtige Marke - Trendwende perfekt?


Analystenschätzungen

26.03.2019 - Nordex: 9,60 Euro oder 14,00 Euro?
26.03.2019 - K+S: Dreifaches Kaufvotum für die Aktie
26.03.2019 - Wirecard: Plus 76 Prozent
26.03.2019 - SFC Energy: 2019 soll Gewinn bringen
26.03.2019 - E.On: Deal fließt ein
26.03.2019 - Allgeier: Prognose ist machbar
26.03.2019 - Basler: Gedämpfte Aussichten
26.03.2019 - Freenet: Hohe Dividendenrendite aber kaum Aufwärtspotenzial
26.03.2019 - DWS Group: Aktie wird abgestuft
26.03.2019 - Salzgitter: Dividende überrascht


Kolumnen

26.03.2019 - House of Commons übernimmt das Ruder: Auf dem Weg zum Exit vom Brexit!? - Nord LB Kolumne
26.03.2019 - Kleiner Lichtblick beim Ifo-Geschäftsklimaindex - Commerzbank Kolumne
26.03.2019 - S&P 500: Bewährungsprobe für die Käufer - UBS Kolumne
26.03.2019 - DAX: Gelingt der erneute Konter? - UBS Kolumne
25.03.2019 - Ifo-Geschäftsklima: Ein überraschendes Lichtlein der Hoffnung! - Nord LB Kolumne
25.03.2019 - Amazon Aktie: Erholungsrally hat noch Potenzial - UBS Kolumne
25.03.2019 - DAX: Bullen unter Druck - UBS Kolumne
25.03.2019 - DAX im Abwärtssog: Inverse Zinsstruktur und Konjunktursorgen - Donner & Reuschel Kolumne
22.03.2019 - Steiler Bund & fallende Renditen: „Japanische Verhältnisse“ in Europa - Donner & Reuschel Kolumne
22.03.2019 - Weltwassertag: Investment in eine knappe Ressource - AXA IM Kolumne