According to the consolidated audited annual report for 2024, the pension management company IPAS INDEXO ended the past year with 141,914 clients, a 12% increase compared to December 31, 2023. Assets under management grew by 46% over the last 12 months, reaching EUR 1.339 billion at the end of the year. In comparison, the Latvian second pillar pension market grew from EUR 7.06 billion to EUR 8.78 billion in the same period, an increase of 24%. 

INDEXO's market share in the second pillar pension market by assets under management reached nearly 15%. In comparison, at the end of 2023, INDEXO's market share was 12.7%. Over the past five years, the number of INDEXO pension clients has grown by an average of 34.7% per year, making INDEXO the fastest-growing second pillar pension manager in Latvia in absolute numbers. 

“Last year was an excellent year for INDEXO pension clients. Although financial markets experienced continuous fluctuations and short-term plan results varied, historical data shows that the best long-term results can be expected from diversified and passively managed investments in stock markets. As a result, around 77% of INDEXO clients have chosen the investment plan "INDEXO Jauda 16 – 55", which achieved an annual return of 25.45% and a five-year average return of 10.8%. Since the creation of "INDEXO Jauda 16-55" on February 5th, 2018, EUR 1 invested in "Jauda" has grown to EUR 1.98. Our other offered investment and pension plans also showed strong growth. The INDEXO team continues to actively work to reduce the costs associated with investment services, in order to further improve the returns of INDEXO pension and investment plans,” says Artūrs Roze, Member of the Management Board and Fund Manager of IPAS INDEXO. 

At the end of 2024, INDEXO's second pillar pension clients had the highest average second pillar pension savings, reaching nearly EUR 10,400 per client, which is about EUR 3,000 more than the nearest competitor. INDEXO's monthly incoming second pillar pension contributions increased by 17% from EUR 8.8 million per month to EUR 10.4 million per month, thanks to the growing number of clients and salaries. 

Despite INDEXO's fast growth and large investments in client acquisition, IPAS INDEXO's pension management net profit was EUR 813,974. Excluding group and one-off items related to the capital raise, profit before client acquisition costs would have reached EUR 3.3 million at the end of the reporting period, and normalized net profit of the pension business would have been EUR 1.337 million. Meanwhile, the consolidated financial result of the Group, which also includes AS INDEXO Bank, was a loss of EUR 5.382 million in 2024, mainly due to more than EUR 5 million investments in the newly established bank's IT infrastructure. Since the bank has only been operating for a few months, INDEXO Bank has not yet generated significant revenue, and the bank's own losses for the reporting period were EUR 6.162 million. 

“The results of the first few months of operation confirm that INDEXO Bank with its well-recognized and positively evaluated brand, and modern IT infrastructure is well-positioned to challenge the Latvian oligopolistic banking market. We already offer a modern mobile banking app, reward our clients well for the deposits entrusted to us, provide an excellent payment card, a quick consumer loan solution, and currently, we are the only ones in Latvia to offer the convenience of viewing second pillar pension savings in the mobile app. In the coming weeks, we will offer the ability to add payment cards to digital wallets, and in April, we plan to start issuing mortgage loans,” says Valdis Siksnis, Chairman of the Management Board and one of the founders of AS INDEXO Bank. 

INDEXO Bank started its operations on August 28, 2024. By the end of 2024, INDEXO Bank had more than 21.1 thousand clients, and client deposits amounted to EUR 33 million. The number of new bank clients continues to grow steadily each month, along with the volume of client deposits, allowing the bank to start more active lending – initially issuing consumer loans, with plans to start issuing mortgage loans in the coming months. 

As of the end of the reporting period in 2024, the Group's equity amounted to EUR 12.1 million (December 31, 2023: EUR 5.87 million). The Group's total assets were EUR 48.4 million (December 31, 2023: EUR 7.32 million), of which EUR 36.6 million were cash and cash equivalents (December 31, 2023: EUR 2.71 million). The Group's total liabilities on the balance sheet were EUR 36.3 million (compared to EUR 1.44 million in the same period in 2023), of which EUR 32.4 million were client deposits. 

INDEXO Group aims to achieve monthly break-even before loan losses in Q4 2025. 

Considering that the INDEXO Group has consolidated the bank's reports, which include the initial application of International Financial Reporting Standards, the publication date of the reports has been moved to February 28. 

About INDEXO     

INDEXO is a financial services group that includes pension management companies and INDEXO Bank.       

INDEXO, an investment management company licensed by the Bank of Latvia, offers modern 2nd and 3rd pillar pension plans in Latvia. It is one of the fastest-growing pension managers in the Baltics, with over 143 thousand customers and more than EUR 1.40 billion assets under management.      

INDEXO Bank, a credit institution licensed by the European Central Bank, serves over 27.9 thousand clients, with total client funds amounting to EUR 42.07 million and EUR 3.51 million in issued consumer loans.     

Founded and headquartered in Latvia, INDEXO is a Nasdaq Riga-listed company with nearly 6,000 shareholders. Its mission is to fight for a better financial environment in Latvia and strengthen the well-being of Latvian residents by providing modern and personalized financial services.  For more information visit www.indexo.lv.