On February 26, 2024, INDEXO held a virtual investor conference, where IPAS “Indexo” Chairman of the Management Board Henriks Karmo, AS INDEXO Bank Chairman of the Management Board Valdis Siksnis, and Chief Financial Officer, Management Board Member Ivita Asare presented INDEXO’s consolidated audited financial results for 2024, shared the latest company updates, and answered participant questions.

In the webinar, company representatives emphasized that, given the recent reduction in 2nd pension pillar contributions from 6% to 5% of total gross salary, INDEXO's strategy will focus more on promoting 3rd pension pillar savings and developing banking services. In the 3rd pension pillar, INDEXO offers clients unique automated lifecycle plans, enabling them to save for retirement efficiently and at low costs. By the end of 2024, the assets under management in INDEXO’s 3rd pension pillar reached 37.64 million euros, marking a 78% increase compared to the end of 2023.

To ensure the implementation of strategically important development projects, including the continued growth of consumer and mortgage lending, the improvement of daily banking products, enhancement of mobile app functionality, growth of the client base, introduction of custody services, and the execution of regulatory projects, INDEXO Bank plans to raise additional capital in 2025.

Despite the delay in the licensing process, INDEXO Bank successfully commenced operations at the end of August 2024, attracting over 21 thousand clients and growing client-entrusted funds to 33.1 million euros. However, considering the initial phase of the bank's operations and significant investments in technology development, the bank's income is currently insufficient to cover all operating costs, resulting in a net loss of 6.16 million euros for the reporting period.

To promote growth and ensure stable development INDEXO Bank’s parent and sole shareholder IPAS INDEXO after annual shareholder meeting in March 2025 will contribute to Bank’s capital around EUR 0.7 million from its 2024 annual profit. Additionally, INDEXO Group management is considering and evaluating different options for strengthening Bank’s capital, including IPAS INDEXO doing secondary public offering and INDEXO Bank issuing T2, AT1 capital instruments.

INDEXO Group management is currently in the process of updating its financial plan, which was communicated at the end of 2023. The specific business growth ambitions and capital requirements will be communicated to the IPAS INDEXO investors and Bank’s depositors in the coming months.

The recording of the webinar is available here: https://www.youtube.com/watch?v=13qa1IuLkcs&list=PLeOLX3TaNx_-bcSL1eAWpu4sOpyODwgj5

Webinar presentation is available in the attachment.

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.