A few days ago, P2P lending company TrustBuddy published its annual report for 2013. Here are some of the highlights:
In his address to the shareholders, CEO Jens Glaso says: “TrustBuddy has established itself as the biggest P2P lender in the world for small-sized loans. 2013 has been a very exciting and interesting year in which we rapidly expanded our market, developed our platform and enhanced our organisation.
The lack of lending capital was during the end of H2 a challenge for the company. Despite that fact, we managed to deliver an increase of 115% in loan volumes for the full year, which we consider to be very good given the circumstances.
We anticipated the lack of capital and have worked with big focus on finding strong institutional investors in order to ensure continued powerful expansion both on existing and new markets. Through a multi-layered transaction in December, we secured SEK 180m for the company divided between equity and loan capital and we managed to get the institutional ownership that we had hoped for.
We take the big institutional interest that we are now experiencing as a good sign that 2014 will become a milestone and turning point both for TrustBuddy and the other international P2P-players. As a consequence of the capital increase we are now better equipped than ever both organizationally and financially. We have improved our capability, competence and processes and have all the tools needed to capitalize on the continuing increase in demand.
TrustBuddy’s focus on P2P lending with high margins and with the unique inhouse-developed IT platform has contributed to the fact that the company has established itself as a global leader in the segment. With a yield which is 3 times the average for the segment and the driving force to increased loan volumes provided by the new capital, we are estimating that the company’s revenues will double during 2014.”
Commenting on the market for short-term loans, TrustBuddy states in its annual report that despite the strong growth in recent years, it does not see any signs of saturation neither in the Nordics nor in Europe. There is still room for continuous growth within existing offerings and via new product- and service offerings.
TrustBuddy does not see any direct competition within the short-term loan niche, that is acting based on a comparable IT-based P2P-platform.
Already in connection with its Q4 2013 report, TrustBuddy stated that it expects 2014 to be the sixth consecutive year of strong growth for the Company. This is already evident from the recently reported growth in loan volumes in January 2014; which came in 25% ahead of the previous month. The company expects the growth to benefit from the investments made into the new and highly efficient P2P-platform and systems in 2013, which will enable roll-outs of improvements in convenience for users, further European penetration and facilitate ongoing and future product development.
Furthermore, TrustBuddy anticipates that significant institutional capital will be deployed on the platform in the 2nd Quarter of 2014, which will drive material volume growth. TrustBuddy expects full year 2014 lending volume to reach the amount of SEK 1,5 Billion. The lending volume is expected to increase exponentially through the year with the largest part during 2H 2014.