Q3 Report: Qred Increases Lending by 95%

The Third Quarter 2019

Consistent, strong growth continues to characterize the first nine months of the year. Qred is growing in both established markets such as Sweden and Finland, as well as in newer markets such as Denmark and the Netherlands. Thus far in 2019, the cost base in the group has grown in line with revenue growth. Interest income and the loan portfolio continue to increase, while operating income and earnings have been countered by a higher cost of funding.

"Qred continues to be one of the fastest growing FinTech companies in the Nordics. Our commitment to help small business with simple and accessible financing stands firm, as we enter into new business areas and new markets," says Emil Sunvisson, CEO.

Results for the same period for the previous year are stated in brackets.

• The loan portfolio increased by 95% to SEK 568.7 m (292.1)
• Interest income increased by 68% to SEK 61.0 m (94.8)
• Operating income increased by 37% to SEK 47.4 m (34.6)
• Operating profit increased by 16% to SEK 6.4 m (5.5)
• Profit for the period increased by 54% to SEK 4.8 m (3.1)

Significant events during the third quarter

• Qred entered into a joint venture with Swedish companies Webrock Ventures AB and Atlant Fonder AB to set up a company and offer corporate loans in Brazil; in return, Qred shall contribute with technical system software, technology, and general product and service expertise.

January-September 2019

• Interest income increased by 70% to SEK 161.5 m (94.8)
• Operating income increased by 54% to SEK 138.8 m (90.2)
• Operating profit increased by 27% to SEK 23.7 m (18.7)
• Profit for the period increased by 16% to SEK 19.8 m (17.1)

Significant events during the interim period

• In June, the company issued a bond. The total bond framework is EUR 100m, of which EUR 40m has been utilized. The bond has a maturity of 3 years and has a coupon of EURIBOR + 8.5% which is paid quarterly.
• The AGM has appointed Andrea Gisle Joosen as board member
• he company has issued 20,000 new ordinary shares to Andrea Gisle Joosen

Significant Events After the Interim Period

• Qred launched invoice purchasing, through the subsidiary Qred Factoring AB, which uses a digital platform, from an office in Malmö, Sweden.
• Qred has submitted an application for a license for payment institutions to the Swedish Financial Supervisory Authority (Finansinspektionen).
• Qred AB (publ) has called an Extraordinary General Meeting on December 4th. The company's name is proposed to be changed to Qred Holding AB (publ), while simultaneously the operating subsidiary Qred Företagslån AB is to be renamed Qred AB, which better reflecting the business activities and is more internationally accommodating.

Interim Report and Presentation

Please find the Qred Interim Report Q3 2019 here.

The company will make a short presentation of the report on Thursday, November 28 at 1 pm with subsequent question time. The presentation can be found here.

Video: meet.google.com/rek-gjkf-van

Phone: +46 8 505 454 37 PIN: 844 039 322 #
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