Qred increases operating income by 55%


Qred continues to grow in line with expectations, but increased credit losses burdened the quarter's results. Qred both issued new common shares, and refinanced a senior secured bond during the quarter. Qred is thus in a good position to deliver continued growth and develop new services in the coming years. The operating income increased by 55% to SEK 137.0m during the interim period and the period's net income amounted to SEK -9.2m.

Values ​​for the same period the previous year are stated within brackets.

April - June 2022

  • Operating income increased by 55% to SEK 137.0m (88.3)
  • Commission income increased by 41% to SEK 74.3m (52.8)
  • Interest income increased by 49% to SEK 67.6m (45.2)
  • Operating profit amounted to SEK -12.2m (2.7)
  • Net income for the period amounted to SEK -9.2m(2.1)

January - June 2022

  • The number of active monthly users increased by 35% to 15,568 (11,545)
  • Income increased by 51% to SEK 254.8m (168.4)
  • Commission income increased by 49% to SEK 145.5m (97.5)
  • Interest income increased by 41% to SEK 125.8m (89.0)
  • Operating profit amounted to SEK -11.1m (1.5)
  • Net income for the period amounted to SEK -8.4m (0.7)
  • The loan portfolio increased by 74% to SEK 1029.7m (590.9)

Significant events April - June 2022

  • Qred launched a new B2B payment service in April 2022, which allows companies to pay invoices using Qred VISA.
  • As part of the previous agreement with the Nordic Capital Evolution Fund, the general meeting of Qred Holding AB (publ) on 19 April 2022 decided to increase the Company's share capital by SEK 1,106,899 through a directed new issue of 758,150 common shares series B to Cidron Gallo 2 S.à .rl
  • Qred issued a senior secured bond of EUR 40m on 13 April 2022 and has redeemed the bond issued in 2019.

Significant events after the end of the interim period

No significant events have occurred after the end of the interim period.

Comments from Emil Sunvisson, CEO:

Qred has delivered a strong second quarter despite a challenging macro environment. Income has continued to increase, as operating income grew by 55% compared to the same period last year. The number of monthly active users (MAU) increased by 35%. The result for the period ended at SEK -9.2m, mainly as a result of augmented credit losses. 

Few have missed the fact that the second quarter of 2022 has been marked by major market changes, such as the socio- economic effects of the war in Ukraine and rising inflation. A contributing factor to increased payment difficulties is also presumed to be that small businesses are distressed as governmental pandemic subsidies are wound down, and, in some cases, need to be suddenly repaid. 

In general - not least in the tech sector - the market has experienced a dramatic shift. We see how many industry peers are laying off employees, cutting costs and repositioning their focus from growth to targeting profitability; investors are in turn raising the hurdle to justify further growth investments. Against this backdrop, Qred has been able to demonstrate strong growth, expand product portfolio and strengthen its staff base. 

Since our founding, Qred's goal has been to grow with profitability, which we have been able to deliver year after year. Achieving this goal in 2022 will be a challenge that will put the entire organization to the test.

Qred's ambition is to help as many small businesses as possible. Given the uncertain global situation, we will adapt our lending practices to prevailing  market conditions. 

We are convinced that our digitized services in combination with advanced risk and scoring algorithms will mean that Qred will continue to do well - even in a tougher market climate.

With last year's investment from Nordic Capital and this spring's refinancing of Qred's corporate bond, we strengthened the balance sheet and increased the solvency to 47% and have a solid  foundation to build from  despite the quarter's deteriorated bottom line. 

We are very proud to have helped tens of thousands of small businesses during the pandemic that otherwise might not have survived during this stressful period. On that point, nothing will change and we are determined to continue serving this underserved and deprioritized segment. With strong faith in the future, we will continue to support small businesses, even in stormy weather, and when the old banks turn their backs to entrepreneurs in need. 

To read full report, please visit: https://en.qred.se/company-information


Andrea Romander
Head of Communications & Sustainability
Qred Bank AB
+46 730 926 607