Qred Interim Report Q3, 2022


Interim report Q3 2022

Qred continues to grow, and the operating income increased by 47% to SEK 145.1m compared to the same period last year, while the period's net income amounted to SEK 13.7m. The number of active users increased 30% to 16 374 by the end of the quarter.

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

July - September 2022

  • The number of active monthly users increased by 30% to 16 374 (12 568)
  • Operating income increased by 47% to SEK 145.1m (98.5)
  • Commission income increased by 40% to SEK 85.3m (61.1)
  • Interest income increased by 49% to SEK 70.3m (47.3)
  • Operating profit amounted to SEK 17.2m (7.2)
  • Net profit for the period amounted to SEK 13.7m(5.6)

January - September 2022

  • Operating income increased by 50% to SEK 400.0m (266.9)
  • Commission income increased by 46% to SEK 230.8m (158.6)
  • Interest income increased by 44% to SEK 196.1m (136.3)
  • Operating profit amounted to SEK 6.1m (8.7)
  • Net profit for the period amounted to SEK 5.3m (6.3)

Significant events July - September 2022

No significant events have occurred during the period.

Significant events after the end of the interim period

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

Comments by the CEO

I am happy to conclude that this year’s third quarter was once again a strong quarter for Qred. Operating income increased by 47% compared to the same period last year. In addition the number of active users (MAU) increased to 16 374, implying a 30 % increase. 

Taking a step back, the third quarter has been challenging, with increasing interest rates, an energy crisis, a war in Ukraine, and rising inflation. This unique set of circumstances is adversely affecting our customer segment as a whole, both their ability to operate their businesses on a daily basis, and ultimately in turn their ability to pay their suppliers and creditors. 

We continue to support the small business community. We know that being regarded as creditworthy can be the difference between surviving a demanding period, or having to say goodbye to your life’s work. That said, we also understand that additional credit is not always advisable. At Qred we take pride in being responsible lenders, and habitually ask our customers to consider their options and think about the implications before they take on further financing.

The evolving macroeconomic environment, now heavily impacted by inflation levels not seen in decades, has resulted in a significant retreat of venture and investment capital. Many of our tech industry peers have learned that funding has dried up, and that investors now prioritize profitability ahead of growth. In response, many tech companies have been forced to cut costs and staff as a means to reduce losses. 

We have been able to deliver healthy results year after year for seven consecutive years.  Thanks to robust profitability and a stable long-term strategy we have been able to continue growing, all while recruiting numerous top talents in this past quarter. 

That our ambition continues to be to deliver profitable growth for years to come is a challenge that will put our entire organization to the test.

Operationally, our product offering was greatly enhanced during the third quarter, with focus on improved features and a smoother user experience for our Qred VISA customers. 

We have automated expense management so that customers can now handle daily expenses directly in the Qred mobile app, thereby reducing the need for saving paper receipts, and using laborious and wasteful printed expense forms. Batched expenses are then exported to the customer’s accounting system, resulting in significant time savings, while taking the pain out of expense management.

Also, we launched our B2B payment platform in Finland, allowing small businesses to pay their business invoices conveniently with their Qred VISA credit card.

We are convinced that in offering a solution that yields 1% unlimited cash back, no monthly fees, and free credit for up to 45 days, we have the market’s strongest proposition for small business credit cards.

Finally, at the time of writing, Qred hit a major milestone, surpassing SEK 10 billion of deployed funding to small businesses. The cumulative impact of that has created tens of thousands of jobs across our 6 national markets.

As a company, we are very proud to have helped tens of thousands of small business owners during the pandemic that otherwise may not have remained in operations.  In this challenging economy of inflationary pressures, they are again being put to the test. We have strong faith in the future and the resolve of small business owners, and we are determined to continue to serve the underbanked and ignored entrepreneurs during these trying times.

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


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