European peer-to-peer lending platform Twino saw its net profit rise by 15.4 per cent between 2018 and 2019, while its turnover dropped by around €80m (£72.6m).
According to its financial results, Twino’s net profit rose to €4.4m last year while its turnover fell to €9.15m – down from almost €90m in 2018.
Twino put its drop in turnover down to its internal financing model.
The company said that last year it worked on improving the effectiveness of its processes, resulting in a 13.7 per cent cut in expenses of its core operations.
The firm added that it improved its corporate governance and internal control system and developed a new IT system to better monitor transactions.
The equity of the company grew 4.8 times and reached €4.5m last year.
According to the latest financial results, the Twino Investment Platform increased the number of its investors by 17.5 per cent year-on-year to reach 19,683 by the end of 2019.
The platform’s investors funded loans worth €194m in 2019, making the overall amount €616m since its inception in 2015.
The results come as Twino announced in April it is working to become an investment brokerage company and had applied to the Financial and Capital Market Commission, the financial services regulator in its domestic market, for a license to do so.
“Twino has successfully started to prepare for receiving an investment brokerage license,” said Anastasija Oļeiņika, chief executive of the Twino Group.
“In the course of this process restructuring of the legal entities of the group was initiated, changes were introduced in the historic structure of transactions between companies of the group.
“The steps mentioned left a positive impact on 2019 profit and had insured a sustainable foundation for the investment platform’s transformation into a licensed company.”
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