Agricover Credit IFN - 57% increase in net profit in the first half of 2018

Agricover Credit IFN - the main financial institution dedicated to financing Romanian agriculture, ended the first half of 2018 with an operating result of 21.2 million lei and a net profit of 17.8 million lei, an increase of 57.1% compared to the same period of 2017.

In the first half of the year, the company granted financing worth 524 million lei to 2970 farmers, while the exposure from loans exceeded 1.35 billion lei, up 33% compared to the same period last year.

"This year we focused our efforts and got more strongly involved in the development of small and medium-sized farmer client segments. At the same time, we continued to launch new specialized products, such as the loan for beef farmers, which performed very well. The outstanding results achieved in the first half of the year encourage us to continue our strategic direction in the second half of the year", said Robert Rekkers, Managing Director of Agricover Credit IFN.

Financial information as at 30 June 2018:

Operating profit: 21,248,000 lei, up 27.7% compared to the same period in 2017
Net profit: 17,879,532 lei, up 57.1%
Shareholders' equity: 204,742,156 lei, up 29%.
Capital adequacy ratio (according to NBR rules): 20%
Non-performing loans over 90 days past due: 1.3%
Value of loans granted: 524,000,000 lei, up 24.5%.
Exposure from loans: 1,351,670,368 lei, representing an increase of 33%.
Number of active clients: 2970 farmers, up 23.1%.
Equity increased by 29% to 204 million lei and the non-performing loan ratio with arrears of more than 90 days remained at a very good level of 1.3% in the first half of the year.

The increase in the number of customers is mainly due to the development of the small and medium-sized customer segment, while the number of large customers remained stable.

In terms of the product portfolio, working capital loans had the largest share of total loans accessed by farmers in the first half of the year. There was a significant increase in demand for capital for the purchase of agricultural land. The rapid response and non-bureaucratic approach has led to the consolidation of the leading position and main partner of farmers when they need financing for the expansion or securing by acquisition of land for agricultural production.

For the second half of the year, the company plans to continue its growth rate both in terms of the number of clients financed and the volume of loans granted.

"We plan to continue the pace of growth in the second half of the year as well, even if we will be more cautious and will follow the evolution of the agricultural market in the context of the difficult situation of pig farmers and weather conditions that may affect the productivity of vegetable farms in some regions of the country. Quick decisions, prompt response to financing requests and a solid portfolio of specialized products are our main strengths to support the performance of our partner farmers", said Robert Rekkers, Managing Director of Agricover Credit IFN.

About Agricover

Agricover Credit IFN - a subsidiary of Agricover Holding is the first financial institution in Romania to offer financial products exclusively to farmers in the crop and livestock sectors. The knowledge and understanding of the specifics of the agricultural activity allow the development of innovative products for financing working capital and investments in a flexible way, adapted to the needs of farmers.

Agricover Credit has experienced rapid growth and in just a few years has become one of the key players in financing agricultural producers.

In 2017, the EBRD became a shareholder in Agricover Holding SA, with an investment of 32 million lei (equivalent to 7 million euro) in the company's capital to subscribe a stake of almost 13 percent.

Agricover Holding combines the activities of Agri-Business and Agri-Finance. With a strongly integrated business model, Agricover is a key link supporting the efficiency of the entire agribusiness value chain, providing specialized solutions for the development of the Romanian farmers' business.