Agricover Credit IFN records 31% increase in net profit in the first half of 2019

Agricover Credit IFN, the leading financial institution dedicated to financing Romanian agriculture, closed the first half of 2019 with an operating result of RON 26.8 million and a net profit of RON 23.3 million, up 31% compared to the same period of 2018.

In the first half of this year, Agricover Credit IFN provided financing worth 576.4 million lei to 3,465 farmers, with credit exposure exceeding 1.64 billion lei, up 22% from the same period last year.

"We continue the growth trend in 2019 and support the performance in Romanian agriculture, offering specialized credit products tailored to farmers' needs. The strategic business direction keeps the focus on attracting new customers, small and medium farmers, and this is already visible in the significant increase in the number of active customers. The fact that we managed to increase the amount of loans granted in the first half of this year, compared to 2018, encourages us to continue our strategy for the second half of the year," said Robert Rekkers, Managing Director Agricover Credit IFN.

Financial information as of June 30, 2019:

Operating profit: RON 26.897 million, up 27% compared to the same period of 2018
Net profit: 23,373,441 million lei, up 31%
Equity: 252,980,362 million lei, up 24%
Capital adequacy ratio (according to NBR rules): 20%
Non-performing loans more than 90 days overdue: 1.1%
Value of loans granted: 576.415 million lei, up 10%.
Exposure from loans: 1,646,455,000 billion lei, representing an increase of 22%
Number of active clients: 3,465 farmers, up 17%
Equity increased by 24% to RON 252.9 million, through the incorporation of net results as well as the increase in share capital. The non-performing loan ratio, with arrears over 90 days, reached 1.1%, down compared to the first half of last year.

The increase in the number of customers was generated both by the development of the small and medium customer segment and the expansion of the large customer portfolio.

In terms of Agricover Credit IFN products, working capital loans had the largest share of total loans accessed by farmers in the first half of the year.

Capital requests for the purchase of agricultural land showed a significant increase. Solid expertise, quick reaction and highly flexible procedures are the main strengths of Agricover Credit IFN, which have led to the consolidation of its position as market leader and main partner of farmers when they need financing for the expansion or securing by purchase of land for agricultural production.

For the second half of the year, Agricover Credit IFN aims to maintain its growth rate both in terms of the number of clients financed and the volume of loans granted.

"We are constantly developing new loan products, and the latest is the Twice as Good Choices programme, an innovative product associated with the purchase of plant protection products. Through the mixed financial-commercial programmes, Agricover Credit IFN is strengthening its position as a partner for farmers, together with Agricover S.A. Due to unfavourable weather conditions, the beginning of the 2020 agricultural year is shaping up to be quite sensitive for Romanian farmers, and this has prompted us to meet potential cash flow needs," said Robert Rekkers, General Manager Agricover Credit IFN.


About Agricover Credit IFN

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 allows the development of innovative products for financing working capital and investments in a flexible manner, adapted to the needs of farmers.

Agricover Credit IFN has grown rapidly 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 brings together Agri-Business and Agri-Finance activities. 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 Romanian farmers' businesses.