According to the consolidated audited annual report for the year 2023, the pension management company IPAS INDEXO (hereinafter - INDEXO) concluded the past year with 127,159 clients, which is 28% more than at the beginning of 2023. The assets under management increased by 57% over the past year and reached 917.2 million euros by the end of 2023. Currently, INDEXO's assets under management already exceed one billion euros.

"INDEXO had a very successful year - we remain the fastest-growing pension manager in Latvia in terms of new client numbers, and we have ensured high returns on pension plans for our clients. I especially want to emphasize that the asset management achievements of the last year and, accordingly, the volume of revenue in the second half made the pension business profitable even after significant investments in attracting new clients. We are also nearing completion of the practical work on the establishment of the new INDEXO Bank, we have attracted the necessary capital for the bank's operations and have submitted a complete document package for obtaining the banking license, which we expect to receive in the near future," says Valdis Siksnis, Chairman of the INDEXO Board and one of the founders.

The increasing number of clients and the volume of assets under management have ensured an increase in revenue from pension savings management in the past year to 3.1 million euros, compared to 2.3 million euros in 2022. The profit from INDEXO's pension management operations before client acquisition expenses reached 1.88 million euros, and the profit after client acquisition expenses amounted to 95 thousand euros. During the reporting period, INDEXO's net losses were 332 thousand euros, but it should be noted that these losses occurred after investments in client acquisition and more than 421 thousand euros in non-financial expenses related to employee options.

Consolidating the entire INDEXO group, including the results of the new bank project INDEXO subsidiary IDX1R AS (which will later become INDEXO Bank), INDEXO's consolidated group losses in 2023 were 2.9 million euros. It should be noted that IDX1R AS currently does not generate income but makes significant investments in the development of the bank project, which reflects as losses in the consolidated results of the group.

"2023 was also a great year for INDEXO clients. Although there were continuous fluctuations in the capital market, and short-term results of pension plans will be variable, experience indicates that the best results can be expected from diversified and passively managed investments in the stock market in the long term. That's why the majority of INDEXO clients have chosen the pension plan “INDEXO Jauda 16-50”, which had an annual return of 18.65% and a 5-year return exceeding 10% per year. Since the establishment of “INDEXO Jauda 16-50” on February 5, 2018, the value of 1 EUR invested has grown to 1.578 EUR. Similarly, other INDEXO pension plans in the market have shown commendable returns," says Artūrs Roze, INDEXO Asset manager.

Thanks to the growth in the number of clients and average wages, INDEXO's monthly receipts for 2^nd pillar pension contributions increased by 36% from 6.5 million euros in January 2023 to 8.8 million euros in December 2023. INDEXO's market share in the 2^nd pillar pension at the end of 2023 reached just under 13%.

The real estate management company SIA Provendi asset management AIFP, co-founded by INDEXO, has increased its assets, reaching a gross value of 50 million euros, and has attracted new investors. INDEXO's participation in SIA Provendi asset management AIFP allows the company to contribute to the Latvian economy and help create a low-cost real estate fund, which will be available to private investors in the long term. 

As previously reported, in addition to pension management operations, since mid-2022, INDEXO has been developing the project for the establishment of a new bank, and the Bank of Latvia is currently reviewing its licensing application. Throughout 2023 work has been completed on a secure and modern banking IT infrastructure. INDEXO Bank's mobile application has been developed with all necessary integrations for an impeccable customer experience. Additionally, fundamental products for individuals have been created, including current accounts, payments and cards, savings accounts and deposits, loans and, of course, convenient administration for third-pillar pensions. Upon receiving the license, INDEXO Bank will commence its operations serving individuals, while services for businesses will be developed in 2024.


Attachments:

• IPAS “Indexo” Consolidated and Separate Annual Report for 2023 and auditor's report (PDF un iXBRL)
• IPAS “Indexo” Corporate governance report 2023
• IPAS “Indexo” Remuneration report 2023
• IPAS “Indexo” 2023 results presentation

About INDEXO

INDEXO is an asset management company licensed by the Bank of Latvia, which offers modern 2nd and 3rd pillar pension saving plans in Latvia. INDEXO is the fastest growing pension management company in the Baltics with more than 129 thousand customers and more than one billion euros of assets under management.

INDEXO is a Nasdaq Riga Stock Exchange listed company with close to 6000 shareholders and has an aim to fight for a better financial environment in Latvia. INDEXO vision is to become a financial services group that provides modern, personalized services empowering Latvia’s people for their prosperity. Additional information is available at www.indexo.lv.

Contact information:
Ieva Bauma
IPAS "Indexo" Board Member, Marketing Manager
Email: ieva.bauma@indexo.lv
Phone: +371 28 636 789
www.indexo.lv