Patria Credit reports positive results for the 8th consecutive year, with 14% growth in credit portfolio and 44% growth in profit in 2023.
Patria Credit is reporting positive results for the 8th consecutive year, with a 14% increase in loan portfolio and 44% increase in profit in 2023.
Patria Credit IFN SA, a non-banking financial institution part of Patria Bank Group, reported a net profit of 8.54 million lei in 2023 and a +14% increase in its porfolio up to 184 million lei. Sales of new loans slightly improved compared to 2022 (+1%) to 94 million lei.
The institution continued to support small entrepreneurs in rural areas, especially those involved in vegetable growing, to develop their activity, maintain or create new jobs, building on the experience of over 20 years of activity in this field. In 2023, the institution achieved a net profit of 8.54 million lei, an increase of 44% compared to 2022. In the porfolio structure, the high share of agriculture is maintained, so that 81% of the loan porfolio was granted to customers in this sector. Also, 84% of the loan porfolio represents investment loans, and most of the porfolio is secured with guarantees through guarantee programs offered by the European Investment Fund (InvestEU, Easi).
"The year 2023 has brought Patria Credit a series of achievements through which we have maintained our position among the top non-bank financial institutions as a responsible player involved in financial inclusion in rural areas. Through all the initiated and created projects, last year we brought new resources and development opportunities for small entrepreneurs in rural areas. We ended the year by signing a contract with CEB (Council of Europe Development Bank) which was for us a guarantee of our role and mission of involvement in the community through microfinance", said Raluca Andreica, General Manager of Patria Credit.
In 2023, Patria Credit was recertified for the next four years by the European Commission, meeting 100% of the mandatory requirements for compliance with the European Code of Conduct for the provision of microcredit. The Code defines a common set of standards for the microfinance sector in Europe.
In addition to the partnership with CEB (Council of Europe Development Bank), in 2023 Patria Credit signed several commercial partnerships, including REDI - Roma Entrepreneurship Development Initiative, which is unique in the Romanian microfinance market. This partnership is for a loan and a guarantee ceiling for the financing of Roma entrepreneurs, which was fully utilised by the end of the year.
In line with the proposed strategy for 2023, the Agritech projects with partners from agricultural technology suppliers and the internal project to digitise and modernise the entire IT architecture continued. Thus, Patria Credit went through all the steps in order to migrate to a new modernized platform, a process that was completed in early 2024.
Patria Credit's continuous results increase, over the last 8 years, is due to the sum of its efforts and consistency in supporting the financial inclusion of small entrepreneurs in rural areas, from over 20 years of experience. Contributing to these results have been the lending technology tailored to the needs of small entrepreneurs and a team of specialists who work in and are part of the communities in which the institution operates.