Financial organization Creditstar Group experiences a decrease in annual profit, now standing at €7.3 million, due to transition to International Financial Reporting Standards (IFRS)
Creditstar Group, a leading provider of digital consumer credit, marked 2024 as a year of growth and diversification. The company reported a net profit of €7.3 million for the year, a slight decrease from €10 million in 2023. However, this profitability came amidst increased provisions for loan losses, which impacted overall earnings [3].
In a bid to diversify funding channels, Creditstar began using customer funds to finance a portion of its consumer loan portfolio in 2024 [1]. This move was complemented by successful bond issues, with €24 million raised in June and €9 million in December, and a €46 million multi-tranche bond placement in May, its largest to date [1]. Additionally, the company secured a $10 million senior secured credit facility from Singapore-based investment platform Kilde [1].
The net loan book was substantially expanded by 27% to €351.2 million in 2024, reflecting the company's growth [1]. Total interest income increased by 17% to €74 million, and net interest income rose by 16% to €36.8 million [1].
The group's 2024 results are its first consolidated results prepared under International Financial Reporting Standards (IFRS). Despite the challenges, Aaro Sosaar, founder and chief executive of Creditstar, expressed satisfaction, stating that the group delivered a €7.3 million profit in 2024 despite absorbing all loan-loss provisions and IFRS transition expenses [2].
Strong demand from retail investors was reported for Creditstar's SmartSaver investment products, offering higher returns [1]. The launch of Vaults in March attracted 16,000 customers in nine months, taking total SmartSaver investments to over €100 million [1].
However, the increased loan-loss provisions and one-off financing costs contributed to the decline in profit margins and a significant total profit loss in 2025, indicating operational or financial challenges continuing into the subsequent year [1][3][4]. Despite this, the loan book appears to be expanding, consistent with growing turnover and increased revenue forecasts per employee in 2025 for both Creditstar Group AS and its subsidiary Creditstar International OÜ [1][2].
Risk assessments from Mintos show an increase in Creditstar's buyback strength subscore due to lower funding diversification risk but a decrease in loan servicer efficiency subscore, which could be indirectly related to the heightened provisions and operational challenges in servicing the loan portfolio [4].
As of mid-2025, the company's financial health showed strains, with no net profit reported and negative total profit [1][3][4]. Despite these challenges, Creditstar continues to offer digital consumer credit in eight countries and investment products across 31 European markets.
In 2024, Creditstar Group diversified its funding sources by using customer funds to invest in a portion of its consumer loan portfolio, and raised funds through successful bond issues and a senior secured credit facility from Kilde, contributing to an expanded net loan book of €351.2 million [1]. Despite the challenges faced in 2024, such as increased loan-loss provisions and operational difficulties, the company continues to venture into personal-finance and business investments, offering digital consumer credit in eight countries and investment products across 31 European markets.
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