Creditstar has published the 2020 financial report, with a qualified opinion from KPMG.
The reason for the qualified opinion is that the company had revalued upwards the value of intangible assets in both 2019 and 2020, which is not permitted under the Estonian accounting standards.

Key figures:
Profit = € 5.5m
Assets = € 160.0m
Equity = € 30.6m
Debt = € 129.3m



We have added 2021 Q3 financials for two $Mintos loan originators: Creditstar and Iute Credit.

Creditstar - key figures:
Profit = € 2.1m
Assets = € 188.0m
Equity = € 38.3m
Debt = € 149.7m

Iute Credit - key figures:
Profit = € 4.4m
Assets = € 130.0m
Equity = € 23.7m
Debt = € 106.3m

The full reports can be viewed here: p2p.holdings/mintos/loan-originators



The 2020 annual report of $Lendermarket, audited by Grant Thornton, has been published.

Key figures:
Profit = € -0.4m
Assets = € 0.4m
Equity = € -0.2m
Debt = € 0.6m

$Lendermarket was under maintenance all this weekend, according to Omayra Roig due to some loans that went into buyback before maturity, "not initiated by the loan originators". #creditstar

#Creditstar broke their promise to release an audited report by the end of August:

''We are writing to update you about the audited Annual Report for 2020 distribution. As you know, we are working with KPMG to complete the audited 2020 Annual Report. We are happy to say that we are nearly finished but still need additional time to bring the report to a close. A great deal of effort was made to distribute the report according to plan in August. However, the final assessment of the Danish FSA regarding the Consumer Credit Provider license and a comprehensive unplanned first round of questionnaires regarding the specialised bank license application from the Bank of Lithuania and the European Central Bank set us back with our timeline. Please bear with us, and we will distribute the report as soon as finished.''


#Creditstar have shared their 2021 Q2 results:

Key figures:

Profit = € 2.6m
Assets = € 179.3m
Equity= € 36.2m
Debt = € 143.1m

Q2 highlights:

- Creditstar Group issues two new bonds with a record value of € 23.57 million, its largest ever bonds issue

Creditstar Group is pleased to announce that it successfully placed bonds in the total amount of € 23.57
million with maturities of 18 and 36 months. The proceeds of the offering will be used to redeem
maturing bonds and finance loan portfolio growth across multiple markets.

- Creditstar officially applies for the specialised bank license

Creditstar has officially filed a specialised bank license application to the Bank of Lithuania. Creditstar
will be allowed to provide almost all traditional banking services within the EU/EEA area with the
banking license.


$Lendermarket has a somewhat misleading blog post, where they state following: "Using Creditstar as an example (the loan originator for Lendermarket), they are audited annually by KPMG – one of the firms that make up the ‘big four’."

Source: blog.lendermarket.com/how-auditing-can-help-you-decide-where-to-invest-in-2021/

This gives an impression that Creditstar is being audited by KPMG for several years, but in reality Creditstar has never had a proper audit done. More info:


Latest estimate from Omayra Roig, Lendermarket: "I think the report will be ready in August as it's a big project, it's taking time."


I asked 4 industry experts to comment on #Creditstar situation:

1. Is that a common practice to issue bonds before releasing audited report?
2. What do you think about Creditstar's statement regarding IFRS adoption?
3. At what size should a lender adopt IFRS standard? Is there a big difference between Estonian Financial Standards and IFRS?
4. Any comment about Creditstar's Loss Given Default model?


Info about #Creditstar bonds:

21.05 End of early subscription period – investors who subscribe to new bonds before 23:59 are eligible for an early subscription bonus.
27.05 End date of subscription – it is possible to subscribe to new bonds until 23:59 on this date.
28.05 Payment date – new investors and existing investors increasing their positions are to transfer their subscription amount to Creditstar. Payment details will be provided separately.
01.06 Issue date of new bond – bonds are automatically transferred to the securities accounts of eligible investors.

The two new secured bonds issued:
1. Creditstar 01.12.2022 secured notes (18 months), yield 12.5% - 15.1% p.a.
2. Creditstar 01.06.2024 secured notes (36 months), yield 13.5% - 16.1% p.a.

All legal documents related to the bond emission, Purchase Offer documents as well as the latest Company presentation is available here: drive.google.com/drive/folders/1D7a0l56PNCPdscyUq82BYAPDVrHSqRXe

Contact info: [email protected]


Main highlights from today's #Creditstar investor webinar:

- Creditstar will be audited by KPMG: 2020 report will be ready in summer, in accordance with Estonian Financial Standards. Loan portfolio report with a statement from KPMG will also be published shortly.
- Comment about IFRS: "IFRS 9 is not very convenient for lenders because it requires an increased number of provisions to be reserved, which carries an increased amount of funding costs. On the other side, it is actually quite interesting for companies like us to adopt IFRS 9, because as soon as we adopt it we will open up ourselves for much cheaper sources of funding from institutional investors who actually require IFRS 9 to be able to give us money...which will be not to the benefit of P2P investors because if Creditstar will have much cheaper source of funding from institutional investors, there will be less need to put loans on the P2P platforms" - no clear answer if IFRS will be adopted.
- € 45 million outstanding P2P loans at Q1 2021
- Planned company's growth is 25-35% per annum
- Creditstar is getting a specialised bank license: the application has been submitted to the Bank of Lithuania and there is approximately one year left until they get the license.


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