Doverie Holding – 2024 Q4 review – Enhancing the group’s performance in 2024

Q4 2024 Results

• Total revenues in Q4 increased by 17.6% year-on-year, reaching BGN 165 million. The main driver of this growth was the 22.6% increase in non-banking revenues. Banking operations recorded a 13.5% year-on-year growth, reaching BGN 89.6 million, with the growth entirely due to a 14% increase in interest income, while fee income recorded a slight decrease.
• Moldindconbank, Doverie’s largest holding, will continue to be a key asset in the group’s portfolio. Although the current period may seem challenging for the business, it represents an investment in future growth and Doverie will benefit, especially after the removal of the profit retention requirement aimed at maintaining the stability of the country’s banking system.
• The 41% growth in net interest income in the fourth quarter, amounting to BGN 40.6 million, is impressive. This performance is the result of a 14% increase in interest income and a 31.4% decrease in interest expenses compared to the fourth quarter of the previous year.
• Moldindconbank announced a 26.7% growth in its loan portfolio for 2024. By the end of 2024, corporate loans increased by 24% compared to the end of 2023, and personal loans increased by 28% compared to 2023.
• Such significant growth is achievable by improving lending conditions, such as more competitive interest rates (which may lead to a decrease in the net interest margin) and higher loan-to-value ratios (e.g. lower down payments required for mortgages). The impact of these changes will lead to an increase in interest income, which is expected to be reflected in 2025.
• The “Other income” category includes profits from five sectors: construction, wine production, DIY products under the Mr. Bricolage brand, medical services and detergent production. Mr. Bricolage sales dominate this category, contributing to 79% of the total. In the fourth quarter of 2024, revenues increased by 22.6% year-on-year, reaching BGN 67 million.
• Sales of the non-banking business increased by 10.3% in 2024, reaching BGN 193 million. Among the other sectors, construction recorded the highest revenue growth of 64%, with its share in total “Other income” increasing from 1.9% in 2023 to 4.4% in 2024.
• The non-banking business, which represented 36.3% of the portfolio in 2023, now accounts for 40%, generating revenue for 2024 in the amount of BGN 244.7 million, marking a growth of 14.3% compared to the previous year.
• Operating expenses increase by 19.3%, while administrative expenses increase by a more modest 11%. As a result, EBIT increases by 230.6% to BGN 53.7 million, and EBITDA increases by 165.5% to BGN 60.2 million. The net margin attributable to shareholders also increased by 13.5%, reaching 18.4%.

Full report can be accessed here.