Doverie Holding – 2025 Q1 – Continued strong performance in Q1

Q1 2025 Results

• Total revenues in Q1 increased by 3.2% year-on-year, reaching BGN 140 million. The only driver was the 16.6% growth in banking operation, which reached BGN BGN 90.1mln. Insurance revenues ceased since the insurance company within the holding was sold to Generali with the deal finalized on 11 Feb 2025. Revenues from other business sectors contracted by 1.3% to BGN 50.2mln.
• 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 32.4% growth in net interest income in the first quarter, amounting to BGN 45.3 million, is impressive. This performance is the result of a 20.6% increase in interest income and a 10.5% decrease in interest expenses compared to the Q1 2024. A clear growth in lending, where interest from loans increased over 43% YoY. In the same time, interest on deposits decreased 11.6%.
• Moldindconbank announced a 9.5% growth in its loan portfolio for Q1 2025. By the end of Q1 2025, corporate loans increased by 9.6% YoY and personal loans increased by 9.5% compared to same quarter last year.
• 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 further 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 77.8% of the total. Those revenues plus the revenues from medical services were the drivers for the growth in this category, contributing nearly equally, with medical edging slightly above that.
• Sales of the non-banking business increased by 4.2% in Q1 2025, reaching BGN 53 million. Among the other sectors, construction recorded a decline of 14%, and winemaking marking a marginal increase of 1%, whereas detergents halved, but due to its small share they did not have a great impact.
• The non-banking business, with the sale of the insurance company, now represent 35.8% of the portfolio revenue, or BGN 50.2mln.
• Operating expenses decreased by 20.5%, while administrative expenses decreased marginally by 2.4%. As a result, EBIT shot up by 148% to BGN 59.2 million, and EBITDA followed suit by increasing by 119.4% to BGN 65.3 million. The net margin attributable to shareholders also increased by 20.5%, reaching 32.5%.

Full report can be viewed here.