We recently published Bondora Group’s audited financial results for 2024. Since then, we’ve continued engaging with our investor community through our annual CEO Q&A video, and now it’s time to dive even deeper into the financials and what it means.
In this post, you can explore additional insights on key topics such as our profitability, risk management, debt management, and recovery.
Read on to discover the details behind Bondora Group’s 2024 financial report and stay fully informed.
Further strengthening the Supervisory Board
In 2024, we welcomed two new members to the Bondora Supervisory Board: Richard Groeneveld and Raimondas Berniunas. Richard brings extensive global executive experience that will strengthen our financial strategies. Raimondas adds deep expertise in risk management, helping ensure Bondora’s resilience in dynamic market conditions.
We also restructured the Supervisory Board to further enhance its capabilities by adding additional banking expertise, aligning with the requirements of the banking license application process and Bondora’s long-term strategic goals.
All supervisory board members must meet the criteria set by the European Central Bank (ECB). Our independent members bring extensive top-level managerial experience in banking, particularly in risk management, and have already passed the ECB’s rigorous fit and proper evaluations. Read more about the Supervisory Board here.
Understanding the change in reported net profit
In 2024, we reported a net profit of €1.2 million, compared to €3.4 million the year before. The decline in net profit and the increase in doubtful receivables in 2024 are primarily due to a one-off accounting adjustment related to changes in our fee receivable provision model.
Specifically, the change relates to Bondora Group’s own fee receivables from borrowers, rather than the loan principal balances, which are held by investors.
To align with IFRS 9 standards in preparation for our banking license application, we implemented an enhanced expected credit loss (ECL) model. This new model was applied retroactively across the historical receivables portfolio, leading to a higher one-time provision expense.
Importantly, this change does not indicate a deterioration in the business’s underlying profitability but rather reflects a necessary one-off alignment with the regulatory standards of a supervised financial institution.
Bondora remains profitable and financially stable for the 8th year in a row.
Bondora Group’s 2024 financial report: The difference between investment balance and loan portfolio
The investment balance (€567M) represents all investor funds on our platform, including both invested amounts and uninvested cash held in their accounts as of 31 December 2024.
The loan portfolio (€600M) refers to all active loan principals outstanding as of 31 December 2024.
The loan portfolio is intentionally higher than the investment balance to ensure sufficient risk buffers and diversification within the Go & Grow product. This structure safeguards investor returns.
Debt collection and credit risk management performance in 2024
Bondora Group’s collection processes became significantly more effective in 2024, particularly in Finland, our largest credit market. This was evident in both incoming cash flows and the recovery rate on defaulted balances, which improved by more than 50% from the end of 2023 to December 2024, a 1.5x increase in recovery efficiency.
Estonia, our second-largest portfolio, remained stable with consistently high recovery performance, reflecting the strength of our automated and mature collections infrastructure.
We use Expected Credit Loss (ECL) during both origination and portfolio modeling. In parallel, we track recovery data monthly, including incoming payments, recovery rates, and recovery curves. This data is then fed back into our origination and modeling processes to validate or recalibrate assumptions and maintain accuracy.
How the average default rate evolved across all markets compared to 2023
The defaulted share has been gradually declining, reflecting steady and ongoing improvements in portfolio quality across markets.
Beginning in 2022 and 2023, we started scaling with a more robust, data-driven approach. Since Q3 2023, we’ve achieved the widest positive spread between loan defaults and interest rates charged across all our markets since the start of operations, demonstrating strong credit risk management.
A standout example is the Netherlands, where we’ve achieved excellent risk performance in a short timeframe, showcasing our enhanced ability to react quickly and effectively to early signs of performance issues.
The most recent portfolio-level data covers Q1 2024. Default rate statistics for Q2 2024 and beyond will become available after Q2 2025, following the standard 12-month observation period needed for accurate default classification. Once Q2 has ended, we can publish more detailed statistics, including recovery data, on our blog. So keep an eye out!
Bondora Group 2024 financial report: Explaining the increase in intangible assets
In 2024, Bondora Group’s intangible assets increased from €470,000 to €3 million. The increase is due to the capitalization of internal IT development costs, reflecting our continued investment in technology and platform improvements.
These are treated similarly to externally purchased IT systems: they are recorded as intangible assets on the balance sheet and amortized over their estimated useful life. Since the internally developed systems are expected to provide benefits beyond the current reporting period, they qualify for capitalization under accounting standards.
This approach is also part of our broader effort to align our accounting practices with those of regulated banks, in preparation for the banking license application.
Our next steps
Our strategy continues to focus on sustainable growth, responsible lending, and delivering long-term value. In 2024, we expanded into new markets, including Lithuania and Denmark, strengthening our presence across five EU countries. We invested heavily in proprietary software and automation, building an even more decisive competitive advantage while keeping our operations lean and efficient.
With a team of just 188 people, we supported a 30% increase in loans issued and a 27% rise in investment volume. This speaks not only to the scalability of our platform but also to the trust investors continue to place in Bondora, with over €1 billion invested since 2008.
Your trust fuels our growth
Even during a year of regulatory preparation and accounting model updates, Bondora Group remained profitable for the 8th year in a row. That consistency is no accident. It reflects the solid foundation we’ve built and the confidence you’ve placed in us as your investment partner.
Our long-term focus, technology-led approach, and careful market expansion continue to set Bondora apart. We’re not just growing; we’re growing with purpose and with you.
How your investment remains secure
At Bondora, protecting your money isn’t just a feature. It’s our foundation. We’ve designed our Go & Grow product and platform with multiple layers of security and smart financial safeguards:
- Diversified loan portfolios spread across various EU countries, lowering exposure to regional risks
- Strong recovery processes for non-performing loans
- Segregated client accounts that separate your funds from company operations
- Liquidity buffers and controls to support withdrawals and stability
- 8 years of profitability and a capital-light business model that puts customers first
Want to know more about how we protect your money?
👉 See how your investment stays secure
Stay tuned to our blog for more data and insights, so you’ll always know where your money is working and why.
