ZAIM Credit Systems PLC (LON:ZAIM) expects increased lending volumes and better credit scoring to boost its performance 'materially' in the current year.
In an update, the Russia-focused microlender said impairments as a percentage of the loan book fell to 5.6% in the three months to September, down from 9.1% in the March quarter, though numbers for the final quarter are not yet available.
The value of loans advanced rose to £838,000 in December from £721,000 in October.
ZAIM, which joined the main market through a standard listing in November, lends an average of £95 equivalent for 20-25 days most through a network of shops in Russian cities, though online is growing rapidly.
Customers tend to use the service two or three times per year, paying 1% in interest per day.
During 2019, ZAIM said it was held back by the lack of available liquidity due to a restructuring of historic bonds and the IPO taking place later in the year than expected.
Siro Cicconi, ZAIM's chief executive noted that micro-finance is a rapidly growing market in Russia while tightening regulatory requirements mean the sector is consolidating.
ZAIM is already fully compliant with the new regulations, Ciccone added.