Zaim Credit Systems PLC (LSE:ZAIM) said its Russian-based subsidiary Zaim Express is “significantly overperforming” a fast-growing market in the past quarter.
The fintech arm, which provides rouble-denominated ‘microloans’ to consumers online via its website and mobile app, reported 5% quarter-on-quarter growth in its first quarter to end-March, or 24% on a constant currency basis.
READ: Zaim says business is unaffected by sanctions against Russian banks
In sterling terms loans of £8.2mln were issued, up from £7.8mln in the December quarter and £5.1mln in the March quarter last year.
Most loans continued to be delivered via its website, though app growth continued.
Some £0.86mln of loans were issued via the app in the quarter, up from a standing start in the second quarter last year and up 28% on the preceding quarter, contributing over 10% of loans issued.
“Despite the economic volatility the business performance of the group remained strong, demonstrating the seventh consecutive quarter of growth,” said chief executive Siro Cicconi.
“As our operating currency is the Russian rouble and reporting currency is the British pound, the fluctuation of exchange rate of these currencies affects our reported performance.”
Cicconi flagged Zaim’s outperformance, with loans in the quarter up 61% year-on-year or 81% on a constant currency basis, compared to a Russian microfinance market growing by 22% or 37%, based on the Central Bank of Russia's latest available data.
The reversal of the forex trend in the second quarter, with the Russian rouble bouncing back significantly against the pound, “will positively influence our reported numbers in the second quarter of 2022”, he added.
Cicconi said the launch of its branded mobile app in the second quarter last year has become “an important sales channel and significant growth driver of our business”.