Zaim Credit Systems PLC (LSE:ZAIM), one of the few western-based businesses still operating in Russia, said all lines had continued to grow despite the sanctions imposed after the Ukraine invasion.
Helped by a recovery in the rouble, the payday lender said total loans issued grew by 13% quarter-on-quarter to £9.3mln and 47% year-on-year in the three months to end-June 2022.
Loans issued online grew by 8% quarter-on-quarter and 38% year-on-year, while loans issued via mobile applications grew 38 % q-o-q and 650% y-o-y.
Cash collections were reduced after a half-year moratorium on the collection of debt incurred before 1 April 2022, which has also limited the amount of the loans issued online, but the company expects the overall impact to be minimal on its long-term prospects.
Default rates increased from 21.9% in Q4 2021 to 26.5% in Q1 2022 due to the moratorium.
“Overall we are pleased with the performance under the circumstances and we don't see this as a long-term worsening of collecting activity," said Siro Cicconi, chief executive.
"... it is expected that after moratorium will end, a large portion of loans under default will be recovered and repayment levels will return to the previous trend," he added.
“Due to the very strong appreciation of our operating currency (RUB) relative to our reporting currency (GBP) we reported growth of the loans issued across all business lines.”