MeDirect Group maintained ‘steady progress’ in first half of 2021, says CEO

During 2021, MeDirect Group continued to accelerate its investment programme to build its customer-centric app, combining a broad range of investment services seamlessly integrated with daily banking functionality.

The Group’s technology platform has been undergoing a transformation over the past two years, by leveraging on flexible and scalable technologies along with the objective of delivering best-in-class user experience to support its mission of making digital investment simple, inclusive and empowering for all.

“In the first half of 2021, MeDirect Group maintained steady progress as it achieved strong growth in all those business lines targeted for new investment, resulting in an encouraging profitable performance following 2020, which was a year impacted by significant impairment provisions due to the COVID-19 pandemic,” said Arnaud Denis, Chief Executive Officer of MeDirect Group.

In the first six months of 2021, MeDirect Group continued to implement its balance sheet diversification by actively planning the launch of its future Belgium residential mortgage business line and by successfully launching the home loan business in Malta. 

In addition, the Group continued to achieve positive growth in business volumes in jurisdictions in which it operates.

By starting to benefit from a more diversified business model and given the improving credit outlook, the Group achieved a promising performance in the first half of 2021 as profit before tax was €3.2 million compared to a significant loss last year driven by prudent provisioning to reflect the impact of COVID-19.

MeDirect Group continued de-risking its international corporate lending portfolio such that, since the beginning of the financial year, the gross size of the portfolio has been reduced by 24 per cent from €903.4 million to €691.1 million and by 46 per cent over the last 12 months.

The Group’s liquidity remained robust, and capital ratios remained well above minimum requirements.

Mr Denis concluded that “the Group’s financial performance improved with lower impairment charges, better capital ratios. Although the outlook for the rest of the year remains challenging, MeDirect continues its accelerated transformation into a leading retail WealthTech banking platform and is working strongly to revert to sustainable profitability in the medium term as we remain disciplined but cautiously optimistic as the economic recovery unfolds.”