According to the Unaudited Consolidated Interim Report for the first six months of 2025, IPAS Indexo (hereinafter – INDEXO) pension management business generated a comprehensive profit of EUR 743 thousand, almost five times the profit of the first half of 2024. The INDEXO banking business produced a loss of EUR 5.05 million in the first half of 2025, which is in line with expectations due to considerable investmnts, that the fast-growing bank is making in product development, IT and marketing. The loss of the consolidated INDEXO Group was EUR 4.30 million in the first half of 2025.
INDEXO pension business shows strong profitability, new focus on voluntary pension savings
The customer base of INDEXO pension business has risen by 3.2 thousand this year, bringing the total to 145 thousand customers as of Q2 2025 (8% y-o-y). Assets Under Management (AUM) have grown to EUR 1 347 million (17% y-o-y) and the commission income has risen to EUR 2.43 million in Q2 2025 (21% y-o-y). In Q2 2025, INDEXO’s pension business is profitable also after investing in client acquisition, generating a profit of EUR 357.5 thousand bringing 1H net profit to EUR 743.6 thousand.
At the end of Q2 2025, the INDEXO 2nd pillar customers had the highest average AUM per customer in the 2nd pension pillar market, amounting to EUR 10 312. While customer contributions keep growing, starting from April 2025, the 2nd pillar contributions were affected by the regulatory change that lowered the contribution rate from 6% to 5%.
“The first half of 2025 has been transformational for our pension business, with a strategic shift toward growing the voluntary pension product. We see that regular and optimal contributions to voluntary pension funds remain rare. Global estimates suggest that maintaining one’s standard of living in retirement requires saving around 10–15% of income, yet few people in Latvia follow this rule of thumb. Furthermore, the state’s decision to reduce the 2nd pillar contribution rate by 1% means that people on average started to save even less.
Considering this, we have decided that our goal is to help people to understand why saving in 3rd pillar is good and how to make it as simple as possible. This means that our team is initiating more customer conversations about voluntary savings and focusing less on the 2nd pillar product,” says Henrik Karmo, Chairman of the Management Board of IPAS INDEXO and one of the founders.
INDEXO Bank focuses on growth and lending
The first half of the year for the Bank was marked by following main highlights: continuous growth in the customer base, a large increase in the loan portfolio and significant additions to the range of services offered by the Bank. During the first half of 2025, INDEXO Bank’s customer base increased by 5.7 thousand, reaching 37.3 thousand customers by the end of June. Simultaneously, the loan portfolio grew by EUR 5.60 million, reaching EUR 12.38 million. Both the loan portfolio and client base have expanded significantly also after the reporting period.
“We are following through on our vision to grow a local bank, that creates daily value for our economy and people. For example, we see strong demand for the mortgage refinancing product, that we launched in May with client applications in tens of millions of EUR. Not all of these will result in signed mortgage refinancing deals as some clients will take our offer to their existing banks as a bargaining tactic, but that too creates value for Latvian people as they are thus able to negotiate a better deal and save money for their household. Second quarter results also show that active lending is the best way to increase our revenues and faster reach brake-even point. We will continue gradual introduction of new, modern products in payments and lending as well as focus on increasing the wallet share and activity of our clients. We are on course to grow the bank in line with our vison,” says Valdis Siksnis, Chairman of the Management Board of INDEXO Bank and one of the founders.
In second quarter 2025, INDEXO Bank earned EUR 206.2 thousand in total income, which is a 228.3% increase from the previous quarter. In a Q2 net interest income accounted for EUR 210.7 thousand. Net fee income was still negative at EUR 52.2 thousand, as INDEXO Bank needs a larger active customer base to cover fixed costs mainly related to the issuance of payment cards. Other operating income was EUR 47.7 thousand.
To support strategic initiatives such as mortgage lending and custody services, INDEXO Bank will be raising additional capital in August of 2025.
As of the end of July 2025, INDEXO Bank’s number of clients has grown to 39,9 thousand, deposit volumes increased to EUR 49,9 million, while the amount of loan portfolio has reached EUR 18,8 million.
All interested parties are invited to join a free online webinar “INDEXO Results and future plans” on August 7 at 18:00 (EEST) in English (16:30 (EEST) in Latvian), where the INDEXO team will present the company’s first-half year performance results and future development plans. Register for the webinar here: www.indexo.lv/en/webinar-202508/
