FY25 Principal Subsidiary Results & Covenants

30 April 2026

ICFG Limited

("ICFG" or the "Company")

FY25 Results of Principal Subsidiary and Covenant Compliance 

ICFG Limited (LON: ICFG), the international financial services group, announces the publication of the Audited Consolidated Financial Statements of InvesCore NBFI JSC ("InvesCore"), its 82.29% owned subsidiary listed on the Mongolian Stock Exchange, for the year ended 31 December 2025. The Company further announces an update in relation to financial covenant compliance by InvesCore.

Audited Results of InvesCore

The following highlights reflect the performance of InvesCore's microfinance business, which constitutes approximately 90% of ICFG's net operating income. 

Financial Highlights

·    Net interest income increased by 38% to reach MNT 194 billion (c. US$ 54.5 million) (FY24: MNT 141 billion (c.US$ 39.6 million)), supported by the corresponding growth in average Gross Loan Portfolio ("GLP")

·    InvesCore's year-end GLP reached MNT 915 billion (c.US$ 256.9 million) in FY25, up 22% from MNT 748 billion (c.US$ 210 million) in FY24

·    Profit for the year grew by 21% to MNT 101 billion (c.US$ 28.3 million) in FY25 (FY24: MNT 83 billion (c.US$ 23.4 million)), reflecting InvesCore's continued ability to generate stable and recurring earnings across market conditions and highlighting the resilience of its operating model through evolving credit cycles

·    InvesCore's Central Asia operation delivered a strong step-up in profitability, with FY25 profit rising to MNT 12 billion (c.US$ 3.3 million) (FY24: MNT 0.9 billion (c.US$ 0.3 million)) and the region's share of profit increasing to 12% (FY24: 1%), reflecting maturing operations and growing contribution to the InvesCore's earnings.

·    Total equity increased 35% to MNT 337 billion (c.US$ 94.5 million) in FY25 (FY24: MNT 249 billion (c.US$ 69.8 million)), underpinning a strengthened balance sheet and supporting continued growth in InvesCore's microfinance operations.

Operational Highlights

·    Remained as the largest non-bank financial institution ("NBFI") in Mongolia and continued to expand its presence in Central Asia, with market share increasing to 0.3% in Kazakhstan (FY24: 0.1%) and 2.7% in Kyrgyzstan (FY24: 2.6%)

·    Active borrowers reached approximately 190,000 as at 31 December 2025, up 28% year-on-year compared to circa. 149,000 in FY24, driven by rapid adoption of its digital lending platform.

·    Pocket Marketplace generated MNT 37 billion (c.US$ 10.3 million) in commission income in FY25 (FY24: MNT 23 billion (c.US$ 6.5 million)), demonstrating strong adoption of the platform and accelerating the InvesCore's shift toward scalable, fee-based revenue streams.

·    Strengthened asset quality management in response to higher delinquencies, with past due loan ("PDL") and non-performing loan ("NPL") ratios increasing to 17.0% (FY24: 8.2%) and 9.5% (FY24: 4.9%) respectively. A dedicated recovery task force and centralised Asset Quality Department were established, supporting improved recoveries and helping to mitigate further deterioration.

Note: MNT figures have been translated at a rate of 3,560 MNT/US$, being the rate on 31 December 2025.

Click on the following link, or paste it into your web browser, to view InvesCore's Audited Consolidated Financial Statements and Operational Report: 

FY25 Audited Consolidated Financial Statements: https://issuers.mse.mn/uploads/audit_concl_files/553_1777526396audit.pdf

FY25 Operational Report: https://issuers.mse.mn/uploads/activityreport/553_20260430131714report_eng.pdf

Covenant Compliance and Lenders Waiver of InvesCore

As at 31 December 2025, being the most recent calculation date under certain facility agreements (the "Facility Agreements"), InvesCore was in breach of certain of the financial covenant requirements (the "Covenant Breaches") and the information relating to such Covenant Breaches is disclosed in note 21 of InvesCore's Audited Consolidated Financial Statements.

The Covenant Breaches have arisen due to the fact that in the months following September 2025 InvesCore experienced an increase in PDL and NPL, primarily driven by adverse macroeconomic conditions in Mongolia including elevated inflation which contributed to credit stress across the NBFI sector. Notwithstanding these pressures, InvesCore remained strongly profitable, generating MNT 101 billion (c. US$ 28.3 million) of profit for FY25, highlighting the resilience of its operating model.

As at the date of this announcement, no enforcement action has been taken by any lender pursuant to any of the Facility Agreements and none of the facilities provided to InvesCore have been accelerated.

The Company notes that InvesCore maintains a strong liquidity position, with cash of approximately MNT 143 billion (c.US$ 40.3 million), against a loan portfolio of approximately MNT 981 billion (c.US$ 275.5 million) as at 31 March 2026.

The Company and InvesCore have been, and continue to be, in active engagement with all relevant lenders regarding the terms of the Facility Agreements.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended by virtue of the Market Abuse (Amendment) (EU Exit) Regulations 2019.

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