For Immediate Release

1 September 2022

Zaim Credit Systems Plc

("Zaim" or the "Group")

Second quarter 2022 trading update

Zaim Credit Systems plc (the 'Group' or 'Zaim'), the fintech group, announces a trading update from its wholly owned subsidiary, Zaim-Express LLC, ('Zaim Express') in respect of the second quarter of the financial year ended 31 December 2022.

Second Quarter 2022 Highlights¹:

·   Continued growth of the loans issued across all business lines

·   The growth was mainly due to the strengthening of the RUB (operating currency) vs. GBP (reporting currency) by 27 %² in Q2 2022 vs. Q1 2022.

·   Total loans issued grew by 13% quarter-on-quarter and 47% year-on-year.

·   Loans issued online growth of 8% quarter-on-quarter and 38% year-on-year.

·   Loans issued via mobile application grew 38 % q-o-q and 650% y-o-y

·   As a direct result of the economic situation the Russian local authorities announced a half-year moratorium on collection of debt incurred before 1 April 2022, which reduced the cash collection of the operations slightly during the quarter.

·   As a direct response to this and in order to pre-empt any negative impact on the Group, Zaim Express limited the amount of the loans issued online.

·   Post period end the business continues to perform well with the overall impact of recent events expected to be minimal on the long term prospects of the business

Siro Cicconi, Zaim's CEO commented:

"Despite the economic volatility, demand for the Group services remains strong. 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.

One of the significant factors that influenced our business performance was the restrictions on collecting activities imposed by the government starting from 1 April 2022.

In Q2 2021 we launched our branded mobile application that became an important sales channel and significant growth driver of our business. In Q2 2022 the mobile application was responsible for over 13% of loans issued, which is almost twice as much as our physical store business.

The weighted average default rate increased from 21.9% in Q4 2021 to 26.5% in Q1 2022 due to the lower collection receivables as a result of the government moratorium on collection activities. Overall we are pleased with the performance under the circumstances and we don't see this as a long term worsening of collecting activity, 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".

Second quarter 2022 trading update³

The table below presents the two main KPI's (loans issued and default rate) for the last five quarters:

Notes: 

¹ All figures presented throughout this announcement represent unaudited management information taken from the internally generated management accounts of Zaim-Express LLC

² Weighted average exchange rates of British Pound vs. Russian Rouble in Q1 2022 and Q2 2022 were 115.2839 and 84.1915 respectively

³ Starting from our Q1 2022 trading update we are introducing the new reporting segment - "Loans issued via mobile application". Starting from Q2 2021 loans issued via mobile application were accounted within "Loans Issued Online" category. In the tables below loans issued via mobile application for Q2 2021 to Q4 2021 are deducted from the previously reported loans issued online, which explains the difference in the numbers of loans issued online compared with previously reported for the respective periods

⁴ Default rate is defined as no payment received after 120 days of the origination of the loan

⁵ Data is not yet available for the quarter ended 31 June 2022 as the earliest time to determine default rates is 120 days after the end of the period

*Ends*

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The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR").