INDEXO Ends 2024 with 12% More Clients and 46% Growth in Assets Under Management
According to the 2024 consolidated audited annual report, the pension management company IPAS INDEXO closed the year with 141,914 clients, marking a 12% increase compared to December 31, 2023. Over the past 12 months, assets under management grew by 46%, reaching €1.339 billion by year-end. For comparison, Latvia’s second-pillar pension market grew from €7.06 billion to €8.78 billion over the same period, representing a 24% increase.
INDEXO’s market share in the second-pillar pension market reached nearly 15% in terms of assets under management, up from 12.7% at the end of 2023. Over the last five years, the number of INDEXO pension clients has grown by an average of 34.7% per year, making INDEXO the fastest-growing second-pillar pension manager in Latvia in absolute numbers.
“Last year was an outstanding year for INDEXO pension clients. Despite ongoing financial market fluctuations and short-term variability in investment performance, historical data shows that diversified, passively managed equity market investments tend to yield the best long-term results. As a result, approximately 77% of INDEXO clients have chosen the ‘INDEXO Jauda 16–55’ investment plan, which delivered an annual return of 25.45% and an average five-year return of 10.8%. Since its inception on February 5, 2018, every €1 invested in ‘Jauda’ has grown to €1.98. Our other investment and pension plans have also demonstrated strong growth. The INDEXO team remains committed to reducing investment service costs, further enhancing the returns of INDEXO pension and investment plans,” said Artūrs Roze, Board Member and Fund Manager at IPAS INDEXO.
At the end of 2024, INDEXO second-pillar pension clients had the highest average pension savings in Latvia, reaching nearly €10,400 per client—approximately €3,000 more than the closest competitor. Monthly incoming pension contributions grew by 17%, from €8.8 million to €10.4 million, driven by an increasing number of clients and rising salaries.
Despite INDEXO’s rapid growth and significant investments in client acquisition, IPAS INDEXO’s pension management operations generated a profit of €813,974. Excluding group-wide and one-time capital-raising expenses, the profit before client acquisition costs would have reached €3.3 million by the end of the reporting period, with a normalized net profit of €1.337 million for the pension business. Meanwhile, the consolidated financial result of the INDEXO Group, which includes AS INDEXO Banka, showed a loss of €5.382 million in 2024, primarily due to over €5 million invested in the newly established bank’s IT infrastructure. Since the bank has only been operating for a few months, INDEXO Banka has not yet generated significant revenues, resulting in a loss of €6.162 million for the bank itself during the reporting period.
“The first few months of operations confirm that INDEXO Banka, with its well-recognized and positively received brand and modern IT infrastructure, is well-positioned to challenge Latvia’s oligopolistic banking market. We already offer a modern mobile banking app, competitive deposit rates, an excellent payment card, and a fast consumer loan application process. Additionally, we are currently the only bank in Latvia providing customers with an easy way to view their second-pillar pension savings via a mobile app. In the coming weeks, we will introduce the option to add payment cards to digital wallets, and in April, we plan to launch mortgage lending,” said Valdis Siksnis, Chairman of the Board and Co-Founder of AS INDEXO Banka.
INDEXO Banka launched its operations on August 28, 2024. By year-end, the bank had over 21,100 clients, with total deposits reaching €33 million. The number of clients continues to grow steadily each month, along with deposit volumes, enabling the bank to expand its lending operations—starting with consumer loans and soon extending to mortgage lending.
As of the reporting date in 2024, INDEXO Group’s equity stood at €12.1 million (compared to €5.87 million on December 31, 2023). The Group’s total assets amounted to €48.4 million (up from €7.32 million a year earlier), of which €36.6 million was in cash and cash equivalents (compared to €2.71 million in 2023). Total liabilities in the Group’s balance sheet reached €36.3 million (compared to €1.44 million in 2023), with €32.4 million consisting of customer deposits.
INDEXO Group aims to achieve profitability before credit losses in Q4 2025.
As the financial reports for the bank were consolidated, including the initial application of International Financial Reporting Standards (IFRS), the report publication date was postponed to February 28.
INDEXO 2024 Financial Results Presentation (English) available here.