September 14, 2021
DelfinGroup received Latvian Corporate Governance award for the most successful selection of Supervisory board
Latvian financial service company AS DelfinGroup has received the 2021 Latvian Corporate Governance award for implementing sustainable good corporate governance practice in the company. Corporate Governance awards were presented by Corporate Governance Advisory Board (CGAB) for the first time to recognize the best governed companies in Latvia. AS DelfinGroup won the Corporate Governance award in the category of the most successful selection of a supervisory board.
AS DelfinGroup Supervisory board was selected in an international competition, and 45 applicants from seven countries applied. On March 30, 2021, finance, corporate governance and fintech service experts Gatis Kokins, Edgars Voļskis, Mārtiņš Bičevskis, and Jānis Pizičs were elected as new members of the Supervisory board. Agris Evertovskis retained his position as the Chairman of the Supervisory Board. According to Latvian Corporate Governance Code, the majority, or three out of five members of the company`s Supervisory board, must be independent members.
Chairman of AS DelfinGroup Supervisory board and shareholder Agris Evertovskis: "Good corporate governance is an essential prerequisite for sustainable corporate development, as it increases the company's long-term value and resilience. I believe that every well-managed company offers added value not just for its shareholders, but also to the public and the national economy in general. Good governance presumes to balance the interests of involved parties and to consider very seriously the aspect of sustainability when planning the operations and strategy of the company. This Corporate governance award demonstrates that we are on the right track and can serve as an example for other Latvian companies in developing corporate governance, in line with world best practice and standards."
Vice president of Baltic Institute of Corporate Governance Andris Grafs: “To achieve good results one needs more than just a wish to be a well governed company. AS DelfinGroup is an example of determination followed by specific action to reinforce corporate governance. Having an open and transparent process for selection of Supervisory and ensuring that majority of Supervisory Board members are independent, the company was able to elect a competent and experienced Supervisory Board. Thereby, AS DelfinGroup has become a role model for other companies. I hope other companies in private sector will be inspired by this example and will select their independent Supervisory Board members following its footsteps”.
Corporate governance at AS DelfinGroup is implemented by the Management board consisting of three members. They are also minority shareholders who own 3.5% of the company's shares in total. The oversight of the AS DelfinGroup Management board, strategic governance and risk management is performed by a professional Supervisory Board.
AS DelfinGroup is one of just a few companies in the Baltic States which have prepared an environmental, social and corporate governance (ESG) report for 2020. This speaks to a diverse set of sustainable corporate governance aspects. AS DelfinGroup business model has been devised to reflect the company’s concern for nature and the environment, combining green thinking with economics advantage. The company’s branch network in Latvia operates in accordance with the basic principles of the circular economy and facilitates the extension of product lifecycle – pre-owned goods are inspected and prepared for re-sale at branches and online. The company’s concern for the environment is certified by its ISO management quality (9001) and energy management (50001) system certificates. The company’s financial services facilitate the formation of a more inclusive society by making modern financial services available to various social groups throughout Latvia. Among other things, AS DelfinGroup facilitates the availability of financial services to social groups including senior citizens and rural inhabitants. The social responsibility guidelines of AS DelfinGroup entail support for organisations that foster social development, inclusiveness, diversity, and growth. The financial services of AS DelfinGroup for various social groups are available in person at over 90 branches throughout Latvia, as well as online.
In March this year, AS DelfinGroup announced plans to launch an initial public offering of shares (IPO) on Nasdaq Riga Stock Exchange Baltic Main List during the second half of 2021. The offering will be aimed for retail investors in Latvia, Estonia and Lithuania and institutional investors of European Economic Area (EEA). AS DelfinGroup has retained the services of LHV Bank and the law firm Eversheds Sutherland Bitāns for organizational and legal support during the IPO process. More information about the planned IPO is available at: https://www.delfingroup.lv/invest.
About AS DelfinGroup
AS DelfinGroup is a licenced technology-based financial service company that was established in 2009 and operates under the brand names Banknote and VIZIA. The company continuously develops and offers consumer and pawn loans, loans developed for senior citizens, Buy now pay later loans (BNPL loans), as well as sale of pre-owned goods both online and at more than 90 branches across Latvia. On average, 35,000 thousand loans are issued every month and serviced by the professional team of more than 250 AS DelfinGroup employees. The company has a total of over 400,000 registered customers. AS DelfinGroup is a member of the Latvian Chamber of Commerce and Industry and the Latvian Association of Alternative Financial Services and has received the Gold Level status of the State Revenue Service cooperation programme. Since 2014, AS DelfinGroup has been known on the Nasdaq Riga Stock Exchange as a bond issuer. The company regularly pays dividends to its shareholders. In 2020, the company's net loan portfolio grew to EUR 34.6 million, while its EBITDA reached EUR 9.3 million, with profits before income tax for dividends EUR 4.65 million. The company’s sustainability is based on focused corporate governance, fintech innovation, responsible lending, financial inclusion and facilitating the circular economy. The company has been profitable every year since 2010.
The Corporate Governance award 2021
Latvia's Corporate Governance award was established to recognize the practical implementation of examples of good practice related to the Latvian Corporate Governance Code and to publicly acknowledge these practical steps. This year, Latvian Corporate Governance award was given in three categories: "The Most Successful Experience in Creating a Corporate Culture", "The Most Successful Selection of a Supervisory board," and "The Most Successful Shareholders Involvement in a Digital Format." The Corporate Governance Code for companies in Latvia was developed by Corporate Governance Advisory Board under the Ministry of Justice. As of 2021, the Code can be applied in every company in Latvia which seeks to improve effectiveness and ensure a sustainable increase in value. The principles in the Code are based on best international practice, legal acts of the Republic of Latvia pertaining requirements for companies, as well as recommendations from the European Organisation for Co-operation and Development on corporate governance.