WiZink profits fall 61%

 In Banks, News

The Spanish digital bank WiZink which operates in Portugal has suffered a fall in profits by 61% to €8.5 million.

The fall was partly down to a fall in taking out loans in both countries because of the pandemic.
The €8.48million profit referred to the first quarter of 2021, a fall of 61% on the €21.86 million achieved in Q1 of 2020 when the impact of the pandemic had yet to be felt.
The bank’s accounts saw a fall in loan activity because of the lockdown decreed by the government in the first few months of the year.
The bank’s financial margin fell 21.9% to €109.8 million while net bank charges plummeted 27%.
However the bank did enjoy a 15% increase in deposits totalling €3.2 million. WiZink reduced its extraordinary provisions set aside for Covid-19 to €12 million compared to the €61million in the last quarter of 2020.
The Spanish bank which has been in Portugal since 2017, has a new strategy plan in operation and signed a partnership with Benfica football club this month.
In Portugal, where it currently only provides credit cards, it will now issue personal loans. WiZink predicts two-digit growth for 2023 according to Miguel Ángel Rodrigues Sola, CEO of WiZink in an interview with Negócios.
WiZink has 500,000 customers in Portugal with a total loan portfolio of €1.1Bn which corresponds to 35% of its total business.
At the start of June, the bank celebrated a sponsorship contract with Benfica valid for five seasons, and a partnership for the development of means of payment for club members as well as a card aimed specifically at club members and fans.