IOU Financial Reveals 2022 Financials, Is Adapting to Current Macroeconomic Conditions
IOU Financial originated $82.7M in funding in Q4 2022, according to the company’s latest financial report. That put them at $275.5M for the year total, a new all-time record for the company. IOU was profitable for the year but by a razor thin margin, eking out a net income of just $38,826.
In an official announcement, IOU disclosed that “During the fourth quarter of 2022 macro-economic factors including inflation and rising interest rates impacted the operating environments of many small businesses and negatively impacted IOU’s collections efforts and servicing revenues. This has led to a write down of specific servicing assets and reduced revenue accrual rates, resulting in a net loss of $(2.7) million on an IFRS basis and $(0.9) million on an adjusted earnings basis for the quarter ended December 31, 2022.”
IOU has already taken decisive action to adapt, the company stated, which has already led to a positive impact on collections but also resulted in sigifnicantly reduced originations in the first quarter of 2023.
“IOU Financial has weathered many storms and always emerged stronger than before,” said Robert Gloer, President and CEO of IOU. “We’ve pivoted to adjust to current macro-economic conditions and remain committed to investing in products and technology designed around the needs of small business owners and our broker network.”Last modified: April 26, 2023