2024-03-27 04:07:01
The Securities Authority contacted the social loan company, Teria, regarding the accounting of about half of its revenues, according to Teria’s reports for 2023. In the first quarter of this year, the Authority informed the company that it disapproved of the “accounting method” of the revenues it derived from a purchasing group in the real estate sector In the meantime, Batria sent their response to the Securities Authority and are waiting for the regulator’s answer.
● Tria presents: withdrawal requests of NIS 1.7 billion and losses are piling up
● Mixing up the bank accounts of the company and the owner: entanglement of Kalkan Capital
This is not about recognizing negligible income from a fresh perspective, but about amounts that add up to approximately NIS 109 million in the years 2021-2023. In these three years, Tria’s total revenues amounted to NIS 212 million, meaning that the fees in question make up more than half of the company’s revenues. Tera estimates that “if the Authority does not accept its position regarding the accounting treatment that will be applied, this may have a material effect on the financial statements.”
Batria, a platform for lending between people (P2P), explains in reports that the recognition of income for lender commissions in the framework of purchasing groups includes a commitment to refund money. The company recognizes the full amount of income at the time of closing the loan agreement between borrowers and lenders, and therefore handles the obligation to repay money as variable consideration; The estimate of the repayment obligation is based on the management’s assessments, the borrowers’ compliance with conditional conditions, construction progress and the utilization of the framework provided to the borrowers.
A wave of withdrawals in the last two years
The main activity of Tria is in operating a platform that connects lenders to borrowers. The company has suffered in the last two years from the increase in interest rates in the markets, as it has made the interest in solid channels such as bank deposits attractive compared to the interest rates given to lenders through its platform, which is a less solid and liquid investment channel. The result is a wave of requests to withdraw borrowers’ funds from the platform, while new deposits have dwindled. In 2023, Teria received loan withdrawal requests of 1.7 billion shekels compared to deposits of only 310 million shekels, most of them in the first half of the year, so the gap for her is negative and stands at about 1.4 billion shekels in the summation of the year. This means a continuous delay in the ability of lenders to withdraw their money from the platform which may take a long period of time.
The total credit portfolio on Tria’s platform amounts to 3 billion shekels as of the end of the year, with most of the loans backed by residential real estate. The company concluded 2023 with a heavy loss of 45 million shekels, similar to the one recorded the previous year. The loss wiped out more than half of the capital Her equity which at the end of 2023 was only about NIS 35 million.
Tera states that it started implementing an extensive efficiency program last year. The company’s CEO is currently held by Eyal Elhiani, one of the company’s three founders. He replaced Shaf Ehrlich who retired from this position at the end of August last year.
Alhiani said that Teria “devoutly implements the efficiency plan and meets all the goals it has set for itself. We ended the fourth quarter with a profit and we believe that 2024 will be a turning point and a return to the growth path. Thanks to the high-quality credit portfolio, mortgages in the amount of approximately NIS 320 million were repaid in Teria, through Financing that provided loans to the company’s customers, with the aim of allowing maximum liquidity for our investors.”
For your attention: The Globes system strives for a diverse, relevant and respectful discourse in accordance with the code of ethics that appears in the trust report according to which we operate. Expressions of violence, racism, incitement or any other inappropriate discourse are filtered out automatically and will not be published on the site.
#Securities #Authority #disapproves #Terias #handling #approximately #revenues