Notably, in continuation of the program for the digitalization services offered by the group, since the first half of this year, smallholder farmers (farming 10 to 100 ha) can apply for a credit card in a 100% digital process.

Segment-specific performance

In the agri-finance segment, Agricover Credit IFN continued its strategic expansion, resulting in a 6.2% increase in the number of customers and a 7.1% increase in average exposure per customer. The gross book value of loans and advances increased to RON 3.36 billion, reflecting a 15.7% jump from December 2023. Pre-tax profit was RON 60.2 million, up 4.7% from H1 2023.

The non-performing loan ratio remained low at 3.74%, thanks to proactive risk management and in-depth knowledge of the agricultural sector, which allows the construction of personalized offers that are close to the needs and possibilities of customers.

The Agribusiness segment recorded revenues of RON 807 million, in an expected decrease of 23.8% compared to the previous 12-month period, due to lower prices of agricultural raw materials, but also reduced demand for inputs from farmers in a difficult macroeconomic and weather context.

Customer base and market developments

Agricover Group served a solid customer base of over 10,000 farmers in the first six months of 2024. Strong relationships with farmers, developed through a direct access model, have enabled the Group to meet evolving customer needs. Agricover continues to prioritize financial support to farmers in a challenging environment, with a focus on ensuring business continuity.

Digital innovation and customer base expansion

A central component of Agricover's growth strategy is digitization, helping farmers to adopt modern practices, precision farming, new technologies. By launching the My Agricover platform, which opens up new customer segments and facilitates access to finance in a simplified and efficient way, the Group offers farmers a 100% digital channel through which they can quickly and easily access financial solutions, thus helping to optimize operations and increase customer recurrence.

Through My Agricover, Agricover Group manages to reach smaller farmers operating areas of up to 100 ha. This digital platform not only expands the Group's customer portfolio, but also helps to retain existing customers through an enhanced digital experience.

While market volatility persists, the Agricover Group remains well positioned to face future challenges by leveraging its deep expertise in the agricultural sector. The Group's solid performance in the Agrifinance segment and the resilience of the Agribusiness operations underline its commitment to support Romanian agriculture through financial innovation and sustainable business practices.