Avida Finans AB (publ) publishes interim report for the period January – September 2024

Great need to reverse the trend and increase the pace of the initiated transformation.

In the third quarter of the year, the negative trend for Avida continued, with costs and credit losses remaining at an unacceptably high level. The need to accelerate the pace of change and reverse the company’s cost and credit loss trends has become increasingly clear. 

“To reduce costs and ensure quality and speed in the initiated transformation, a comprehensive review of the business has now begun”, says Mikael Johansson, CEO. The goal is to achieve more efficient processes, foster a stronger cost-conscious culture, and reduce credit losses - all essential steps for Avida to reverse the current negative trajectory”.

The third quarter was challenging. High costs and high credit losses together with a decline of new origination summarized to a result for the quarter of SEK minus 54,2 million before tax.

Third quarter 2024 compared to second quarter 2024.

• The loan portfolio has decreased from SEK 10,445.5 million in the second quarter of 2024 to a total of SEK 9,801.8 million.
• Net interest income increased from SEK 187 million in the second quarter of 2024 to SEK 181.3 million in the second quarter of 2024.
• Credit losses increased to SEK 138.2 million from SEK 124.8 million compared to the second quarter of 2024.
• Operating profit was SEK minus 54,2 million in the third quarter of 2024 compared to SEK minus 55,7 million in the second quarter 2024 before tax.
• The C / I ratio was 0.55 in the second quarter of 2024 compared to 0.64 for the second quarter 2024.
• The total capital ratio has increased to 11,77% from 11.70% in the second quarter of 2024.

Significant events during the reporting period.

On September 18, Avida announced its intention to acquire Santander Consumer Bank’s credit card business in Sweden and Norway. The acquisition is expected to be completed by the end of the year. This transaction is projected to bring Avida 450,000 new consumer customers, a performing credit volume of SEK 4 billion, and nearly 50 new employees.

On September 30, a change in Avida’s CEO position was implemented, with Mikael Johansson appointed as interim CEO.

Significant events after the reporting period.

At an extraordinary general meeting on October 17, a decision was made to create the conditions for necessary capital injections. These measures aim to secure funding for both ongoing operations and the completion of the Santander credit card business acquisition.

On October 31, Mikael Johansson was appointed as permanent CEO of the company.

This disclosure contains information that Avida Finans AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 28-11-2024 09:00 CET.

For further information, please contact:
Lennart Erlandson, CFO, phone: +46 72 402 44 82, email: lennart.erlandson@avida.se 
Michael Grosche, Head of Communication and Investor Relations, phone: +46 70 307 29 36, email: michael.grosche@avida.se 

About Avida

Avida is a specialist in consumer and SME financing, aiming to provide a seamless customer experience, both digitally and personally.

We are on a transformative and exciting journey in Avida. September 18, 2024, we entered into an agreement to acquire the performing Swedish and Norwegian credit card business of Santander Consumer Bank AS, as well as the sales financing business that Santander Consumer Bank currently operates in partnership with Elkjøp in Norway and Elgiganten in Sweden. The acquired business will add approximately 450 000 new private customers and close to 50 new colleagues. When adding the new business, we will have approximately 210 employees with headquarters in Stockholm and offices in Oslo, Helsinki and Stavanger.

Avida is supervised by the Swedish Financial Supervisory Authority.