Avida’s year-end report 2024
Avida Finans AB publishes year-end report for the period January–December 2024.
A transformative Quarter Concluded the Year
Avida’s fourth quarter was marked by substantial change and transformation. It was also characterized by the successful completion of the acquisition of Santander Consumer Bank’s credit card and sales finance operations in Sweden and Norway. Through this acquisition, Avida has added approximately SEK 3.6 billion in loan volume and has now a platform that creates opportunities for future growth. The portfolio includes only performing assets. Priority going forward will be successful integration of the portfolio and optimizing of the offering.
"We have initiated a comprehensive assessment of the business and operation. This has resulted in a transformation plan focusing on organizational efficiency, improved cost structure, and decreased credit losses" says Mikael Johansson, CEO of Avida. "Having reviewed business operations and considering the updated strategic priorities, we have decided to materially reduce the cost base by 200 MSEK. As part of this, we see the need to reduce the number of staff resources by approximately 30%.”
During the quarter, the shareholders decided to support Avida’s turnaround plan with a capital injection of SEK 866 million to complete the acquisition of the Santander credit card and sales finance portfolio and strengthen the balance sheet and the capital position with the following capital positions at year end: CET1 12.75%, Tier1 14.38% and Total capital 16.49%.
In connection with the year-end financial statements for the fourth quarter, following a comprehensive review of the loan portfolio, Avida have decided to significantly increase coverage ratios through a write down of the performing and nonperforming portfolios of 298,2 MSEK. Furthermore, two portfolios of non-performing loans were sold to improve the capital structure. The financial impact of these sales resulted in a net loss of 21,7 MSEK.
Revenues in the fourth quarter declined primarily within the consumer segment due to restrictive new lending and reduced volumes. In summary, lower revenues, higher costs, and credit losses including write downs led to a result of -507,8 MSEK before tax.
Fourth quarter 2024 (compared to fourth quarter 2023)
• The loan portfolio has increased 12,283.5 MSEK (10,515.9 MSEK).
• Net interest income decreased to 171.2 MSEK (192,2 MSEK).
• Credit losses increased to 536,4 MSEK including changes in provision of 298.2 MSEK (SEK 98.6 million).
• Operating profit was minus 507,8 MSEK (minus 0.7 MSEK).
• The C / I ratio was 0.84 (0.52).
• The total capital ratio was 16.49% (17.44%).
• Return on equity was negative (negative).
January–December 2024 (compared to January–December 2023)
• The loan portfolio amounted to 12,283,5 MSEK (10,515.9 MSEK).
• Net interest income amounted to 712,1MSEK (863.5 MSEK).
• Credit losses amounted to 931,1 MSEK (513.1 MSEK).
• Operating profit amounted to –685,9 MSEK (18.8 MSEK).
• The cost/income ratio amounted to 0.68 (0.41).
• The total capital ratio amounted to 16.49 % (17.44%).
• Return on equity was negative (0.93%).
Presentation of the Year-End Report
Mikael Johansson, CEO, and Lennart Erlandson, CFO, will present Avida's Year-End Report and answer questions during a digital meeting held on March 4 at 15:00 (CET). Join the meeting via this Teams link. No pre-registration required.
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 27-02-2025 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 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 adds from January 1, 2025, approximately 450 000 new private customers.
Avida has headquarters in Stockholm and offices in Oslo, Helsinki and Stavanger.
Avida is supervised by the Swedish Financial Supervisory Authority.