Hoist Finance interim report Q2 2022

“Portfolio investments in the quarter amounted to SEK 2.5bn. The high acquisition volume has been achieved despite intensive competition and our investments this year have higher forecasted returns than in 2021. This is mainly due to that we have deepened selective client relationships and the number of bilateral acquisitions has increased. Improved quality of the underlying portfolios and a more efficient management meant that our collection operations performed well. Profit before tax amounted to SEK 218m (-13), but as in previous quarter it was supported by profit from financial instruments. Our financial objectives include a return on equity above 15 per cent and an average earnings per share growth of 15 per cent per year at a limited risk level. These objectives were met in the second quarter, but our ambition is to reach them without profit from financial instruments by continuous improvements.” says Lars Wollung, CEO.

April – June 2022

• Total operating income amounted to SEK 734m (470)
• Profit before tax totalled SEK 218m (-13)
• Cash EBITDA* amounted to SEK 1,683m (1,171)
• Basic and diluted earnings per share amounted to SEK 1.66 (-1.57)
• Return on equity* was 19% (-7)
• Carrying value of acquired loans totalled SEK 19,680m (21,337*)
• The CET1 ratio* was 9.60% (9.56)

Key events

• Rejuvenation program is paying off in all areas – capital & funding, investments, collection operations and indirect costs
• All-time high investments both for a second quarter and first half year, although win rate is down
• Still intensive competition on the NPL portfolio market, but both volumes and returns higher than last year
• Second quarter result mainly an effect of improved quality and management of the portfolios and positive contribution from hedging
• No material impact of the increased inflation or interest rates so far
• Reduced risk weights from 11 July
• Harry Vranjes appointed new CEO and Christian Wallentin appointed Deputy CEO (in addition to CFO)
• Acquisition of a SEK 1bn UK portfolio better fitting our strategy, replacing the SEK 4bn portfolio divested in the first quarter

Figures in brackets refer to the first quarter of 2021 for profit comparisons and to the 31 December 2021 closing balance for balance sheet items. External revenue and expenses from operations in the UK held for sale are reported as earnings/loss from discontinued operations. Information provided in the interim report pertains to continuing operations, unless otherwise specified.

*Including discontinued operations.

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Ingrid Östhols, Head of Communications & Investor Relations
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This information is information that Hoist Finance AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 07:30 a.m. CEST on 21 July 2022.

About Hoist Finance
Hoist Finance is a trusted debt resolution partner to individuals, companies and banks in thirteen European countries. With almost 1,500 dedicated colleagues, smart digital solutions and a deep understanding of individual financial circumstances, we help over six million customers keep their commitments. This is achieved by agreeing on sustainable repayment plans so that everyone is included within the financial ecosystem. Hoist Finance has a diverse portfolio of asset classes and our online savings platform in Sweden, Germany and the UK enables our unique funding model. Hoist Finance was founded in 1994 and is today a public company listed on Nasdaq Stockholm. For more information, please visit hoistfinance.com.