Hoist Finance interim report Q2 2023

”The second quarter was a strong quarter for Hoist Finance. We more than doubled our adjusted earnings before tax and we are closing in on our RoE target of 15 per cent. At the same time we continue to address our cost base with the last push of the rejuvenation programme. With the lowest funding costs in the industry, a competitive business model and a robust capital base we are well equipped to seize the opportunities that the market and a reshaping industry provides”, says Harry Vranjes, CEO at Hoist Finance.

Key highlights

• Profit before tax amounted to SEK 178m and adjusted for rejuvenation costs of SEK 75m, totalled at SEK 253m growing over 100 per cent year over year¹⁾
• Return on equity of 10 per cent with normalised return on equity of 19 per cent, reflecting underlying business performance²⁾
• Investments in new portfolios of SEK 1.1bn in the second quarter, with SEK 1.3bn signed after quarter closing with continued healthy pipeline
• Strong collection performance of 108 per cent
• Funding base continues to remain stable and increasingly competitive in an uncertain and volatile macro environment
• Robust capital and liquidity positions, materially above regulatory requirements with a CET1 ratio of 14.75 per cent
• Continued execution of the rejuvenation program with reorganisation of our IT, Data and central operations functions leading to annualised savings of SEK 85m in indirect cost. The programme will be finalised during the third quarter
• The Executive Management Team expanded to include all Market Heads and core Group Functions
• Divestment of French unsecured legacy portfolio at a premium. France remains a prioritised market  

1) To illustrate underlying business performance, the comparative quarter in 2022 on page 6 and 9 is adjusted for the divested UK operations and aligned with the hedge accounting introduced 1 July 2022
2) See page 6 & 9

Additional key figures April – June 2023

• Total operating income amounted to SEK 903m (734)
• Profit before tax totalled SEK 178m (218)
• Adjusted profit before tax was SEK 253m (116)
• Profit for the period was SEK 161m (217)
• Basic and diluted earnings per share amounted to SEK 1.45 (1.66)
• Return on equity was 10 % (19)
• Normalised return on equity was 19 % (6)
• Book value of acquired loan portfolios totalled SEK 1,139m (2,508)
• The CET1 ratio was 14.75 % (9.60)

A combined presentation and teleconference will be held at 09:30 am CEST.

If you wish to participate via webcast, please use the link below.
https://ir.financialhearings.com/hoist-finance-q2-2023

If you wish to participate via teleconference, please register on the link below. After registration you will be provided a phone number and a conference ID to access the conference. You can ask questions verbally via the teleconference. 
https://conference.financialhearings.com/teleconference/?id=200898

The presentation and the report will be available on www.hoistfinance.com after the publication.

For further information please contact:

Christian Wallentin, CFO och deputy CEO
ir@hoistfinance.com
+46 8 55 51 77 90
 

The information in this interim report has been published by Hoist Finance AB (publ) pursuant to the EU Market Abuse Regulation and the Securities Market Act. This information was submitted for publication through the agency of the contact person set out above, on 28 July 2023, at 07.30 CEST.

About Hoist Finance 
Hoist Finance is an asset manager specialised in non-performing loans. For more than 25 years, we have focused on investing in and managing debt portfolios. We are a partner to international banks and financial institutions across Europe, acquiring non-performing credit portfolios. We are also a partner to consumers and SME’s in a debt situation, creating long-term sustainable instalment plans enabling them to convert non-performing debt to performing debt. We are present in 13 markets across Europe and our shares are listed on Nasdaq Stockholm. For more information, please visit hoistfinance.com.