Hoist Finance interim report Q3 2023
”After two years of reshaping Hoist Finance, I am delighted to say that we have met or exceeded all of the targets set within the Rejuvenation Programme. As a result, this quarter’s return on equity came in at 19 per cent, firmly establishing that we are on track to meet our target for return on equity exceeding 15 per cent. Our capital base has increased by about 50 per cent in the last two years, enabling continued strong growth. We continue to have the lowest cost of funding in the industry and a scalable business model that provides us with excellent opportunities to increase our market shares going forward”, says Harry Vranjes, CEO at Hoist Finance.
Key highlights
» Profit before tax amounted to SEK 282 million, corresponding to a growth of 143 per cent. Adjusted for costs within the rejuvenation programme, the result was SEK 339 million, corresponding to a growth of 123 per cent compared to the previous year1)
» The overall result in the third quarter is driven by a strong underlying business and positive one-off effects
» Return on equity was 19 per cent. Adjusted for normalised capital levels and one-off costs, the return on equity was 28 per cent2)
» Investments in new portfolios totalled SEK 1.7 billion in the third quarter, with an additional SEK 1.6 billion signed with sellers after the closing of the quarter
» Collection performance came in at 103 per cent, meaning 3 per cent above forecast
» The Hoist Finance rejuvenation programme was closed according to plan at the end of the quarter. All targets set two years ago have been met or exceeded
» The funding base remains stable and our competitive advantage strengthened in an uncertain and volatile macro environment
» Successful issuance of two senior unsecured bonds with a total value of SEK 750 million
» Strong capital and liquidity position, significantly above regulatory requirements with a CET1 ratio of 13.86 per cent
1) To illustrate the development in the underlying business, the comparison quarters 2022 are adjusted for the divested UK business and in accordance with the hedge accounting introduced on 1 July 2022, see pages 6 and 9.
2) See pages 6 and 9.
Additional key figures July – September 2023
- Total operating income amounted to SEK 916m (595)
- Profit before tax totalled SEK 282m (116)
- Adjusted profit before tax was SEK 339m (152)
- Profit for the period was SEK 270m (153)
- Basic and diluted earnings per share amounted to SEK 2.34 (0.70)
- Return on equity was 19% (12)
- Normalised return on equity was 28% (10)
- Book value of acquired loan portfolios totalled SEK 1,675m (342)
- The CET1 ratio was 13.86% (12.23)
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-q3-2023
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=5005817
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 27 October 2023, kl 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 loan portfolios. We are also a partner to consumers and SMEs in a debt situation, creating long-term sustainable repayment 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.