Interim report January – June 2020

 In the second quarter, the humanitarian consequences of Covid-19 have become increasingly evident in Europe. At the same time, the economic effects of the virus outbreak are still difficult to overlook. We have therefore chosen a restrictive approach for the new lending within Consumer Lending over most of the quarter, which has strengthened the bank’s capital and liquidity. The growth in the Ecommerce Solutions and Credit Cards segments has been strong during the quarter.” – Mattias Carlsson, CEO 

January – June 2020 compared with January – June 2019

  • The loan portfolio has increased by 8 % to SEK 7,047 million since year-end
  • Operating profit decreased by 17 % to SEK 113.6 million
  • Earnings per share decreased by 17 % to SEK 3.92
  • Cost/income ratio is unchanged at 37.8 % (37.8)
  • Total capital ratio has increased to 17.5 % (17.4) since year-end
  • Return on equity amounted to 25.2 % (34.3)
  • Adjusted return on equity amounted to 25.2 % (31.7)

April – June 2020 compared with April – June 2019

  • The loan portfolio has increased by 1 % to SEK 7,047 million during the quarter
  • Operating profit amounted to SEK 70.4 million (70.6)
  • Earnings per share decreased by 2 % to SEK 2.41
  • Cost/income ratio increased to 37.9 % (37.6)

Significant events, January – June 2020

  • Two significant Nordic merchants have signed cooperation agreements during the second quarter. The volume from these partners will gradually increase in the coming quarters.
  • As a result of the uncertain macroeconomic situation an additional loan loss provision of SEK 30 million was made at the end of the first quarter of 2020.
  • TF Bank has completed mergers of the three wholly owned subsidiaries BB Bank ASA, Avarda AB and Avarda Oy.
  • The segment reporting has been expanded to three segments from the first quarter of 2020.

For further information, please contact:
Mikael Meomuttel, CFO and Head of Investor Relations +46 (0)70 626 95 33

TF Bank in brief
TF Bank was founded 1987 and is an internet-based niche bank offering consumer banking services and e-commerce solutions through a proprietary IT platform with a high degree of automation. Deposit and lending activities are conducted in Sweden, Finland, Norway, Denmark, Estonia, Latvia, Lithuania, Poland, Germany and Austria through branch or cross-border banking. From 2020 the operations are divided into three segments: Consumer Lending, Ecommerce Solutions and Credit Cards.

This is information which TF Bank is required to disclose under the EU Market Abuse Regulation and the Securities Market Act. The information was provided for publication, through the agency of the contact person set out above, on 14 July 2020 at 07:00 CET.

About Us

TF Bank was founded in Sweden in 1987 for the purpose of offering financing solutions to customers who ordered goods from mail-order catalogues. Over time, the Group has grown both in terms of product offering, profit and geographical reach. Currently, TF Bank offers consumer banking services through a highly automated, in-house developed IT-platform designed for scalability and adaptability to different products, jurisdictions, currencies and digital banking solutions. TF Bank conducts banking operations with deposits and lending to private customers in Sweden and Finland, lending to private customers in Norway and Poland as well as cross-border lending in Denmark, Estonia and Latvia. The Group’s principal business is lending to the public through two segments: Direct to Consumer and Sales Finance. Direct to Consumer comprises mainly of loans of limited amounts to private customers. Sales Finance provides funding solutions for the handling of invoice and instalment payments.

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