"Summarising all this activity during the quarter, we have delivered a profit before tax of SEK 383 million and a return on equity of 18 percent, or an underlying profit of SEK 323 million and a return on equity of 15 percent adjusted for positive and negative extraordinary effects. The whole organisation has executed on our strategy in a very impressive way", says Harry Vranjes, CEO of Hoist Finance.
Key events in the second quarter 2024
- Profit before tax at SEK 383m, compared to SEK 178m in the same quarter a year ago.
- Return on equity at 18 percent, compared to 10 percent in the same quarter a year ago. The second quarter included certain income and expenses that are either extraordinary or non-recurring. Excluding these items, the underlying return on equity is 15 percent.
- New portfolio investments at SEK 2.2bn in the quarter, resulting in a total portfolio book value of SEK 26.8bn at the end of the quarter.
- Continued growth, repricing and optimised net funding cost drove 24 percent net interest income growth during the quarter, compared to a 13 percent book value growth.
- Continued robust collection performance of 106 percent across all markets contributing to total operating income growth of 34 percent.
- Asset sales in Italy and Germany combined with continued efficiency improvements across the markets resulting in net gains of SEK 105m in the quarter.
- IT insourcing completed with a total one-time cost of SEK 30m (vs previous estimate of SEK 50m) and annual savings of SEK 40m, starting from the third quarter 2024.
- SEK 100m share repurchases completed during the quarter.
- Continued strong capital and liquidity position, significantly above regulatory requirements with a CET1 ratio of 13.8 percent.
Upcoming Capital Markets Day
Hoist Finance Board of Directors of Hoist Finance has resolved that the Company intends to meet the requirements to become a Specialised Debt Restructurer (SDR) by 1 January 2025 (see separate press release). To further outline what implications this will have for the Company going forward, Hoist Finance will invite to a Capital Markets Day on 12 September 2024.
Key figures April - June 2024
- Total operating income amounted to SEK 1,213m (903).
- Profit before tax totalled SEK 383m (178).
- Profit for the period was SEK 274m (161).
- Basic and diluted earnings per share amounted to SEK 2.87 (1.45).
- Return on equity was 18% (10).
- Book value of acquired loan portfolios totalled SEK 2,237m (1,139).
- The CET1 ratio per June 30st was 13.82% (14.75).
A combined presentation and teleconference will be held at 09:30 am CEST today.
If you wish to participate via webcast, please use the link below.
https://ir.financialhearings.com/hoist-finance-q2-report-2024
If you wish to participate via teleconference, please register on the link below. After registration you will be provided with phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference.
https://conference.financialhearings.com/teleconference/?id=50048761
The presentation and the report will be available on www.hoistfinance.com after the publication.
For more information, please contact:
Karin Tyche, Chief Investor Relations and Communications Officer
ir@hoistfinance.com
+46 76 780 97 65
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 26 July 2024, 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.
