4FINANCE HOLDING S.A. REPORTS RESULTS FOR THE NINE MONTHS ENDING 30 SEPTEMBER 2022

21 Nov 2022 15:19 CET

4FINANCE HOLDING S.A. REPORTS RESULTS FOR THE NINE MONTHS ENDING 30 SEPTEMBER
2022

21 November 2022. 4finance Holding S.A. (the ‘Group’ or ‘4finance’), one of
Europe’s largest digital consumer lending groups, today announces unaudited
consolidated results for the nine months ending 30 September 2022 (the
‘Period’).

Operational Highlights
• Customer repayment dynamics remained robust, with fundamental asset quality
metrics broadly stable across the business.
• Online loan issuance volume of €502.3 million during the Period, up 21% in
continuing products (excluding acquisitions and disposals).
• Near-prime portfolio development aligned with ability to fund those loans via
TBI Bank. So far in 2022, over €25 million of Lithuanian near-prime loan
principal was sold to TBI Bank.
• TBI Bank loan issuance volume during the Period grew by 35% year-on-year to
€507.4 million from €376.7 million in the prior year period, with increased
issuance in all products.

Financial Highlights
• Interest income of €239.2 million in the Period, up 11% from €215.9 million in
the prior year period. Consistent growth in interest income from continuing
products since Q2 2020 Covid impact and another strong quarterly contribution
from Philippines and TBI. Stable quarterly interest income in Q3 despite the
exit from Poland in mid April.
• The cost to income ratio for the Period improved significantly at 47.9% vs
56.6% in the prior year period. Cost discipline and operational efficiency
remain a focus both in the online business and TBI with quarterly cost base held
flat in Q3.
• Fundamental asset quality indicators at product level remain good. Net
impairment charges of €61.5 million, up 49% on the prior year, reflect the
larger portfolio and different product mix in online. Cost of risk at 10.1% vs
8.0% in the prior year period.
• Adjusted EBITDA was €92.5 million for the Period, up 14% year-on-year,
delivering 39% adjusted EBITDA margin for the period vs 38% in 9M 2021. The
interest coverage ratio as of the date of this report, including proforma effect
of acquisitions and disposals, is 2.8x.
• Post-provision operating profit for the Period was €62.4 million, benefiting
from the 11% year-on-year increase in interest income and lower interest
expense, with profit after tax of €35.3 million.
• Net receivables totaled €779.8 million as of 30 September 2022, up 10%
year-to-date. During the quarter, TBI Bank grew net receivables another 10% and
the online business portfolio grew 11%.
• Improved overall gross NPL ratio at 9.6% as of 30 September 2022 (7.0% for
online), compared with 11.3% as of 31 December 2021 (12.7% for online). TBI NPL
ratio has improved to 10.4% as of 30 September 2022, compared with 10.7% as of
31 December 2021.

Liquidity and funding
• Solid capital position at TBI Bank (18.9% capital adequacy ratio) despite
continued growth in risk weighted assets.
• TBI Bank paid a dividend of €10.0 million in November, the bank's first
dividend payment post-Covid.
• Listing of the Group's EUR 2026 bonds on the Oslo Stock Exchange completed in
October.

Kieran Donnelly, CEO of 4finance, commented:
“Our online and banking businesses continued to grow profitably in the third
quarter, aided by our push for efficiency across the Group. We achieved
double-digit loan growth in the quarter, a 26% increase in net profit
year-on-year, and TBI Bank has now resumed dividend payments. Our leaner
business, with its revised international footprint is delivering the growth we
planned.”

These results will be discussed on an Investor call to be held on Tuesday, 22
November 2022 at 15:00 UK time. The registration link for the call is on our
website at:
https://www.4finance.com/investors-and-media/financial-calendar

More information:
Access the news on Oslo Bors NewsWeb site

576310_4finance report on 9M 2022 results.pdf