4finance Holding S.A. reports results for the nine months ending 30 September 2024

12 Nov 2024 14:54 CET

Operational highlights

* Online loan issuance volume was stable year-on-year in the Period at €423.5
million compared with €423.8 million in the prior year period. Demand for credit
remains strong in most markets, particularly in the Czech Republic and Spain.

* New growth opportunities: taking a deliberate, step-by-step approach. The UK
joint venture (ondal.co.uk) and the Mexican business (kimbi.mx) progressing
steadily, showing gradual growth.

* TBI Bank loan issuance increased by 28% to €832.8 million in the Period,
compared to €652.3 million in 9M 2023.

Financial Highlights

* Interest income up 13% year-on-year to €326.7 million in the Period compared
with €288.8 million in 9M 2023.

* Cost to income ratio for the Period was 41.8%, an improvement from 44.2% in
the prior year period. Cost discipline and operational efficiency remain a focus
for the business.

* Adjusted EBITDA was €116.2 million for the Period, up 26% year-on-year,
delivering 36% Adjusted EBITDA margin. The interest coverage ratio as of the
date of this report is 2.1x.

* Net profit for the Period was €37.6 million, a 42% increase from €26.4 million
in the prior year period.

* Fundamental asset quality indicators at product level remain broadly stable.
Group’s net impairment charges of €126.8 million reflect the larger portfolio.
Further slight improvement in cost of risk at 12.9% for 9M 2024.

* Net receivables up 15% to €1,248.2 million as of 30 September 2024 compared
with €1,084.4 million as at year end 2023.

* Overall gross NPL ratio at 10.1% as of 30 September 2024 (13.2% for online),
compared with 9.4% as of 31 December 2023 (14.2% for online). TBI NPL ratio at
9.7% as of 30 September 2024, compared with 8.6% as of 31 December 2023.

Liquidity and funding

* Strong liquidity position, with €77.0 million of cash in the online business
at the end of the Period.

* Balance sheet enhanced in Q3, with related party loan to 4finance Group S.A.
reduced to just under €10 million, and a full repayment of a €33.8 million loan
by the Group’s former Polish business.

Kieran Donnelly, CEO of 4finance, commented:

“We are pleased to report continued profitability with a 42% year-on-year
increase in net profit to €38 million in the Period, compared with €26 million
in the same period last year. In addition, we have strong cash levels, a robust
balance sheet and a 6% quarter-on-quarter growth in our online net loan
portfolio.

These results reflect our disciplined approach and commitment to sustainable
growth.”

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631968_4finance investor report on 9M 2024 results.pdf