DGAP-News 4finance S.A.: 4finance report on FY 2020 unaudited results
DGAP-News: 4finance S.A. / Key word(s): Quarterly / Interim Statement
4FINANCE HOLDING S.A. REPORTS RESULTS FOR THE YEAR ENDING 31 DECEMBER 2020
Proactive business response to Covid-19, providing continuous service to customers throughout 2020.
Strong performance from TBI Bank. Online business re-focused on core products & markets.
Solid capital and liquidity position with no maturities in 2021.
26 February 2021. 4finance Holding S.A. (the 'Group' or '4finance'), one of Europe's largest digital consumer lending groups, today announces unaudited consolidated results for the twelve
months ending 31 December 2020 (the 'Period').
- Strong customer repayment dynamics observed since the summer enabled underwriting criteria and acceptance rates to be restored close to normal levels for new and existing customers in most products during H2 2020.
- Proactive operational response to Covid-19 throughout the year enabled continuous service to customers and market share gains in some countries.
- Support made available for customers whose finances have been disrupted, with early and proactive measures including discounted or free payment deferrals. Regulatory-driven programmes now largely finished, with no adverse effect seen in performance of customers coming out of payment deferral periods in relevant markets (Czech Republic and TBI Bank) compared to the rest of the portfolio.
- Subprime loan issuance in Q4 was slightly up on Q3, with issuance volumes of continuing products reaching pre-Covid levels. However the market-wide demand for credit remains subdued, particularly since the reinstatement of 'lockdowns' in many markets towards the end of the year. Investment in marketing remains quite selective in this environment.
- Near-prime portfolio growth continues in Lithuania, Latvia and Denmark, with issuance in the Period up 9% year-on-year (25% in the online business and 7% in TBI Bank) reflecting strong customer demand and the expanded product range. Issuance levels in 2021 will be closely linked to ability to fund via TBI Bank.