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4finance S.A.: 4finance report on FY 2020 unaudited results - Seite 2

- TBI Bank loan issuance volume during the Period grew by 4% year-on-year to €349.8 million from €336.7 million in the prior year period, with increased issuance in the third and fourth quarters in all products.
 

Financial Highlights

- Interest income of €307.9 million in the Period, down 28% from €424.9 million in the prior year period. The significant reduction in online loan issuance in the spring due to Covid-19 resulted in a lower level of interest income, although issuance and income from continuing products recovered somewhat post summer. Product and market exits have counterbalanced this, so interest income has been similar from Q2 to Q4 at just over €70 million per quarter.

- Cost to income ratio for the Period was 56.9%, vs. 51.3% in 2019, due to the lower interest income, despite bringing down operating costs down 21% year-on-year. Costs were reduced in each quarter of the year, reflecting cost discipline across the Group, the reduction of marketing spend and savings in personnel costs.

- Adjusted EBITDA was €75.1 million for the Period, down 39% year-on-year. The full interest coverage ratio as of the date of this report is 1.8x. The Q4 quarterly EBITDA contribution of €23.1 million was up significantly from Q2 and Q3.

- Post-provision operating profit for the Period was €21.8 million, with a loss before tax of €0.3 million.

- Net receivables totaled €526.4 million as of 31 December 2020, down 9.1% year-to-date. During the fourth quarter, TBI Bank grew net receivables further and the small reduction in online business portfolio was due to run-off products.

- Overall gross NPL ratio at 17.0% as of 31 December 2020 (19.2% for online), compared with 20.7% as of 31 December 2019 (24.9% for online). The resumption of debt sales in most markets in the autumn drove the significant reduction in NPL ratio during the third and fourth quarters. Online NPL ratio helped by increased proportion of near-prime loans.

- Overall cost of risk was 14.2% for the Period, improved from 17.1% in 2019. For the online business it was 24.2% for the Period, compared to 27.5% in 2019, and in TBI Bank it was 6.1% for the Period, compared to 4.6% in 2019.