DGAP-News

4finance S.A.: 4finance report on FY 2020 unaudited results - Seite 3

- Strong funding position, with €80.5 million of online cash at the end of the Period and no debt maturities until 2022, and solid liquidity and capital adequacy at TBI Bank.
 

Strategic Highlights

- Refocusing online business on core seven markets and products where the Group's strong brands and experience can deliver superior unit economics.

- At the end of 2020, the near-prime segment (including TBI Bank consumer and online) represented 62% of net receivables, up from 48% at the end of 2019. Single payment loans represent only 13% of the Group's net receivables.

- TBI Bank performed well throughout 2020, with its strong points-of-sale relationships and market leading digital options helping to grow consumer loan issuance volumes in Q4. However given the regulatory environment, the Group does not expect dividends from TBI to resume until H2 2021 at the earliest.

- Good progress on efficient wind-down of exit markets. Further effort to simplify corporate structure by reducing number of legal entities initiated in December.

- Costs were further reviewed across the Group in Q4 alongside budgeting process, with a focus on efficiency and ensuring our operating approach is consistent with the reduced footprint. Lower cost base going into 2021.

- Closer cooperation with TBI Bank to develop near-prime lending across the business. Initial sales of Lithuanian near-prime loans to TBI Bank planned in March following receipt of formal lending passport in mid February.
 

Kieran Donnelly, CEO of 4finance, commented:

"We're seeing the results of a sharper focus, a resilient business model and a return to normality in terms of borrower behaviour. The actions we are taking to right-size our cost base and focus on seven markets with the best return on investment are delivering results.

"Our leaner, more efficient team is optimising our subprime business and developing near-prime in lock-step with TBI Bank and the funding opportunities it presents.

"Strong liquidity, improving NPL ratios in our online business, and continued growth at TBI Bank set us up to take advantage of the emerging recovery and put us in a strong position to grow our share as other providers leave the market."