DGAP-News 4FINANCE HOLDING S.A. REPORTS RESULTS FOR THE THREE MONTHS ENDING 31 MARCH 2021
DGAP-News: 4finance S.A. / Key word(s): Quarterly / Interim Statement
4FINANCE HOLDING S.A. REPORTS RESULTS
Encouraging start to 2021 with net profit of €5.6 million and Adjusted EBITDA of €25.1 million
Improved asset quality metrics driven by continued strong customer repayment behaviour
Solid credit story, with further deleveraging and increased EBITDA
18 May 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 three months
ending 31 March 2021 (the 'Period').
- Strong customer repayment dynamics have continued in the Period, contributing to further improvement in fundamental asset quality metrics.
- Online loan issuance volumes in Q1 2021 for continuing products were slightly up year-on-year despite ongoing Covid restrictions. Strong performance in Poland and improvements in Spain and Sweden following product and underwriting changes. Market-wide demand for credit remained subdued in early Q2 as 'lockdowns' continue in many markets.
- Near-prime portfolio growth continues, closely linked to ability to fund via TBI Bank. Automated sales of Lithuanian near-prime loans to TBI Bank underway since March following receipt of formal lending passport in February.
- TBI Bank loan issuance volume during the Period grew by 42% year-on-year to €109.6 million from €77.1 million in the prior year period, with increased issuance in all products.
- Interest income of €69.4 million in the Period, down 28% from €96.6 million in the prior year period. Interest income from continuing products has grown every quarter since Covid impact in Q2 2020. Product and market exits have counterbalanced this, so overall interest income has been stable at c.€70 million per quarter.