EQS-News

4FINANCE HOLDING S.A. REPORTS RESULTS FOR THE THREE MONTHS ENDING 31 MARCH 2024

EQS-News: 4finance S.A. / Key word(s): Quarterly / Interim Statement 4FINANCE HOLDING S.A. REPORTS RESULTS FOR THE THREE MONTHS ENDING 31 MARCH 2024 15.05.2024 / 12:38 CET/CEST The issuer is solely responsible for the content of this announcement. 4FINANCE HOLDING S.A. REPORTS RESULTS FOR THE THREE MONTHS ENDING 31 MARCH 2024 Solid start to 2024 delivering net profit of €9.6 million and Adjusted EBITDA of €34.9 million

Robust balance sheet and cash position

Fitch assigns new credit rating of ‘B’ with stable outlook

15 May 2024. 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 2024 (the ‘Period’).

Operational highlights

• Online loan issuance volume of €138.6 million in the Period compared with €137.0 million in the prior year period. Demand for credit remains strong in most markets, with growth driven by the Czech Republic and Spain.
• New growth opportunities: taking a deliberate, step-by-step approach. Encouraging signs from both the UK joint venture (ondal.co.uk) and the Mexican business (kimbi.mx).
• TBI Bank loan issuance increased by 22% to €251.4 million in the Period, compared to €206.4 million in Q1 2023.

Financial Highlights

• Interest income up 13% year-on-year to €103.9 million in the Period compared with €91.7 million in the prior year period.
• Cost to income ratio for the Period was 43.3%, an improvement from 46.0% in the prior year period, despite the increase in total operating costs year-on-year.
• Adjusted EBITDA was €34.9 million for the Period, up 24% year-on-year, delivering a 34% adjusted EBITDA margin. The interest coverage ratio as of the date of this report is 2.0x, impacted by the increased interest expense at TBI Bank in recent quarters.
• Net profit for the Period was €9.6 million, a 70% increase from €5.6 million in the prior year period.
• Fundamental asset quality indicators at product level remain broadly stable. Net impairment charges of €41.3 million reflect the larger portfolio and different product mix in online. Cost of risk at 13.4% for Q1 2024, a slight improvement from FY 2023.
• Net receivables up 3% to €1,120.6 million as of 31 March 2024 compared with €1,084.4 million as of 31 December 2023.
• Overall gross NPL ratio at 9.9% as of 31 March 2024 (13.9% for online), compared with 9.4% as of 31 December 2023 (14.2% for online). TBI NPL ratio at 9.3% as of 31 March 2024, compared with 8.6% as of 31 December 2023.

Liquidity and funding