Year-end report 2015
October–December 2015 (year-on-year)
• Gross cash collections on acquired loan portfolios increased 38 per cent
to SEK 1,032m (750)
• Total revenue increased 29 per cent to SEK 621m (480)
• Reported EBIT was SEK 211m (150) and the EBIT-margin was 34 per cent (31).
When adjusted for costs associated with staff changes EBIT was SEK 228m (150)and the EBIT margin was 37 per cent.
• Profit before tax totalled SEK 132m (48)
• Portfolio acquisitions totalled SEK 1,451m (1,544)
• Basic earnings per share was SEK 1.32 (0.79)
Diluted earnings per share was SEK 1.29 (0.72)1)
Full year 2015 (year-on-year)
• The EBIT was SEK 675m (530) and the EBIT margin was 30 per cent (32)
• Portfolio acquisitions totalled SEK 4 370m (3 227)
• Carrying value of acquired loans increased 26 per cent to SEK 11,279m (8,921)2)
• Gross 120-month ERC (Estimated Remaining Collections) increased 24 per cent
to SEK 19,367m (15,576)3)
• The total capital ratio improved to 15.21 per cent (12.17)
• The CET1 ratio was 12.32 per cent (9.35)
• Proposed dividend per share of SEK 0.75
1) Includes effect of 929,627 outstanding warrants. Following the share split 1:3 each warrant entitles the holder to subscribe for three new shares. Comparative figures were recalculated as regards the effects of the share split.
2) Including run-off consumer loan portfolio and portfolios held in joint venture.
3) Excluding run-off consumer loan portfolio and portfolios held in joint venture.
High acquisition rate and stable earnings
2015 was a very successful and a profitable year for Hoist Finance. All segments increased their revenues, and total acquisition volumes and earnings are the highest ever achieved. Several major portfolio acquisitions contributed to this positive performance.
A key milestone was achieved with Hoist Finance’s listing on the NASDAQ Stockholm Mid Cap List on 25 March. The listing broadened our ownership base with a number of Swedish and international institutions, and the company received another external stamp of approval.
Strong earnings and several major portfolio acquisitions during Q4
Italy continued its profitable growth during the fourth quarter with a strong operating margin, while several significant Q4 acquisitions resulted in a record high acquisition rate.
Poland also finished the year with a high level of activity, concluding an important transaction with an international bank. The transaction involves the acquisition of loan portfolios and the takeover of employees. Hoist Finance will open a new office in Gdansk during the first six months of 2016 as a result of this transaction.
In the UK, the integration of debt purchasing company Compello Holdings Ltd. proceeded according to plan. Performance was stable in our other markets during the quarter.
Outlook for 2016
With stricter capital adequacy requirements, European banks will continue to have a great need to divest non-performing credit portfolios to generate return on investment capital. Return requirements cannot be achieved with large portfolios of non-performing loans on the balance sheet – which is the situation for many international banks. With these continued favourable market conditions, we are confident as we enter 2016. With Hoist Finance’s strong financial position and geographic presence, we are well positioned to capitalise on the growth potential on the market in the years ahead.
For 2016, our goal is to grow in the same way that has been the foundation of our success so far. This is through a continued very disciplined portfolio acquisition approach, good cost control and a sustained high rate of acquisition. And we will continue to actively evaluate opportunities to enter new geographic markets in Europe.
We will also work to further strengthen our position to ensure that Hoist Finance is the leading partner of international banks and financial institutions in Europe.
Our target for 2016 remains to generate acquisition volumes in line with the previous three years.
Hoist Finance AB (publ)
Hoist Finance AB (publ) (the ”Company” or the ”Parent”) is the parent company of the Hoist Finance group of companies (”Hoist Finance”). The Company’s wholly owned subsidiary, Hoist Kredit AB (publ) (“Hoist Kredit”) is a regulated credit market company. Hence, Hoist Finance produces financial statements in accordance with the Swedish Annual Accounts Act for Credit Institutions and Securities Companies. In order to assess the operational performance of the debt purchasing and collection operations and to facilitate comparison with our competitors, Hoist Finance supplements its statutory financial statements with an operating income statement. The operating income statement is prepared based on the accounting and valuation principles used in the statutory financial statements, with no amendments or adjustments thereto. The information in this year-end report has been published pursuant to the Swedish Securities Market Act and/or the Swedish Financial Instruments Trading Act. This information was submitted for publication on 10 February 2016 at 8:00 AM CET.