EQS-News: 4finance S.A. / Key word(s): Annual Report
4FINANCE HOLDING S.A. REPORTS RESULTS FOR THE YEAR ENDING 31 DECEMBER 2022
28.02.2023 / 15:57 CET/CEST
The issuer is solely responsible for the content of this announcement.
4FINANCE HOLDING S.A. REPORTS RESULTS
FOR THE YEAR ENDING 31 DECEMBER 2022
Solid FY 2022 performance with net profit of €41.2 million and Adjusted EBITDA of €122.4 million
Strong loan issuance drives organic growth in Q4: quarterly growth of 9% in net receivables and 10% in revenue
Significant deleveraging with over €50 million of bonds repurchased in 2022
28 February 2023. 4finance Holding S.A. (the ‘Group’ or ‘4finance’), one of Europe’s largest digital consumer lending groups, today announces unaudited consolidated results for the twelve months ending 31 December 2022 (the ‘Period’).
Operational Highlights
Financial Highlights Interest income of €311.2 million in the Period, up 26% from €246.2 million in the prior year period. Interest income for the fourth quarter increased 7% QoQ, with another strong quarterly contribution from Philippines and TBI. Consistent growth in interest income from continuing products since Q2 2020 Covid impact.
The cost to income ratio for the Period improved significantly at 47.8% vs 57.6% in the prior year period. Cost discipline and operational efficiency remain a focus both in the online business and TBI. Cost base in the online business grew mainly due to Philippines acquisition and at TBI to support higher issuance, and investment in ongoing initiatives.
Adjusted EBITDA was €122.4 million for the Period, up 13% year-on-year, delivering 37% adjusted EBITDA margin for the year vs 36% in 2021. The interest coverage ratio as of the date of this report, including proforma effect of acquisitions and disposals, is 2.7x.
Post-provision operating profit from continuing operations for the Period was €69.6 million, benefiting from the 26% year-on-year increase in interest income and lower interest expense, with total profit after tax of €41.2 million.
Net receivables totaled €846.6 million as of 31 December 2022, up 9% quarter-on-quarter and 29% year-on-year. During the quarter, TBI Bank grew net receivables another 10% and the online business portfolio grew 2%.
Improved overall gross NPL ratio at 8.8% as of 31 December 2022 (9.0% for online), compared with 11.3% as of 31 December 2021 (13.7% for online). TBI NPL ratio has improved to 8.7% as of 31 December 2022, compared with 10.4% as of 31 December 2021.
Liquidity and funding
Kieran Donnelly, CEO of 4finance, commented:
“We set out a vision of a leaner, more focused and more profitable business, and have worked steadily to achieve that goal. These strong full year results also reflect the efforts of our teams in the online and banking business to respond to the effects of the war on Ukraine and global inflationary pressures.
"4finance was founded 15 years ago this month. As we celebrate this important milestone, we remember that this success has been down to our spirit of adaptability and resilience. This culture remains the key to our future.
"Looking forward, while we keep a close eye on costs and efficiency, we are investing in growth across the business and particularly at TBI Bank and our Philippines business."
28.02.2023 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG.
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