In This Article:
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Profit Before Tax: SEK332 million, a 19% increase from SEK279 million in Q1 of last year.
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Return on Equity (ROE): 16.7%, compared to 18.4% last year.
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Net Interest Income: SEK920 million, a 19% growth compared to last year.
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Portfolio Investments: SEK1 billion closed in Q1, with an additional SEK1.3 billion signed for Q2 and Q3.
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Portfolio Size: SEK29 billion, a 10% increase year-on-year, or 16% FX adjusted.
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Cost to Income Ratio: 68%, improved from 71% last year.
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Capital and Liquidity Position: CET1 ratio at 13.1%.
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Funding: Issued senior preferred and non-preferred bonds totaling SEK1.45 billion.
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Liquidity Coverage Ratio (LCR): Over 1500%.
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Dividend Proposal: SEK2 per share, up for decision in the AGM.
Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Profit before tax increased by 19% to SEK332 million compared to the previous year.
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Return on equity was strong at 16.7%, driven by the core underlying business.
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Net interest income grew by 19% year-over-year, indicating strong financial performance.
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The company closed portfolio investments of SEK1 billion in the quarter, with a strong investment pipeline for the year.
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Hoist Finance AB (FRA:4HF) maintains a strong capital position with a CET1 ratio of 13.1%, above regulatory requirements.
Negative Points
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Return on equity decreased from 18.4% last year due to a lower tax rate in the previous year.
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The size of the portfolio decreased by SEK1.7 billion due to FX movements.
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Investment volumes were relatively low at SEK1 billion for the quarter, compared to previous quarters.
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The company faces challenges in maintaining cost efficiency amidst inflationary pressures.
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There is uncertainty regarding the impact of future market conditions on the company's funding and acquisition strategies.
Q & A Highlights
Q: How will the excess capital from qualifying as an SDR be utilized? A: The excess capital will likely be used for portfolio purchases, which is the preference. However, the board may consider other options such as share buybacks. The market will be informed of any decisions regarding this capital. - Harry Vranjes, CEO
Q: Has the shift in deposit intake to qualify as SDR affected the growth of your portfolio acquisition? A: No, there is no link between the shift in deposit intake and the growth of portfolio acquisitions. - Harry Vranjes, CEO
Q: Will qualifying as an SDR change your acquisition strategy or the SEK36 billion target? A: The SEK36 billion target is reiterated. Qualifying as an SDR will expand options for acquisitions, providing greater independence in sourcing. The company has tools like securitizations and co-investments to support this strategy. - Harry Vranjes, CEO