Q1 2025 Hoist Finance AB (publ) Earnings Call Transcript
Key Points
- Profit before tax increased by 19% to SEK332 million compared to the previous year.
- Return on equity was strong at 16.7%, driven by the core underlying business.
- Net interest income grew by 19% year-over-year, indicating strong financial performance.
- The company closed portfolio investments of SEK1 billion in the quarter, with a strong investment pipeline for the year.
- Hoist Finance AB (FRA:4HF) maintains a strong capital position with a CET1 ratio of 13.1%, above regulatory requirements.
- Return on equity decreased from 18.4% last year due to a lower tax rate in the previous year.
- The size of the portfolio decreased by SEK1.7 billion due to FX movements.
- Investment volumes were relatively low at SEK1 billion for the quarter, compared to previous quarters.
- The company faces challenges in maintaining cost efficiency amidst inflationary pressures.
- There is uncertainty regarding the impact of future market conditions on the company's funding and acquisition strategies.
Head.
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Thank you. Good morning, everyone, and welcome to this Hoist Finance earnings call for the first quarter of 2025. I am Harry Vranjes, CEO of Hoist Finance, and next to me I have, Magnus Söderlund, our Acting CFO, for his first presentation, and, Karin Tyche, our Chief Investor Relations Officer.
So before we dive into the numbers and the highlights, I just want to thank you all for your interest in Hoist Finance. We will try to run through the presentation today in 30 minutes, to leave the room for any questions you may have as usual.
But first, just very shortly about Hoist Finance for those of you who are new to us. So on a high level, our business model is very simple. We acquire portfolios of non-performing loans from banks at significant discounts. Historically, an average discount of 90%. So basically we buy on average for 10% of nominal value.
Now, to then reach our financial targets, we manage these portfolios and we
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