Q2 2025 Hoist Finance AB (publ) Earnings Call Transcript
Key Points
- Hoist Finance AB (FRA:4HF) reported a strong underlying return on equity of 16.1%, surpassing last year's 13.7%.
- The company achieved a significant investment volume of SEK 2.6 billion in Q2, with an additional SEK 1.9 billion signed in early Q3.
- Collection performance was solid at 104.4%, indicating efficient portfolio management.
- The company maintains a strong capital and liquidity position, with a CET1 ratio of 12.5% and a liquidity reserve of SEK 26 billion.
- Moody's upgraded the outlook on Hoist Finance AB (FRA:4HF)'s long-term issuer and senior unsecured debt ratings to positive.
- Profit before tax decreased to SEK 310 million from SEK 377 million last year, partly due to a negative VAT ruling from the Netherlands.
- The company is still incurring costs related to achieving SDR status, without yet realizing the full benefits.
- Net funding costs have increased to 4.4%, partly due to SDR-related expenses.
- The company's CET1 ratio decreased from 13.1% in Q1 to 12.5% in Q2, driven by increased backstop and net investments.
- There is a potential constraint on acquiring unsecured portfolios due to the NPL backstop impacting capital.
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Thank you very much. Good morning, everyone, and welcome to this finance earnings call for the 2nd quarter of 2025.
I am Harry Vranjes, the CEO of Hoist Finance, and next to me today I have Magnus Söderlund
, our recently appointed CFO, and Karin Tyche, our Chief Investor Relations and Communications Officer.
So, just want to start by thanking you all for your interest in hoy finance.
As usual, we will TRY to run through the presentation in 30 minutes, to leave, room for questions you may have.
But before we dive into, the material, a bit of repetition for those of you who are new to hoist finance.
So hoy finance's business model on a high level is very simple.
We acquire portfolios of non-performing loans from tier tier one banks around Europe at a significant discount.
Historically, we've, had an average price of around 10% of nominal value. Now then to reach our financial targets, we then manage the portfolios, and we collect
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