Q3 2025 Hoist Finance AB (publ) Earnings Call Transcript
Key Points
- Hoist Finance AB (LTS:0R65) reported a strong profit before tax of SEK349 million for Q3 2025, showing a 13% growth when adjusted for one-offs and currency impacts.
- Return on equity was robust at 17.6%, surpassing financial targets and driven by core business performance.
- The company closed portfolio investments worth SEK2.4 billion in the quarter, maintaining a strong pipeline and capitalizing on market opportunities.
- Collection performance improved to 103%, indicating efficient operations and strong portfolio health.
- Hoist Finance AB (LTS:0R65) remains well-capitalized with a CET1 ratio of 12.2% and a liquidity reserve of SEK25 billion, positioning it well for future growth and regulatory compliance.
- The company faced SEK80 million higher funding costs in Q3 2025 compared to the previous year, impacting net interest margins.
- Net interest income saw a slight decline of 1% on a reported basis, affected by increased stable funding requirements.
- The net funding cost over portfolio book value increased from 3.5% to 4.4%, partly due to SDR buildup and other capital strengthening measures.
- Despite strong performance, the company is still in a transitional phase awaiting SDR status, which has not yet been fully realized in financial benefits.
- There is uncertainty regarding the exact impact of shifting more deposits to own platforms and optimizing NSFR levels, which could affect future cost structures.
()-
Good morning, everyone, and welcome to the Hoist Finance earnings call for the third quarter of 2025.
I am Harry Vranjes, CEO of Hoist Finance, and next to me I have Magnus Soderlund, our CFO, and Karin Tyche, our Chief Investor Relations Officer.
So first of all, thank you all for joining.
Thank you for your interest in Hoist finance. We will try to run through this presentation in 30 minutes to, leave, as much time as possible for any questions that you may have.
Now, before we dive into the material, I usually sort of do a small introduction to sort of our core business model, and I will do the same this quarter. Basically, our business model is very simple. We acquire portfolios of non-performing loans from banks at significant discount.
Historically, on average we paid around 10% of nominal value. Now to reach our financial targets, we then manage these portfolios and we collect roughly 20%, and we do this in a banking suit or more specifically a credit
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
