Q2 2026 B2 Impact ASA Earnings Call Transcript
Key Points
- Unsecured collection performance reached 117% in Q2, up from 112% year-over-year, demonstrating significant upside in estimated remaining collections.
- Cash collections grew 10% year-over-year with stable operating expenses, highlighting the scalability of the business model.
- Investment activity is well ahead of plan with NOK3.1 billion invested and committed, leading to an increased full-year investment target of at least NOK4 billion.
- Earnings per share grew 21% year-over-year to NOK0.66 in Q2, and the company raised its full-year EPS target to at least NOK2.25.
- Strong REO sales in the quarter, with a 46% gain over book value, supported higher investment capacity and led to an increased full-year REO sales expectation of around NOK400 million.
- Improved efficiency through technology and AI-supported automation, with a 26% increase in unsecured collection per FTE year-over-year.
- Lower cost of funding, with interest costs decreasing from NOK179 million to NOK163 million year-over-year, supported by improved margins and favorable hedging.
- Credit rating upgraded by S&P to BB with a stable outlook, reflecting strong financial performance and low underlying risk.
- Newly acquired portfolios are performing as expected, not at the elevated levels of the back book, which could dilute overall collection performance.
- The company has not yet fully reflected the estimated ERC upside (well north of NOK30 billion) in reported numbers, as write-ups are done gradually over time.
- Net interest-bearing debt increased due to higher investment volumes, which could pressure leverage if not managed carefully.
- The company has not provided updated financial targets for 2027-2028, creating uncertainty about long-term growth expectations.
- Competition dynamics vary by market, and while overall stable, there is no guarantee that attractive investment opportunities will continue at the same pace.
- The reliance on technology and AI for efficiency gains may face implementation challenges or diminishing returns in the future.
Good morning, everyone, and welcome to B2 Impact's second quarter presentation. As usual, we will have the Q&A after the presentation has concluded. We will start with those calling in live, and then we will go to questions in the activity feed where you can post questions during the presentation.
And with that, I will give the word to Trond Andreassen.
Thank you, Rasmus, and good morning, everyone. I'm pleased to report another strong quarter that confirms the positive momentum we have built over the past years, now tracking well ahead of our targets. And today, we will walk you through the key developments that supports this.
Looking at the Q2 highlights. Unsecured collection performance came in at 117%, once again demonstrating significant upside in our estimated remaining collections. Cash collections grew by 10% year-over-year with stable operating expenses, clearly demonstrating the
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