4FINANCE HOLDING S.A. REPORTS RESULTS 

FOR THE NINE MONTHS ENDING 30 SEPTEMBER 2024

Solid 9M 2024 results with net profit of €37.6 million and Adjusted EBITDA of €116.2 million

Robust balance sheet with high cash levels

 12 November 2024. 4finance Holding S.A. (the ‘Group’ or ‘4finance’), one of Europe’s largest digital consumer lending groups, today announces unaudited consolidated results for the nine months ending 30 September 2024 (the ‘Period’).

Operational highlights

• Online loan issuance volume was stable year-on-year in the Period at €423.5 million compared with €423.8 million in the prior year period. Demand for credit remains strong in most markets, particularly in the Czech Republic and Spain.

• New growth opportunities: taking a deliberate, step-by-step approach. The UK joint venture (ondal.co.uk) and the Mexican business (kimbi.mx) progressing steadily, showing gradual growth.
• TBI Bank loan issuance increased by 28% to €832.8 million in the Period, compared to €652.3 million in 9M 2023.

Financial Highlights

• Interest income up 13% year-on-year to €326.7 million in the Period compared with €288.8 million in 9M 2023.
• Cost to income ratio for the Period was 41.8%, an improvement from 44.2% in the prior year period. Cost discipline and operational efficiency remain a focus for the business.
• Adjusted EBITDA was €116.2 million for the Period, up 26% year-on-year, delivering 36% Adjusted EBITDA margin. The interest coverage ratio as of the date of this report is 2.1x.
• Net profit for the Period was €37.6 million, a 42% increase from €26.4 million in the prior year period.
• Fundamental asset quality indicators at product level remain broadly stable. Group’s net impairment charges of €126.8 million reflect the larger portfolio. Further slight improvement in cost of risk at 12.9% for 9M 2024.
• Net receivables up 15% to €1,248.2 million as of 30 September 2024 compared with €1,084.4 million as at year end 2023.
• Overall gross NPL ratio at 10.1% as of 30 September 2024 (13.2% for online), compared with 9.4% as of 31 December 2023 (14.2% for online). TBI NPL ratio at 9.7% as of 30 September 2024, compared with 8.6% as of 31 December 2023.

Liquidity and funding

• Strong liquidity position, with €77.0 million of cash in the online business at the end of the Period.
• Balance sheet enhanced in Q3, with related party loan to 4finance Group S.A. reduced to just under €10 million, and a full repayment of a €33.8 million loan by the Group’s former Polish business.

Kieran Donnelly, CEO of 4finance, commented:

“We are pleased to report continued profitability with a 42% year-on-year increase in net profit to €38 million in the Period, compared with €26 million in the same period last year. In addition, we have strong cash levels, a robust balance sheet and a 6% quarter-on-quarter growth in our online net loan portfolio. 

These results reflect our disciplined approach and commitment to sustainable growth.”

Contacts