Hoist Finance (HOFI) Q1 2025 earnings summary

Executive summary

• Profit before tax rose 19% year-over-year to SEK 332 million, with net profit at SEK 260 million, and return on equity at 16.7%, reflecting strong core business and cost control.

• Portfolio investments totaled SEK 1 billion in Q1, with SEK 1.3 billion signed for Q2 and Q3, and portfolio book value at SEK 29 billion, up 10% year-over-year (16% FX-adjusted).

• CET1 ratio stood at 13.08%, with liquidity reserve at SEK 27 billion, and all capital ratios above regulatory requirements.

• The company is on track to qualify as a Specialized Debt Restructuring (SDR) entity in 2026, meeting all criteria as of Q1 2025.

• Cost control remained strong, with total costs flat year-over-year despite inflationary pressures.

Financial highlights

• Net interest income rose 19% year-over-year to SEK 920 million, with net interest margin maintained and operating income up 6% to SEK 1,030 million.

• Cost-to-income ratio improved to 68% from 71% last year, reflecting cost control and restructuring benefits.

• Collection performance was solid at 103%, supporting healthy book quality.

• EPS was SEK 2.33, up from SEK 2.30 year-over-year.

• Cash flow from operating activities was SEK 2,278 million, up from SEK 690 million last year.

Outlook and guidance

• Targeting SEK 36 billion portfolio by end of 2026, supported by a strong investment pipeline and active market.

• Confident in maintaining SDR criteria through 2025, with no current uncertainties foreseen.

• Temporary increase in net interest income costs expected in 2025 due to NSFR requirements for SDR qualification.

• Dividend of SEK 2 per share proposed, pending AGM approval.

• Despite market uncertainty and financial turbulence in April, strong funding and growth targets are maintained.