Hoist Finance (HOFI) Q2 2025 earnings summary

Executive summary

• Profit before tax was SEK 310 million, down from SEK 377 million year-over-year, impacted by a negative VAT ruling and fewer one-off items; underlying profit before tax was SEK 335 million, up from SEK 315 million, reflecting business strength.

• Return on equity was 14.7% (down from 17.5% last year); underlying ROE improved to 16.1% from 13.7% year-over-year.

• Investments in new portfolios totaled SEK 2.6 billion in Q2, with an additional SEK 1.9 billion signed post-quarter, bringing the investment portfolio to SEK 31 billion.

• Collections remained strong at 104% of forecast, with tight cost control and stable indirect costs.

• Moody’s affirmed all ratings and upgraded the outlook to positive.

Financial highlights

• Net interest income increased 4% year-over-year to SEK 885 million; total operating income declined 14% to SEK 1,043 million, mainly due to prior year asset sales.

• Net profit for Q2 was SEK 234 million, down from SEK 258 million year-over-year; EPS at 2.42.

• Interest income from fully owned portfolios rose 11% to SEK 1,194 million; coinvestment portfolio interest income grew over 100%.

• Operating expenses decreased 11% to SEK 732 million, driven by lower personnel and administrative costs.

• Investment volumes increased 18% to SEK 2,641 million; investment portfolio grew 15% to SEK 31,021 million.

Outlook and guidance

• Strong investment pipeline expected to continue in the second half of 2025, with portfolio growth on track for SEK 36 billion by 2026.

• Plans to qualify as a Specialised Debt Restructurer (SDR) in 2026, which will ease capital constraints on unsecured portfolio acquisitions.

• Anticipates continued cost optimization and efficiency improvements.

• Deposit and funding costs expected to remain flat or slightly lower, with normalization over time.

• Winning deals at attractive IRRs in a highly active market.