Hoist Finance (HOFI) Q3 2024 earnings summary

Executive summary

• Profit before tax rose to SEK 369 million, up 31% year-over-year, with return on equity at 16.3% for Q3 2024 and portfolio book value reaching SEK 29.9 billion, a 25% increase, driven by SEK 4.3 billion in new portfolio investments.

• Moody’s upgraded the credit rating to Baa2, reinforcing investment grade status, and a SEK 1.65 billion bond issuance was completed.

• Collection performance was solid at 102% for Q3, with expectations for a rebound in Q4.

• Capital and liquidity positions are robust, with CET1 ratio at 12.18% and liquidity buffer increased to SEK 15 billion.

• Share repurchase and new bond issuances supported capital allocation and funding diversification.

Financial highlights

• Net interest income grew 30% year-over-year to SEK 950 million, and total operating income for Q3 2024 was SEK 1,092 million, up 19% year-over-year.

• Net profit for Q3 2024 was SEK 257 million, compared to SEK 270 million in Q3 2023, impacted by a higher effective tax rate.

• Operating income increased by 27% year-over-year, driven by repricing and portfolio growth.

• Cost growth was 14%, significantly lower than portfolio growth, supporting operating leverage.

• Portfolio acquisitions reached SEK 4.34 billion, more than doubling year-over-year.

Outlook and guidance

• On track to reach SEK 36 billion portfolio book value by end-2026, with 66% of the SEK 18 billion growth target already achieved.

• Targeting return on equity above 15% for the full year; Q4 expected to be the most active for investments.

• Management anticipates continued strong portfolio growth and supportive repricing, with a strong Q4 outlook.

• Collection performance is expected to return to normal levels in Q4, with early October data showing an uptick.

• Full-year 2024 effective tax rate expected to be 22–24%.