Hoist Finance (HOFI) Q4 2024 earnings summary

Executive summary

• Profit before tax for 2024 was SEK 1.3bn, up 54% year-over-year; profit after tax reached SEK 1,013m, up 53%.

• Return on equity reached 17% for the full year and 15.5% in Q4, exceeding the >15% target.

• Investment portfolio grew 26% to SEK 30.7bn, with record annual investments of SEK 10.8bn in 2024.

• Entered Portugal as the 13th market and exited third-party servicing business in Italy and Spain.

• Board proposed a dividend of SEK 2 per share for 2024, with two share repurchase programmes completed.

Financial highlights

• Full-year operating income increased 26% to SEK 4.4bn; Q4 operating income up 22% to SEK 1,130m.

• Net interest income grew 36% year-over-year to SEK 3,567m; Q4 net interest income was SEK 997m.

• Earnings per share for 2024 were SEK 10.07, up 76% year-over-year; Q4 EPS was SEK 2.56.

• Collection performance was 106% in Q4 and 105% for the year.

• One-off costs in Q4 2024 were SEK 56m, mainly from Spain.

Outlook and guidance

• Growth ambitions and financial targets remain unchanged, aiming for SEK 36bn portfolio by 2026 and ROE above 15%.

• Expect continued investment at attractive returns, with supportive market conditions and high-yielding portfolio.

• SDR status notification postponed due to regulatory uncertainty; clarifications expected after summer.

• Dividend policy set at 25-30% of net profit, determined annually based on capital targets and growth outlook.

• Lower extraordinary cost levels expected going forward, with focus on operational improvements.