TF Bank (TFBANK) Q1 2025 earnings summary

Executive summary

• Operating profit for Q1 2025 reached SEK 188 million, up 27% year-over-year, driven by strong Credit Cards growth and improved cost efficiency.

• Loan portfolio reached SEK 20.2 billion, up 19% in local currencies year-over-year, with Germany as the main growth driver.

• New financial targets set: SEK 35 billion loan portfolio by H2 2027 and maintaining return on equity above 20%.

• Adjusted earnings per share increased 30% to SEK 6.56; adjusted return on equity was 21.8%.

• Credit Cards segment saw 47% loan book growth and 76% higher operating profit; new partnerships in Ecommerce Solutions expected to add SEK 2.7 billion in annual transaction volume.

Financial highlights

• Loan book grew 4% in Q1 2025 and 19% year-over-year, reaching SEK 20,952 million in deposits.

• Operating income rose 19% to SEK 668.5 million, with 92% from net interest income.

• Cost/income ratio improved to 37.3% (from 40.0%); Credit Cards at 33%, Consumer Lending at 31%, Ecommerce Solutions at 61%.

• Adjusted earnings per share at 6.56 SEK; adjusted return on loans to the public at 2.8%; adjusted return on equity at 21.8%.

• Extraordinary one-off dividend of SEK 5.00 per share proposed, linked to the divestment of Rediem Capital AB.

Outlook and guidance

• Commercial plan continues with a pan-European focus and execution of new financial targets.

• Focus on accelerating growth in Credit Cards and Ecommerce Solutions, with cautious lending in selected markets.

• Major new partnerships in Ecommerce Solutions to go live in Q2 2025.

• Macroeconomic and geopolitical uncertainties in Europe may impact lending and loan losses; close monitoring and agile response planned.