TF Bank (TFBANK) Q3 2024 earnings summary

Executive summary

• Operating profit for Q3 2024 reached SEK 191 million, up 47% year-over-year, driven by Credit Cards and Ecommerce Solutions segments.

• Loan portfolio grew 20% year-over-year in local currencies, reaching SEK 20.3 billion by Q3 2024, mainly from the German credit card business.

• Income grew faster than costs, improving the cost/income ratio and demonstrating scalability.

• The bank is finalizing the separation of Rediem Capital and preparing to launch new credit offerings in Germany.

• Credit Cards segment led growth, with a 58% loan book increase and 82% higher operating profit year-over-year.

Financial highlights

• Operating profit increased to SEK 191 million in Q3 2024 from SEK 130 million in Q3 2023, a 47% rise.

• Operating income up 18% year-over-year to SEK 625.2 million for Q3; cost/income ratio improved to 36.7%.

• Return on equity reached 25.5% and earnings per share were 6.53 SEK for Q3.

• Deposits from the public rose 16% year-over-year to SEK 21.6 billion.

• Net loan losses increased 26% to SEK 595.3 million for Jan–Sep, with a net loan loss ratio of 4.2%.

Outlook and guidance

• Transformation continues towards a European credit and payment platform.

• Launch of credit offering in Ecommerce Solutions in Germany planned for Q4 2024.

• New financial targets for 2025 and beyond to be set after surpassing the SEK 20 billion loan portfolio target.

• Optimistic outlook supported by stable credit quality and expectations of lower household interest rates.