TF Bank (TFBANK) Q4 2024 earnings summary

Executive summary

• Operating profit for Q4 2024 increased by 36% year-over-year to SEK 188 million, driven by Credit Cards and Ecommerce Solutions segments.

• Full-year operating profit rose 34% to SEK 684.9 million, with strong Credit Cards performance.

• Divestment of 80.1% in Rediem Capital completed, resulting in a SEK 103 million one-off profit and SEK 345 million positive capital effect.

• Extraordinary one-off dividend proposal of SEK 5.00 per share following the Rediem transaction.

• TF Bank now operates in 14 European countries, focusing on profitability and scalability.

Financial highlights

• Loan book grew 17% year-over-year, reaching SEK 20.0 billion at Q4 2024.

• Operating income increased 22% year-over-year to SEK 2,439 million, with 93% from net interest income.

• Adjusted return on equity at 22.3%–22.5% and adjusted earnings per share at SEK 6.23–23.23.

• Cost/income ratio improved to 31% for Credit Cards, 58% for Ecommerce Solutions, and 33% for Consumer Lending in Q4 2024; group ratio improved to 38.3%.

• Risk-adjusted margin remained stable at 8.5% in Q4 2024.

Outlook and guidance

• Ambitious commercial plans for Credit Cards and Ecommerce Solutions in 2025.

• New financial targets to be communicated during H1 2025, pending regulatory guidance.

• Focus on building competence in Spain and Italy, with Denmark ready for scaling.

• Agreements with new major merchants in Ecommerce Solutions and expansion into Germany set a foundation for future growth.

• The Bank surpassed its SEK 20 billion loan portfolio target ahead of schedule.