Operational highlights
- Online loan issuance volume was stable year-on-year in the Period at €423.5 million compared with €423.8 million in the prior year period. Demand for credit remains strong in most markets, particularly in the Czech Republic and Spain.
- New growth opportunities: taking a deliberate, step-by-step approach. The UK joint venture (ondal.co.uk) and the Mexican business (kimbi.mx) progressing steadily, showing gradual growth.
- TBI Bank loan issuance increased by 28% to €832.8 million in the Period, compared to €652.3 million in 9M 2023.
Financial Highlights
- Interest income up 13% year-on-year to €326.7 million in the Period compared with €288.8 million in 9M 2023.
- Cost to income ratio for the Period was 41.8%, an improvement from 44.2% in the prior year period. Cost discipline and operational efficiency remain a focus for the business.
- Adjusted EBITDA was €116.2 million for the Period, up 26% year-on-year, delivering 36% Adjusted EBITDA margin. The interest coverage ratio as of the date of this report is 2.1x.
- Net profit for the Period was €37.6 million, a 42% increase from €26.4 million in the prior year period.
- Fundamental asset quality indicators at product level remain broadly stable. Group’s net impairment charges of €126.8 million reflect the larger portfolio. Further slight improvement in cost of risk at 12.9% for 9M 2024.
- Net receivables up 15% to €1,248.2 million as of 30 September 2024 compared with €1,084.4 million as at year end 2023.
- Overall gross NPL ratio at 10.1% as of 30 September 2024 (13.2% for online), compared with 9.4% as of 31 December 2023 (14.2% for online). TBI NPL ratio at 9.7% as of 30 September 2024, compared with 8.6% as of 31 December 2023.
Liquidity and funding
- Strong liquidity position, with €77.0 million of cash in the online business at the end of the Period.
- Balance sheet enhanced in Q3, with related party loan to 4finance Group S.A. reduced to just under €10 million, and a full repayment of a €33.8 million loan by the Group’s former Polish business.
Kieran Donnelly, CEO of 4finance, commented:
“We are pleased to report continued profitability with a 42% year-on-year increase in net profit to €38 million in the Period, compared with €26 million in the same period last year. In addition, we have strong cash levels, a robust balance sheet and a 6% quarter-on-quarter growth in our online net loan portfolio.
These results reflect our disciplined approach and commitment to sustainable growth.”
