Continued profitable growth with net profit of €22.9 million and Adjusted EBITDA of €75.1 million
Strong balance sheet and cash position
Operational highlights
- Online loan issuance volume of €278.2 million in the Period compared with €277.1 million in the prior year period. Demand for credit remains strong in most markets, with growth driven by 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 24% to €531.5 million in the Period, compared to €427.8 million in H1 2023.
Financial Highlights
- Interest income up 13% year-on-year to €212.7 million in the Period compared with €187.9 million in H1 2023.
- Cost to income ratio for the Period was 42.4%, an improvement from 44.7% in the prior year period, despite the increase in total operating costs year-on-year.
- Adjusted EBITDA was €75.1 million for the Period, up 28% year-on-year, delivering 35% Adjusted EBITDA margin. The interest coverage ratio as of the date of this report is 2.0x, impacted by the increased interest expense at TBI Bank in recent quarters.
- Net profit for the Period was €22.9 million, a 36% increase from €16.9 million in the prior year period.
- Fundamental asset quality indicators at product level remain broadly stable. Group’s net impairment charges of €82.0 million reflect the larger portfolio and different product mix in online. Cost of risk at 13.0% for 6M 2024, a slight improvement from Q1 2024.
- Net receivables up 8% to €1,173.4 million as of 30 June 2024 compared with €1,084.4 million as at year end 2023.
- Overall gross NPL ratio at 9.6% as of 30 June 2024 (13.4% for online), compared with 9.4% as of 31 December 2023 (14.2% for online). TBI NPL ratio at 9.0% as of 30 June 2024, compared with 8.6% as of 31 December 2023.
Liquidity and funding
- Strong liquidity position, with €47.2 million of cash in the online business at the end of the Period.
- The balance of the related party loan to 4finance Group S.A. was reduced to €10 million in July.
- The Group’s EUR 2028 bonds were listed on the Nasdaq Baltic First North on 29 August.
Kieran Donnelly, CEO of 4finance, commented:
“We have seen strong results for the first half of the year, with continued net profitability of €23 million, up 36% year-over-year, and Adjusted EBITDA of €75 million, up 28% from last year.
“TBI Bank’s quarterly net receivables have surpassed €1 billion for the first time, as the bank continues to grow profitably.
“Our measured approach to new operations is also delivering, with our UK joint venture making its first profits, just 15 months after launch.
“These results reflect our solid performance and positive outlook.”
