Avarda Bank Ab · OMXSTO:AVARDA
Avarda Bank Ab — TF Bank — Q1 2025 Earnings Presentation
25 slides from Avarda Bank Ab's earnings presentation, Apr 14, 2025
Slide 1: Track record since IPO
TRACK RECORD SINCE IPO 210 25,000 180 20,000 150 15,000 SEK million 120 90 10,000 60 5,000 30 0 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 16 16 16 17 17 17 17 18 18 18 18 19 19 19 19 20 20 20 20 21 21 21 21 22 22 22 22 23 23 23 23 24 2
Slide 2: Interim Report January – March 2025
INTERIM REPORT January – March 2025
Slide 3: Highlights January–March 2025
HIGHLIGHTS JANUARY– MARCH 2025 • Controlled growth during the quarter Operating profit - 4 % in local currencies +27% • Operating profit SEK 188 million, +27% vs Q1-2024 188 148 - The Credit Cards segment drives EPS - C/I improving – the business scales well • P2G decision from SFSA: 0% of REA • New
Slide 4: New financial targets
NEW FINANCIAL TARGETS Growth TF Bank’s aim is to achieve a loan portfolio of SEK 35 billion by second half of 2027 Profitability TF Bank’s aim is to maintain a return on equity well above 20% Capital structure TF Bank’s aim is that all capital ratios should exceed the regulatory requirement (includi
Slide 5: Loan book growth
LOAN BOOK GROWTH 25,000 19%1) 4% • TF Bank: Growth in Q1 = 4% 20,000 – Year-on-year 19%1) • Credit Cards: Q1 = 10% 15,000 – Year-on-year 47%1) SEK million • Ecommerce Solutions: Q1 = -7% 10,000 – Year-on-year -6%1) 5,000 • Consumer Lending: Q1 = 3% – Year-on-year 6%1) 0 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25
Slide 6: Growth and diversification
GROWTH AND DIVERSIFICATION Market update Loan book split by market2) Germany: Credit card product in high demand. Competitive CAC1). Soft launch of Germany 36% credit offering in Ecommerce Solutions in Germany during Q4 2024 Norway: Increased profitability in Consumer Lending. The Credit Cards and N
Slide 7: Credit Cards
Segment CREDIT CARDS Highlights Share of TF Bank's loan book Share of TF Bank’s operating income • Loan portfolio up 47%1) amounting to SEK 8.8 bn – German and Austrian market the main drivers 44% 50% • 334 k active cards in Germany, +47% YoY • Continued scalability in the business model Segment des
Slide 8: Ecommerce Solutions
Segment ECOMMERCE SOLUTIONS Highlights Share of TF Bank's loan book Share of TF Bank’s operating income • Entered into partnerships with Nordic retailers Brandsdal Group and Bagaren & Kocken – Expected yearly transaction volumes of approx. 2,700 MSEK 12% 19% • Geographical expansion through credit o
Slide 9: Consumer Lending
Segment CONSUMER LENDING Highlights • Controlled growth during the quarter with focus on Share of TF Bank's loan book Share of TF Bank's operating income protecting margins • Favourable growth opportunities identified in some markets 44% 31% • Business as usual with best-in-class performance • Impro
Slide 10: Stable risk-adjusted margin
STABLE RISK-ADJUSTED MARGIN 657 668 595 625 • Risk-adjusted income1) 561 – Continued stable risk-adjusted margin2) SEK Million • Operating income 8.5% 8.5% 8.6% 8.1% 8.2% – Credit Cards the main driver • Net loan losses 188 202 205 224 232 – Driven by Credit Cards Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Opera
Slide 11: Opex – cost/income ratio by segment
OPEX – COST/INCOME RATIO BY SEGMENT 65% 61% 59% 58% 58% • Operating expenses Q1-25 vs. Q1-24, +11% 55% 50% – Scalability in the business model • Cost/income ratio per segment in Q1-25 40% 40% 37% 37% 37% – Credit Cards 33% 38% 35% 36% 33% 33% – Ecommerce Solutions 61% 34% 33% 31% 32% 31% – Consumer
Slide 12: Increased profit year-on-year
INCREASED PROFIT YEAR-ON-YEAR 27% 191 188 188 • Operating profit Q1-25 vs. Q1-24, +27% 158 148 – Driven by segment Credit Cards SEK million – Adjusted earnings per share, 6.56 SEK • Strong profitability in Q1-2025 – Adjusted return on loans to the public, 2.8% (2.4) – Adjusted return on equity, 21.8
Slide 13: Credit Cards
Segment CREDIT CARDS 76% 80 75 70 • Operating profit Q1-25 vs. Q1-24, +76% – Growing operating income 52 46 – Continued strong risk-adjusted margin SEK million • Return on loans to the public, 2.9% (2.2) – Economies of scale 8.2% 8.2% 8.6% 8.5% 8.8% Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Operating profit Ris
Slide 14: Ecommerce Solutions
Segment ECOMMERCE SOLUTIONS 3% 33 29 23 24 22 • Operating profit Q1-25 vs. Q1-24, +3% – Higher operating income margin SEK million – LGD adjustments impacts loan losses negatively 15.4% 15.3% 13.6% 13.7% 14.5% • Return on loans to the public, 2.8% (2.4) Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Operating profit
Slide 15: Consumer Lending
Segment CONSUMER LENDING 6% 100 92 83 84 79 80 80 • Operating profit Q1-25 vs. Q1-24, +6% 60 – Stable risk-adjusted margin SEK million 40 6.3% 6.6% 6.7% 6.6% 6.5% – LGD adjustments impacts loan losses positively 20 • Return on loans to the public, 2.9% (2.6) 0 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Operating
Slide 16: Funding and liquidity
FUNDING AND LIQUIDITY 24,000 Deposits from the public 20,952 20,000 • Retail deposits in Europe – Germany (SEK 16.6 billion) 16,000 – Netherlands (3.1 billion) SEK million – Nordics (SEK 0.6 billion) 12,000 Germany – Other (SEK 0.6 billion) 8,000 – Fixed-term deposits: 67% • Liquidity reserve: 19% o
Slide 17: Capital situation
CAPITAL SITUATION 17.7% • Significantly higher capital T1+T2 17.7% 15.8% ratios in Q1 T1 15.8% 14.3% Headroom 4.8% 5.2% • P2G decision from SFSA: 0% of Headroom Headroom 5.4% T1+T2 12.9% REA T1 10.6% T1 10.6% • Significant headroom to CET1 14.3% regulatory requirements CET1 8.9% CET1 8.9% CET1 8.9%
Slide 18: Looking ahead
LOOKING AHEAD • The commercial plan continues with a pan-European focus – Organisational structure • Go live with new major partnerships in Ecommerce Solutions during Q2 • Start executing on new financial targets • Closely monitor the macroeconomic situation in order to adapt and seize opportunities
Slide 19: Q&A Session
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Slide 20: Appendix
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Slide 21: Corporate profile
CORPORATE PROFILE Our Products Our Geographical footprint TF Bank is a digital bank offering consumer banking We serve customers in the Nordics, Germany, Austria, services and e-commerce solutions through a Spain, the Baltics, Poland, Ireland, the Netherlands proprietary IT platform with a high degr
Slide 22: Long track record of profitable growth
LONG TRACK RECORD OF PROFITABLE GROWTH Long experience and proven Strong track record on business model growth and profitability • 35 years+ experience from Loan portfolio consumer finance industry 25,000 2,500 • Highly profitable core markets 20,000 2,000 with proven model for SEK million 15,000 1,
Slide 23: Board of Directors
BOARD OF DIRECTORS John Brehmer Arti Zeighami Sara Mindus Chairman of the Board since 2020 Board member since 2023 Board member since 2020 Board member since 2010 Current commitments: Current commitments: Current commitments: Partner & Director, Senior advisor Board member: Besqab AB (publ), Chairma
Slide 24: Executive Directors
EXECUTIVE DIRECTORS Joakim Jansson Mikael Meomuttel CEO CFO, Deputy CEO and Head of Investor Relations Education: PhD in Economics, Uppsala University. Education: MSc, Business/Economics and Finance, University of Borås/University of Gothenburg. At TF Bank since 2023 as CEO. Has previously held lead
Slide 25: Contact
Contact Investor relations Mikael Meomuttel +46 706 26 95 33 ir@tfbank.se www.tfbankgroup.com 25