Hoist Finance Ab · OMXSTO:HOFI
Hoist Finance Ab — Q2 2024 Earnings Presentation
18 slides from Hoist Finance Ab's earnings presentation, Jul 26, 2024
Slide 1: Hoist Finance AB (publ.) Q2 2024 Results presentation
Hoist Finance AB (publ.) Q2 2024 Results presentation - 26 July 2024 - HoistFinance
Slide 2: Today's presenters
of HoistFinance Today’s presenters | Christian Wallentin CFO & Deputy CEO Harry Vranjes CEO Classification: Public 2
Slide 3: Key highlights Q2
Key highlights Q2 Profit before tax at SEK 383m, compared to SEK 178m in the same quarter a year ago Return on equity at 18%, compared to 10% in the same quarter a year ago. Q2 included certain income and expenses that are either extraordinary or non-recurring. Excluding these items, the underlying
Slide 4: Q2 financial summary
Q2 financial summary Quarter 2 Quarter 2 SEKm 2024 2023 Change Interest income 1,075 829 30% Other interest income 81 43 88% Interest expense -297 -177 65% Net interestincome 859 695 24% Other income (including impairments) 334 220 51% Net result from financial transactions 20 -12 -100% Total operat
Slide 5: Portfolio acquisitions
of HoistFinance Portfolio acquisitions 2021 2022 2023 2024 YTD SEK 3.5bn SEK 6.9bn SEK 7.1bn SEK 4.3bn : 1 : Ml : i : 1 2.8 25 24 22 » High activity and strong pipeline 21 me a a 19 » Repricing continuing 17 » Attractive risk-adjusted returns 13 » Additional SEK 2.0 billion signed to date 1,2 ' 11 0
Slide 6: Underlying to reported return on equity
Underlying to reported return on equity 27 16 : | 25 150 ~~ es Restructuring: eee 383 44m 323 Underlying Asset disposal Restructuring Restructuring IT insource One-time costs Reported EBT (Other Income) (Direct) (Indirect) (Indirect) (Indirect) EBT RoE 15.1% 18.2% » » » » » of HoistFinance Strategic
Slide 7: Operating leverage development
of HoistFinance Operating leverage development (Q2 to Q2) Portfolio book value Operating Income Total Cost Profit before tax SEKbn SEKm SEKm SEKm 27 » Core income growth driven by repricing and growth » Operational scale and continuous improvement » Operating leverage boosting profit expansion Q2'23
Slide 8: Specialised Debt Restructurer
Specialised Debt Restructurer Strategic attractiveness of becoming SDR Banking package published in Official Journal Specialised Debt Restructurer » » » » of HoistFinance Regulatory status designed to stimulate secondary NPL markets by adding specialised banks exempted from the statutory backstop re
Slide 9: Specialised Debt Restructurer: NSFR impact
Specialised Debt Restructurer Key impact for is the 130% net stable funding ratio requirement - illustrative impact 37 27 43 15 Liquidity buffer (135% NSFR) 1 Other assets 27 NPL & PL assets Q2 Pro Forma @NSFR 115% (1) Q2 pro forma @NSFR 135% (1) ANSER of 115%, equaling the last twelve months averag
Slide 10: Q2 Asset class mix
Q2 Asset class mix Book value by asset class 28% SEK 26.8bn = Unsecured Secured Book value per market Ss 8% SEK 26.8bn 16% altaly = Poland Germany = Spain = Greece France =UK Sweden BeNe+other » Repricing outpacing increase in funding cost » Asset mix stable » Geographical diversification of HoistFi
Slide 11: Capital and liquidity position
Capital and liquidity position Capitalization, % 13,82% 11,69% CET target range 8,39% Regulatory capital Margin above capital CETI-ratio requirement requirement Liquidity reserve, SEKbn 12,0 10,0 8,9 8,0 7,6 7,6 68 7A 6,4 6,0 5,6 0,0 of HoistFinance 1,3 84 78 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-2
Slide 12: Funding
of HoistFinance Funding Funding!, SEKbn Avg. cost of funding » Pricing improvements in new issuance 35 45% ; 4.08% » Material issuance planned during H2 4,0% . ‘ ‘ ae 30 » Funding base stable and increasingly competitive Ps 9 . a 35% » Deposit base make up 73% of overall funding 5 5 = 20 Distributio
Slide 13: Final remarks
Final remarks Profit before tax at SEK 383m, compared to SEK 178m in the same quarter a year ago Return on equity at 18%, compared to 10% in the same quarter a year ago Underlying return on equity at 15% New portfolio investments at SEK 2.2bn in the quarter, total book value at SEK 26.8bn 24% net in
Slide 14: Classification: Public
of HoistFinance A Classification: Public 14
Slide 15: Appendix
of HoistFinance Appendix Classification: Public 15
Slide 16: Specialised Debt Restructurer regulatory text
of HoistFinance Specialised Debt Restructurer Specialised Debt Restructurer regulatory text — new article 36(5) CRR For the sole purpose of calculating the applicable amount of insufficient coverage for non-performing exposures in accordance with paragraph 1, point (m) of this Article, by way of der
Slide 17: Definitions
of HoistFinance Definitions Specialised Debt Restructurers (SDR): Changes to the European Banking Authority's (EBA) rules on the minimum loss coverage for Non-Performing Loans (NPLs), known as the prudential backstop, were introduced in 2019. The backstop rules imply a CET1 capital deduction for the
Slide 18: Disclaimer
Disclaimer IMPORTANT: The following applies to this document, the oral presentation of the information in this document by Hoist Finance AB (publ) (the “Company”) or any person on behalf of the Company, and any question-and-answer session that follows the oral presentation (collectively, the “Inform