Strong start to the year: net profit of €14.6 million and Adjusted EBITDA of €43.0 million
Robust balance sheet and cash position
Definitive agreement to sell TBI Bank – subject to customary regulatory approvals
20 May 2025. 4finance Holding S.A. (the ‘Group’ or ‘4finance’), one of Europe’s largest digital consumer lending groups, today announces unaudited consolidated results for the three months ending 31 March 2025 (the ‘Period’).
Operational highlights
- In April 2025, the Group’s online loan issuance since inception surpassed the €11 billion milestone.
- Online loan issuance volume remained resilient at €127.5 million in the Period, slightly below prior-year levels (€138.6 million in Q1 2024), consistent with a focus on credit quality and sustainable profitability.
- New markets: continuing with deliberate step-by-step approach. Progress in the UK joint venture (ondal.co.uk) is developing as expected, with lending volumes growing at a moderate pace in the Period; the Mexican business (kimbi.mx) remains in the development phase, with a continued focus on risk management.
- Launch of pilot operations in Georgia in February 2025, further diversifying product offering with auto loans.
- TBI Bank loan issuance increased by 20% year-on-year to €301.8 million in the Period, compared with €251.4 million in the prior year period.
Financial Highlights
- Interest income up 13% year-on-year to €117.7 million in the Period, compared with €103.9 million in Q1 2024.
- Cost to income ratio for the Period was 38.2%, an improvement from 43.3% in the prior year period. Cost discipline and operational efficiency remain a focus for the business.
- Group’s Adjusted EBITDA for the Period amounted to €43.0 million, up 23% year-on-year, delivering 37% Adjusted EBITDA margin. Online Adjusted EBITDA increased by 23% year-on-year to €12.7 million for the Period. The interest coverage ratio as of the date of this report is 2.1x.
- Group’s net profit for the Period was up 53% year-on-year to €14.6 million. Online net profit increased by 17% year-on-year to €3.1 million for the Period.
- Fundamental asset quality indicators at product level remain broadly stable. Group’s net impairment charges of €45.5 million in the Period reflect the larger portfolio. Overall cost of risk at 12.2% for Q1 2025, an improvement from 13.4% in the prior year period.
- Net receivables up 2% to €1,347.2 million as of 31 March 2025, compared with €1,315.9 million as at year end 2024.
- Overall gross NPL ratio at 9.7% as of 31 March 2025 (13.4% for online), compared with 9.6% as of 31 December 2024 (12.4% for online). TBI NPL ratio stable at 9.2% as of 31 March 2025 (unchanged from year-end 2024).
Liquidity and funding
- Robust liquidity position, with €73.3 million of cash in the online business at the end of the Period.
- In April 2025, the Group announced the sale of TBI Bank, which is pending regulatory approvals and expected to close in Q4 2025.
Kieran Donnelly, CEO of 4finance, commented:
“We’ve had a strong start to the year, with net profit up 53% year-on-year to €15 million and Adjusted EBITDA up 23% year-on-year to €43 million in Q1 2025. The demand for credit remains robust, and we continue to prioritise credit quality over volumes.
“Selling TBI Bank will enhance our strategic focus on expanding our Online business and provides financial flexibility to reshape our capital structure.”
Conference call
A conference call with management to discuss these results is scheduled for Wednesday, 21 May 2025 at 16:00 Riga time. To register, please click here.