Solid first half of 2025: net profit of €26.0 million and Adjusted EBITDA of €89.6 million
Robust balance sheet and cash position maintained
Sale of TBI Bank remains on track - final regulatory approvals pending
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 €256.7 million in the Period, down 8% year-on-year, consistent with the Group’s focus on sustainable profitability over volume growth.
- New markets: continuing with deliberate step-by-step approach. The UK joint venture (ondal.co.uk) is progressing well, with positive unit economics and lending volumes growing notably. Pilot operations launched in Georgia in February 2025, further diversifying product offering with auto loans. The Mexico business (kimbi.mx) remains challenging and is not yet ready to scale. The Group is exploring opportunities in other emerging markets as part of its strategic growth plans.
- TBI Bank loan issuance increased by 23% year-on-year to €653.2 million in the Period, compared with €531.5 million in the prior year period.
Financial Highlights
- Interest income up 11% year-on-year to €235.5 million in the Period, compared with €212.7 million in H1 2024.
- Cost to income ratio for the Period was 39.2%, an improvement from 42.4% 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 €89.6 million, up 19% year-on-year, delivering 38% Adjusted EBITDA margin. Online Adjusted EBITDA increased by 14% year-on-year to €23.7 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 14% year-on-year to €26.0 million. Online net profit increased by 12% year-on-year to €5.4 million in the Period.
- Fundamental asset quality indicators at product level remain broadly stable. Group’s net impairment charges of €90.6 million in the Period reflect the larger portfolio. Overall cost of risk at 11.9% for H1 2025, an improvement from 13.0% in the prior year period.
- Net receivables up 6% to €1,394.4 million as of 30 June 2025, compared with €1,315.9 million as at year end 2024.
- Overall gross NPL ratio at 10.2% as of 30 June 2025 (13.8% for online), compared with 9.6% as of 31 December 2024 (12.4% for online). TBI NPL ratio at 9.7% as of 30 June 2025 (9.2% as of 31 December 2024).
Liquidity and funding
- Robust liquidity position, with €59.7 million of cash in the online business at the end of the Period.
- In April 2025, the Group announced the sale of TBI Bank. The transaction remains subject to final regulatory approvals.
Kieran Donnelly, CEO of 4finance, commented:
“We’ve delivered another solid performance in the first half of 2025, with profitability continuing to improve year-on-year to €26 million and Adjusted EBITDA up 19% year-on-year to €90 million in H1 2025. Credit demand remains strong, while we focus on prioritising credit quality over volumes to ensure sustainable profitability.
“The sale of TBI Bank is on track and is pending final regulatory approvals, which we hope to receive in Q4 2025. Our strategic focus is on strengthening our core online business and pursuing long-term growth opportunities.”
Conference call
A conference call with management to discuss these results is scheduled for Tuesday, 9 September at 16:00 Riga time. To register, please click here.