4finance reports results for the nine month period ending 30 September 2015

Riga, Latvia, 5 November 2015. 4finance Holding S.A. (the ‘Group’), one of Europe’s largest online and mobile consumer lending groups, today announces unaudited consolidated results for the nine month period ending 30 September 2015 (the ‘Period’).

Financial Highlights

  • Revenue up 39% to EUR 229.3 million in the Period compared with EUR 164.5 million in the nine months ending 30 September 2014.
  • The Group’s profit for the nine months to 30 September 2015 was EUR 51.3 million, an increase of 29% from EUR 39.7 million for the same period in 2014.
  • Net loan portfolio as of 30 September 2015 was EUR 299.1 million, up 29% from a year ago.
  • Cost to interest income ratio for the Period was 39%, vs. 35% for the nine month period ending 30 September 2014.
  • Financial strength enhanced with a capital-to-assets ratio of 38% as of 30 September 2015 (33% as of 30 September 2014).
  • Credit discipline maintained with non-performing loans to loan issuance ratio of 9.1% as of 30 September 2015 (9.6% as of 30 September 2014).
  • Consolidated adjusted EBITDA was EUR 78.8 million for the Period, leading to an interest coverage ratio of 3.7x.


Operational Highlights

  • Total number of registered customers reached 4.3 million as of 30 September 2015, up 45% from a year ago.
  • A total of EUR 791.1 million in loans were issued during the Period, up 33% compared with EUR 592.8 million in the nine months ending 30 September 2014.
  • Appointment of highly experienced Chief Risk Officer, Manu Panda, to strengthen portfolio risk management.
  • Initial launch in September of new Line of Credit product – an open-ended online credit limit with flexible monthly repayments – in Finland.
  • Started lending under Vivus brand in Argentina in October and on track to launch in Mexico by year-end.

Kieran Donnelly, CEO of 4finance, commented:

“Our business continues to grow strongly, with revenue up 39% year on year, reflecting growth in every one of our markets. Net profit increased 29%, reflecting that growth and our continued investment in the future as we capture and utilize an ever broader range of data.

“Single payment loans remain an important driver of profitability and also an entry point into new markets.  At the same time, we continue to diversify our offering to customers, with instalment loans now comprising nearly a third of the portfolio, alongside the successful line of credit launch. More products are being piloted in the coming months.

“What we have achieved in the last few months – growing profits, investing in people, data analytics and technology, launching our third product and expanding into Latin America – demonstrates our commitment to becoming a global leader in digital consumer finance.”


Key Financial Ratios

As of / 9 months to
30 September
As of / 12 months to 31 December
2015 2014 2014 2013
Net loan portfolio (in millions of EUR) (1) 299.1 232.7 241.4 177.9
Capital/assets ratio (2) 38% 33% 35% 29%
Capital/net loan portfolio (3) 54% 45% 47% 37%
Interest coverage (4) 3.7x 3.9x 3.5x 4.5x
Profit mаrgin (5) 26% 29% 27% 35%
Return on average equity (6) 45% 59% 54% 82%
Cost/revenue ratio (7) 39% 35% 37% 38%
Net impairment to revenue ratio (8) 25% 25% 25% 18%
Non-performing loans to loan issuance ratio(9) 9.1% 9.6% 8.8% 9.2%


  1. Gross loan portfolio less provisions for bad debts.
  2. Total equity/total assets (excluding the effect from the 2015 Notes’ defeasance)
  3. Total equity/net loan portfolio.
  4. Consolidated EBITDA/interest expense.
  5. Profit before tax/interest income.
  6. Profit from continuing operations/average equity (total equity as of the start and end of each period divided by two).
  7. General administrative expenses/interest income. Structural difference in administrative expenses in 2015 increases 9M 2015 ratio
  8. Net impairment losses on loans and receivables/interest income.
  9. Non-performing loans with a delay of over 90 days/value of loans issued. The value of loans issued represents loans issued for the two-year period before commencement of the 90 day past-due period, eg for 30 September 2015: 1 July 2013 to 30 June 2015.



Email:               investorrelations@4finance.com
HQ Address:       Lielirbes iela 17a-8, Riga, LV-1046, Latvia
Website:            www.4finance.com


Conference call
A conference call with management to discuss these results is scheduled for Tuesday, 10 November at 16:00 UK time.  To register, please visit www.4finance.com/investors.

About 4finance
Established in 2008, 4finance is one of the largest and fastest growing online and mobile consumer lending groups in Europe with operations in 13 countries. Putting innovative data-driven analysis into all aspects of the business, 4finance has grown rapidly, issuing over EUR 2.5 billion in single payment and instalment loans to date.

4finance operates through a portfolio of market leading brands with strong regional presence including Vivus, SMSCredit and Zaplo. A responsible lender, offering simple, convenient and transparent products and service, 4finance is meeting growing customer demand from those increasingly under-served by conventional lending.

4finance is headquartered in Riga, Latvia and currently operates in Argentina, Armenia, Bulgaria, the Czech Republic, Denmark, Finland, Georgia, Latvia, Lithuania, Poland, Romania, Spain and Sweden. To support its international expansion, 4finance continues to pursue a twin-track strategy of strong organic growth bolstered by targeted acquisition.
Forward looking statements

Certain statements in this document are “forward-looking statements”. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements.

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