4finance Reports Strong Growth For The Six Month Period Ending 30 June 2015 With Revenue Up Over 40% 

Riga, Latvia, 28 August 2015. 4finance Holding S.A. (the ‘Group’), one of Europe’s largest online and mobile consumer lending groups, today announced unaudited results for the six month period ending 30 June 2015 (the ‘Period’).

Financial Highlights

  • Revenue up 41% to EUR 146.1 million in the Period compared with EUR 103.4 million in the six months ending 30 June 2014.
  • The Group’s profit for the six months to 30 June 2015 was EUR 35.4 million, an increase of 31% from EUR 27.0 million for the same period in 2014.
  • Net loan portfolio as of 30 June 2015 was EUR 283.3 million, up 29% from a year ago.
  • Cost to interest income ratio for the Period was 39% compared with 35% for the six month period ending 30 June 2014.
  • Financial strength enhanced with a capital-to-assets ratio of 37% as of 30 June 2015 (35% as of 30 June 2014).
  • Credit discipline maintained with non-performing loans to loan issuance ratio of 8.9% as of 30 June 2015 (9.5% as of 30 June 2014).
  • Consolidated adjusted EBITDA was EUR 46.8 million for the Period, leading to an interest coverage ratio of 3.5x.

Operational Highlights

  • Total number of registered customers reached 4.0 million as of 30 June 2015, up 49% from a year ago.
  • A total of EUR 523.6 million in loans were issued during the Period, up 40% compared with EUR 376.9 million in the six months ending 30 June 2014.
  • Instalment loans now offered in 6 of our 13 countries following launch in Denmark. Instalment loans represent 32% of our gross performing loan portfolio.
  • Continued selective European expansion in the second quarter, with the successful start of Romanian operations in June and integration of the Armenian business acquired in April.
  • Preparing for entry into additional markets in second half of 2015, including Argentina and Mexico in Latin America.

Kieran Donnelly, CEO of 4finance, commented:

“These results show another period of strong progress for 4finance, with loan volumes and revenue growing by 40% year-on-year and profits up 31%. We are pleased to deliver this growth in profits whilst making significant investments to support future expansion and diversification. We now have a well-established and significant footprint in Europe with market leading positions in most of our countries and exciting growth opportunities in newer ones.

“We are evolving the business to bring multiple products to consumers across a wider range of markets. Our vision is to become a global leader in consumer finance, using data and digital technology to meet our customers’ requirements quickly and responsibly. With our robust infrastructure and scalable platform, we believe we are well placed to achieve our ambitions.”

Key Financial Ratios

As of / 6 months to 30 June As of / 12 months to 31 December
2015 2014 2014 2013
Net loan portfolio (in millions of EUR) (1) 283.3 220.2 241.4 177.9
Capital/assets ratio (2) 37% 35% 35% 29%
Capital/net loan portfolio (3) 51% 47% 47% 37%
Interest coverage (4) 3.5x 4.5x 3.5x 4.5x
Profit mаrgin (5) 26% 32% 27% 35%
Return on average equity (6) 47% 65% 54% 82%
Cost/revenue ratio (7) 39% 35% 37% 38%
Net impairment to revenue ratio (8) 26% 25% 25% 18%
Non-performing loans to loan issuance ratio(9) 8.9% 9.5% 8.8% 9.2%


  1. Gross loan portfolio less provisions for bad debts.
  2. Total equity/total assets.
  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.
  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 June 2015: 1 April 2013 to 31 March 2015.


Email: investorrelations@4finance.com
HQ Address: Lielirbes iela 17a-8, Riga, LV-1046, Latvia
Address: 4finance Holding S.A. 6, rue Guillaume Schneider, L-2522, Luxembourg, RCS Luxembourg: B171.059

Website: www.4finance.com


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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