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4finance Holding S.A. reports results for the twelve months ending 31 December 2023

Net profit of €44.2million, showing continued profitable growth

Adjusted EBITDA of €131.3 million

Successful refinancing of EUR 2028 bonds adds to strong credit story

Operational highlights

• Online loan issuance volume of €569.5 million in the Period compared with €496.8 million in the prior year, up 15% year-on-year. Demand for credit remains strong in most markets, with yearly issuance growth driven by Czech Republic, Spain and Philippines.

• New growth opportunities: taking a deliberate step-by-step approach. Started operations through a joint venture in the UK ( in February 2023, and in Mexico ( in October 2023 with encouraging signs in both.

• TBI Bank loan issuance increased by 28% to €907.2 million in the Period, compared to €706.2 million in 2022.

Financial Highlights

• Interest income from continuing operations up 24% year-on-year to €385.8 million in the Period compared with €311.1 million in the prior year. For the prior year figures, the Polish business is reflected separately in the income statement as a 'discontinued operation'.

• Cost to income ratio for the Period was 43.4%, a significant improvement from 47.9% in 2022 (excluding Poland), despite the increase in total operating costs year-on-year.

• Adjusted EBITDA was €131.3 million for the Period, up 16% year-on-year (compared to the proforma adjusted EBITDA excluding Poland and including Philippines) delivering a 34% adjusted EBITDA margin. The interest coverage ratio as of the date of this report is 2.0x, impacted by the increased interest expense at TBI Bank in recent quarters.

• Net profit from continuing operations for the Period was €44.2 million, a 27% increase from €34.7 million in the prior year.  

• Fundamental asset quality indicators at product level remain broadly stable. Net impairment charges of €148.4 million reflect the larger portfolio, different product mix in online and reduced debt sales activity in H1 2023. Cost of risk at 13.8% for FY 2023, a slight improvement from 9M 2023  .

• Net receivables up 28% to €1,080.4 million as of 31 December 2023 compared with €846.4 million as of 31 December 2022.

• Overall gross NPL ratio at 9.4% as of 31 December 2023 (14.2% for online), compared with 8.8% as of 31 December 2022 (9.0% for online). TBI NPL ratio at 8.6% as of 31 December 2023, compared with 8.7% as of 31 December 2022.

Liquidity and funding

• Strong liquidity position, with €42.2 million of cash in the online business at the end of the Period.

• Technical completion of bond refinancing process in December 2023, with the new maturity in May 2028. Balanced medium-term capital structure in place, with two bond issues of very manageable sizes.

• In December 2023, the Group cancelled €15 million of EUR 2028 bonds, leaving €135 million outstanding in issue.

Kieran Donnelly, CEO of 4finance, commented:

“These results show our commitment to deliver ongoing profitability, with net profit from continuing operations up 27% to €44 million year-on-year, and quarterly gross income of €122 million, th e highest in recent years.  

“We’ve managed growth while simultaneously reducing our cost-to-income ratio and made good progress in developing our businesses in Mexico and the UK. The successful bond refinancing in Q4 2023 adds to a strong credit story, with the next maturity not until October 2026. Our strong balance sheet and diversified portfolio allow us to continue to adapt and grow.”

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