2 nd Quarter 2017 RESULT PRESENTATION
January – June 2017, in summary LOAN BOOK +14% GROWTH Continued organic loan book growth � Q2 2017 vs Q4 2016 EPS GROWTH +20% 1) � Strong EPS growth H1 2017 vs H1 2016 Cost efficiency � C/I RATIO 38% H1 2017 TOTAL CAPITAL � Strong capital base 17% RATIO 30 June 2017 1) Attributable to the shareholders of the parent company excluding items affecting comparability . 2
Worth noting January – June 2017 � Strong loan book growth in both segments � New agreement for Avarda � One-off sale of NPLs & forward flow agreement in Estonia � Changes in the organisation � Continued geographic diversification: Germany 3
This is TF Bank DIVERSIFIED GEOGRAPHICALLY GRANULATED DIVERSIFIED PORTFOLIO NEW OPPORTUNITIES FLEXIBLE IN SALES FINANCE IT- PLATFORM WITH AVARDA LEAN AND COST CLEAN BALANCE FOCUSED SHEET SALE OF NPL ORGANISATION 4
Long track record of profitable growth Long experience and proven business model Strong track record on growth and profitability SEK million � More than 25 years experience from 2,500 500 LOAN PORTFOLIO 2,250 2,000 400 consumer finance industry 1,750 1,500 300 1,250 1,000 200 � Business model combining growth with 750 500 100 250 best-in-class returns 0 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 Loan portfolio Operating income � Highly profitable core markets with proven Geographically well diversified model for geographical expansion into new SHARE OF LOAN PORTFOLIO (30 June 2017) high-growth markets Sales Finance 19% Over one million active customers � Direct to Consumer 81% � Two complementary business segments Denmark 1% Latvia 1% Poland 8% Estonia 9% • Direct to Consumer (consumer loans) Finland 32% • Sales Finance (payment solutions to merchants and Sweden 24% credit cards) Norway 25% 106 employees 5
Direct to Consumer - Diversified Granulated Portfolio Product overview and use of proceeds Loan sizes and customer profile Average size (SEK) (as at 30 Jun ’17) � Unsecured consumer loans ~25,000 � Marketed through internal channels and external partners ~85,000 � Tenor of loans are typically between 12 and 60 months ~27,000 Estimated average maturity of ~22 months � ~24,000 � Average loan size on book of SEK ~30,000 ~20,000 Home Employed improvement Home Low-to- Credit- Travel applian middle worthy ces income Car repair Middle-aged 6
Sales Finance – Drives new lending and builds database Product overview Key financials % OF TOTAL LOAN PORTFOLIO KEY FACTS (Q2’17) � The Sales Finance segment enables merchants to offer financing solutions to their customers 19% � TF Bank offers reliable and attractive white-label Amount 540 SEKm outstanding (30 Jun 2017) solutions, enabling merchant to use branded invoices � Invoice payment time of 30-50 days and instalment Loan portfolio +31% plans for up to 36 months (Q2 /2017 vs Q4 2016) growth � Norwegian credit cards (from Q1 2017) Growth through two different brands and organisations (51%) (100%) Subsidiary with Geographical minority expansion in interest Europe established in 2015 Strategy to become one of Long-term the leading merchant companies in relationships in the Nordic the Nordics region 7
Strong loan book growth driven primarily by Direct to Consumer TF Bank Group Direct to Consumer segment 12M growth SEK million SEK million +30.0% 2,296 2,239 2,300 2,076 2,900 2,836 1,940 2,000 12M growth 2,755 1,766 +29.8% 1,700 2,700 1,400 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 2,489 2,500 2,357 Sales Finance segment 2,300 SEK million 2,185 650 2,100 12M growth +28.9% 540 550 516 1,900 450 419 416 413 1,700 350 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 8
Summary: growth and diversification according to plan Loan book growth in SEK million Country Comments (share of group) Growth 31 Dec 2016 30 Jun 2017 during 2017 � Steady growth and profitability 847 912 +8% 34% 32% Growth 31 Dec 2016 30 Jun 2017 during 2017 � Focus on profitability 663 662 +0% 27% 24% Growth 31 Dec 2016 30 Jun 2017 during 2017 � Strong growth in both segments 530 714 +35 % 21% 25% Growth 31 Dec 2016 30 Jun 2017 during 2017 Steady growth and profitability � 249 280 +13% 10% 10% Growth 31 Dec 2016 30 Jun 2017 during 2017 � Strong growth in both segments 164 230 +40% 7% 8% 9
Core markets Finland and Sweden Finland Sweden Outstanding balance Outstanding balance Outstanding consumer loans (SEK million) (SEK million) (SEK million) STABLE GROWTH 900 700 900 912 900 688 847 900 830 811 847 830 675 800 811 663 662 726 800 646 700 650 640 700 600 625 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 600 600 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 � Strong growth in Q1, slower in Q2 � Strong March affecting both quarters � Increasing competition for the bigger tickets � Focus on credit quality � Focus on credit quality � Focus on profitability Growth Growth during 2017 during 2017 Steady growth and profitability Focus on profitability +8% +0% 10
Core/growth market Norway Developments Strong momentum continues New lending (NOK million) CONTINUED GROWTH SINCE ACQUISITION >9x 150 � Maintaining growth and credit quality 100 50 Product development (SF) � 0 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 � Credit card business growing � Higher margin than for loans � Increase in the Group’s business mix MORE TO COME – STRATEGIC ROADMAP IN NORWAY � Higher average loan albeit, lower than before � Lower interest rate than in other countries � Continued product development/Credit card � Lower credit losses than in other countries � Continued focus on growth and credit quality � Successful introduction of deposits in January (TF Bank) Growth during 2017 � Banking license in Q3 Strong growth in both segments +35 % 11
Growth markets Poland and the Baltics Poland The Baltics Outstanding balance Outstanding balance Outstanding consumer loans (SEK million) (SEK million) (SEK million) STABLE GROWTH 282 280 900 285 285 900 249 847 260 260 830 230 811 227 235 235 800 204 199 210 210 726 185 185 164 700 160 145 160 135 135 115 600 110 110 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 85 85 60 60 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 � Portfolio size affected by sale of NPLs in Q2 � Stable growth in Direct to Consumer � New forward flow: clean balance principle � Strong growth in Sales Finance � Latvia off to a solid start, good credit quality � Ever improving credit quality Growth Growth during 2017 during 2017 Strong growth in both segments Steady growth and focus on profitability +40% +13% 12
Loan book growth in Sales Finance Segment Sales Finance segment Sales Finance segment Norway – Credit Cards SEK million SEK million 6M growth: +30% 6M growth: 100 91 including one off Credit Cards movement in Q1 + 160% 68 540 550 516 50 35 450 413 0 Q4'16 Q1'17 Q2'17 100 Poland 350 6M growth: + 115% 55 42 50 250 26 Q4'16 Q1'17 Q2'17 0 Q4'16 Q1'17 Q2'17 � Strong growth of Credit Cards in Norway Avarda � Strong growth in Sales Finance Poland 100 6M growth: � Avarda with new agreement + 11% 59 56 53 50 0 Q4'16 Q1'17 Q2'17 13
Increased operating income and strong margins Operating income Operating income margins Comments SEK million SEK million Q2’17/Q2’16 growth � Operating income Q2 2017 vs. 30% +19% 128 Q2 2016 +19% Operating margin 125 119 118 114 108 � Growth quarter to quarter 25% +7% 21.3% 20.5% 20.2% 19.4% 18.8% 100 � Strong growth in Norway, 20% Finland and Poland 15.6% 15.1% 15.1% 14.6% 14.2% 75 � Decreasing operating income 15% margin mostly due to: 50 Risk-adjusted operating � Growth in Norway (lower 10% margin margins) � Risk-adjusted margin 14.2% 25 5% (adjusted for net loan losses) 0 0% Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 14
Extensive focus on OPEX Operating expenses C/I ratio Comments SEK million 44% � Operating expenses Q2 2017 vs. 50 48 47 46 Q2 2016 +14% 42% 43 42 � Number of employees 106 (98) 40.0% 40 40% � Increased IT costs/investments 38.8% 38.8% 37.2% � Sales costs related to lending 38% 37.2% 30 volumes 36% � Cost/Income ratio Q2 2017 37.2% 20 � Q2 2016: 38.8% 34% � Excluding Avarda 33.9% 10 32% 30% 0 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 15
Net loan loss ratio continues to decrease Net loan losses Net loan loss ratio Comments SEK million SEK million � Clean balance sheet policy 10% 40 � NPLs generally sold on forward flow basis after 9% approx. 72 days 35 32 8% � Transactions in Estonia 30 30 28 28 27 7% Forward flow contract � 5.7% 25 6% 5.4% � Non-performing portfolio sold 5.1% 4.8% 4.6% 5% 20 Net loan losses Q2 2017 vs. � Q2 2016 +16% 4% 15 Growing loan portfolio � 3% increases loan losses 10 2% Net loan loss ratio continues to � 5 decrease, driven by: 1% � Strong growth in Norway 0 0% Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 � Improving credit risk management processes 16
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