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Investing.com -- Shares of Swedish debt buyer Hoist Finance fell over 2% on Friday after the company reported a drop in quarterly profit and lower operating income, even as it strengthened its capital position and expanded its investment portfolio.
Profit before tax for the third quarter of 2025 totaled SEK 349 million, down from SEK 363 million a year earlier.
Net profit rose to SEK 284 million from SEK 244 million, while return on equity improved to 18% from 16%.
Operating income declined 3% to SEK 1.05 billion, compared with SEK 1.09 million in the same period of 2024.
Operating expenses fell to SEK 702 million from SEK 724 million, reflecting lower administrative costs.
Net interest income edged down to SEK 937 million from SEK 944 million. Collection performance across markets held steady at 103%, slightly above 102% in the same quarter of 2024.
Hoist Finance invested SEK 2.4 billion in new portfolios during the quarter, bringing the total portfolio to SEK 32 billion as of Sept. 30.
“During the quarter, we acquired our first loan portfolio in Finland, thereby opening our fourteenth market,” said chief executive Harry Vranje in a statement. “We see great potential in the Finnish market and intend to gradually increase our activity there.”
The CET1 capital ratio was 12.21%, compared with 12.18% a year earlier, and the liquidity reserve reached SEK 25 billion. The company reported a total capital ratio of 18.12% and said it continues to meet all criteria for Significant Deposit Receiver qualification, maintaining a Net Stable Funding Ratio of 142%.
Hoist Finance issued SEK 200 million in Additional Tier 1 capital in August at a coupon of STIBOR 3 months plus 500 basis points as part of efforts to optimize its funding structure.
Total assets rose 4% from year-end 2024 to SEK 59.3 billion, supported by higher interest-bearing securities and co-investments. Deposits from the public increased to SEK 40.5 billion from SEK 40.2 billion.
For the first nine months of 2025, profit before tax was SEK 992 million, down 3% from SEK 1.02 billion a year earlier.
Net profit rose to SEK 778 million from SEK 765 million. Total operating income decreased 4% to SEK 3.13 billion from SEK 3.26 billion, while the return on equity averaged 16%.
Market conditions during the quarter were described as stable, with “credit conditions strengthened steadily” and inflation rates unchanged.
The company said its risk profile remained stable, supported by low credit, liquidity, and market risk exposure.