Street Calls of the Week
Hoist Finance reported its Q3 2025 earnings, showcasing robust portfolio growth and strategic market expansions. The company, currently trading at an attractive P/E ratio of 9.6x, demonstrated solid performance with 12% year-over-year revenue growth. Despite a slight dip in profit before tax compared to the previous year, the company maintained a strong return on equity and increased its portfolio value. According to InvestingPro data, the company’s financial health score ranks as "GREAT," though the stock price experienced a slight decline following the earnings announcement.
Key Takeaways
- Hoist Finance’s Q3 2025 profit before tax was SEK 349 million, slightly down from SEK 363 million in Q3 2024.
- The company achieved a 13% growth in underlying profit and a return on equity of 17.6%.
- Hoist expanded into the Finnish market and plans to launch euro deposit platforms in Germany by year-end.
- The company’s stock price decreased by 1.96% following the earnings release.
Company Performance
Hoist Finance demonstrated resilience in Q3 2025, with a focus on strategic growth and market diversification. The company, with a market capitalization of $872 million, reported a profit before tax of SEK 349 million, a slight decrease from the previous year’s SEK 363 million. Despite this, Hoist achieved a 13% growth in underlying profit and maintained a strong return on equity of 17.6%, surpassing its financial targets. InvestingPro analysis reveals several additional positive indicators, with subscribers gaining access to over 30 exclusive financial metrics and insights.
In terms of market expansion, Hoist Finance entered the Finnish market through a co-investment and is preparing to launch euro deposit platforms in Germany. The company now operates in 14 markets, reflecting its strategic focus on geographical diversification.
Financial Highlights
- Profit Before Tax: SEK 349 million (compared to SEK 363 million in Q3 2024)
- Underlying Profit Growth: 13%
- Return on Equity: 17.6%
- Portfolio Investments: SEK 2.4 billion
- Portfolio Value: SEK 32 billion (9% increase year-on-year)
Market Reaction
Following the earnings announcement, Hoist Finance’s stock price saw a decline of 1.96%, closing at SEK 97.05. This movement reflects a cautious investor sentiment, despite analysts maintaining a strong "Buy" consensus on the stock. According to InvestingPro’s Fair Value analysis, the stock appears slightly overvalued at current levels, though management’s aggressive share buyback program signals confidence in the company’s future prospects. For detailed valuation metrics and comprehensive analysis, investors can access the full Pro Research Report, available exclusively to subscribers.
Outlook & Guidance
Looking ahead, Hoist Finance aims to increase its portfolio size to SEK 36 billion by the end of 2026. The company plans to notify its Specialized Debt Restructuring (SDR) status in February 2026, which is expected to increase its CET1 ratio by 2.5-3%. While the current ratio of 0.81 indicates some short-term liquidity challenges, Hoist anticipates a 25% increase in investment deployment post-SDR status. The company’s strong five-year track record and consistent dividend yield of 2.09% demonstrate its commitment to shareholder returns.
Executive Commentary
CEO Harry Vranjes emphasized the company’s commitment to remaining banking regulated, stating, "We will stay banking regulated and can operate without the restrictions that we have been living under since 2019." CFO Magnus Söderlund highlighted the company’s disciplined approach, saying, "We remain disciplined in everything we look at, and we are very careful with the return levels."
Risks and Challenges
- Market Volatility: Fluctuations in the NPL market could impact investment opportunities.
- Regulatory Changes: New regulations could affect operational flexibility.
- Economic Conditions: Macro-economic pressures may influence portfolio performance.
- Competition: Increased competition in the NPL sector could affect market share.
Q&A
During the earnings call, analysts inquired about Hoist Finance’s approach to portfolio acquisitions and cost management. The company reiterated its focus on disciplined investment and maintaining flat indirect costs despite inflationary pressures. Analysts also explored potential M&A opportunities, with executives indicating a cautious yet open approach to inorganic growth.
Full transcript - Hoist Finance AB (HOFI) Q3 2025:
Harry Vranjes, CEO, Hoist Finance: Good morning, everyone.
Conference Operator: Welcome to Hoist Finance Q3 Report for 2025. For the first part of the conference call, the participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing #KEY-5 on their telephone keypad. Now, I will hand the conference over to CEO Harry Vranjes and CFO Magnus Söderlund. Please go ahead.
Harry Vranjes, CEO, Hoist Finance: Thank you very much. Good morning, everyone, and welcome to this Hoist Finance earnings call for the third quarter of 2025. I am Harry Vranjes, CEO of Hoist Finance, and next to me, I have Magnus Söderlund, our CFO, and Karin Tyche, our Chief Investor Relations Officer. First of all, thank you all for joining. Thank you for your interest in Hoist Finance. We will try to run through this presentation in 30 minutes to leave as much time as possible for any questions that you may have. Now, before we dive into the material, I usually do a small introduction to our core business model, and I will do the same this quarter. Basically, our business model is very simple. We acquire portfolios of nonperforming loans from banks at a significant discount. Historically, on average, we paid around 10% of nominal value.
To reach our financial targets, we then manage these portfolios and we collect roughly 20%. We do this in a banking suit, or more specifically, a credit market company suit supervised by the Swedish FSA. This enables us to have a stable and cost-effective funding source in the form of deposits from the public, which we are unique in the industry. In the last years, I’ve often gotten the question of whether we are in some sort of a transition mode now, waiting for the SDR status. It is true. We are very much looking forward to the SDR status, and we have been following this regulation develop for the last two and a half years. At Hoist, this so-called waiting mode means that we have invested SEK 20 billion and built Europe’s largest nonperforming loan portfolio during that time.
We have rolled out an operating model based on decentralization and a flexible cost base, and we have completely rebuilt our funding base during this time. We will continue to grow profitably up until and beyond the SDR notification, which we plan to do in February next year. We fully intend to reach our volume ambitions and growth targets for years to come. The third quarter 2025 has been another very active quarter, and the activity has been in our core business around Europe primarily. Now I am supposed to change slides here. Here you see a picture of myself and Magnus, and now we go to the key highlights. The third quarter. Headlines, profit before tax came in at a strong SEK 349 million compared to SEK 363 million last year. Now, last year we had some net positive one-offs of around SEK 50 million, SEK 52 million.
Adjusting for that, profit before tax has grown 13%. Despite taking on SEK 80 million higher funding costs in this quarter compared to last year, we typically don’t talk about adjusted numbers, but just as a comparison, if you would adjust for all of this, one-offs last year, the added funding cost, and the currency drag, you would see a growth in earnings before tax of more than 40%. Magnus will take you through this later in the presentation. Return on equity came in at a strong 17.6%, well above our financial targets, also pushing the year-to-date return on equity above 16% and above our financial targets. The profitability is driven by the core underlying business. We closed portfolio investments of SEK 2.4 billion in the quarter at creative and attractive returns.
As we talked about already in the Q2 earnings call, there is a lot of activity in the market, and this continues. We are now busy working on portfolio transactions that should close before the end of the year. Typically, we have these two timelines or these two distinct moments during the year where portfolios close before holidays, before the summer holidays, and before New Year. Now we’re working on the New Year batch. The pipeline is strong. We are well capitalized, and in the SEK 2.4 billion that we have now invested, there’s about SEK 600 million of co-investments. In practice, we have sourced around SEK 3 billion in the quarter, and then our half of that SEK 1.2 billion becomes then SEK 600 million. We will continue to do co-investments also after we qualify as SDR, where we see that as beneficial.
Our portfolio stands at SEK 32 billion, which corresponds to a 9% increase compared to Q2 last year if we adjust for currency. Quarter by quarter, we are getting closer to our ambition of having a total portfolio size of SEK 36 billion by the end of 2026. In the quarter, we also opened up the Finnish market in August through a co-investment, and we plan to grow our activity in Finland going forward. This also expands our geographical footprint for capital deployment, and we now operate in 14 markets. Very happy to see the collection performance came in at a solid 103%, one percentage point higher than Q3 last year. We are continuously improving efficiency in all units and with our collections partners around Europe. On the cost side, happy to see tight cost control. We cost flat year on year despite portfolio and collections growth.
This is a result of both asset class mix and operating model, but still very happy to see. We remain well capitalized with a CET1 ratio significantly above regulatory limits, around 12.2%. Our liquidity reserve is at SEK 25 billion, something we are working on optimizing going forward. We continue to meet the full SDR criteria now, three out of four quarters in the year. We have an NSFR ratio of 142%. As mentioned, we aim to notify as Specialized Debt Restructuring in conjunction with our Q4 report in February next year. With that, I will hand over to Magnus to take us through the quarter in more detail.
Magnus Söderlund, CFO, Hoist Finance: Thank you, Harry. Good morning all. We had a strong third quarter profit before tax of SEK 349 million, 17.6% return on equity versus last year’s SEK 363 million and 15.8% return, with an underlying profit before tax of SEK 308 million. We saw some one-offs in Q3 last year, as mentioned by Harry, related to the deferred profit in Poland with a positive impact of SEK 77 million and also a negative one-off item SEK 22 million of project costs. That means a total net positive one-off P&L impact of some SEK 55 million. As we had no material one-offs in Q3 of this year, this means an underlying growth in profit before tax of roughly 13%. Looking at the interest income combined for owned portfolios and co-investments, we see a year-on-year growth of 7% or roughly 10% excluding FX.
This in relation to a book value growth of 4% or 7% excluding FX. This indicates we are maintaining a supportive pricing in the market, resulting in increased total interest income over book value. Net interest income is 1% down on a reported basis, 2% positive growth excluding FX, impacted by the higher net interest expense related to the NSFR minimum target of 130% and the SDR status. The increased stable funding requirement obviously impacts the net interest margin, which moves from roughly 13% in Q3 of last year to 12% in this year. It’s at similar levels we have seen during the first half of the year. The net funding cost over portfolio book value increases from 3.5% in Q3 last year to roughly 4.4% in this year, a similar level as we saw in Q2.
Half of the increase is related to SDR buildup and the rest mainly driven by other measures to strengthen our capital base. We see gains from real estate sales, particularly in Spain, and some other smaller asset sales in other income in line with our strategy, as this capital will be redeployed to where we see higher return levels. We had a strong and stable collection performance for the quarter, 103.4% to be exact, versus the 102% in Q3 of last year. This demonstrates the continued good health of our book, and we are at the year-to-date collection performance of 104%, which is the same level as last year. To note, the SEK 77 million one-off of last year is reported in the impairment line for Q3 2024. Looking at the costs, we see a continued disciplined development with a good cost control in place.
The direct costs are flat year on year, and so is the underlying indirect cost where we had the SEK 22 million one-off cost in Q3 of last year. Underlying flat also here. We are very pleased with this cost performance that we are demonstrating. All in all, we are happy with the outcome of Q3. We are ticking off another quarter on our journey to notify as an SDR. We are carrying the increased cost related to this whilst not seeing the benefits in the P&L yet, and at the same time delivering strong returns with a SEK 350 million EBITDA and a return on equity of 17.6%. We have strong investment volume for the quarter, and we continue to see many opportunities for the rest of this year and also in the beginning of next. We can go to the next slide, please.
Harry Vranjes, CEO, Hoist Finance: Yes, sure.
Magnus Söderlund, CFO, Hoist Finance: The portfolio acquisitions. We are roughly keeping the pace of Q2, and we come in at SEK 2.4 billion of new investments for the quarter. This keeps us on track to reach the planned SEK 36 billion portfolio book value by the end of next year. The acquisitions completed during the quarter were spread around eight different markets. We are very pleased with the diversification and the Q3 investment activities. We see a continued strong pipeline, as I said, and we see ample opportunities moving into Q4. We’re very happy to have acquired our first portfolio in Finland, and as per our quick entry strategy, we are now set up with a very core of local staff and outsourced servicing already ongoing. We continue to see healthy return levels in the portfolios we acquired with sustained collection of performance in the total portfolio.
We are sticking to the risk profile we want, that is granular risk and no big singular risk exposures. We have a very positive outlook with ample opportunity, as I said, now in Q4, and also we see the same for the beginning of next year. If we go to the next slide, we see a similar mix of our two main asset classes and the geographical spread compared to the first half of the year, with no single market representing more than 18%. We see a slight increase in the secured side of the portfolio. The secured side of the business has increased significantly over the past three years. This is not a goal in itself, but it provides the diversification that we want.
Our ambition is to stay at this healthy level of spread across geographies with an ongoing focus on new additions in the sort of near-term future. We can go to the next slide. Also here, we see a similar mix of funding compared to last quarters, with a slight decrease in deposits from the public, roughly SEK 500 million. Our cost of funding is also at a slight decrease to 3.5%, with a continued funding cost over portfolio book value at roughly 4.4%. This keeps us at a very competitive level in the market. We issued a SEK 200 million ET1 at an attractive price. This is to optimize our capital structure and take advantage of a really strong market. In July, Moody’s affirmed all of the ratings and assessments of Hoist Finance.
We are Baa2, whilst also changing the outlook on our long-term issuer and senior unsecured debt ratings as positive from stable. We go to the next one. This slide we had also last quarter, and this is to illustrate our development of net funding cost over portfolio book value, as also mentioned in the P&L slide. We can see that the funding cost over portfolio book value in Q3 stays similar to the first half of the year. Roughly half of this increase, as said, is related to SDR costs, and the rest is related to other items, such as costs for the senior nonperforming loan replacing the quota CET1. We have higher deposits in Poland compared to last year, as examples.
As communicated in Q2, we are currently in preparation for setting up our own euro deposit platforms in select markets, with a planned rollout in Germany before year end. This will increase our sort of toolbox to increase the funding efficiency and related costs. The funding rate has increased in this transitional year of becoming an SDR, but we still remain very competitive and in a good place to keep growing. We are very pleased with the cost development. As we have indicated, the direct costs are planned to move with the collection levels and the indirect costs to remain flat. Legal costs come in at a fairly low number, seasonally driven by closed courts during vacation period in the southern parts of Europe. Overall, a very strong cost to collect in the quarter, especially driven by a very successful secured collection in Spain.
This is not to be considered a new level of cost to collect, but rather as a very strong performance in the quarter. For the indirect cost, we see a fairly flat development in liability plan. We see a lower FTE figure for the quarter. The reduction of direct FTEs is driven by the closing of our servicing entity in Romania, and the increase in indirect is driven by Hoist Spar and the rollout of our platform. We go to the next slide. We maintain a strong capital position well above regulatory requirements and still above our target range. We are well positioned to deliver on the opportunities we see now in Q4. We expect a CET1 increase of roughly 2.5 to 3% when achieving SDR status. Looking at our liquidity position, LCR remains at very high levels compared to the regulatory 100% requirement.
For NSFR, we arrive at 142%, a similar level to Q2, with a safe margin down to the 130% requirement related to the SDR criteria. As also mentioned in Q2, this is something we are focusing on trimming, of course, with a healthy headroom to the SDR required limit. We see a decrease in the liquidity portfolio, which we are very pleased with, considering the portfolio book value was at roughly SEK 29 billion in Q1, with a liquidity reserve of SEK 27 billion to now be at SEK 25 billion, with a portfolio book value of SEK 31.5 billion. This means that the liquidity reserve has decreased in size, whilst the NPL book has increased. This is accomplished primarily by shifting the deposit base from short-dated euro deposits affected by the legal opinion to either longer-dated euro deposits or SEK deposits on our own platform.
This will, of course, be further enabled by our future plans to launch platforms outside Sweden, starting now then before year end in Germany. That was it. With that, I hand back to you, Harry.
Harry Vranjes, CEO, Hoist Finance: Yes, lots. We have spoken about the SDR for quite some time now. It is a new regulation and not 100% easy for non-banking regulated NPL investors to understand. There are very few of those regulated NPL investors like Hoist Finance. We are, and we will continue to be, regulated in the same framework as the selling banks who are our clients. This helps us. The people we negotiate with on the other side when we buy portfolios know that we live by the same high standards of AML, customer protection, DORA, all the regulation that they live under. This is a benefit when it comes to portfolio sales for a bank. It is sometimes difficult, not just for financial reasons, but more often not reputational. They need to know that they are handing over their customers to a partner that will treat them right.
With the SDR regulation, we will be able to keep the benefit of being banking regulated and at the same time be able to handle any type of nonperforming loan without those restrictions that normally apply to banks or non-SDR banks, and primarily the backstop regulation. This is a long-term benefit to Hoist Finance. We will stay banking regulated and can operate without the restrictions that we have been living under since 2019, really. Now, short term, as we notify, we will be able to release the capital deduction we have for the backstop affected claims on our balance sheet. As Magnus Söderlund mentioned, this will strengthen our CET1 ratio by 2.5% to 3%, freeing up capital for further growth and capital repatriation to shareholders. Long term, we will be able to act together with co-investors or partners when we see fit, not because of the backstop regulation.
We will, for instance, continue to do what we just now did in Finland, invest together with a collection partner to gain access to new markets, new volumes, and expertise. We will be able to put, and for other portfolios, we’ll be able to put the full volume on our balance sheet and therefore basically increase both earnings and growth. Taking more volume directly on our own balance sheet will also simplify our operating model. This is a long-time benefit. Stay banking regulated, but without the restrictions that we have been living under for the last six years. Before we open up for questions, just leaving you with a few key takeaways from this quarter. Obviously, strong return on equity, 17.6% without major or material one-offs. It is the underlying business delivering this result. Attractive and accretive IRRs in a highly active market.
Also, high activity internally with more than 100 investment committee meetings held so far during 2025, which is a new record. Further expanded our investable footprint, increasing flexibility in capital deployment with Finland now, and we will continue to look at other geographical locations. Costs are under control, and we will continue on our continuous improvement path to ensure that we constantly get a little bit more efficient every quarter. We have now finally met the SDR criteria for three out of the four required quarters in 2025, and we intend to notify the status in February 2026. With that, I think let’s open up for questions. Now, I need to press some button somewhere.
Conference Operator: If you wish to ask a question, please dial #KEY-5 on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial #KEY-6 on your telephone keypad. The next question comes from Markus Sandgren from Kepler Cheuvreux. Please go ahead.
Harry Vranjes, CEO, Hoist Finance: Good morning, guys. I had two questions. One related to growth and the second about margins. When it comes to growth, I think you are a price taker given your size versus the total market, and you are and will be even more cash-rich. How come that you have not changed your growth target? Is it due to capacity or anything else? That’s my first question.
Harry Vranjes, CEO, Hoist Finance: Good morning, Markus. Didn’t quite follow the question.
Harry Vranjes, CEO, Hoist Finance: Okay, I’ll take it again then. My point is that you have cash so you can grow. Is the reason that you don’t want to grow even more than your growth target because you don’t have capacity, or are you afraid of driving up the prices because it’s not a capital restraint anymore?
Harry Vranjes, CEO, Hoist Finance: I think our growth target in terms of, we have the 36 billion volume ambition by the end of next year. That stays. It is an ambition. If that turns out to be 35.5 or 37.5, we’re happy, right? The base, the core of that ambition is basically to have a critical mass portfolio. When it comes to sort of earnings growth or EPS growth, the 15% that we have communicated, I guess that is over a cycle, and we intend to keep that.
Magnus Söderlund, CFO, Hoist Finance: Perhaps just to augment a bit on that, I mean, we are remaining disciplined in what we buy. You can call that not wanting to drive the price up, but we remain disciplined in everything we look at, and we are very careful with the return levels.
Harry Vranjes, CEO, Hoist Finance: Okay. When it comes to margins, now when you say NSFR trimming, what levels are you looking to go to and how much will that impact costs? When you move over to more deposits on your own platforms, how much will that impact margins as well?
Magnus Söderlund, CFO, Hoist Finance: The first question, Markus, we are at 142% in this quarter. I think the way to look at it is SEK 1 million of cost per quarter and percentage point is the impact. We are careful to not go down towards 130% because we need to be careful on that, but we do see room for trimming it a bit further below the 142%. If you could repeat your second question, Markus.
Harry Vranjes, CEO, Hoist Finance: Yeah, when you move more of your deposits to own platforms, how much will that impact in the same way as you talked about NSFR?
Magnus Söderlund, CFO, Hoist Finance: I mean, if we look at the liquidity reserve in relation to our portfolio book value, that’s roughly at 79% in Q3. As we launch our own platform, we will have easier access to gain NSFR efficient liquidity. You know, where’s the limit? That’s a good question, but I think we will definitely be able to go below the 79% ratio we see today.
Harry Vranjes, CEO, Hoist Finance: Okay, thank you.
Harry Vranjes, CEO, Hoist Finance: Thank you.
Conference Operator: The next question comes from Björn Olsson from SEB. Please go ahead.
Good morning, guys. First, just to double check on Markus’ question. When you go to more funding on your own platform in Germany as well, for example, do you have any anticipation or targets of how much of your funding that will be shifted to your own platform versus raising?
Harry Vranjes, CEO, Hoist Finance: I think over time, we expect all the shorter-term funding to be transferred to own platforms. This work starts when the platform goes live and the marketing campaign starts in Germany. It will gradually shift, right?
Do you have a launch date or an indicative launch date?
Excuse me?
Can you say it again?
Do you have a date? Sorry, guys, do you have a date?
A date? No, we’ve just said Q4.
Yeah, for the launch, Q4.
Yeah, Q4.
Thanks. Back to investments then. Can we expect an uptick in investments from your side next year once you qualify as SDR? I mean, you sort of touch upon it in a few places in your presentation.
I think like for like, if we would have invested the same, if we would have put on balance sheet the same amount that we sourced this quarter via co-investments, for instance, that would mean a sort of 25% increase in deployment. I think that is a reasonable ratio to think about. You never know, right? Quarter by quarter, it is lumpy deals and so on, but it will certainly help our deployment going forward.
Okay. Yeah, great. On the cost side, it’s very impressive how you’re trimming IT costs, et cetera, but could you give any guidance for 2026 and maybe even 2027 on how you view the indirect administrative cost line? Are you expecting any significant IT investments cost to take up, for example, with the platform rollout? Or have you got like FCP investments that are due? How should we sort of view that line looking at the years to come?
I think we should look at that line as basically as we have communicated. We have this operating leverage basically where we keep indirect costs flat-ish, growing with inflation, and then direct costs growing in line with the portfolio growth. I think that still goes. We will not have any material sort of IT investments for this platform, for the savings platform, et cetera. I think we can just stick with the normal.
Magnus Söderlund, CFO, Hoist Finance: If I can just add, we have put a lot of work and money to get to this cost base that we’re now in, and we will fight extremely hard to remain in this. I think we’re doing a great job so far in 2025. As Harry said, I see no sort of increases in cost in the next year. We remain very disciplined in the cost side of the business.
Okay, great. Thanks. Finally, on SDR, I mean, and the excess capital, have you any more guidance on how we should view that excess capital for next year? I mean, you can play around with dividends, buybacks, and have you been giving any more thoughts to inorganic growth as well, in addition to just portfolios, but even like smaller players?
Harry Vranjes, CEO, Hoist Finance: I think, can you still hear us? We need the remote for the TV.
Do you hear us, Björn?
Yes. SDR controller is in.
Maybe you can hear us, but we cannot hear you. Let me see if we can. Our speakers just went out here. Just in case you can hear us, basically, we stick to our dividend policy and so on, right? Obviously, we want to ensure that we can keep growing the business. Capital will go to that. With the release, I’m sure there will be discussions, and those will be communicated during the Q4 presentation in February. With that, I hope that you heard the answer. Let’s see if we can get, now I get a text here saying that we can hear you or that you can hear us. We can, however, not hear you, Björn, unfortunately.
Is that okay?
Now we can hear you. Excellent. Sorry, did I answer your question?
Yeah, you answered on the dividend side, but have you been given any reasoning to sort of inorganic platform growth? I mean, basically acquiring or merging with a competitor or a sort of a competitor’s business in a part of it?
I think M&A is always a growth option, of course, looking to sort of leapfrog growth. It is something we look at. If there is something that fits our profile or that we think is accretive to shareholder value, we will for sure look at it.
All right. Thanks, guys.
Conference Operator: The next question comes from Ermin Karik from DNB Carnegie. Please go ahead.
Good morning. Maybe just to start off, a follow-up. What did you say on how much more you would invest if you weren’t SDR? Is it 25% more? We should think kind of like for like, or would that also mean that you would have more sourcing? You would still do the co-investments, but still take 25% more on your own balance sheet?
Harry Vranjes, CEO, Hoist Finance: Good morning, Ermin. What we were saying was that if you would have used Q3 as a proxy, it would have been 25% more. This will vary between quarters. In general, obviously, the SDR status will mean a higher share of sort of own investments compared to co-investments. Although co-investments are still an attractive tool to open up markets, to gain access and expertise, or to simply just handle very large transactions. We will continue with that.
Got it. Thanks. Back a little bit to the funding questions. You’ve been showing us kind of the funding cost in relation to the NPL book, which has stabilized around 4.4% now for the last few quarters. What level do you expect you could get that one down to when you kind of optimize both the NSFR level and the NSFR efficiency?
I think as Magnus Söderlund mentioned earlier, in Q1 we were at 94% of portfolio, with the 29 versus 27. Now we’re at 79%, right? We have trimmed 5% per quarter. We will continue to trim. Exactly what the level is can be calculated in theory, but we need to get there in practice. We will not give any guidance on that, but we will continue to trim it. You should expect to see improvement in that ratio going forward also next year.
On your investment returns and so on, given that you increased your investments in secured, should we expect any lower gross returns, and then that to be recouped by, I don’t know, lower cost to collect to maybe get a neutral net impact on returns, or how should we think about it?
Magnus Söderlund, CFO, Hoist Finance: No, I think we strive to sort of keep the diversification we have. We’re very happy with it at the moment. When it comes to the return levels, I wouldn’t recommend thinking about it like that. We expect to see the same returns independent of the asset class. Certain metrics are, of course, different, like cost to collect is usually or can tend to be slightly lower on the secured side. On the returns level, the sort of bottom line returns, I wouldn’t anticipate any change going with the change in asset class.
I agree on the bottom line, right? I suppose on the top line, there you would have typically a bit lower returns on secured, wouldn’t you?
I wouldn’t say significantly lower, no.
Okay. Okay, that’s all for me. Thank you.
Harry Vranjes, CEO, Hoist Finance: Thank you very much.
Conference Operator: As a reminder, if you wish to ask a question, please dial #KEY-5 on your telephone keypad. There are no more phone questions at this time, so I hand the conference back to the speakers for any written questions or closing comments.
Harry Vranjes, CEO, Hoist Finance: Thank you very much. Thank you all for listening in to this Q3 earnings call. With the key takeaways that we left you with before the Q&A session, strong return on equity, highly active market, cost under control, SDR in February, we say thank you very much and wish you a pleasant Friday and weekend when it comes.
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