Interim report January – March 2020

The first quarter of the year started off in the same fashion as the end of 2019 – with strong volumes and a geographically diversified growth. During the course of the quarter, it has been increasingly evident that the spread of covid-19 in Europe means that the bank currently must adapt to a new reality. TF Bank has a stable and adaptable business model with a long track-record that has been tested in various macro-economic environments. Mattias Carlsson, CEO

January – March 2020 compared with January – March 2019

  • The loan portfolio has increased by 8 % to SEK 6,990 million since year-end
  • Operating profit decreased by 34 % to SEK 43.2 million
  • Earnings per share decreased by 34 % to SEK 1.51
  • Cost/income ratio decreased to 37.7 % (38.0)
  • Total capital ratio has decreased to 17.1 % (17.4) since year-end
  • Return on equity amounted to 26.7 % (34.4)
  • Adjusted return on equity amounted to 26.7 % (31.7)

Significant events, January – March 2020

  • TF Bank has completed mergers of the three wholly owned subsidiaries BB Bank ASA, Avarda AB and Avarda Oy
  • The segment reporting has been expanded to three segments from the first quarter of 2020
  • Due to the communicated urge from Swedish FSA regarding dividends, the Board of Directors of TF Bank has decided to withdraw the dividend proposal of SEK 0.50 per share
  • The countercyclical buffer requirements in Sweden and Norway have been decreased. Following the changes, TF Bank’s total capital requirement amounts to 11.8 %.

Significant events after the reporting period

  • On April 5, TF Bank announced that as a result of the uncertain macroeconomic situation an additional loan loss provision of SEK 30 million was made at the end of the first quarter of 2020. The financial target of an EPS of at least SEK 14.50 in 2020 was also abandoned in connection with the announcement.

For further information, please contact:
Mikael Meomuttel, CFO and Head of Investor Relations +46 (0)70 626 95 33

TF Bank in brief

TF Bank was founded 1987 and is an internet-based niche bank offering consumer banking services and e-commerce solutions through a proprietary IT platform with a high degree of automation. Deposit and lending activities are conducted in Sweden, Finland, Norway, Denmark, Estonia, Latvia, Lithuania, Poland, Germany and Austria through branch or cross-border banking. From 2020 the operations are divided into three segments: Consumer Lending, Ecommerce Solutions and Credit Cards.

This is information which TF Bank is required to disclose under the EU Market Abuse Regulation. The information was provided for publication, through the agency of the contact person set out above, on 16 April 2020 at 07:00 CET.