The Supervisory Board of TF Bank has established new financial targets and dividend policy for the three-year period leading up to 2020. Maintaining a strong return on equity, the financial targets are expected to create strong shareholder value in the long term. The updated targets will be presented by the CEO and CFO in a live audio cast at CET 08:15 on 25 October.
TF Bank has defined an earnings per share target of SEK 14.50 or higher by 2020, and a new target for cost efficiency implying a C/I ratio below 35 % by 2020.
The Supervisory board remains focused on the banks capital structure and ability to continue to realize strong growth. The new target implies to exceed the legal requirement for the capital ratios (including Pillar 2) by at least 2.5 % points.
TF Bank is revising its dividend policy from 2018 and forward, and dividend will be set relative to the targeted growth and capital requirements.
– TF Bank has exceeded its internal targets for lending volumes since its IPO in 2016. The loan portfolio has doubled and the bank has in this period also delivered a return on equity close to 30 %. In order to create strong shareholder return in the long term, the Supervisory Board states that growth opportunities and operational excellence shall be prioritized. At the same time, we make the dividend policy more flexible and strengthen the bank’s financial position, says Mari Thjømøe, Chairman of TF Bank Supervisory Board.
– TF Bank continues to grow and diversify its operations. The bank currently operates in nine countries and plans to expand further, both geographically and with new products in existing markets. The new financial targets represents a doubling of profits compared to the 2017 results. The growth will be executed with continued discipline on a high return on equity and a strong risk management culture. In my role as CEO, I look forward to continuing the profitable growth in the best interests for our employees, customers and shareholders, says Mattias Carlsson, CEO of TF Bank.
In connection to tomorrow’s telephone conference CET 08:15 for media, institutional investors, analysts and other interested parties, the CEO and CFO will present the interim report and the new financial targets.
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 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. The platform is designed for scalability and adaptability to different products, countries, currencies and digital banking solutions. TF Bank carries out deposit and lending activities for about 1 million consumers in Sweden, Finland, Norway, Denmark, Poland, Germany, Estonia, Latvia and Lithuania through subsidiary, branch or cross-border banking. In its Ecommerce Solutions segment, TF Bank offer next-generation payment and checkout solutions for online retailers in the Nordics, Estonia and Poland. TF Bank is listed at Nasdaq Stockholm.
This is information which TF Bank is required to disclose under the EU Market Abuse Regulation and the Securities Market Act. The information was provided for publication 24 October 2018 at 20:00 CET.