1. Stable business model with over 30 years of high yields
TF Bank started offering consumer loans and retail finance already in 1987 and during its 30 years of operations in the consumer credit sector it has always been profitable – even during the major crises.
TF Bank operates in three complementary segments: Consumer Lending, Credit Cards and Ecommerce Solutions, all of which benefits from the Groups IT platform and models for credit scoring.
Yields are driven by high growth and cost efficiency. High yields facilitate significant reinvestment in the business and attractive risk-adjusted returns for shareholders.
2. Responsible organic growth with a diversified portfolio
TF Bank prioritises organic growth under controlled conditions. A combination of well-developed lending processes and relatively small loan amounts enable us to take calculated risks that can quickly be adjusted to changing conditions at macro level.
TF Bank’s expansion is taking place within carefully selected segments and markets. Our lending activities have successfully expanded from the operations in Sweden to the other Nordic countries and new markets around the Baltic sea. 68 % of the loan portfolio is attributable to Sweden, Finland, Norway and Denmark, with the remaining 32 % attributable to the Baltic States, Poland, Germany and Austria.
Diversification also characterises TF Bank’s deposit products. Deposit-taking in multiple markets offers alternative ways of financing growth in lending, facilitates geographic diversification to reduce risks and reduces financing costs.
3. Controlled cost basis results in industry-leading efficiency
Efficiency and cost control have been TF Bank’s mantra from the beginning. To be able to take the step from decision to action without high costs and long lead times is one the business’s biggest strengths.
The high degree of automation in the company’s IT platform is designed for scalability and adaptability to different products, countries, currencies and digital banking solutions.
Thanks to our flat organisational structure, the scalable platform and cost control throughout the business, we are able to achieve a high level of efficiency. TF Bank’s C/I ratio has for a long time been one of the lowest in the industry.
4. Ecommerce and credit cards offers new opportunities for growth
In the Ecommerce Solutions segment, TF Bank offers digital payment solutions primarily within e-commerce to creditworthy individuals in the Nordic states, Baltic states and Poland. The customers are mainly end-consumers who use the bank’s payment solutions when they make online purchases. The products have over the past year experienced a commercial breakthrough with many new retailers and increased transaction volumes.
In the Credit Cards segment, TF Bank offers credit cards to creditworthy individuals in Germany and Norway. The number of issued cards has increased significantly over the past years and the utilisation rate has improved which is essential for the profitability going forward.
Together, the products in e-commerce and credit cards constitute new growth opportunities in line with TF Bank’s focus on organic growth. The bank will continue to invest in the segments in the coming year.