DGAP-News: 4finance S.A. / Key word(s): Quarterly / Interim Statement 
4finance S.A.: 4finance report on FY 2020 unaudited results 
2021-02-26 / 12:40 
The issuer is solely responsible for the content of this announcement. 
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4FINANCE HOLDING S.A. REPORTS RESULTS FOR THE YEAR ENDING 31 DECEMBER 2020 
Proactive business response to Covid-19, providing continuous service to customers throughout 2020. 
Strong performance from TBI Bank. Online business re-focused on core products & markets. 
Solid capital and liquidity position with no maturities in 2021. 
 
26 February 2021. 4finance Holding S.A. (the 'Group' or '4finance'), one of Europe's largest digital consumer lending 
groups, today announces unaudited consolidated results for the twelve months ending 31 December 2020 (the 'Period'). 
 
Operational Highlights 
- Strong customer repayment dynamics observed since the summer enabled underwriting criteria and acceptance rates to be 
restored close to normal levels for new and existing customers in most products during H2 2020. 
- Proactive operational response to Covid-19 throughout the year enabled continuous service to customers and market 
share gains in some countries. 
- Support made available for customers whose finances have been disrupted, with early and proactive measures including 
discounted or free payment deferrals. Regulatory-driven programmes now largely finished, with no adverse effect seen in 
performance of customers coming out of payment deferral periods in relevant markets (Czech Republic and TBI Bank) 
compared to the rest of the portfolio. 
- Subprime loan issuance in Q4 was slightly up on Q3, with issuance volumes of continuing products reaching pre-Covid 
levels. However the market-wide demand for credit remains subdued, particularly since the reinstatement of 'lockdowns' 
in many markets towards the end of the year. Investment in marketing remains quite selective in this environment. 
- Near-prime portfolio growth continues in Lithuania, Latvia and Denmark, with issuance in the Period up 9% 
year-on-year (25% in the online business and 7% in TBI Bank) reflecting strong customer demand and the expanded product 
range. Issuance levels in 2021 will be closely linked to ability to fund via TBI Bank. 
- TBI Bank loan issuance volume during the Period grew by 4% year-on-year to EUR349.8 million from EUR336.7 million in the 
prior year period, with increased issuance in the third and fourth quarters in all products. 
 
Financial Highlights 
- Interest income of EUR307.9 million in the Period, down 28% from EUR424.9 million in the prior year period. The 
significant reduction in online loan issuance in the spring due to Covid-19 resulted in a lower level of interest 
income, although issuance and income from continuing products recovered somewhat post summer. Product and market exits 
have counterbalanced this, so interest income has been similar from Q2 to Q4 at just over EUR70 million per quarter. 
- Cost to income ratio for the Period was 56.9%, vs. 51.3% in 2019, due to the lower interest income, despite bringing 
down operating costs down 21% year-on-year. Costs were reduced in each quarter of the year, reflecting cost discipline 
across the Group, the reduction of marketing spend and savings in personnel costs. 
- Adjusted EBITDA was EUR75.1 million for the Period, down 39% year-on-year. The full interest coverage ratio as of the 
date of this report is 1.8x. The Q4 quarterly EBITDA contribution of EUR23.1 million was up significantly from Q2 and Q3. 
- Post-provision operating profit for the Period was EUR21.8 million, with a loss before tax of EUR0.3 million. 
- Net receivables totaled EUR526.4 million as of 31 December 2020, down 9.1% year-to-date. During the fourth quarter, TBI 
Bank grew net receivables further and the small reduction in online business portfolio was due to run-off products. 
- Overall gross NPL ratio at 17.0% as of 31 December 2020 (19.2% for online), compared with 20.7% as of 31 December 
2019 (24.9% for online). The resumption of debt sales in most markets in the autumn drove the significant reduction in 
NPL ratio during the third and fourth quarters. Online NPL ratio helped by increased proportion of near-prime loans. 
- Overall cost of risk was 14.2% for the Period, improved from 17.1% in 2019. For the online business it was 24.2% for 
the Period, compared to 27.5% in 2019, and in TBI Bank it was 6.1% for the Period, compared to 4.6% in 2019. 
- Strong funding position, with EUR80.5 million of online cash at the end of the Period and no debt maturities until 
2022, and solid liquidity and capital adequacy at TBI Bank. 
 
Strategic Highlights 
- Refocusing online business on core seven markets and products where the Group's strong brands and experience can 
deliver superior unit economics. 
- At the end of 2020, the near-prime segment (including TBI Bank consumer and online) represented 62% of net 
receivables, up from 48% at the end of 2019. Single payment loans represent only 13% of the Group's net receivables. 
- TBI Bank performed well throughout 2020, with its strong points-of-sale relationships and market leading digital 
options helping to grow consumer loan issuance volumes in Q4. However given the regulatory environment, the Group does 
not expect dividends from TBI to resume until H2 2021 at the earliest. 
- Good progress on efficient wind-down of exit markets. Further effort to simplify corporate structure by reducing 
number of legal entities initiated in December. 
- Costs were further reviewed across the Group in Q4 alongside budgeting process, with a focus on efficiency and 
ensuring our operating approach is consistent with the reduced footprint. Lower cost base going into 2021. 
- Closer cooperation with TBI Bank to develop near-prime lending across the business. Initial sales of Lithuanian 
near-prime loans to TBI Bank planned in March following receipt of formal lending passport in mid February. 
 
Kieran Donnelly, CEO of 4finance, commented: 
"We're seeing the results of a sharper focus, a resilient business model and a return to normality in terms of borrower 
behaviour. The actions we are taking to right-size our cost base and focus on seven markets with the best return on 
investment are delivering results. 
"Our leaner, more efficient team is optimising our subprime business and developing near-prime in lock-step with TBI 
Bank and the funding opportunities it presents. 
"Strong liquidity, improving NPL ratios in our online business, and continued growth at TBI Bank set us up to take 
advantage of the emerging recovery and put us in a strong position to grow our share as other providers leave the 
market." 
Contacts 
Contact:        James Etherington, Group Chief Financial Officer 
Email:          [email protected] / [email protected] 
Website:        www.4finance.com ----------------------------------------------------------------------------------------------------------------------- 

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Language:     English 
Company:      4finance S.A. 
              8-10 Avenue de la Gare 
              1610 Luxembourg 
              Grand Duchy of Luxembourg 
E-mail:       [email protected] 
ISIN:         XS1417876163, SE0006594412, XS1092320099, XS1094137806, 
WKN:          A181ZP 
Listed:       Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, 
              Hamburg, Hanover, Stuttgart, Tradegate Exchange 
EQS News ID:  1171552 
 
End of News   DGAP News Service 
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1171552 2021-02-26

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2021 m. Vasario 26 d. 06:41 EST (11:41 GMT)