Loan acquisition strategy

Hoist Finance invests in non-secured and secured NPL’s towards consumers and SME’s. Expanding into secured acquisitions within our existing markets is a key element of our strategy.  These investments have the additional benefit of being subject to lower risk weights than our consumer unsecured portfolios. Our long-term focus as well as flexible and tailored product offering have allowed us to develop the expertise to structure and execute complex transactions. A guiding principle has always been, and still is, to be prudent when bidding for debt portfolios. With Hoist Finance’s tools for examining and analysing potential acquisitions, predictions are made on a 15-year horizon of future cash flows and collection costs.  

Our experience, knowledge and presence in the financial sector has resulted in our acquisition strategy; to focus on bank-originated loans, to customise our business model to enable flexibility and to be geographically diversified:

Bank-originated loans  

  • High quality origination with low risk repayment profile.  
  • Larger ticket size than non-bank loans. 
  • Long-tail stable cash flows. 

Asset-class diversification  

  • Flexibility to buy most types of financial institution-originated debt towards consumers and SMEs  
  • Increased proportion of secured NPLs in recent years. 

Diversified geographic profile  

  • Reduction of single-market exposure from a risk and origination perspective.  
  • A more even flow of investment opportunities. 
  • Strengthened value proposition to banks and financial institutions.

Transaction market 2021

NPL transaction volumes in 2021 have seen an increase compared to 2020. This follows a slow-down in portfolio sales caused by the Covid-19 pandemic. In 2021, Italy continued to be Europe’s most active NPL market in terms of deal volume. The year 2021 has been a very active year for the Greek market. Spain mainly saw deals that were carried forward into 2021 from 2020. UK total transaction volumes have increased markedly in 2021, but has been slow in terms of major transactions. France has shown lower volume of transactions when compared to Italy, Spain and Greece, but transaction volumes have steadily increased throughout 2021.

Hoist Finance's NPL acqusitions volume

SEK billion

FSA regulated

Hoist Finance has been a credit institution regulated by the Swedish FSA (Financial Supervisory Authority) since 1996. This has provided access to low-cost funding through retail deposits, which represents a cost advantage relative to our peers. It is also valuable in commercial situations and as a quality stamp given the extensive regulatory requirements a banking licence involves.

Partner testimonial

What do you value when selling loan portfolios?

When selling loan portfolios we focus on building a fair process to all investors and we prioritise an experienced partner who safeguards fair customer treatments. We are committed in ensuring a structured and competitive process, with high-quality information flow and a great balance between price offer and Sales purchase agreement.

How long were you working with Hoist Finance? 

We have been working with Hoist Finance since 2011.

How did you experience working with Hoist Finance? 

Hoist Finance has solid expertise within the debt collection industry across Europe. They have demonstrated an extremely high degree of professionalism and a strong commitment when dealing with us. 

Is Hoist Finance particularly good at taking care of their customers?

I would say yes. So far, we have sold more than 15 NPL portfolios to Hoist Finance (including one-offs and forward flows) and we have never received any claim from former Santander costumers. This means that Hoist Finance values the integrity and security of our end customers.

Spanish partner bank

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- Annual Report 2021 -
- Årsredovisning 2021 -