Hoist Finance benefits from a well-diversified and cost efficient funding. The Group’s funding is comprised of retail deposits from the public and market funding through issued money market instruments, bonds and subordinated debt.
Deposits from the public amounted to SEK 21,4 billion (17,1), of which SEK 12,2 billion (11,3) relates to deposits in Sweden and SEK 9,2 billion (5,8) to German household deposits denominated in Euro.Total short-term and long-term market funding amounted EUR 610 million at year-end, of which EUR 30 million is attributable to money market instruments.
Hoist Finance offers accounts with fixed and flexible interest rates at competitive terms to customers; in Sweden under the brand name “HoistSpar”, and in Germany “Hoist Finance”. The savings accounts products are offered to retail customers and corporates. Customers can save up to SEK 950,000 (in Germany EUR 100,000).
During the year, Hoist Finance has actively focused on increasing the share of savings accounts with 12-month or longer maturities, and in 2019 Hoist Finance added to its German offering 4-year and 5-year savings accounts. As per 31 December 2019, Swedish deposits increasedby 8 per cent to SEK 12,2 billion (11,3), distributed over 44,370 customers (36,120). The deposits in Germany increased to EUR 881 million (565), distributed over 31,421 customers (17,368).
Hoist Finance continued to be active in the money market during 2019. At year-end we had two senior unsecured bonds and one subordinated bond outstanding under our Euro Medium Term Note (EMTN) programme. Outstanding issues under the commercial paper programme amounted to EUR 30 million (83) at year-end. Furthermore, in 2019 Hoist Finance successfully completed two securitisation transactions backed by Italian non-performing unsecured loans for risk transfer purposes.
Why invest with us?
European deposit guarantee Deposits in Hoist Finance are covered by the deposit guarantee scheme, which in Sweden corresponds to SEK 950,000.
Regulated credit market company Hoist Finance is a regulated credit market company under the supervision of the Swedish FSA.
Investment grade rating Hoist Finance holds a long-term issuer rating of Baa3 with a stable outlook from Moody’s. The short-term issuer rating is P-3.
Retail banking and Business Development
A key cornerstone of the Hoist Finance strategy is to maximize the value of our banking license and platform by offer a wider range of products and services. Therefore we have taken the next step in this development in establish a new business area: Retail banking and Business Development. This area is to explore new business development opportunities, further strengthen the sustainability area and develop the asset class performing loans. Our approach to debt resolution is very much built on a strong foundation of compliance, sustainability and company values. In our ambition to be the digital leader in our industry, we see that our new organisation will improve our value proposition and help diversify our business even further.
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