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 17.9 billion (21.4), of which SEK 10.6 billion (12.2) relates to deposits in Sweden and SEK 7.4 billion (9.2) to German household deposits denominated in Euro.Total short-term and long-term market funding amounted EUR 678 million at year-end (610), with no outstanding money market instruments at year-end (EUR 30).
Hoist Finance offers savings accounts with fixed and flexible interest rates at competitive terms to customers in Sweden under the brand name “HoistSpar”, and in Germany under the brand name “Hoist Finance”. The savings account products are offered to retail customers and corporates, and customers in Sweden can save up to SEK 950,000 and in Germany up to EUR 100,000.
During the year, Hoist Finance has actively focused on increasing the share of savings accounts with 12-month or longer maturities. As per 31 December 2020, Swedish deposits decreasedby 13 per cent to SEK 10.6 billion (12.2), distributed over 41,027 customers (44,370). The deposits in Germany decreased to EUR 682 million (881), distributed over 38,242 customers (31,421).
Hoist Finance returned to the markets in 2020. In the fourth quarter the company issued a senior preferred unsecured EUR 200 million bond under its Euro Medium Term Note (EMTN) Programme in conjunction with a tender offer on the EUR 250 million senior preferred unsecured bond due October 2021.
At year-end Hoist Finance had issued EUR 678 million under its EMTN programme, of which EUR 80 million consituted subordinated debt. Hoist Finance had no outstanding issues under its commercial paper programme at year-end (EUR 30).
During the first quarter, Hoist Finance issued EUR 40 million in Additional Tier 1 capital (AT1).
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 (on 1 January 2021, the amount covered will be raised to SEK 1 050000).
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 some of the strongest ratings in the debt purchasing industry. Moody's has assigned Baa3 long-term issuer and senior unsecured debt ratings, and a P-3 short-term issuer rating to Hoist Finance. The outlook was revised to negative during 2020.
Retail banking and Business Development
A key cornerstone of the Hoist Finance strategy is to maximise the value of our banking license and platform by offering a wider range of products and services. In 2020, we have established a strong team with a clear vision and plan forward.
Given our longstanding relationship with our significant customer base, we are uniquely positioned to support an underprivileged segment of the market, potentially through incentivisation of savings or providing customer credit. Through our focus on amicable and flexible long-term solutions, we are ready to support our customers taking the next step towards financial inclusion.
By providing our customers with further opportunities, we are contributing to society – this social impact is fundamental to our business process. Our focus on financial inclusion strengthens our brand and provides us with further business opportunities.
Portfolio acquisitions remains the core business for Hoist Finance. For the retail bank, growing the performing platform, diversifying the balance sheet and building scale are main priorities. As a result of Hoist Finance focus on people in financial difficulties, our clients are comfortable selling to Hoist, knowing that we safeguard the reputation of our clients by supporting customers in their financial journey.