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The Investment Proposition

Good risk-adjusted returns on portfolio investments made possible through a disciplined, well-supported acquisition process.

Underlying reasons

Hoist Finance has strict financial requirements for investments and carries out standardised and disciplined acquisition processes. This means that the company’s portfolios generate healthy cash flow and deliver significant returns. Analysis and data processing are fundamental requirements and are fully integrated in pricing and collection.

Progress in 2019

Continuous investment strategy improvements to achieve the company’s return on equity target to exceed 15 per cent.

  • 2019 return on equity, excluding items affecting comparability was 15 per cent.

In-house collection platforms focus on constructive solutions based on sensitivity towards customers.

Underlying reasons

The overall goal of Hoist Finance’s working method is to achieve long-term, sustainable repayment plans that generate good results for customers as well as the shareholders.

Progress in 2019

Hoist Finance moved closer to the customers and improved customer service. This was done primarily through launching self-service platforms in all markets, as well as live-testing new functionalities better suited for customer needs.

Hoist Finance is one of Europe’s preferred partners to international banks in the restructuring of loans, with the know-how and expertise to carry out complex transactions.

Underlying reasons

Hoist Finance has a strong market position and long-term relationships with leading international banks. As a regulated credit market company, Hoist Finance has profound understanding of banking operations, and its licensed operations are a stamp of approval that distinguishes the company from other industry operators. Hoist Finance has partnered with all of Europe’s ten largest banks by total assets within the past ten years.

Progress in 2019

Leveraged the company’s status as a regulated entity

  • Acquired assets from Getback as part of its restructuring process
  • Acquired assets from one of the leading banks in France in largest-ever portfolio investment of non-performing mortgage portfolio
  • Expanded relationships with new partners as a result of continued growth in the the secured asset class

The transaction market for non-performing loans is growing.

Underlying reasons

Hoist Finance considers there to be a number of long-term factors that will continue to increase sales volumes in coming years.

  • Regulatory pressure continue to act to incentivise banks to sell NPLs.
  • Growing outsourcing trend among European banks

Progress in 2019

Despite regulatory challenges limiting capacity in the first part of the year, Hoist Finance was able to grow in existing markets, both in unsecured as well as secured NPLs.

Focus on operational efficiency and effectiveness in strategic markets.

Underlying reasons

Over many years, Hoist Finance has built a strong position in selected European NPL markets. Profitability will be improved by leveraging operational economies of scale.

Progress in 2019

Improved operational efficiency and continued digitalization.

  • Expanding shared services in Wroclaw, Poland as well as the initial launch of nearshoring in Bucharest, Romania to leverage scale and maximize skills.
  • Outsourcing of IT infrastructure for improved functionalities as well as scalability in market growth and digital agenda.
  • Continued market consolidation through closing of the Bayonne site in France, enabling specialization in Lille and Paris.

Hoist Finance’s business is underpinned by an efficient funding model.

Underlying reasons

Hoist Finance’s operations are funded through deposits from the public and through capital and money market borrowing. In combination with a bilateral loan facility, this generates well-diversified, cost-efficient funding.

Progress in 2019

Maintained and developed the strong funding base with a shift from SEK to EUR denominated deposits as well as shifting to longer duration, in order to maximize capital efficiency.

Sustainable business practices.

Underlying reasons

Hoist Finance acts responsibly. Social responsibility is an integral part of our business model and our collaborations with all our stakeholders.

Progress in 2019

  • Implementation of a new sustainability strategy, stakeholder matrix as well as a clear governance structure
  • Global Compact signatory
  • NASDAQ ESG Transparency Partner

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- Annual Report 2019 -
- Årsredovisning 2019 -