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Banks and Financial Institutions

Solid experience, knowledge of the regulatory environment and presence in eleven European markets enable Hoist Finance to offer banks and financial institutions extensive support with debt restructuring solutions.    

Hoist Finance focuses on Europe’s major banks and financial institutions. In the past ten years, we have done business with all of the ten largest European 
banks and often in several countries. Offering flexible solutions and capacity to manage complex acquisitions that include multiple asset classes has been a key to success. 

A bank’s customers must be handled smoothly and with great care following the transfer of a portfolio to Hoist FinanceWith strict procedures and processes, we can ensure fair treatment of customers in compliance with the selling bank’s compliance criteria. The best results are always achieved when the transfer of customers is planned well in advance. 

Some of the key components of Hoist Finance’s offering are:  

  • Good understanding of the regulated banking environment. 
  • Flexible and customised service offering on the ground in major European markets. 
  • In-house customer relations, which safeguards superior understanding of the customers’ situation as well as good operational control, including risk management and compliance.  
  • More than 25 years of experience in debt restructuring solutions. 

Regulated as a bank  

Hoist Finance has been regulated credit market company since 1996; for almost 25 years. The regulated status has given us advantages such as access to low-cost funding through deposit savings 

Being regulated by the Swedish Financial Supervisory Authority, Hoist Finance is subject to most of Sweden’s banking regulations. Operating in a regulatory environment has built trust in Hoist Finance and our ability to understand the challenges that banks are faced with.  

Read about our Risk management 

Read about Banking platform

Our offering 

Hoist Finance is a full-service supplier, capable of servicing various stages of the credit risk cycle. 

During 2019, the Secured NPL asset class became increasingly important for Hoist Finance. By expanding in this asset class, we have become more of a full service provider for a variety of debt resolution to banks and financial institutions.

Most portfolios acquired by Hoist Finance have historically been tertiary loans, which have been in default for 2-5 years. In more recent years, fresher debt has been acquired as debt markets have matured.  

Acquired loans are generally categorised according to credit risk and impact on the loss allowance: 

  • Stage 1: No significant increase in credit risk 
  • Stage 2: Significant increase in credit risk, but no objective evidence of loss 
  • Stage 3: Objective evidence of loss 

Read about our Asset classes 

Our loan acquisition strategy

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

Bank-originated loans  

  • High quality origination with less risky repayment profile 
  • Larger ticket size. 
  • Long-tail stable cash flows. 

Asset-class flexibility  

  • Flexibility to buy all types of financial institution-originated debt.  
  • Increased proportion of performing loans and secured NPL:s 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. 
Carrying value distribution per country (31 December 2019)

Different models for acquiring portfolios

Solution Definition Constrains and specifications Present market status
Spot transaction/Direct saleDirect sale of a precisely identified portfolio. 
Most of Hoist Finance’s portfolios have been
acquired through spot transactions
  • High capital use, could limit future transactions.
Mature.   
Forward flow A pre-determined volume (fixed or range) of loans is acquired at a pre-determined price.  
  • Implementation of a durable and engaging relation and engaging relation for both parties.  
Relatively mature for several institutions.
Servicing  Operational management on behalf of an institution.
  • Implementation of durable and engaging relation for both parties.
  • No deconsolidation for the seller.
    With or without engagement on the recovery performance.

Mature.

Potential additional services may be added.

Structural sale
Direct sale of a precisely identified portfolio. This option does however include a potential takeover personnel and/or systems.
  • High capital use, could limit future transactions.
  • Ensure preserved know-how and infrastructure to secure transaction.

Mature, but less common.

SPV and securitisationSale of portfolio to an SPV with potential securitisation structure:
  • SPV detained by potentially multiple investors
  • Mutualisation of different portfolios originating from different institutions
  • Sale of securitisation notes to different potential investors including the sellers
  • Dedicated to a seller or not (mutualisation of debts from multiple sources), possible share ownership of the SPV.
  • Possible securitisation of the SPV debt with offering to multiple investors.

Average maturity.

Significant potential.

Fair pricing  

Hoist Finance can evaluate a portfolio and give a fair offer based on our data warehouse that includes detailed data on collection performance and cash flow from acquisitions dating from the year 2000 and onwardsA 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 can be made on a 15-year horizon of future cash flows and debt recovery costs.  

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- Annual Report 2019 -
- Årsredovisning 2019 -