Sweden fintech investor VEF posts Q3 net loss 

Overview

• Sweden fintech investor's NAV in USD fell 1% yr/yr and 1% qtr/qtr

• Company reported a net loss for Q3 and 9M26, compared to profit last year

• Company completed deleveraging, shifting focus to share buybacks

Outlook

• Company shifts capital allocation focus from debt repayment to share buybacks

• Company says deleveraging phase is complete and sees opportunities for further fintech investments

Result Drivers

• CREDITAS GROWTH - Creditas delivered accelerating loan portfolio and revenue growth, aided by efficiency gains from AI and reduced headcount

• ABHI PERFORMANCE - Abhi surpassed USD 100 mln ARR and is nearing IPO, contributing to portfolio growth

• OPERATIONAL LEVERAGE - Lower headcount and record-low customer acquisition costs improved operational leverage

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the investment management & fund operators peer group is "buy."

• Wall Street's median 12-month price target for Vef AB (publ) is SEK2.90, about 49% above its October 20 closing price of SEK1.95

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)