Sweden's Hoist Finance Q3 profit rises 

Overview

• Sweden non-performing loan manager's Q3 profit before tax and net income rose yr/yr

• Company raised profitability and dividend payout targets

• Company set new SEK 60 bln investment portfolio target by end-2030

Outlook

• Company raises profitability target to return on equity exceeding 20% from over 15%

• Company adjusts dividend policy to 30-40% payout ratio, up from 25-30%

• Company targets investment portfolio of SEK 60 bln by end-2030

Result Drivers

• COLLECTION PERFORMANCE - Co said strong collection performance at 103% supported Q3 results

• PORTFOLIO INVESTMENTS - Co invested SEK 1.6 bln in new portfolios, increasing total portfolio to SEK 40 bln

• CAPITAL POSITION - Co cited strong capital position and organic capital generation as supporting results

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the consumer lending peer group is "buy"

• Wall Street's median 12-month price target for Hoist Finance AB (publ) is SEK230.00, about 18.8% above its October 22 closing price of SEK193.60

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads

• Oct 22 - Sweden's SEB Q3 net profit falls on muted client activity

• Oct 22 - Swedbank Q3 net income slightly beats expectations

• Oct 21 - Sweden's Handelsbanken Q3 operating profit below consesus estimates

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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.)