Alisa Pankki (ALISA) Q4 2024 earnings summary

Executive summary

• 2024 was transformative with the PURO Finance merger, new strategy, and CEO transition in December.

• Income grew 1.8% to EUR 17 million, but full-year profit before taxes and non-recurring items was EUR -0.1 million.

• Customer base expanded 18% to 68,000, and NPS improved by 7 points to 52.

• Shifted focus to SME lending, improved fundraising, and launched new BaaS partnerships.

• Profitability improved in H2 2024, driven by fundraising and risk-adjusted lending.

Financial highlights

• Total income for 2024 was EUR 17.0 million (2023: 16.7 million); net interest income EUR 15.1 million (14.8).

• Operating expenses increased to EUR 12.8 million from EUR 11.4 million, mainly due to the PURO merger.

• Net loan losses were EUR 5.5 million.

• Profit before taxes and non-recurring items was EUR -0.1 million (2023: 0.4 million); profit before taxes EUR -1.3 million.

• Deposits surged to EUR 395 million, while the loan portfolio decreased 13% to EUR 149 million.

Outlook and guidance

• Strategic targets for 2025 include annual income growth above 15%, cost/income ratio below 50%, and capital adequacy above 16%.

• Full operations in Sweden to begin in Q2 2025, with market size three times that of Finland.

• 2025 will focus on implementing the renewed strategy and expanding BaaS partnerships.

• Income growth is expected, especially in H2 2025 if economic recovery continues.

• The bank targets over 15% ROE and a cost-to-income ratio below 50% by 2027.