B2 Impact (B2H) Q4 2024 earnings summary

Executive summary

• Strong collection performance and declining expenses drove earnings per share of NOK 1.57, a 24% year-over-year increase, and a proposed dividend of NOK 1.50 per share for 2024, up 15% from last year.

• Investment target of NOK 2.5 billion was reached in 2024, with NOK 1.2 billion already committed for 2025, focusing on profitable and sustainable growth.

• Strategic focus shifted to unsecured assets, now comprising 86% of remaining collections, enhancing earnings stability and scalability.

• Acquisition of Nordic assets, including Zolva and Svea portfolios, and a new CEO appointment in December 2024, strengthened the Nordic market presence.

• Operational efficiency improved through technology investments and a 30% reduction in FTEs since Q4 2021.

Financial highlights

• Cash collections for 2024 were NOK 5,284 million, with cash EBITDA at NOK 4,175 million.

• Adjusted net profit reached NOK 579 million, up from NOK 483 million last year.

• Earnings per share increased to NOK 1.57, with ROE (LTM) at 10%, up 1pp year-over-year.

• Leverage ratio ranged from 1.9x to 2.2x at year-end.

• Interest costs reduced by 28% in Q4 year-over-year, aided by a EUR 100 million bond tap at a 3.47% margin.

Outlook and guidance

• Investment target for 2025 set at NOK 3 billion, with over NOK 1.2 billion already committed, mostly through forward flow agreements.

• Board targets maintaining or increasing dividends in 2025, with prudent leverage below 2.5x.

• Continued focus on operational improvements through technology and data.