DGAP-Ad-hoc: 4finance S.A. / Key word(s): Statement
4finance Covid-19 update
03-Apr-2020 / 16:59 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation
(EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
*4finance Covid-19 update*
_Business resilience plans and support for customers_
_3 April 2020._4finance Holding S.A. (the "Group"), one of Europe's largest
digital consumer lending groups, provides the following update on the impact
of Covid-19 on its business and its response.
Operationally, the Group has rapidly adapted its operations to working from
home and has been able to provide continuous service to its customers. The
executive committee and crisis team meet daily to monitor the situation and
lead the firm's response.
As a responsible lender, the Group has introduced a range of options to
support customers whose plans have been disrupted by the current coronavirus
pandemic. These include offering discounted or free payment deferrals of
typically 1-3 months, depending on the market and product. Regulators are
also encouraging or mandating similar, and in some cases additional,
forbearance measures in several markets including the Czech Republic,
Lithuania, Poland, Romania and Spain. As of the end of March, there was not
yet a significant impact on overall collections in the online business and a
reduction of less than 10% in TBI Bank.
In Poland, the government has introduced a temporary reduction in
non-interest cost caps for a period of one year. Since March 2016, the caps
have been 25% fixed cost plus 30% annual cost with a 100% total limit. The
new caps for loans of 30 days or more, effective as of 1 April 2020, are 15%
fixed cost plus 6% annual cost with a 45% total limit. The Group has already
adapted its Vivus short-term loan product to comply with the new pricing,
however the Zaplo instalment loan offering is under review.
The Group has seen an impact on new loan issuance volumes from mid-March,
resulting from both lower customer demand and its own tightening of
underwriting criteria, particularly for new customers. Compared with the
averages for January and February 2020, loan issuance in March was down by
11% in the online business and by 12% in TBI Bank. The impact has varied
widely by market, with the largest impact so far seen in Spain and in
offline bank lending.
The Group's liquidity position remains strong, with current cash levels in
the online business of over &euro80 million, slightly above the level at the
start of the year. This is after the repurchase of $10.4 million notional of
its USD 2022 bonds and &euro10.5 million notional of EUR 2021 bonds since
the beginning of March. TBI Bank also has liquidity ratios well above
statutory minimums, with an increase in deposits since year end, and no
significant reduction of balances or premature withdrawals of deposits seen
in recent weeks. The Group has no debt maturities in 2020 and will give an
update on plans in respect of the EUR 2021 bonds on its Q1 results
conference call.
Oyvind Oanes, CEO of 4finance, commented:
_"As a digital consumer lender, we've been able to move swiftly to a
homeworking model, protecting our colleagues and customers. Within TBI, the
majority of our branches or service points are also open and operating in
line with local healthcare guidance. I am grateful to colleagues across the
business for the way they have responded to the challenge and that our
operating model is generally well-suited to making these changes._
_"Safe working for our staff and continuity of service for our customers
remains our priority. We are working carefully to ensure that we can support
those customers whose livelihoods are affected. And for new lending, we need
to balance taking on a prudent level of risk while ensuring that
creditworthy borrowers, particularly our returning customers, continue to
have access to a regulated, digital option to obtain the credit they need. _
_"The months ahead will be challenging. We are reviewing our product range
and cost structure across the business to ensure we are best positioned for
this. But this crisis will recede, and it is also important that, as an
industry leader in most markets, we prepare to make the most of the
opportunities that recovery will present."_
*For more information, please contact:*
*4finance * Email: james.etherington@4finance.com
Email: press@4finance.com
*Instinctif Partners* Email: 4finance@instinctif.com
+44 (0)20 7866 7887
www.4finance.com [1]
This announcement contains inside information as stipulated under the Market
Abuse Regulation.
Certain statements in this document are "forward-looking statements". These
statements are based on management's current expectations and are subject to
uncertainty and changes in circumstances. Actual results may differ
materially from those included in these statements.
*Notes to Editors *
*About 4finance*
Established in 2008, 4finance is one of Europe's largest digital consumer
lending groups with operations in 14 countries. Leveraging a high degree of
automation and data-driven insights across all aspects of the business,
4finance has grown rapidly, issuing over &euro7 billion since inception in
single payment loans, instalment loans and lines of credit. 4finance
operates a portfolio of market leading brands, through which, as a
responsible lender, the firm offers simple, convenient and transparent
products to millions of customers who are typically underserved by
conventional providers. 4finance has group offices in Riga (Latvia), London,
Luxembourg and Miami, and currently operates in 12 countries in Europe as
well as in Argentina and Mexico. The Group also offers deposits, in addition
to consumer and SME loans through its TBI Bank subsidiary, an EU licensed
institution with operations primarily in Bulgaria and Romania.
03-Apr-2020 CET/CEST The DGAP Distribution Services include Regulatory
Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de
Language: English
Company: 4finance S.A.
8-10 Avenue de la Gare
1610 Luxembourg
Grand Duchy of Luxembourg
E-mail: info@4finance.com
ISIN: XS1417876163, SE0006594412, XS1092320099, XS1094137806,
WKN: A181ZP
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,
Stuttgart
EQS News ID: 1015173
End of Announcement DGAP News Service
1015173 03-Apr-2020 CET/CEST
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(END) Dow Jones Newswires
April 03, 2020 10:59 ET (14:59 GMT)
