1. Resilient business model with more than 30 years of high returns

TF Bank started with consumer loans and sales finance already in 1987 and has exhibited profitability during its more than 30 years in the consumer credit industry; also during the large crises.

TF Bank operates in two complementary segments: Consumer Lending and Ecommerce Solutions. Its flexible IT platform provides opportunities for scalable expansion as well as cross-selling between the segments.

The return is driven by high growth and cost efficiency. With the high return, significant reinvestments in the operations and high attractive risk-adjusted returns to shareholders are enabled.

2. Responsible organic growth with diversified portfolio

TF Bank prioritises organic growth in a controlled manner. By combining well-developed credit processes, low credit amounts and short payback times, TF Bank takes calculated risks that can quickly be adapted if the macro-economic conditions were to change.

TF Bank’s expansion takes places in carefully selected niches and markets. From its Swedish operations, the loan offering has successfully grown to the other Nordic countries and new markets around the Baltic sea. Approximately 75% of the loan portfolio relates to Sweden, Finland and Norway; the remaining 25% to the Baltics and Poland.

Diversification is a key concept also for TF Bank’s deposit products. By offering deposits in several markets, the group gets more options to finance lending growth in the coming years, an increased geographical risk spread and lower funding costs.

3. Stable cost base provides industry-leading efficiency

Efficiency and cost control have been key concepts within TF Bank since the very start. Being able to move from decision to action without unnecessary costs and long lead times is one of the main strengths of the operations.

The high degree of automation in the company’s IT platform is designed for scalability and adaptation to different products, countries, currencies and digital banking solutions.

Thanks to the flat organization, the scalable platform and cost control throughout the operations, high efficiency is enabled. For a long time, TF Bank’s C/I ratio has been one of the lowest in the industry.

4. Ecommerce Solutions provides new growth opportunities

In the Ecomerce Solutions segment, TF Bank offers next-generation payment and checkout solutions for online retailers, as well as credit cards, through three brands: TF Bank, Avarda and BB Bank. The income of the segment is growing while economies of scale on the cost side provide a gradually increasing contribution to the group’s earnings.

Avarda offers a complete checkout solution with CRM functionality. Avarda’s operations are focused on the Nordic markets where the ambition is to grow and reach a market-leading position. Already today, Avarda has many customers in Sweden and Finland, some with significant volumes.

Credit cards are offered through the BB Bank brand in Norway. There are also plans to launch credit cards in additional markets.