The Swedish Financial Supervisory Authority notifies its considerations on coming decision on capital requirements for Hoist Finance

As part of its continious supervision, Finansinspektionen, the Swedish Financial Supervisory Authority (the “SFSA”), has conducted a supervisory review- and evaluation process (SREP) of Hoist Finance AB (publ) (“Hoist Finance” or the “Company”) regarding additional own fund requirements (Pillar 2 requirements) and Pillar 2 guidance.
 

As a result of SFSA's review and evaluation, SFSA has notified the Company of its consideration on coming decision (the “Consideration Notice”) regarding Pillar 2 guidance for Hoist Finance at consolidated level as per following (Pillar 2 guidance):

• 0.50 per cent of the Group's total risk exposure amount.
• 2.25 per cent of the Group's total leverage ratio exposure amount.

In addition, pursuant to the Consideration Notice, Hoist Finance at Group level shall meet the additional own fund requirements (Pillar 2 requirements) of 1.09 per cent of the Group's total risk exposure amount. The own funds requirement shall be met by three quarters of Tier 1 capital, of which at least three quarters shall consist of Common Equity Tier 1 capital.

The Company's target range for the Common Equity Tier 1 capital ratio will not need to be adjusted as a result of the Consideration Notice as Hoist Finance assesses that the Company, on individual and consolidated level, has sufficient margins to meet the revised regulatory requirements and Pillar 2 guidance.

If the SFSA resolves in accordance with its Consideration Notice, Hoist Finance's capital position will continue to be above the Group's capital target as the Common Equity Tier 1 capital ratio as of 31 December 2023 was 13.89 per cent, well above the Company's target level. The Group's leverage ratio of 15.45 exceeds the total leverage ratio requirement and Pillar 2 guidance of 5.25 percent by a significant margin. The announced level of additional own fund requirements (Pillar 2 requirements) is in line with the Company's internal assessment as of 31 December 2023 and will not affect the Company's capital position.

Hoist Finance has been given the opportunity to comment on the Consideration Notice no later than 19 March 2024, which the Company does not intend to do. Hoist Finance intends to communicate the final decision from SFSA in connection with the decision being notified to the Company.

For more information, please contact:

Christian Wallentin, CFO and deputy CEO                                                         
[email protected]
+46 8 55 51 77 90

This information is information that Hoist Finance AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 19:40 CET on 6th March 2024.

About Hoist Finance

Hoist Finance is an asset manager specialised in non-performing loans. For more than 25 years, we have focused on investing in and managing debt portfolios. We are a partner to international banks and financial institutions across Europe, acquiring non-performing loan portfolios. We are also a partner to consumers and SMEs in a debt situation, creating long-term sustainable repayment plans enabling them to convert non-performing debt to performing debt. We are present in 13 markets across Europe and our shares are listed on Nasdaq Stockholm. For more information, please visit hoistfinance.com.