STOCKHOLM, April 5, 2020 /PRNewswire/ -- Due to the
uncertain macroeconomic situation as a result of the spread of the
coronavirus in Europe, the Board
of TF Bank has today decided to make an additional loan loss
provision of SEK 30 million at the
end of the first quarter of 2020. The measure should be seen in the
light of the current accounting standards that require banks to
make provisions for expected credit losses. The financial target of
a profit of at least SEK 14.50 per
share in 2020 is also abandoned in connection with today's
announcement.
On January 1, 2018, new accounting
standards were introduced for loan loss provisions, IFRS 9. The
provisioning requirements in IFRS 9 are based on a model for
expected credit losses. The uncertain macroeconomic situation as a
result of COVID-19, with, among other things, an expected increase
in the number of unemployed in Europe, is expected to affect TF Bank's credit
losses in the coming 12 months. At the same time, national
governments have presented stimulus packages to mitigate the
economic effects of COVID-19. The Board of Directors of TF Bank has
made an overall assessment of the effects and, as a result of the
accounting standards, decided to make an additional loan loss
provision of SEK 30 million at the
end of the first quarter of 2020.
In October 2018, the Board of
Directors of TF Bank established new financial targets for the
three-year period leading up to 2020. One of the targets was that
earnings per share should exceed SEK
14.50 in 2020. The additional loan loss provision of
SEK 30 million communicated today
means that the financial target for earnings per share is
abandoned. The Board of Directors of TF Bank intends to establish
new financial targets once the macroeconomic outlook has
stabilised.
More information on how COVID-19 affects TF Bank's operations
will be provided on April 16 in
connection with the interim report for the first quarter of
2020.
TF Bank in brief
TF Bank was founded 1987 and is an internet-based niche bank
offering consumer banking services and e-commerce solutions through
a proprietary IT platform with a high degree of automation. Deposit
and lending activities are conducted in Sweden, Finland, Norway, Denmark, Estonia, Latvia, Lithuania, Poland, Germany and Austria through branch or cross-border
banking. From 2020 the operations are divided into three segments:
Consumer Lending, Ecommerce Solutions and Credit Cards. TF Bank is
listed at Nasdaq Stockholm.
This is information which TF Bank is required to disclose
under the EU Market Abuse Regulation. The information was provided
for publication, through the agency of the contact persons set out
above, on 5 April 2020 at
18:00 CET.
For further information, please contact:
Mattias Carlsson, VD +46 (0)70 374
33 80
Mikael Meomuttel, CFO and Head of Investor Relations +46 (0)70
626 95 33
This information was brought to you by Cision
http://news.cision.com
https://news.cision.com/tf-bank-ab--publ-/r/tf-bank-makes-additional-provisioning-for-loan-losses-of-sek-30m-in-the-first-quarter-and-abandons-t,c3081842
The following files are available for download:
|
https://mb.cision.com/Main/13973/3081842/1224798.pdf
|
Read press
release
|