Avida Finans AB publishes Interim report for the period January–June 2025.

Key Steps Toward an Efficient and Profitable Business, but Hard Work Remains.

The transformation of Avida into an efficient, modern and profitable company continued during the second quarter of the year with a focus on cost savings and a strengthened balance sheet.

“The cost savings program with the goal of reducing costs by 200 million SEK is proceeding according to plan,” says Mikael Johansson, CEO of Avida. “As part of the savings plans, we carried out an efficiency improvement of the organization, as we completed workforce reductions of approximately 30% during the first half of the year. This has led to expected one-off costs of 11 million SEK.”

The work to digitalize and improve the efficiency of Avida’s IT systems has continued, with the goal of having the best technical conditions for a scalable and cost-efficient business going forward.

“During the quarter, write-downs of old IT systems of approximately 33 million SEK were made,” says Mikael Johansson. “At the same time, the migration of the acquired credit card and sales financing business from Santander is the most important project being carried out this year, and the goal remains to complete it before the end of the year.”

Credit losses amounted to 276 million SEK during the quarter, including a one-off credit provision of 100 million SEK for all stages within the consumer loan portfolio.

Avida has also signed an agreement on Significant Risk Transfer amounting to approximately 2 800 million SEK, with an estimated reduction of risk-weighted assets of approximately 1 800 million SEK.

“With a stronger balance sheet, an adjusted cost level, a fit-for-purpose organization, and a customer-adapted offering, Avida will be ready for the next step in the transformation journey. But there is no shortage of challenges,” concludes Mikael Johansson.

Second quarter 2025 (compared to second quarter 2024)

• Lending to the public amounted to 10,762.8 MSEK (10,445.5 MSEK).
• Net interest income amounted to 339.1 MSEK (187.0 MSEK).
• Credit losses amounted to 276.3 MSEK (124.8 MSEK).
• Operating profit was -138.2 MSEK (-55.8 MSEK).
• C/I ratio 0.61 (0.64).
• CET 1 ratio 13.50% (11.70%).
• Return on equity negative (negative).

January-June 2025 (compared to January-June 2024)

• Lending to the public amounted to 10,762.8 MSEK (10,445.5 MSEK).
• Net interest income amounted to 663.9 MSEK (359.7 MSEK).
• Credit losses amounted to 482.5 MSEK (256.5 MSEK).
• Operating profit amounted to -195.8 MSEK (-124.0 MSEK).
• C/I ratio 0.58 (0.64).
• CET 1 ratio 13.50% (11.70%).
• Return on equity negative (negative).

Presentation of the Interim Report

Mikael Johansson, CEO, and Lennart Erlandson, CFO, will present Avida's Interim Report and answer questions during a digital meeting held on August 28 at 10:00 (CET). Join the meeting via this Teams link. No pre-registration required.

This disclosure contains information that Avida Finans AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 28-08-2025 08:00 CET.