4 Finance snaps up Bulgarian TBI Bank for €69m

By Daniel Lanyon on Monday 15 August 2016

Alternative Lending

One of the largest European consumer lending firms 4 Finance has completed its acquisition of a the Bulgarian lender TBI.

4 Finance has completed its acquisition of the Bulgarian bank TBI following full regualtory approval from the Bulgarian central bank for €69m.

4 Finance, which funds short term loans from its own balance sheet across Europe, has seen strong growth in recent years. It passed a milestone at the start of 2016 in issuing its 10 millionth loan since forming in 2008.

TBI is a consumer-focused financial group in Bulgaria and Romania with consolidated assets of €272m, including €175m of customer loans. Funding is predominantly through customer deposits and customer accounts of €169m, representing 81 per cent of total liabilities.

The acquisition significantly increases 4 Finance’s scale and profitability in two existing markets, Bulgaria and Romania, says George Georgakopoulos, chief executive officer of 4finance, who adds the combined the two countries have a population in excess of 26m.

“The bank complements our existing consumer lending business and can help broaden our product range, for example into credit cards. It also has a strong deposit franchise and offers the opportunity to develop how we operate in other markets,” he said. 

“This is an important strategic step as we build a sustainable business for the long term. We look forward to continuing the good relationship developed with the Bulgarian and Romanian regulators in recent months, and welcome TBI’s customers and staff to the group,” he added.

4finance operates through a portfolio of brands across Europe including Vivus, SMSCredit and Zaplo. Back in May 4 Finance tapped the bond market for €100m to ramp up its fire power and help fund growth.

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