Nordax is a leading niche bank in Northern Europe, offering savings and loans to nearly 150,000 customers in Sweden, Norway, Finland and Germany. Nordax has around 200 employees, all of whom work from a central office in Stockholm. Our thorough, sound and data-driven credit assessment process is our core competence.
INCREASED ADJUSTED OPERATING INCOME
TOTAL LENDING, Billion SEK
“For Nordax, 2016 was a very successful year and we have established ourselves as a publicly traded bank with strong growth in new customers as well as in lending and earnings. Our business has developed positively in every market, with steady lending growth, stable margins and stable credit quality. Together with increased operational efficiency, this has led to improved earnings.”
1. RETURN ON AVERAGE LOANS
Increased to 4.3% (3.8) and was over the target of a return > 3% over the cycle
Strengthened - solid returns increased buffers relative to regulatory requirements and capital targets
Is proposed to increase to 1.60 SEK/share (0.50) in accordance with the target of a payout-ratio of approximately 40%.
FROM NET INTEREST MARGIN 9.3% TO RETURN 4.3%
PRODUCTS WITH VALUE FOR OUR CUSTOMERS
Nordax offers large unsecured loans to financially stable customers who has a need to bridge the gap between income and expenses. The focus on larger personal loans is based on our long experience in credit assessment and the sophisticated methods we use to reach a strong customer group through targeted marketing.
STATED REASON TO APPLY FOR LOAN
ADJUSTED COST/INCOME RATIO, %
CENTRAL PLATFORM OFFERS SCALABILITY
All operations are carried out at a central office in Stockholm, where we manage all our markets. Swedish, Norwegian, Finnish and German employees work together in customer service. Having everything centralised offers many advantages. It simplifies control and management of regulatory issues, reduces our environmental impact and shortens decision paths.
FINANCIALLY STABLE CUSTOMERS
We primarily target customers between the ages of 30 and 60. We avoid lending to younger people, since they in many cases have not achieved the stability necessary for us to make an accurate credit assessment. The average loan customers are financially stable with an income level in line with or above the national average and many own their own homes. Only 2% of our total lending is to customers younger than 30.
YEARS, AVERAGE AGE OF OUR CUSTOMERS
ROBUST CREDIT ASSESSMENTS PRODUCE STABLE CREDIT QUALITY
Evaluating risk is part of our DNA thanks to our long experience in the industry through various economic cycles. Knowledge and the collection and use of relevant data over a long period to build algorithms for credit assessments are cornerstones in our model. We have a data-driven process for credit assessments that begins already with marketing to financially stable individuals.
NET CREDIT LOSS LEVEL,%
LENDING BY MARKET
STABLE LENDING MARKETS
Nordax is currently active in four markets in Northern Europe: Sweden, Norway, Finland and Germany. They all share a stable macroeconomic outlook, stable public finances, comprehensive social insurance systems and good access to personal data, which cilitates credit assessments.
UNIQUE DISTRIBUTION MODEL
Our marketing is effective, and the strategy is based in large part in seeking out customers ourselves. Our loan offers are marketed through several different channels mainly targeted marketing, but also through loan brokers, digital channels and lending to existing customers.Targeted marketing is our core competence and consists of addressed direct mail, unaddressed direct mail and marketing through partners.
NEW LENDING – CHANNEL DISTRIBUTION
DIVERSIFIED FUNDING FACILITATES GROWTH AND REDUCES RISK
Nordax has a diversified funding structure where lending is matched to a great extent with funding in terms of maturity, term and currency. Our long experience in consumer finance has taught us that a sustainable business model should not rely on a single funding source.
CORPORATE RESPONSIBILITY AND SUSTAINABILITY OUR BUSINESS MODEL
Long-term profitability is dependent on the confidence in us as a bank. As a publicly listed company, we have an especially large responsibility to authorities and our owners. Taking responsibility is part of our culture and pervades our operations and how we act with customers, the community, authorities, investors and employees.
INCREASED NEW LENDING AND SUSTAINABLE GROWTH
INCREASED OPERATIONAL EFFICIENCY
IMPROVE CUSTOMER EXPERIENCE AND STRENGTHEN CUSTOMER LOYALTY
SUSTAINABILITY PART OF OUR BUSINESS
MSEK (195) NET RESULT
RETURN ON EQUITY
Nordax has strong core values that are important to how the company acts and is seen by our various stakeholders. Nordax is a customer-centric bank that is simple, sound and responsible. Nordax was founded by entrepreneurs driven by a strong focus on customers and risk management. This approach is still evident in our day-to-operations and corporate culture.
RESTRICTIVE APPROACH TO RISK
Nordax’s business model is based on a restrictive approach to risk taking, and the bank has a low risk appetite and risk tolerance. This approach to risk pervades every part of operations and has helped Nordax over the years to build a sound risk culture.
SHARE PRICE DEVELOPMENT
Nordax was listed on Nasdaq Stockholm’s Main Market in June 2015. Nordax shares are traded under the ticker NDX. During the year the value of the Nordax share rose by 1.5%. Earnings per share were 4.02 SEK (1.76). The Board of Directors proposes to the Annual General Meeting a dividend of 1.60 SEK per share (0.50).