Nordax in brief

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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.

30%

INCREASED ADJUSTED OPERATING INCOME

CEO comments

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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.”

Targets and outcomes

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1. RETURN ON AVERAGE LOANS

Increased to 4.3% (3.8) and was over the target of a return > 3% over the cycle

2. CAPITALISATION

Strengthened - solid returns increased buffers relative to regulatory requirements and capital targets

3.DIVIDEND

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%

Business model

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Loan and deposits

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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

Central plattform

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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.

Our customers

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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.

52

YEARS, AVERAGE AGE OF OUR CUSTOMERS

Credit assessments

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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,%

Our markets

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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.

Marketing

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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

 

Funding

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FINANCINGMIX

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.

Responsibility

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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.

  • Responsible lending is the core of our sustainability efforts
  • Member of the UN Global Compact initiative since 2016
  • Equal pay, women paid 1% more than men for comparable functions
  • 60/40 distribution between men and women on the Board of Directors
  • 50/50 distribution between men and women in senior management
  • Limited direct environmental impact

Priorities 2017

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INCREASED NEW LENDING AND SUSTAINABLE GROWTH

  • Strengthen position in large loans and consolidation of smaller credits
  • More and developed sales channels
  • Improve processes for new customers

 

INCREASED OPERATIONAL EFFICIENCY

  • Automated and paperless processes
  • Focus on efficiency in the organization

IMPROVE CUSTOMER EXPERIENCE AND STRENGTHEN CUSTOMER LOYALTY

  • Simplified and improved loan application process
  • Increased self-service options
  • Improved customer relationship management (CRM)

 

SUSTAINABILITY PART OF OUR BUSINESS

  • Continue strategic sustainability efforts
  • Make progress in four identified core areas

Financial performance 2016

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446

MSEK (195) NET RESULT

23% 

RETURN ON EQUITY

Core values

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ESTABLISHED VALUES

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.

Simple

Sound

Responsible

Customer centric

Sustainability

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Risk management

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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.

Nordax shares

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SHARE PRICE DEVELOPMENT

TRADING

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).

Board of Directors’ Report

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Corporate Governance Report

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Financial reports and notes

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AGM Calendar Contacts

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