Interim Report January-March 2019 Nordax Bank AB
Business developmnet personal loans
New lending for personal loans continued to grow strongly in the quarter to approximately SEK 2 billion, an increase of 56 percent compared to the same period in 2018. The Swedish market was the strongest performer, and Norway also developed positively. All sales channels had positive development, but new lending grew the most through loan brokers, which was a result of improved customer processes and collaborations with more brokers.
Nordax began offering mortgages in Sweden in 2018. The main target group is customers with some form of non-traditional employment, i.e. the self-employed or temporary employees, including project, part-time or replacement workers. Thorough credit assessments and personal contacts mean more loan approvals for this customer group, which is often denied by the major banks despite stable finances. The interest in the offer has been high and new lending has been stable. At the end of the quarter,
Nordax also began offering mortgage loans in the Norwegian market through loan brokers. The plan is to begin accepting mortgage applications directly through Nordax’s website in the second quarter.
Equity release mortgages
New lending grew strongly in the quarter, more than doubling compared to the same period in 2018. One contributing factor has been increased marketing, which has led to greater awareness of Svensk Hypotekspension (SHP) as a brand and equity release mortgages as a product. In addition, more applicants became eligible for an equity release mortgage during the quarter after the lending limit was changed and the offer was extended to more of the country’s municipalities.
Total lending amounted to SEK 20.9 billion (SEK 15.1 billion as of 31 December 2018). The acquisition of SHP and a strong quarter in the Swedish market were the most important reasons for the strong development, although all geographical markets except Germany grew as well. In the Swedish market, mortgage loans, personal loans and equity release mortgages also contributed to the strong trend.
Results January-March 2019 (compared to January-March 2018)
- Operating profit was 60 MSEK (156).
- Net interest income amounted to 352 MSEK (316)
- Total operating expenses was -215 MSEK (-118).
- Credit losses amounted to -100 MSEK (-94), corresponding to a credit loss level of 2.2 percent (2.7).
For more information, please contact
Andreas Frid, Head of Communication, Nordax
Tel: +46 705 29 08 00