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Financial report



Numbers compared to January-June 2016

• The loan portfolio grew by 11%, in constant currencies by 10%

• The net interest margin decreased marginally to 9.2% (9.3%)

• Total operating income increased slightly to 581 MSEK (570). Adjusted total operating income increased to 602 MSEK (533)

• Adjusted cost to income ratio (rolling 12 months) improved to 26.1% (28.2%)

• Operating profit decreased to 249 MSEK (265). Adjusted operating profit increased by 24% to 276 MSEK (222)

• Net profit decreased to 192 MSEK (205)

• Earnings per share were 1.73 SEK (1.85). Adjusted earnings per share were 1.92 SEK (1.56)


Numbers compared to second quarter 2016

• The loan portfolio grew by 11%, in constant currencies by 10%

• The net interest margin decreased slightly to 9.1% (9.2%)

• Total operating income increased slightly to 295 MSEK (290). Adjusted total operating income increased to 302 MSEK (272)

• Operating profit decreased to 135 MSEK (146). Adjusted operating profit increased by 18% to 145 MSEK (123)

• Net profit decreased to 104 MSEK (112)

• Earnings per share were 0.93 SEK (1.01). Adjusted earnings per share amounted to 1.00 SEK (0.86)


Strong underlying profit and increased new lending

Nordax development was strong during the first half of the year with solid lending growth, stable margins and credit quality, and increased operational efficiency. Our adjusted operating profit increased by 24% to 276 MSEK compared to the first half of 2016. The solid profitability turns into strong equity generation which widens our margins towards our capital targets. Net profit decreased slightly in SEK due to negative foreign currency effects as the Swedish krona appreciated against the Norwegian krona.

Demand for larger personal loans remains good in our markets. Robust economic development, strong con- sumer spending and a cultural shift toward a greater willingness to pay during the period of consumption are driving demand for personal loans. Our total lending increased by 10% in local currency compared to the same period in 2016. The largest relative growth was in Germany, where the lending portfolio increased by 28% in local currency, followed by Finland, where growth was 19% in local currency.

In the second quarter new lending reached an all-time high level. The most positive trend was in Finland, where new lending rose by 43% in local currency compared to the first quarter. Finland is an attractive market with increased credit demand, good margins and strong credit quality. We joined the Finnish debt register in the second quarter, which further improved our underwriting capabilities. Together with more efficient processes for new Finnish customers, this contributed to the upward trend in new lending. In Sweden the demand has remained good from our clients and growth is stable. Our business model is also performing well in Germany, and in the first half-year marketing efficiency improved, leading to increased new lending at a lower cost. New lending in Norway stabilised at a level similar to the first quarter. It seems like the media focus in the last half-year have contributed to more creditworthy customers with- drawing from the market. Now that a debt register will be introduced and marketing and lending guide- lines are being clarified, we are more optimistic about the future development in Norway.

Our diversified market strategy in Northern Europe is a strength, and we have historically shown that when one market has lower growth we have been able to compensate for it with higher growth in another market. This was true again last quarter, when we grew our lending by 10% on an annual basis despite that we have decreased new lending and growth in Norway.

One of Nordax’s priorities is to simplify processes in order to improve the customer experience and increase efficiency in our platform. To achieve this, we have continuously invested in a stronger IT organisation and a more modern customer service organisation, which have accelerated the pace of digital development. In the second half of the year we will launch new digital solutions to improve on-boarding processes for new customers as well as improve our services for existing customers. Our underlying operating expenses were stable compared to the same period in 2016, at the same time that lending increased, improving the adjusted cost to income ratio to 26.1% (28.2%). The aim of being more efficient over time is vital in order to be able to continue investing in better solutions for our customers.

Nordax is a focused, well-capitalised and profitable niche bank with solid growth in lending and underlying profit. Since the listing in June 2015 our underlying profit has increased by 53% to 276 MSEK (180 MSEK H1 2015). Together with diversified funding and a central platform that is becoming increasingly efficient, this strongly positions us to further grow our business in a responsible manner. I am proud of the strong drive of our employees, who are more focused on developing smart digital solutions for our customers. Going forward this will create more value for our customers and other stakeholders.

Morten Falch CEO

For more information, please contact:

Morten Falch, CEO, +46 8 690 18 03,

Lennart Erlandson, CFO, +46 8 690 14 84

Andreas Frid, Head of Investor relations, +46 705 29 08 00,

Media, analysts and investors are welcome to take part in a conference call on July 14th, at 10.30am CET. CEO Morten Falch and CFO Lennart Erlandson will present the results. After the presentation there will be a Q&A session.

Call-in numbers:

Sweden: +46 8 566 426 98

UK: +44 203 008 98 07

US: +1 855 831 59 44

Link to audiocast:

You can also follow the presentation on:

For more information about Nordax’s customer offerings, read more on each country’s web site:,,, and

This information is information that Nordax Group AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 07.30 CET on July 14, 2017.