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Financial report



Numbers compared to January-September 2016

The loan portfolio grew by 7%, in constant currencies by 9%

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

Total operating income increased to 892 MSEK (882). Adjusted total operating income increased to 901 MSEK (812)

Adjusted cost to income ratio (rolling 12 months) improved to 26.1% (27.7%)

Operating profit decreased to 403 MSEK (433). Adjusted operating profit increased by 17% to 421 MSEK (360)

Net profit decreased to 311 MSEK (336)

Earnings per share were 2.81 SEK (3.03). Adjusted earnings per share were 2.94 SEK (2.53)

Capitalisation further strengthened. Total capital ratio increased to 16.9% (16.0 as of 31 December 2016) and Core Tier 1 ratio to 14.9% (14.0%).

3rd QUARTER 2017

Numbers compared with 3rd quarter 2016

The loan portfolio grew by 7%, in constant currencies by 9%

The net interest margin decreased to 8.9% (9.1%)

Total operating income was stable at 311 MSEK (312). Adjusted total operating income increased to 299 MSEK (279)

Operating profit decreased to 154 MSEK (168). Adjusted operating profit increased by 5% to 145 MSEK (138)

Net profit decreased to 119 MSEK (131)

Earnings per share were 1.08 SEK (1.18). Adjusted earnings per share amounted to 1.01 SEK (0.97)


Increased growth opportunities with expanded product offering

I was very pleased on 1 September to take over as CEO of Nordax. We have set a high pace since then, focusing on clarifying our strategic agenda.

Digitisation of the banking market is accelerating and the landscape is rapidly changing. The emergence of fintech companies focused on user-friendly solutions and efficient processes will create greater value for customers and we will see new partnerships form. At the other end of the spectrum automatisation and standardisation leads to many customers not fitting into the framework used by traditional banks. The trend where niche players are taking market shares from full-service banks will continue. This is already a fact for unsecured personal loans and we expect the same development for other segments going forward.

Nordax will continue to capitalize on this trend. Through our centralised platform and ability to perform complex credit assessments, we will be able to expand our offering in a cost efficient way.

One area we are looking at more closely is a underserved segment of the mortgage market. Many individuals are today denied the opportunity to invest in housing due to the major banks’ standardised processes and credit assessments. The market is also driven by the evolving "gig"- economy in the modern society. The labour market is shifting from permanent employment towards project assignments or self-employment. Here Nordax has a role to play. With our expertise we can make more thorough credit assessments and enable more customers to qualify for a mortgage, without putting our risk profile at risk.

For future success, Nordax needs to continiously develop. This is why I have devoted a great deal of time to creating a more dynamic and efficient organisation, with customer operations, marketing, IT and HR now being part of my management team. A business development unit has been created to identify new opportunities by broadening the product offering and geographical mix in Northern Europe.

There is continued good opportunities in our existing business by strengthening our service to current customers as well as being more efficient in finding new customers. We must become better at sourcing and interacting with customers in digital channels. We will build on our existing collaborations with loan intermediaries and evaluate new types of partnerships. In this case it will also be important to strengthen and communicate Nordax’s brand and position in the market.

In October, we launched "My Pages" for loan customers in Sweden and Norway. Our customers now receive information on their accounts and have more self-service options, which is something they have requested. We will gradually add more functions and utilise the platform to target offers to existing customers. The launch of "My Pages" is an important milestone in building loyalty and extending customer relationships.

Convenient and easy processes at the application stage are vital to the customer when choosing a bank. Many loan applicants are not accepted today because the credit risk is too high, and we also lose potential customers who have passed our credit assessment but for various reasons choose a competitor. Price is an important factor when choosing a provider, so is a good process. This is an area where we have to become better, and I look forward to, in the near future, improving the application process with digital solutions.

We are working in a structured fashion to improve and simplify services for our customers with positive results. During the quarter we finished third in the financial services industry in the latest customer service survey conducted by Bright, a big improvement from 14th place less than two years ago.

Today Nordax is a very well-capitalized, growing bank with a high return on equity. Our adjusted operating profit increased by 17 per cent for the nine-month period and lending grew by 9 per cent in local currency. This is satisfactory given that we have consciously decided to hold back new lending in Norway, our largest segment, and given the slight margin pressure we see in the market.

We are accelerating efficiency improvements in order to provide more value to our customers. We will also utilise our capital base even more efficiently. During the fourth quarter we will re-evaluate our capital strategy with respect to non-performing loans and the strategy we use to hedge foreign exchange risk in our capital adequacy ratios. This might release capital and thereby create additional capacity for Nordax to take advantage of opportunities in the markets or to redistribute part of the capital to the shareholders.

I look forward to continiously develop Nordax and see good opportunities to generate growth and good returns for our shareholders. I won’t be doing it alone. I would like to thank all my colleagues, who are the ones who will develop Nordax.

Jacob Lundblad


For more information, please contact

Jacob Lundblad, CEO, +46 8 690 18 32,

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 25 October at. 10.30am CET. CEO Jacob Lundblad 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 92

UK: +44 203 008 98 02

USA: +1 855 831 59 45

Link to audiocast:

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