Interim report January–September 2022 Nordax Bank AB
Highlights January–September 2022
- Total lending amounted to SEK 83.9 billion (SEK 70.7 billion as at 31 December 2021)
- Personal loans and credit cards amounted to SEK 68.9 billion (SEK 58.0 billion as at 31 December 2021)
- Mortgage lending (mortgage loans and equity release mortgages) amounted to SEK 14.9 billion (SEK 12.7 billion as at 31 December 2021), comprising 18% of total lending
- Nordax’s savings offering continued to grow and total deposits amounts to SEK 72.0 billion (SEK 67.4 billion as at 31 December 2021)
- Operating profit amounted to SEK 1,252 million (645), driven primarily by the consolidation of Bank Norwegian but also by growing lending volumes
- To reflect the generally increased interest rate levels, Nordax has raised interest rates in all markets
Business development personal loans and credit cards
During the first nine months, Nordax’s portfolios of both private loans and credit cards continued to show a good growth.
As at 30 September 2022, the total volume of personal loans and credit cards amounted to SEK 68.9 billion (SEK 58.0 billion as at 31 December 2021).
Business development mortgage loans
Nordax began offering mortgages in Sweden in 2018. The main target group is customers with a non-traditional form of employment, i.e. those who are self-employed or have fixed-term employment, such as project staff, part-time employees or temporary staff. Through a thorough credit assessment and personal customer contact, Nordax is able to approve more loans for this customer group, which is often rejected by the major banks despite being financially stable. There has been great interest in this offering and new lending continues to grow. At the end of the first quarter of 2019, Nordax also began offering mortgages on the Norwegian market. As in Sweden, the target group in Norway is the non-standard segment, i.e. those customers who fall outside the narrow parameters of the major banks.
New lending has continued to develop well in both Sweden and Norway and the total mortgage portfolio was SEK 6.4 billion as at 30 September 2022 (SEK 5.1 billion as at 31 December 2021).
Business development equity release mortgages
In line with previous historical periods, the portfolio has continued to develop well during 2022 and shows stable new lending, on the back of the strong SHP brand. The total volume amounted to SEK 8.5 billion as at 30 September 2022 (SEK 7.6 billion as at 31 December 2021).
Total lending as at 30 September 2022 amounted to SEK 83.9 billion (SEK 70.7 billion as at 31 December 2021).
Results January-September 2022
- Operating profit amounted to SEK 1,252 million (645). The increase is explained by the consolidation of Bank Norwegian and growing lending. However, the result includes increased costs, among other things driven by the ongoing integration of Bank Norwegian.
- Net interest income amounted to SEK 4,966 million (1,352). The increase is mainly due to the consolidation of Bank Norwegian. Net interest income also increased through growing lending and by the review carried out during the first quarter regarding estimated effective interest rate.
- Credit losses amounted to SEK -1,570 million (-114), corresponding to 2.7 per cent (0.5) of average lending. The increase is mainly explained by the consolidation of Bank Norwegian, but also by the estimated effective interest rate.
- Operating expenses amounted to SEK -2,208 million (-646). The increase is mainly explained by the consolidation of Bank Norwegian, but also by investments in operations, among other things connected to the ongoing integration work, increased personnel costs and sales-related costs.
For further information, please contact:
Patrick MacArthur, CFO, Nordax
Tel: +46 760 32 69 70
Nordax Bank is a leading specialist bank in Northern Europe with strong owners in the form of Nordic Capital Fund IX, Nordic Capital Fund VIII and Sampo. We currently have around 2 million private customers, of which just under 1.2 million are credit card customers, in the Nordic countries, Spain, Germany and the Netherlands. We are a specialist bank that through responsible lending helps people make informed decisions for a life they can afford. We are a flexible complement to the major banks. Instead of quantity, we have specialised in a few selected products that we know best: personal loans, mortgages, equity release mortgages, credit cards and savings accounts. In November 2021, Nordax Bank acquired Bank Norwegian ASA, which brought not only a large number of customers to the Group but also complementary strengths in product expertise, digital distribution and geographical presence. Since 2019, Svensk Hypotekspension, which is a specialist in equity release products, is a wholly owned subsidiary of Nordax Bank. The Group has just under 600 employees, with offices in Stockholm, Malmö, Gothenburg and Fornebu, Oslo. The credit assessment process is one of Nordax’s core competences. It is thorough, sound and data driven. Nordax’s customers are financially stable. As at 30 September 2022, lending to the public amounted to SEK 83.9 billion and deposits to SEK 72.0 billion.
Read more about Nordax at http://www.nordaxgroup.com
This information is information that Nordax Bank AB (publ) is obliged to make public pursuant to the Securities Markets Act. The information was submitted for publication at 07.30 CET on November 9, 2022.