Interim report January–December 2022 Nordax Bank AB
Highlights January–December 2022
- On November 30, 2022, the intra-group legal merger between Nordax Bank AB (publ) and Bank Norwegian ASA was implemented
- Total lending amounted to SEK 88.8 billion (SEK 70.7 billion as at 31 December 2021)
- Personal loans and credit cards amounted to SEK 73.0 billion (SEK 58.0 billion as at 31 December 2021)
- Mortgage lending (mortgage loans and equity release mortgages) amounted to SEK 15.7 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 77.1 billion (SEK 67.4 billion as at 31 December 2021)
- Operating profit amounted to SEK 1,329 million (-33), driven primarily by the consolidation of Bank Norwegian, however also with the comparison period being affected by negative technical accounting effects regarding credit losses related to the acquisition
- To reflect the generally increased interest rate levels, Nordax continued to raise interest rates in all markets also during the fourth quarter
Total lending as at 31 December 2022 amounted to SEK 88.8 billion (SEK 70.7 billion as at 31 December 2021), during 2022 approximately 85% of the growth was driven by increased sales and approximately 15% by currency effects.
Business development personal loans and credit cards
During 2022, Nordax’ portfolios of both private loans and credit cards continued to show a good growth.
As at 31 December 2022, the total volume of personal loans and credit cards amounted to SEK 73.0 billion (SEK 58.0 billion as at 31 December 2021), during 2022 approximately 80% of the growth was driven by increased sales and approximately 20% by currency effects.
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 6.9 billion as at 31 December 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 8.8 billion as at 31 December 2022 (SEK 7.6 billion as at 31 December 2021).
Results January-December 2022
- Operating profit amounted to MSEK 1,329 (-33). The increase is explained by Bank Norwegian operations affecting 2022 as a whole while it is only included in November -December for the comparison period 2021 and by growing lending, together with the comparison periods negative technical accounting effects regarding credit losses in connection with the acquisition of Bank Norwegian. The result also includes increased costs, among other things driven by the ongoing integration of Bank Norwegian, write-down of intangible assets related to Lilienthal Finance Ltd of MSEK 201 during the fourth quarter as well as increased provisions for expected credit losses.
- Net interest income amounted to MSEK 6,747 (2,532). 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.
- Depreciation, amortization and impairment of tangible and intangible assets amounted to MSEK -449 (-62). The increase is primarily driven by write-down of intangible assets related to Lilienthal Finance Ltd of MSEK 201 during the fourth quarter and by depreciation according to plan of intangible assets related to the acquisition of Bank Norwegian.
- Other operating expenses amounted to MSEK -2,751 (-1 588). 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.
- Credit losses amounted to MSEK -2,425 (-1,013), corresponding 3.0 per cent (2.1) of average lending. The increase is mainly explained by the consolidation of Bank Norwegian, but also by the estimated effective interest rate and increased provisions for expected future credit losses. Credit losses were also affected negatively by increased provisions related to a deteriorated macroenvironment which contributed with MSEK -120 credit losses in the fourth quarter and with MSEK -162 during 2022.
For further information, please contact:
Patrick MacArthur, CFO, Nordax
Tel: +46 760 32 69 70
About Nordax Bank
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 31 December 2022, lending to the public amounted to SEK 88.8 billion and deposits to SEK 77.1 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 February 22, 2022.