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Nordax Group Interim Report Jan-Sep 2015

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JANUARY - SEPTEMBER

Numbers compared with January - September 2014

  • Loan portfolio increased by 8.2% in constant currencies from year-end
  • Net interest margin increased to 8.7% (8.2%)
  • Adjusted total operating income amounted to 689 MSEK (586). Total operating income amounted to 660 MSEK (598)
  • Adjusted cost to income ratio improved to 29.0% (29.6%)
  • Adjusted1operating profit increased by 11.9% to 283 MSEK (253). Operating profit amounted to 170 MSEK (244)
  • Adjusted earnings per share were 1.99 SEK (1.51). Earnings per share were 1.19 (1.44) SEK

3rd QUARTER

Numbers compared with 3rd quarter 2014

  • Loan portfolio increased by 3.7% in constant currencies compared to previous quarter
  • Net interest margin increased to 9.2% (8.5%)
  • Adjusted total operating income amounted to 243 MSEK (211). Total operating   income amounted to 226 MSEK (215)
  • Adjusted cost to income ratio improved to 29.0% (29.6%)
  • Adjusted operating profit amounted to 103 MSEK (107). Operating profit amounted to 83 MSEK (107)
  • Adjusted earnings per share were 0.73 SEK (0.62). Earnings per share were 0.58 (0.62) SEK

CEO COMMENTS

Strong growth in new lending

It is a pleasure to deliver our first full quarterly report as a listed company. We have gained great momentum in the business as the third quarter has progressed which makes me even more confident about the future.

New lending developed positively in the quarter and amounted to more than 1 billion SEK. In the third quarter we saw record high new lending, supported by outstanding volumes in September of 448 MSEK.

New lending continued strongly in Norway and Finland with good net interest margins and good credit quality. Germany had as expected a strong lending quarter and we are pleased to see the growing contribution from this market. In the third quarter we further strengthened our position in large loans due to the successful launch of 40,000 euro loans in Finland and Germany in June. Finally, we are also happy to see a great impact from increased marketing activities in Sweden and September was our best month so far this year.

Our adjusted operating profit increased 11.9% in the nine-month period.

Our total net interest margin showed an extraordinary performance and improved to 9.2% in the quarter from 8.5% in the same quarter last year. The increase is mainly due to lower funding costs and strong margins on new lending.

The net credit loss level of 1.5% on a 12-month rolling basis was at an expected level and remained stable. We never compromise on the credit quality and our provisioning model is conservative.

Nordax protects the regulatory equity ratio which means that parts of the equity remains unhedged from currency volatility. The operating profit in the third quarter has been impacted by a weakening NOK, which declined from 1.04 to 0.99 versus SEK. This equates to a negative foreign exchange effect of 17 MSEK on the quarterly result. The foreign exchange movement also impacted the lending portfolio growth negatively by 147 MSEK. The SEK/NOK ratio changes frequently and as of 21 October the ratio is back to 1.02.

Our underlying performance confirms the strength of our business model and our customer offering. Nordax’s strengths are our focus on large consumer loans to financially strong customers, many effective marketing channels, diversified funding sources, the solid credit underwriting, and robust net interest margins.

Morten Falch

CEO

Contact

For more information, please contact

Morten Falch, CEO,

+46 8 690 15 07,

morten.falch@nordax.se

Camilla Wirth, CFO,

+46 8 690 15 07,

camilla.wirth@nordax.se

Johanna Clason, treasurer and debt investor relations,

+46 8 690 15 07,

johanna.clason@nordax.se

Åse Lindskog, media and equity investor relations,

+46 730 24 48 72,

ase.lindskog@nordax.se

Conference call

Media, analysts and investors are welcome to take part in a conference call on October 22 at 9.00am CET. CEO Morten Falch, CFO Camilla Wirth and deputy CEO/COO Jacob Lundblad will present the results. After the presentation there will be a Q&A session.

Call-in numbers:

Sweden: +46 8 566 426 63

UK: +44 203 428 14 02

US: +1 646 502 51 17

Link to audiocast:

http://cloud.magneetto.com/wonderland/2015_1022_Q3/view

You can also follow the presentation on

https://www.nordaxgroup.com/en/investors/financial-reports/presentations/

Nordax Group AB (publ) announces this information in accordance with the Securities Market Act and/or the Act on Trading in Financial Instruments and/or the Nasdaq Stockholm Rule Book. This information was submitted for announcement on October 22, 2015, at 07.30am CET.

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