BRAbank ASA: Merger complete, focus on operational performance

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  • Significant milestones reached during H1 2019
    • Merger completed
    • Rebranding to BRAbank and IT integration on track
    • Successful launch of consumer finance offerings in Sweden
    • Equity injection of NOK 37 million completed in July

  • Financial results affected by significant one-offs
    • Write-downs NOK 30 million
    • Merger costs NOK 9 million

  • Operations
    • Norway: Being compliant is top priority
    • Finland: Solid market and improved risk selection
    • Sweden: Positive start up and well received in the market
    • Credit card: Successful market campaign
    • Strengthened focus on operational performance

  • Growth opportunity restrained by capital situation 

The second quarter of the year was eventful and significant milestones were reached. The merger between former Monobank and BRAbank was successfully completed and consumer finance offerings were launched in Sweden. However, financial results were negatively affected by significant write-downs and one-offs related to the merger. In addition, BRAbank as of second quarter 2019 had less accessible capital than previously anticipated. Consequently, the previous target for net loans of NOK 5bn in 2019 is removed.

Second quarter net loan balance increased to NOK 4 537 million including former BRAbank, up from NOK 3 960 million in Q1 2019 (including unspecified loss provisions and prepaid agency commissions).

Net interest income for the quarter was NOK 88.0 million, an increase of 27.0 percent compared to the second quarter of last year (NOK 69.3 million). Net interest income for the first half year was NOK 168.3 million, an increase of 31.5 per cent compared to the first six months of 2018 (NOK 128.1 million).

The result in the second quarter of 2019 was a deficit of NOK 25.2 million before taxes in the period, while the after-tax results ended at a deficit of NOK 18.9 million.

Going forward, BRAbank will strive for balanced growth in existing markets and focus on further improving operational performance and efficiency. The ongoing technical integration between former Monobank and BRAbank is expected to be completed in the second half of 2019 and efficient credit systems will be developed further in accordance with regulations.

“Significant milestones were achieved in the first half of 2019. The merger was formally completed, we launched a new bank and entered Sweden successfully. However, the financial result is affected by some significant one-off expenses which will limit our growth opportunities. Going forward we will focus on improving operational efficiency and improving credit quality. After the merger, we are a highly competent and motivated team and I am sure we will succeed in our efforts, says Bent Gjendem, CEO of BRAbank ASA

Presentation in Bergen and webcast today Wednesday 21 August at 09:20 AM CEST

The company will host a presentation of 2nd quarter 2019 results in Bergen today at 09:20 AM CEST. The presentation is at Scandic Flesland Bergen (Room name: Away), Lønningvegen 9, 5258 Blomsterdalen.

The presentation can be followed through live webcast here:


The report and presentation will also be made available on and

For further information contact: 

Bent H. Gjendem, Chief Executive Officer at BRAbank, phone: +47 996 11 996

Hans Ljøen, Chief Financial Officer at BRAbank, phone: +47 481 87 750

About BRAbank

BRAbank ASA a is digital bank focused on consumer finance in the Nordics. BRAbank is a cloud-based bank with strong focus on customer experience and fintech solutions. BRAbank is based in Bergen, Norway and started operation as Monobank in November 2015 and merged with BRAbank in June 2019. The bank has experienced strong growth and went profitable after only three quarters. The bank offers unsecured lending to qualified private individuals in Norway Finland and Sweden. The screening process is based on an automated evaluation system. Loans are granted up to NOK 500 000. The bank also offers attractive deposit rates on its savings accounts. Deposits up to NOK 2 million are guaranteed by the Norwegian Banks' Guarantee fund, of which BRAbank is a member. BRAbank is an independent bank with approximately 1 300 shareholders and was listed on the Oslo Stock Exchange's Merkur Market on 16th February 2017. The ticker symbol is BRA-ME. BRAbank has been awarded with "Great Place to Work" three times since the start.

This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.