Nordax Group Year-End Report 2015
JANUARY - DECEMBER
Numbers compared with January - December 2014
• Loan portfolio increased by 12.7% in constant currencies
• Net interest margin increased to 8.9% (8.5%)
• Adjusted total operating income amounted to 943 MSEK (805). Total operating income amounted to 888 MSEK (803)
• Adjusted cost to income ratio improved to 28.5% (29.4%)
• Adjusted operating profit increased by 9.5% to 392 MSEK (358). Operating profit amounted to 250 MSEK (325)
• Adjusted earnings per share were 2.76 SEK (2.52). Earnings per share were 1.76 SEK (2.29)
• Proposed dividend of 0.50 SEK per share, totaling 55.5 MSEK
4th QUARTER
Numbers compared with 4th quarter 2014
• Loan portfolio increased by 4.0% in constant currencies compared to previous quarter
• Net interest margin increased to 9.4% (8.6%)
• Adjusted total operating income amounted to 254 MSEK (219). Total operating income amounted to 228 MSEK (205)
• Adjusted cost to income ratio improved to 28.5% (29.4%)
• Adjusted operating profit amounted to 109 MSEK (105). Operating profit amounted to 80 MSEK (81)
• Adjusted earnings per share were 0.76 SEK (0.74). Earnings per share were 0.57 (0.58) SEK
CEO comments
New lending and profit were at an all-time high in the fourth quarter. New lending was close to 1.2 billion SEK in the quarter and 4.1 billion SEK in 2015. Adjusted operating profit reached an all-time high level of 109 MSEK in the quarter and 392 MSEK in 2015. This proves the strength of our business model.
Our business in Sweden developed very well in the fourth quarter with new lending of 430 MSEK compared to 305 MSEK in the third quarter. The strong growth in new lending continued in Norway and Finland with good net interest margins.
Our advanced marketing models and thorough underwriting form the basis for our sound credit quality across the markets. We took an important step in the quarter when we increased the maximum loan amounts in Norway and Sweden to 500,000 NOK and SEK. This further strengthens our profile as a lender who offers large loans to financially stable individuals.
The development in Germany in the fourth quarter continued to demonstrate the possibilities we see in this market. In the quarter, the net interest margin amounted to 9.2%. Our marketing models and underwriting process are working efficiently in Germany although we are still evaluating the process for recoveries.
Our total net interest margin showed a strong performance in the fourth quarter and amounted to 9.4%. For the full year, the total net interest margin was 8.9%. The increase is driven mainly by lower funding costs and strong margins on new lending.
The net credit loss level of 1.5% in 2015 and 1.3% in the fourth quarter are well below our long-term target of 2% through the cycle. Credit quality is key to us and an essential part of our business model. Net credit loss levels tend to fluctuate between quarters and regions and should be evaluated on a longer-term basis. In the quarter, the provisioning level was reduced in Sweden and increased in Norway.
We aim to grow our lending book as well as profit in 2016. We currently see a continuing good macroeconomic environment in Sweden and Germany. In Norway we saw an impact on credit performance in the fourth quarter and we are closely watching the macroeconomic development. In the long term Norway is an important market where we see opportunities going forward. The macroeconomic development in Finland has not impacted our business either in new lending or net credit losses.
The weakening NOK and EUR negatively impacted our financial performance in the fourth quarter. The currency fluctuations impacted the operating profit as well as the growth in new lending and our total portfolio measured in SEK.
In the fourth quarter, we successfully issued an asset backed securities transaction of SEK 1.8 billion which further strengthened our diversified funding base and lowered our funding costs.
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 stable individuals, many effective marketing channels, diversified funding sources, the sound credit underwriting and robust net interest margins. During the year, we have taken important steps to further develop our marketing model, to enhance internal efficiency and to secure continued strong focus on customer service.
2015 was an eventful and exciting year for Nordax. One of the key events is of course the listing on Nasdaq Stockholm’s main list in June. We exceeded the targets set out in the prospectus and are delighted to propose our first dividend as a listed company. I am very proud of what Nordax has achieved and I would like to sincerely thank everyone in our team for their dedicated and successful performance in 2015.
Morten Falch, CEO
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 February 10 at 9.00am CET. CEO Morten Falch and CFO Camilla Wirth will present the results. After the presentation there will be a Q&A session.
Call-in numbers:
Sweden: +46 8 566 426 52
UK: +44 203 426 28 45
US: +1 347 329 12 82
Link to audiocast:
http://cloud.magneetto.com/wonderland/2016_0210_Nordax_/view
You can also follow the presentation on
https://www.nordaxgroup.com/en/investors/financial-reports/presentations/
More information: www.nordaxgroup.com
For more information about Nordax’s customer offerings, read more on each country’s web site: www.nordax.se, www.nordax.no, www.nordax.fi, and www.nordax.de.
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 February 10, 2016 at 7.30am CET.
The adjusted numbers are presented in order to show the underlying performance of the business reflecting constant currencies and excluding non-recurring items primarily related to the IPO. A bridge between statutory and adjusted accounts can be found in the report.
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