Interim report January-September 2020 Nordax Bank AB

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Highlights January-September 2020

  • Total lending amounted to SEK 27.1 billion (SEK 25.3 billion as of 31 December 2019).
  • Good growth in new lending in the first quarter but falling new lending in second and third quarters as Nordax, due to COVID-19, has taken a more cautious approach to new lending.
  • Nordax’s savings offer continued to attract many new customers, as a result of which total deposits grew to SEK 24.3 billion (SEK 19.2 billion as of 31 December 2019).
  • Total credit losses of SEK 329 million in the period, of which SEK 39 million consists of extra provisions related to COVID 19.

Business development Personal loans

Nordax reported stable development in terms of personal loans in the third quarter and the total volume of personal loans has been stable in the third quarter and the year.

Business development Mortgage loans

Nordax began offering mortgages in Sweden in 2018. The main target group is customers with some form of non-traditional employment, i.e. self-employed or temporary employees, including project, part-time or replacement workers. Thanks to thorough credit as­sessments and personal contacts, more loans are ap­proved for this customer group, which is often denied by the major banks despite being financially stable. Interest in the offer has been high and new lending continues to grow. At the end of the first quarter 2019, Nordax also launched mortgage loans in the Norwegian market. As in Sweden, the target group in Norway is the non­standard segment, i.e. customers who fall outside the narrow framework of the major banks.

New lending has continued to develop well in both Sweden and Norway and the total mortgage portfolio amounted to SEK 2.7 billion as of 30 September 2020.

Business development Equity release mortgages

The portfolio continued to develop strongly in the first quarter with continued growth in new lending. The mar­ket for equity release mortgages continues to have good potential and SHP has a strong brand with the customer group and is seeing continued interest from them.

Portfolio development

Total lending amounted to SEK 27.1 billion (SEK 25.3 billion as of 31 December 2019). Growth was nega­tively affected by exchange rate movements in the period.

Result January-September 2020 (compared to January-September 2019) 

  • Operating profit for January-September 2020 amounted to SEK 524 million (388). The increase is due to better net interest income and lower general administrative expenses.
  • Net interest income for January-September 2020 amounted to SEK 1,309 million (1,093). Net interest income increased due to growing lending.
  • Credit losses for January-September 2020 amounted to SEK -329 million (-168), corresponding to 1.7 per cent (1.2) of average lending. Credit losses were affected by an extra provision of SEK 39 million for increased expected credit losses under IFRS 9 in light of the expected deterioration in the macro environment as a result of COVID-19.
  • Operating expenses for January-September 2020 amounted to SEK -503 million (-589). The decrease was in line with the company’s expectations as expenses in 2019 were affected by extensive investments in operations and that the company introduced specific savings measures in the second quarter 2020.

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 owned by Nordic Capital Fund VIII and Sampo. We currently have around 195,000 private customers in Sweden, Norway, Finland, Denmark and Germany. 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 products and savings accounts. Since 2019, Svensk Hypotekspension, which is a specialist in equity release products, is a wholly owned subsidiary of Nordax Bank. Nordax has around 320 employees, practically all of whom work from a central office in Stockholm. The credit assessment process is one of Nordax’s core competencies. It is thorough, sound and data driven. Nordax’s customers are financially stable. As of 30 September 2020, lending to the public amounted to SEK 27.1 billion and deposits amounted to SEK 24.3 billion. Read more about Nordax on



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