Interim report January–March 2022 Nordax Holding AB

Highlights January–March 2022

• Total lending amounted to SEK 75.7 billion (SEK 71.4 billion as at 31 December 2021)
• Personal loans and credit cards amounted to SEK 62.2 billion (SEK 58.7 billion as at 31 December 2021)
• Mortgage lending (mortgage loans and equity release mortgages) amounted to SEK 13.5 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 70.3 billion (SEK 67.4 billion as at 31 December 2021)
• Operating profit amounted to SEK 240 million (204), driven primarily by the consolidation of Bank Norwegian

Business development personal loans and credit cards

During the first quarter, Nordax’s portfolios of both private loans and credit cards continued to show a solid growth.

As at 31 March 2022, the total volume of personal loans and credit cards amounted to SEK 62.2 billion (SEK 58.7 billion as at 31 December 2021).

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 5.6 billion as at 31 March 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 the beginning of 2022 and shows stable new lending, on the back of the strong SHP brand. The total volume amounted to SEK 7.9 billion as at 31 March 2022 (SEK 7.6 billion as at 31 December 2021).

Portfolio development

Total lending as at 31 March 2022 amounted to SEK 75.7 billion (SEK 71.4 billion as at 31 December 2021).

 Results January–March 2022

• Operating profit amounted to SEK 240 million (204). The increase is explained by the consolidation of Bank Nor­wegian and growing lending. However, the result includes negative exchange rate effects related to the strengthen­ing of the Norwegian krona and increased costs primarily driven by integration costs related to the acquisition of Bank Norwegian.
   
• Net interest income amounted to SEK 1,596 million (416). Net interest income increased mainly through 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.
   
• Credit losses amounted to SEK -610 million (-41), cor­responding to 3.3 per cent (0.6) of average lending. The increase is mainly explained by the consolidation of Bank Norwegian, but also by the review relating to the estimated effective interest rate.
   
• Operating expenses amounted to SEK -705 million (-210). The increase is mainly explained by the consolidation of Bank Norwegian, but also by investments in operations, in­creased personnel costs and sales-related costs.
   

For further information, please contact:

Patrick MacArthur, CFO, Nordax

Tel: +46 760 32 69 70

Email: ir@nordax.se

About Nordax Holding

Nordax Holding is a holding company that owns Nordax Bank through Nordax Group. 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 over 500 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 March 2022, lending to the public amounted to SEK 75.7 billion and deposits to SEK 70.3 billion. 

Read more about Nordax at http://www.nordaxgroup.com

This information is information that Nordax Holding AB (publ) is obliged to make public pursuant to the Securities Markets Act. The information was submitted for publication at 07.30 CET on May 25, 2022.