Year-end Report January–December 2021 Nordax Holding AB

Highlights January–December 2021

• In November, Nordax completed the acquisition of Bank Norwegian which affects the comparability versus the previous period
• Nordax’s offering now includes credit cards, as well as new lending on the Danish, German and Spanish markets
• Total lending amounted to SEK 71.4 billion (SEK 28.5 billion as at 31 December 2020)
• Personal loans and credit cards amounted to SEK 58.7 billion (SEK 18.7 billion as at 31 December 2020)
• Mortgage lending (mortgage loans and equity release mortgages) amounted to SEK 12.7 billion (SEK 9.8 billion as at 31 December 2020), comprising 18% of total lending
• Nordax’s savings offering displayed continued inflows and total deposits grew to SEK 67.4 billion (SEK 24.2 billion as at 31 December 2020)
• Operating losses amounted to SEK -173 million (492), driven by non-recurring effects in connection with the acquisition of Bank Norwegian

Business development personal loans and credit cards

Nordax continued to report a steady increase in personal loans, with increased growth in the fourth quarter. In total, underlying volumes increased by SEK 3.7 billion during 2021, as compared to 2020. Alongside organic growth, the acquisition of Bank Norwegian contributed SEK 24.6 billion to the volume of personal loans. A credit card volume of SEK 10 billion also accrued to Nordax through Bank Norwegian during the quarter.

As at 31 December, the total volume of personal loans and credit cards amounted to SEK 58.7 billion (SEK 18.7 billion as at 31 December 2020).

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 5.1 billion as at 31 December 2021 (SEK 3.2 billion as at 31 December 2020).

Business development equity release mortgages

The portfolio continued to develop well in 2021, with stable new lending. The market for equity release mortgages has a good development potential and SHP has a strong brand within the customer group, with continued strong customer interest. The total volume amounted to SEK 7.6 billion as at 31 December 2021 (SEK 6.6 billion as at 31 December 2020).

Portfolio development

Total lending as at 31 December amounted to SEK 71.4 billion (SEK 28.5 billion as at 31 December 2020).

 Results January–December 2021

• There was an operating loss for January–December 2021 of SEK -173 million (492). This transition from profit into loss is partly driven by the effects of the accounting treatment of credit losses in connection with the acquisition of Bank Norwegian and partly by increased costs relating to the acquisition.
• Net interest income for January–December 2021 amounted to SEK 2,418 million (1,637). Net interest income rose primarily as a result of the acquisition and consolidation of Bank Norwegian, but also through increased lending. Net interest income was negatively affected, however, by an increase in costs relating to the financing of the acquisition.
• Credit losses for January–December 2021 amounted to SEK -1,010 million (-430), which corresponds to 3.1 percent (1.4) of average lending. The main reason for the large increase in credit losses is previously reported credit loss reserves in Stages 1 and 2 at Bank Norwegian, which at the time of acquisition constitute the majority of the initial accounting effect of SEK 537 million.
• Operating expenses for January–December 2021 totalled SEK -1,699 million (-740). This increase is primarily the result of the acquisition and consolidation of Bank Norwegian, but also of increased investment in the business, as well as a comparison period affected by specific cost savings relating to lower levels of activity because of COVID-19. The acquisition process for Bank Norwegian had a negative impact on costs during the period of approximately SEK 570 million.
   

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 a little under 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 December 2021, lending to the public amounted to SEK 70.7 billion and deposits to SEK 67.4 billion. 

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