Komplett Bank ASA - Q4 2022 results: Strong growth and further reduction of cost base

14 Feb 2023 07:20 CET

Increased market interest rates absorbed
• Record sales in the quarter: close to NOK 10 billion loan balance – up 14% vs.
Q3 2022
• Loan book interest rates successfully increased
• Total income growth of 17% vs. Q3 2022

Delivering initiatives to improve performance and reduce cost base
• Number of full-time employees (FTEs) reduced by ~40% year-on-year
• Write-down and restructuring costs of MNOK 105 mainly driven by IT platform
optimisation
• Adjusted cost/income ratio of 44% vs. 50% in Q3 2022
• Further cost base reductions initiated: exiting underperforming POS Finance,
terminating brand royalty license (“Komplett”), and reducing office space.
Komplett Bank to launch under new name in May 2023

Q4 profitability impacted by growth-incurred loan loss provisions and
restructuring
• Adjusted loan loss ratio increased to 5.4% vs. 3.5% in Q3 2022 with high
growth prompting provision increase
• Profit after tax was NOK -88.7 million, down from NOK 18.0 million in the
previous quarter as higher total income was more than offset by the write-down,
restructuring costs and higher loan losses Ahead of schedule for delivering on
2024 growth and efficiency ambitions
• New Q4 2023 targets (previous run-rate 2024 ambitions in brackets): Gross loan
balance increase vs Q2 2022 of 60% (>50%), cost/income ratio ~30% (<35%) and
return on target equity of ~10% (12-15%)

Commenting on the results, CEO Øyvind Oanes, said:
“Komplett Bank continued to experience strong inflow of loan applications and we
ended the quarter with a well-diversified loan book of almost NOK 10 billion
amid a growing and resilient Nordic consumer financing market. The underlying
credit quality was stable, the NPL ratio remained below 3% and most new
non-performing loans (NPLs) were sold on forward flow agreements which limits
risk in the balance sheet.

Since the beginning of 2022, our focus has been on re-starting growth and
reducing the cost base, both critical for achieving attractive returns in the
medium term. Following successful implementation of a set of strategic
initiatives, Komplett Bank’s sales throughput has gradually increased reaching
4x the level of January 2022 in Q4. This enabled a 14% gross loan growth for the
second quarter in a row. While initiatives to reduce costs have required some
upfront investments, we have intensified our efficiency measures and now have
clear line of sight to a cost/income ratio of 30% at year-end 2023 which is
considered highly competitive in the consumer financing landscape. With the
progress made on throughput and cost reductions during 2022, we are now in the
position to accelerate our run-rate 2024 ambitions for loan balance growth and
efficiency.”

The interim report and presentation are attached to this release and available
at ir.komplettbank.com.

CEO Øyvind Oanes and CFO Eirik Holtedahl will present the Bank's results today
at 08:30 CEST.

The presentation and the Q&A session will be conducted via Microsoft Teams.
Registration form to the presentation: https://tinyurl.com/KOMPQ422

For further information, contact:

Eirik Holtedahl, CFO
tel: +47 96912291
email: ir@komplettbank.no


About Komplett Bank ASA
Komplett Bank is a diversified Nordic consumer finance company offering personal
loans, credit cards and deposit accounts to consumers. The target group is
creditworthy customers with stable personal finances and no payment remarks.
Credit risk is managed largely by automated processes for credit assessment and
underwriting. The Bank has a diversified and balanced distribution model
utilising both public and proprietary channels. Operational efficiency and low
cost are foundations for Komplett Bank and is enabled by centralized operations,
modern systems and digital set-up. To learn more, visit ir.komplettbank.com.

This information is considered to be inside information pursuant to the EU
Market Abuse Regulation article 7 and is subject to the disclosure requirements
pursuant to section 5-12 of the Norwegian Securities Trading Act. This stock
exchange announcement was published by Henning Fagerbakke, Head of Finance,
Komplett Bank ASA, on 14 February 2023 at 07:00 CEST.

More information:
Access the news on Oslo Bors NewsWeb site

582281_Komplett Bank - Q4 2022 presentation.pdf
582281_Komplett Bank - Q4 2022 report.pdf