Interim report January–December 2022 Nordax Bank AB

22 Feb 2023 16:01 CET

Highlights January–December 2022

• On November 30, 2022, the intra-group legal merger be¬tween Nordax Bank AB
(publ) and Bank Norwegian ASA was implemented
• Total lending amounted to SEK 88.8 billion (SEK 70.7 billion as at 31 December
2021)
• Personal loans and credit cards amounted to SEK 73.0 billion (SEK 58.0 billion
as at 31 December 2021)
• Mortgage lending (mortgage loans and equity release mortgages) amounted to SEK
15.7 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
77.1 billion (SEK 67.4 billion as at 31 December 2021)
• Operating profit amounted to SEK 1,329 million (-33), driven primarily by the
consolidation of Bank Norwegian, however also with the comparison period being
affected by nega¬tive technical accounting effects regarding credit losses
related to the acquisition
• To reflect the generally increased interest rate levels, Nordax continued to
raise interest rates in all markets also during the fourth quarter

Portfolio development

Total lending as at 31 December 2022 amounted to SEK 88.8 billion (SEK 70.7
billion as at 31 December 2021), during 2022 approximately 85% of the growth was
driven by increased sales and approximately 15% by currency effects.

Business development personal loans and credit cards
During 2022, Nordax’ portfolios of both private loans and credit cards continued
to show a good growth.

As at 31 December 2022, the total volume of personal loans and credit cards
amounted to SEK 73.0 billion (SEK 58.0 billion as at 31 December 2021), during
2022 approximately 80% of the growth was driven by increased sales and
approximately 20% by currency effects.

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 6.9 billion as at 31 December 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 2022 and shows stable new lending, on the back of the strong SHP
brand. The total volume amounted to SEK 8.8 billion as at 31 December 2022 (SEK
7.6 billion as at 31 December 2021).

Results January-December 2022

• Operating profit amounted to MSEK 1,329 (-33). The increase is explained by
Bank Norwegian operations af¬fecting 2022 as a whole while it is only included
in November -December for the comparison period 2021 and by growing lending,
together with the comparison periods nega¬tive technical accounting effects
regarding credit losses in connection with the acquisition of Bank Norwegian.
The result also includes increased costs, among other things driven by the
ongoing integration of Bank Norwegian, write-down of intangible assets related
to Lilienthal Finance Ltd of MSEK 201 during the fourth quarter as well as
increased provisions for expected credit losses.

• Net interest income amounted to MSEK 6,747 (2,532). The increase is mainly due
to the consolidation of Bank Norwe¬gian. Net interest income also increased
through growing lending and by the review carried out during the first quar¬ter
regarding estimated effective interest rate.

• Depreciation, amortization and impairment of tangible and intangible assets
amounted to MSEK -449 (-62). The increase is primarily driven by write-down of
intangible assets related to Lilienthal Finance Ltd of MSEK 201 during the
fourth quarter and by depreciation according to plan of intangible assets
related to the acquisition of Bank Norwegian.

• Other operating expenses amounted to MSEK -2,751 (-1 588). The increase is
mainly explained by the consolidation of Bank Norwegian, but also by investments
in operations, among other things connected to the ongoing integration work,
in¬creased personnel costs and sales-related costs.

• Credit losses amounted to MSEK -2,425 (-1,013), cor¬responding 3.0 per cent
(2.1) of average lending. The increase is mainly explained by the consolidation
of Bank Norwegian, but also by the estimated effective interest rate and
increased provisions for expected future credit losses. Credit losses were also
affected negatively by increased provi¬sions related to a deteriorated
macroenvironment which contributed with MSEK -120 credit losses in the fourth
quarter and with MSEK -162 during 2022.

For further information, please contact:
Patrick MacArthur, CFO, Nordax
Tel: +46 760 32 69 70
Email: ir@nordax.se
About Nordax Bank

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 just under 600 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 2022, lending to
the public amounted to SEK 88.8 billion and deposits to SEK 77.1 billion.

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

This information is information that Nordax Bank AB (publ) is obliged to make
public pursuant to the Securities Markets Act. The information was submitted for
publication at 07.30 CET on February 22, 2022.

More information:
Access the news on Oslo Bors NewsWeb site

583254_Rapport Nordax Bank Q4 2022.pdf