Bluestep Bank AB (publ) Interim Report 2024

27 Aug 2024 18:30 CEST

The first half year in brief
The period extends from 1 January - 30 June 2024 (comparative figures show the
corresponding period last year for P&L items and 31 December 2023 for balance
sheet items).

Strategic development and significant events

The first half of 2024 was characterized by continued macroeconomic uncertainty,
with central banks embracing a cautious approach to rate cuts whilst monitoring
inflation trends and geopolitical risks. Inflation continued to fall, although
somewhat slower than expected where the Swedish Central bank and the ECB
communicated a cautious approach to interest rate cuts.
Continued decreasing inflation and expected interest rate cuts in Sweden led to
increased activity in the housing market with more transactions and stabilised
house prices, which can be noted in improved new lending volumes. Net credit
losses were broadly on the same level as last year and remained on a low level
in relation to the loan book.
The housing market in Norway has been stable despite Norges Bank's more cautious
stance on interest rate cuts. The integration of Bank2 proceeded according to
plan and expected synergy effects were realised. In addition, both brands have
shown good growth.
The Finnish operations showed good growth despite continued high interest rates
and a weak housing market. New lending volumes have stabilised at a new higher
level and the lending portfolio in Finland surpassed SEK 1 billion during the
second quarter, a growth of 36% compared to 31 December 2023.
New implemented processes, new technology and the 'One Nordic Approach' enabled
the Bank to carry out an internal restructuring during the first quarter. A
provision for severance pay of a total of MSEK 47 relating to internal
restructuring and the integration of Bank2 affects the result negatively

Performance and financial position

The financial performance and financial position are impacted by the acquisition
of Bank2, which was fully consolidated on the 31st of October 2023. Since the
merger in April 2024, the results of Bank2 are included in the Norwegian branch.
. Lending to the public increased by 37% to MSEK 27,964 (MSEK 20,458). The
increase includes the Bank2 portfolio of approx SEK 5 billion that was acquired
in October 2023.

. New lending amounted to MSEK 5,346 (MSEK 2,868).

. Net interest income amounted to MSEK 545 (MSEK 461), an increase of 18%.

. Operating profit amounted to MSEK 181 (MSEK 198) and decreased due to the
internal restructuring and the integration of Bank2.

. Net credit losses amounted to MSEK -19 (MSEK -16), equivalent to a credit loss
level of 0.13% (0.15%).

. The return on equity for the period was 11.5% (17.8%).

. The Common Equity Tier 1 ("CET1") ratio was 17.0% (15.5%).

. Total capital ratio was 19.1% (16.0%).

Financing and funding

The Group's strategy is to have a well-diversified funding structure, mainly
comprising of retail deposits from the public and the issuance of covered and
senior unsecured bonds.

During the first half of 2024, a tap issue of MSEK 200 of a covered bond with
maturity in November 2027 was completed. At the end of the period MSEK 5,200 of
covered bonds were outstanding under the Bank's MTCN-programme.

During the first half of the year, senior unsecured bonds amounting to MSEK
2,000 were issued. During the same period senior unsecured bonds amounting to
MSEK 1,050 and MNOK 550 were repaid. At the end of the period, the Bank had an
outstanding volume of MSEK 2,800 of senior unsecured bonds under the Bank's MTN
-programme.

The Bank issued Tier 2-instruments (T2) amounting to MSEK 300 under the MTN
-programme during the period. Since earlier, there were T2-instruments of MNOK
60 outstanding (issued by Bank2). Bank2 completed an early redemption of an
additional tier 1-instrument (AT1) amounting to MNOK 60 before the merger.

Deposits from the public amounted to MSEK 21,315 (MSEK 20,513) at the end of the
period

Comment from Björn Lander, CEO of Bluestep Bank:

"Our business has demonstrated incredible resilience during the first half of
2024, navigating through macroeconomic challenges with confidence. As we see
encouraging signs of stabilization, particularly with interest rates easing and
the housing market beginning to recover, our optimism for the future grows. Our
commitment to our core values - inclusivity, passion, innovation, and
responsibility - has been instrumental in driving our success. We have also
successfully integrated Bank2, strengthening our position in the Norwegian
market. We are poised to continue delivering strong results and contributing
positively to the communities we serve."

To read the report in full:
https://www.bluestepbank.com/investor-relations/financial-reports/

For further information, please contact:

Björn Lander, CEO, Bluestep Bank
+46 73 673 1899
bjorn.lander@bluestep.se

Juan Navas, Head of Corporate Communication, Bluestep Bank
+46 70 306 2245
juan.navas@bluestep.se

Or visit: www.bluestepbank.com

This information is information that Bluestep Bank AB (publ) is obliged to make
public pursuant to the EU Market Abuse Regulation, the Swedish Securities Market
Act and due to the requirements pursuant to § 5 - 12 of the Norwegian Securities
Trading Act. The information was submitted for publication, through the agency
of the contact persons set out above, at 18.30 CEST on 27 August 2024.

More information:
Access the news on Oslo Bors NewsWeb site

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