JANUARY-SEPTEMBER 2016
Numbers compared with January-September 2015
• Loan portfolio increased by 14% in constant currencies
• Net interest margin increased to 9.2% (8.7%)
• Total operating income increased to 882 MSEK (660). Adjusted total operating income increased to 812 MSEK (689)
• Adjusted cost to income ratio (rolling 12 months) improved to 27.7% (29.0%)
• Operating profit improved to 433 MSEK (170). Adjusted operating profit increased by 27% to 360 MSEK (283)
• Net profit increased to 336 MSEK (132)
• Earnings per share were 3.03 SEK (1.19). Adjusted earnings per share were 2.53 SEK (1.99)
3rd QUARTER 2016
Numbers compared with 3rd quarter 2015
• Loan portfolio increased by 14% in constant currencies
• Net interest margin decreased slightly to 9.1% (9.2%)
• Total operating income increased to 312 MSEK (226). Adjusted total operating income improved to 279 MSEK (243)
• Adjusted cost to income ratio (rolling 12 months) improved to 27.7% (29.0%)
• Operating profit improved to to 168 MSEK (83). Adjusted operating profit increased by 34% to 138 MSEK (103)
• Net profit increased to 131 MSEK (64)
• Earnings per share were 1.18 SEK (0.58). Adjusted earnings per share were 0.97 SEK (0.73)
CEO COMMENTS
“Net profit increased to 336 MSEK (132) and the return on our growing equity was 24%”
The third quarter was Nordax’s most profitable to date with positive trends sustained in terms of solid growth, stable margins, increased efficiency, improved capitalisation and low credit losses. New lending and growth continued in all our markets in Northern Europe. We are especially pleased that the improvements we have made in the loan offering and processes in Finland have resulted in increased new lending and a higher growth rate. Our capital position was further strengthened as a result of the solid profitability and through a change of method for calculating the capital requirements for operational risk.
For the period January-September adjusted operating profit increased by 27 per cent to 360 MSEK and our loan portfolio grew by 14 per cent in constant currencies. Net profit increased to 336 MSEK (132) and the return on our growing equity was 24%. Thanks to lower funding costs, we were able to reduce our lending rates twice during the year for customers in Sweden and once in Norway.
In our two largest markets, Norway and Sweden, which together account for about 75 per cent of lending, we continued to perform well. Lending excluding local currency effects grew by 17 per cent in Norway and by 10 percent in Sweden.
Germany is our latest and smallest, but fastest growing market in relative terms. With the support of additional data, we revalued the provisioning level for past due loans in Germany during the quarter, which reduced the credit loss level. We remain conservative with a higher provisoning level for past due loans compared to our other markets, where we have more historical data.
Demand for personal loans remains high, and we have a good offering for our customers. We want to further improve the customer experience and simplify for our customers by providing more digital self-services and improved processes. The country organisation we established in the second quarter for our customer facing units in our Stockholm-office was an important step in this direction. Our employees have quickly adapted, and the new organisation has been a success. We expect in time that the efforts we are making to improve our digital solutions and administrative processes will increase customer satisfaction, produce more stimulating opportunities for our employees and generate stable costs. Our ambition is to further improve the adjusted cost to income ratio and take advantage of our scalable operating model.
“Our ambition is to further improve the adjusted cost to income ratio”
A sustainable business model is essential for us and during the quarter, our sustainability project progressed according to plan. During the fourth quarter our ambition is to complete the work with developing a sustainability strategy and to present the result in the annual report for 2016.
Since 2010 we have organically grown our lending portfolio by just over 15 per cent annually and profit has increased at an even faster rate. Our focused business model with one product area, geographical and funding diversification, and operations centralized in a single office has been successful. Our long experience in the industry makes us risk averse with a focus on a strong customer group and thorough credit assessments to ensure low credit risk.
Our business is constantly developing thanks to all the skilled employees in the company, and I am convinced that we have a bright future as we become a leading niche bank in Northern Europe.
Morten Falch
CEO
Contact
For more information, please contact
Morten Falch, CEO, +46 8 690 15 07, morten.falch@nordax.se
Camilla Wirth, CFO, +46 8 690 15 07, camilla.wirth@nordax.se
Andreas Frid, Head of Investor Relations, +46 705 29 08 00, andreas.frid@nordax.se
Johanna Clason, treasurer and debt investor relations, +46 8 690 15 07, johanna.clason@nordax.se
Conference call
Media, analysts and investors are welcome to take part in a conference call on October 26 at 8.30am CET. CEO Morten Falch and CFO Camilla Wirth will present the results. After the presentation there will be a Q&A session.
Call-in numbers:
Sweden: +46 8 566 426 64
UK: +44 203 008 98 13
US: +1 855 753 22 36
Link to audiocast:
https://wonderland.videosync.fi/2016-10-26-nordax-q3-report
You can also follow the presentation on
https://www.nordaxgroup.com/en/investors/financial-reports/presentations/
This information is information that Nordax Group AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 07.30 CET on October 26, 2016.
This information was brought to you by Cision http://news.cision.com
The following files are available for download:
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