The Group's comprehensive income in the third quarter amounted to NOK 434 million after tax, compared with NOK 483 million in the second quarter.
The underlying earnings development is satisfactory and is driven by strong loan growth, stable margins, good cost control and stable credit quality. Earnings development in the third quarter is characterized by positive seasonal and non-recurring factors in the second quarter, in addition to increased provisions due to normalized provisioning in Sweden and to account for an ECL model correction in Finland.
The strong customer and loan growth continued in the third quarter, with loan growth of NOK 1.6 billion, while deposits increased NOK 1.7 billion. The bank recruited 71,000 new customers in the third quarter.
At the end of the third quarter, the bank had a customer base of 1,463,800 customers, divided among 1,070,800 credit card customers, 195,100 instalment loan customers and 197,900 deposit customers.
As announced separately, Bank Norwegian has entered into an agreement with Axactor to transfer a portfolio of non-performing loans in Finland with an outstanding balance of approximately EUR 160 million. The transaction is estimated to close November 30, 2018 and is expected to have an immaterial earnings impact. The transaction will yield cost savings and eliminates uncertainty regarding the recovery of outstanding claims.
Bank Norwegian started its operations in November 2007 and offers instalment loans, credit cards and deposit accounts to retail customers distributed through the Internet in the Nordic market. Bank Norwegian offers, in cooperation with the airline Norwegian, a combined credit card and reward card. The bank started operations in Sweden in May 2013. In December 2015 the bank launched instalment loans and deposit accounts in Denmark and Finland, while credit cards were launched in June 2016.
Bank Norwegian is a digital bank that offers simple and competitive products to the retail market. The strategy is based on leading digital solutions, synergies with the airline Norwegian, attractive terms for our customers, cost-effective operations and effective risk selection.
For further information, see Report for the third quarter 2018 and Investor Presentation for the third quarter 2018, which are available at:
https://www.banknorwegian.no/OmOss/InvestorRelations
For any questions please call:
CEO Tine Wollebekk; phone: +47 40805557
CFO Pål Svenkerud; phone: +47 93403904
Head of Communications and Public Affairs Kai-Morten Terning; phone: +47 90531898
This information is disclosable under the Norwegian Securities Trading Act section 5-12.
