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Operational and financial update

In relation to Komplett Bank’s Annual General Meeting, Komplett Bank wishes to provide the market with a brief operational update.

Over the last few weeks, the global COVID-19 (coronavirus) pandemic has dramatically intensified, and governments across the world have implemented significant and strict policies to slow and possibly reduce the spread of the virus. Komplett Bank closely monitors the situation and has implemented several operational changes to cope with the demanding market situation.

The organisation

During this trying time, safeguarding the health and well-being of Komplett Bank’s employees and their families is of utmost importance. Komplett Bank has therefore implemented measures in line with the recommendations and restrictions of the Norwegian authorities to protect its employees and support the government’s efforts to limit the spread of the virus.

All employees have been advised to work from home for an indefinite period of time, and all have been provided with remote work and virtual meeting capabilities. The Bank is ensuring as close to normal operations as possible, and the pandemic is not expected to have a material impact on day-to-day operations or to compromise any of the Bank’s products and services.

Financial update

The Bank is, during this unprecedented period, making efforts to assist existing customers overcome short-term challenges in servicing their loans. Servicing the needs of existing customers has been given priority and Komplett Bank has decided to be even more prudent in terms of risk when onboarding new customers. As a result, loan growth adjusted for currency effects is expected to be slightly negative in Q1 2020.
Loan losses for the first two months of the year improved significantly compared to the average level in Q4 2019. The annualised loan loss ratio for the first two months of 2020 was 4.0% compared with 5.6% in Q4 2019, excluding parameter updates. Unaudited pre-tax operating profit came in at NOK 74.5 million for the first two months of 2020.

As a consequence of the pandemic and resulting changes in macroeconomic conditions, Komplett Bank expects to make additional loan loss provisions during 2020. An assessment of the impact has yet to be concluded, and the assessment will be based on the latest information available at the Q1 2020 reporting date.

The financial supervisory authorities of both Norway and Sweden have lowered the capital requirements for banks, which is expected to reduce Komplett Bank’s CET1 capital requirement by 1.2%-points to 17.1% for the first quarter. This corresponds to a total capital requirement of 20.6%.

At the end of 2019, Komplett Bank had a CET1 ratio of 21.3% and total capital ratio of 22.5%, well above the capital requirements. In terms of liquidity, the Bank is primarily funded through deposits in the Norwegian, German and Swedish markets. Komplett Bank has a solid liquidity position and has no refinancing needs in 2020. 

For additional information, please contact:

Henning Fagerbakke, CFO
+47 95 46 37 20

Jan Haglund, CEO 
+46 70 600 2061