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Q3 2021 results

Profitability affected by sales of NPL portfolios.


• Non-Performing Loan (NPL) portfolios totaling NOK 1.4 billion sold in October
• Overall NPL ratio down from 22% to 9% after completion of transaction
• Forward flow agreements established for portfolios in Sweden and Finland 
• Increase of Loan-Loss-Provisions (LLP) following review of all portfolios
• Loss of NOK 356 million in third quarter driven by NPL sales and LLP increase
• Loan book up by 3.2% to NOK 8.6 billion in third quarter adjusted for one-off
• Reported net loans was down 3.9% in third quarter
• Yield on performing loans at 12.5% in third quarter, down from 12.9% in previous quarter
• Return on equity (ROE) based on the target capital adjusted for one-offs was 13.4% in third quarter
• Solid CET1 ratio of 18.8% in third quarter, well above the 17.0% requirement
• CET1 ratio after completion of NPL sales estimated at 20%  

Commenting on the results, CEO Øyvind Oanes, said: 

“Despite the underlying volume growth, we have seen a downward trend in profitability over several quarters. We have already established a roadmap to turn this trend, and are considering several measures to to improve profitability across our products and markets. Important elements will be to identify and drive actions to improve sales and margins, and a thorough review of the product portfolio to secure effective capital allocation.

Other important parts of this roadmap are measures for efficiency improvement such as process optimisation, streamlining of structures and cost reduction initiatives.

Komplett Bank has executed a set of strong actions to de-risk the balance sheet. The risk in Komplett Bank is now significantly reduced and the Bank is solid. This gives us the necessary comfort and we have started on setting the stage for the further evolution of the Bank. We look forward to go deeper into our plans at the fourth quarter presentation.”