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Q3 Results 2022

Strong volume growth and lower operating cost.

Growth engine restarted
• Record sales and 14% net loan growth in the quarter
• Strong growth across geographies amid continued robust demand
• Significantly improved throughput driven by multiple initiatives

Cost reductions well underway
• Opex down 9.3% to NOK 94 million driven by reduced FTEs which are down ~20%
YTD
• Higher deposit rates reduced net yield, notice requirements delay loan
repricing
• Reduced net profit due to strong loan growth prompting upfront loan loss
provisions

Stable outlook
• Improved processes to reduce annualized opex by NOK 20-25 million from Q1 2023
• Identified IT cost reduction potential of NOK 30-35 million annually by end
2024
• On track to deliver on run-rate 2024 ambitions for growth and efficiency

Commenting on the results, CEO Øyvind Oanes, said:

“We began 2022 by starting a series of strategic initiatives with the goal to reposition Komplett Bank for accelerated growth. The implementation has progressed according to plan, and after seeing positive preliminary results in Q2, we considerably increased throughput in Q3. We saw record sales and grew our loan book by around 14% or NOK 1 billion in the quarter, whilst maintaining good credit quality and significantly decreasing operating costs.

Improved pricing and credit scoring, a more streamlined onboarding process and a higher level of automation are significant factors driving the enhanced throughput. I am very happy with all the effort put in by the team to deliver on these initiatives that are so essential for our success.

Higher deposit rates, driven by the market dynamics, have impacted margin in the period. However, we have initiated multiple actions to also increase loan rates and target to stabilise net yield over time.

The strong loan volume growth resulted in higher upfront provisions for loan losses as required by IFRS 9. This had a negative impact on profit after tax in the quarter. In the upcoming quarters, we anticipate favourable effects from a larger loan book, increased loan interest rates, as well as further opex reductions.

Our ambition to significantly improve the performance and profitability of the Bank remains, and we are executing on plan and according to our defined strategy”.

See the announcement on Oslo Børs here.