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Q3 Results

Increased operational efficiency, improved credit performance and returning to growth from September

Highlights
• Ramping up sales activities on the back of stronger operational performance and improving underlying credit quality 

• On track for growth in net loans from Q4 2020 and onwards after return to growth in September 

• Robust financial position and increasing dividend capacity 

Financial performance
• Net loans decreased by NOK 62 million in Q3, after a decrease in July, a neutral August and a positive September
 - Adjusted for currency effects and portfolio sale, net loans decreased by NOK 92 million

• Total income was NOK 269.3 million, down 5.9% compared to NOK 286.2 million in Q2 2020, driven by reduced net interest income due to lower average net loans in Q3

• Losses on loans were NOK 80.3 million, compared to NOK 82.9 million in Q2 2020
 - The loan loss ratio was 3.8%, equal to the level in Q2 2020 

• Total operating expenses decreased to NOK 90.9 million from NOK 100.4 million in Q2, mainly driven by a decrease in consulting spend in the quarter

• Profit after tax was NOK 73.4 million, down 4.7% from NOK 77.0 million in Q2 2020

• Komplett Bank’s CET1 ratio increased to 22.2% by end Q3 from 21.8% at end Q2 2020. Total capital ratio increased to 25.7% by end Q3 from 25.3% at end Q2 2020


Commenting on the results, CEO Jan Haglund, said: 

“Our main strategic priorities are to return to growth, continue to strengthen our operational performance and ensure a continued robust financial position and dividend capacity. We are delivering on all three priorities in the quarter, as we 1) returned to month-over-month growth during the quarter with stable loan losses and improving underlying credit quality, 2) lowered operational costs and 3) continued to build dividend capacity for 2020 and beyond.

We continue to see strong demand for flexible financing solutions from creditworthy individuals, and our operational improvements have allowed us to return to growth mode. We turned the corner In September, and I expect us continue growing from the fourth quarter onwards.

Risk control is a requirement for driving profitable growth, and our systematic measures to improve credit quality continue to yield results. This was the third consecutive quarter with lower default levels.
Overall, we have strengthened our position in a challenging environment in the third quarter. Although Covid-19 continues to create uncertainty, we have an efficient and robust business model, and the profitability, solidity and flexibility to weather the potential impacts going forward.”



CEO Jan Haglund and CFO Henning Fagerbakke will present the Bank's results at 08:30 CEST. The presentation and the Q&A session will be conducted via conference call and webcast.

The webcast can be followed at: https://komplettbank.eventcdn.net/2020Q3/

Conference call dial in numbers:
Norway: +47 23963938
Sweden: +46 850558365
Finland: +35 8923194478
Denmark: +45 78723252
United Kingdom: +44 3333009270
United States: +1 8335268396  
Germany: +49 69222220377
France: +33 170750719
Italy: +39 0236013851
Spain: +34 914192768
Canada: +16 474848336

No pincode is required

For further information, contact: 

Investors:
Henning Fagerbakke, CFO
+47 95 46 37 20
ir@komplettbank.no

Media:
Jan Haglund, CEO 
+46 70 600 2061
ir@komplettbank.no