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Q4 Results 2021

“The fourth quarter has been an eventful quarter where a solid foundation has been laid for a positive development going forward"

Profitability and growth
• Profit after tax NOK 34 million, reflecting de-risking and discontinuation of recording interest income on sold non-performing loans (NPL)
• Yield on performing loans at 13.0% in Q4, up from 12.5% in Q3
• Net loan book up by 1.8% to NOK 7.4 billion in the quarter adjusted for one-off NPL sales and FX

De-risking of balance sheet
• Completion of NOK 1.4 bn NPL sales bringing NPL ratio down to 10%
• Loan loss ratio stable at 3.0% in the quarter (adjusted for NPL sale effects)
• Forward flow agreements established in Sweden & Finland effective from November 2021

Capital
• Solid CET1 ratio of 20.7% in Q4, well above 17.1% requirement

Operations
• Extensive business review conducted, strategic roadmap developed
• New management & organisational structure in place

Commenting on the results, CEO Øyvind Oanes, said:

“The fourth quarter has been an eventful quarter where a solid foundation has been laid for a positive development going forward. We have conducted an extensive business review during the quarter where we have identified the key challenges and opportunities for the bank.

Based on our findings we have developed a strategic roadmap for repositioning the Bank for growth. Throughout 2022 we will implement a range of commercial actions, automate processes and improve IT efficiency.

The Bank remains well capitalised, which provide the necessary flexibility when implementing the action plan. In addition, a new and highly motivated management team has been appointed with leaner decision-making processes and increased focus on critical parts of the operations.

I am looking forward to revitalise the bank throughout 2022 so that we again can focus on profitable growth in 2023 and beyond”