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The Group’s comprehensive income in 2019 amounted to NOK 1 981 million after
tax, compared with NOK 1 807 million in 2018.
The Board of Directors in Norwegian Finans Holding ASA proposes a dividend of
3.18 per share and share repurchase of MNOK 150 during 2020.
The Group has changed method for calculation of interest income on loans
transferred to debt collection and implemented amendment to IAS 12 - Income
taxes in the period. The net effects of the implementation are booked in the
fourth quarter 2019. Comparable numbers are restated.
The underlying earnings development is strong and is driven by loan growth,
stable margins, cost control and good credit quality.
The customer and loan growth continued in the fourth quarter, with loan growth
of NOK 875 million, currency adjusted. In a market characterized by competitive
pressure and regulatory changes, customer growth and growth within both personal
loans and credit cards continued. Deposits increased NOK 866 million, currency
adjusted.
Net interest income increased due to loan growth. Net commission income
increased due to lower costs related to card processing. Operating expenses
increased due increased digital marketing spending and external services costs,
partly offset by lower IT costs. Loan loss provisions was stable in the quarter.
In the fourth quarter the bank received its MREL requirement (Minimum
requirement for own funds and eligible liabilities). Following successful bond
issues, the Bank complies with the MREL requirements as of June 30, 2020 and
further into the phase-in period towards 2022.
The bank recruited 33 400 new customers in the fourth quarter. At the end of the
quarter, the bank had a customer base of 1 716 500 customers, divided among
1 255 700 credit card customers, 208 100 instalment loan customers and 252 700
deposit customers.
Bank Norwegian continues to explore the best path for geographical expansion. A
cautious and segmented go-to-market model will ensure the same industry-leading
performance as in our key Nordic markets.
The application process for an EU Banking license in Ireland is progressing
according to plan, and the bank is currently in the final stages of the
“exploratory phase”.
Bank Norwegian started its operations in November 2007 and offers instalment
loans, credit cards and deposit accounts to retail customers distributed through
the Internet in the Nordic market. Bank Norwegian offers, in cooperation with
the airline Norwegian, a combined credit card and reward card. The bank started
operations in Sweden in May 2013. In December 2015 the bank launched instalment
loans and deposit accounts in Denmark and Finland, while credit cards were
launched in June 2016. In 2019 Norwegian Finans Holding ASA acquired all the
shares in the Irish company Lilienthal Finance Ltd. and through this company all
rights to the Norwegian brand for banking services and access to customers in
Europe.
Bank Norwegian is a digital bank that offers simple and competitive products to
the retail market. The strategy is based on leading digital solutions, synergies
with the airline Norwegian, attractive terms for our customers, cost-effective
operations and effective risk selection.
For further information, see Report for the fourth quarter 2019, Investor
Presentation for the fourth quarter 2019, and Excel Factbook for the fourth
quarter 2019 which are available at:
https://www.banknorwegian.no/OmOss/InvestorRelations
For any questions please call:
CEO Tine Wollebekk; phone: +47 40805557
CFO Pål Svenkerud; phone: +47 93403904
Head of Treasury Mats Benserud; phone: +47 95891539
Head of Communications and Public Affairs Kai-Morten Terning; phone:
+47 90531898
This information is subject to the disclosure requirements pursuant to Section
5-12 the Norwegian Securities Trading Act
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