The group's comprehensive income amounted to NOK 434 million in the third quarter of 2017, an increase of NOK 34 million from the second quarter of 2017 and NOK 187 million from the third quarter of 2016. Comprehensive income amounted to NOK 1,162 million as of September 30, 2017, compared with NOK 634 million for the same period in 2016.
The continued strong earnings growth is explained by loan growth, stable margins, good cost control and stable credit quality. The profit after tax includes a gain of NOK 50 million from the sale of non-performing loans in Norway, compared with a corresponding gain of SEK 43 million in the second quarter.
The strong customer and loan growth continued in the third quarter, with a loan growth of NOK 1.2 billion, while deposits increased NOK 1.1 billion. The bank recruited 73,800 customers in the third quarter. At the end of the third quarter the bank had a customer base of 1,167,000 customers, which can be broken down into 843,900 credit card customers, 164,200 loan customers and 158,900 deposit customers.
The bank has a broad Nordic platform and loan volumes grow faster outside of Norway. The recently implemented regulations from the Norwegian authorities are anticipated to have a limited impact on the bank's total development in the future.
The bank's framework for IFRS 9 is under implementation. The accounting standard is generally expected to lead to increased write-downs on loans, as under IFRS 9, an impairment allowance must be made for expected credit losses at the reporting date. Preliminary calculations indicate a moderate change in impairment losses.
The bank has a common equity tier 1 ratio of 16.6% that exceeds the minimum requirement of 15.3% with a wide margin and the bank is well positioned for further growth while maintaining the goal of dividend payments in 2018.
Bank Norwegian started its operations in November 2007 and offers consumer loans, credit cards and deposit accounts to retail customers distributed through the Internet in the Nordic market. The bank 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 consumer loans and deposit accounts in Denmark and Finland, while credit cards were launched in June 2016.
Bank Norwegian is a digital bank offering simple and competitive products to the retail market. The operations are 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 the report for the third quarter 2017 and the investor presentation for the third quarter 2017 available at:
If you have questions you may call;
CEO Tine Wollebekk; phone: + 4740805557
CFO Pål Svenkerud; phone: +4793403904
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
Norwegian Finans Holding ASA regnskapsrapport 3 kv 2017
Bank Norwegian AS regnskapsrapport 3 kv 2017
Norwegian Finans Holding ASA 3 quarter 2017 results presentation
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Norwegian Finans Holding ASA via Globenewswire