The Group's comprehensive income in the first quarter amounted to NOK 483 million after tax, compared with NOK 469 million in the fourth quarter 2018.
The underlying earnings development is satisfactory and is driven by loan growth, stable margins, increased commission income, good cost control and stable credit quality.
Net interest income fell as a result of fewer interest days and increased deposit guarantee provision. Net commission income increased due to credit card and insurance incentives. Operating expenses increased as a result of increased marketing efforts. Loan loss provisions fell as a result of model calibrations, calendar effects and due to higher costs in the fourth quarter associated with the sale of non-performing loans in Finland.
The customer and loan growth continued in the first quarter, with loan growth of NOK 324 million (NOK 1.0 billion adjusted for currency effects), while deposits decreased NOK 1.4 billion (decreased NOK 830 million adjusted for currency effects).
The reduction of the deposit guarantee amount to EUR 100 000 outside Norway per. 1.1.2019 has contributed to reduced deposit volumes in Sweden and Finland, while Denmark has not been affected.
The bank has strengthened its balance sheet in the quarter through the issue of senior unsecured bonds of NOK 1.0 billion and SEK 550 million.
The bank recruited 70 100 new customers in the first quarter. At the end of the first quarter, the bank had a customer base of 1 577 700 customers, divided among 1 158 600 credit card customers, 196 700 instalment loan customers and 222 400 deposit customers.
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. Norwegian Finans Holding ASA has entered into an agreement on May 2, 2019, to acquire all the shares in Lilienthal Finance Ltd, a company set up to obtain a banking license in Ireland.
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 first quarter 2019, Investor Presentation for the first quarter 2019 and announcement released May 2, 2019 regarding agreements securing European expansion rights, which are available at:
For any questions please call:
CEO Tine Wollebekk; phone: +47 40805557
CFO Pål Svenkerud; phone: +47 93403904
Head of Communications and Public Affairs Kai-Morten Terning; phone: +47 90531898
This information is disclosable under the Norwegian Securities Trading Act section 5-12.