Growth engine restarted o Record sales and 14% net loan growth in the quarter o Strong growth across geographies amid continued robust demand o Significantly improved throughput driven by multiple initiatives Cost reductions well underway o Opex down 9.3% toNOK 94 million driven by reduced FTEs which are down ~20% YTD o Higher deposit rates reduced net yield, notice requirements delay loan repricing o Reduced net profit due to strong loan growth prompting upfront loan loss provisions Stable outlook o Improved processes to reduce annualized opex byNOK 20-25 million from Q1 2023 o Identified IT cost reduction potential ofNOK 30-35 million annually by end 2024 o On track to deliver on run-rate 2024 ambitions for growth and efficiency Commenting on the results, CEO Øyvind Oanes, said: "We began 2022 by starting a series of strategic initiatives with the goal to repositionKomplett Bank for accelerated growth. The implementation has progressed according to plan, and after seeing positive preliminary results in Q2, we considerably increased throughput in Q3. We saw record sales and grew our loan book by around 14% orNOK 1 billion in the quarter, whilst maintaining good credit quality and significantly decreasing operating costs. Improved pricing and credit scoring, a more streamlined onboarding process and a higher level of automation are significant factors driving the enhanced throughput. I am very happy with all the effort put in by the team to deliver on these initiatives that are so essential for our success. Higher deposit rates, driven by the market dynamics, have impacted margin in the period. However, we have initiated multiple actions to also increase loan rates and target to stabilise net yield over time. The strong loan volume growth resulted in higher upfront provisions for loan losses as required by IFRS 9. This had a negative impact on profit after tax in the quarter. In the upcoming quarters, we anticipate favourable effects from a larger loan book, increased loan interest rates, as well as further opex reductions. Our ambition to significantly improve the performance and profitability of the Bank remains, and we are executing on plan and according to our defined strategy". The interim report and presentation are attached to this release and available at ir.komplettbank.com. CEO Øyvind Oanes and CFOEirik Holtedahl will present the Bank's results today at08:30 CEST . The presentation and the Q&A session will be conducted via Teams, see invite: https://tinyurl.com/Komplett-Bank-Q3-2022 For further information, contact: Eirik Holtedahl, CFO tel: +47 96912291 email: ir@komplettbank.no AboutKomplett Bank ASA Komplett Bank is a focused Nordic digital niche bank offering personal loans, credit cards, deposit accounts and online point-of-sales finance products to consumers. The target group is creditworthy customers with stable personal finances and no payment remarks. Credit risk is managed largely by automated processes for credit assessment and underwriting. The Bank has a diversified and balanced distribution model utilizing both public and proprietary channels. Operational efficiency and low cost are foundations forKomplett Bank and is enabled by centralized operations, modern systems and digital set-up. To learn more, visit ir.komplettbank.com. This information is considered to be inside information pursuant to the EU Market Abuse Regulation article 7 and is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act. Thisstock exchange announcement was published byHenning Fagerbakke , Head of Finance,Komplett Bank ASA , on27 October 2022 at07:00 CEST .
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