Q1 2024

Quarterly report presentation

1

Summary of Q1 2024

Y-o-Y comparison

Loan book

Total income

SEK 45,199m

SEK 933m

+8%

+6%

Operating profit

Return on equity1

SEK 417m

15.8%

+8%

-1.6 p.p.

  1. Quarterly annualized

C/I

27.7%

+1.7 p.p.

CET1 / Total capital ratio

16.1% / 16.1%

2

  • Stabilized market rates create enhanced visibility and improved sentiment
  • Volume decline vs. Q4 primarily driven by seasonality in factoring
  • Continued selective approach
  • Strategic focus area going forward

Corporate

Loan book (SEKm)

9,808

9,608

9,544

9,705

8,733

Q1 23

Q2 23

Q3 23

Q4 23

Q1 24

Average loan2

SEK 45m

Average remaining maturity2

13 months

  1. Based on the Corporate loan book as of Q1 2024
  2. Based on the corporate lending loan book as of Q1 2024

Industry split1

Other

15%

Wholesale & Retail

Information &

21%

Communication

4%

Financial services &

Investment companies

Business services

20%

20%

Manufacturing

20%

Geographic split1

Other

14%

Sweden

Finland33%

22%

Norway

30%

3

  • Continued selective approach
  • Higher rate environment impacting transaction activity
  • Strategic focus area going forward

Real Estate (1/2)

Loan book (SEKm)

20,528

21,432

22,086

18,891

18,594

Q1 23

Q2 23

Q3 23

Q4 23

Q1 24

Average loan

SEK 121m

Average remaining maturity

15 months

  1. Based on the Real Estate loan book as of Q1 2024

Industry split1

Other

Warehouse 11%

3%

Hotel

8%

Retail

12%

Office

29%

Geographic split1

Other

Denmark 4%

7%

Finland

19%

Germany

20%

Residential

36%

Sweden

50%

4

  • Norion Bank acting as a leading complement to the client's primary bank
  • Low share of the client's total debt financing
  • Professional clients
  • Several listed companies as well as funds

Real Estate (2/2)

Portfolio overview

Share of senior loans

56%

Share of junior loans

44%

Average LTV - Senior loans

59%

Average LTV - Junior loans

71%

5

  • Good result from investments in proprietary distribution model
  • Reduced risk profile in new lending
  • Increased profitability prioritized over volume growth
  • Focus on sustainable lending remains

Consumer

Loan book (SEKm)

10,320 10,441 10,838 11,005 11,135

Q1 23

Q2 23

Q3 23

Q4 23

Q1 24

Average loan new sales

SEK 199,000

(LTM)

Average loan

SEK 167,000

Sales through own

~40%

distribution channels

  1. Based on the Consumer loan book as of Q1 2024

Geographic split1

Finland Norway

3% 1%

Sweden

96%

Average customer

Age: 50 years

Income in SEK (at approval/current): 360,000 / 440,000

Women: 59% / Men: 41%

6

Payments

•

Transaction volumes

outperforming the

underlying market

•

High inflation and

increased cost of

living contribute to

a continued

uncertain climate

Transaction volumes (SEKm)

Geographic split1

4,239

Norway

Denmark

3,646

3,514

3,590

12%

1%

3,132

Finland

Sweden

48%

39%

Q1 23

Q2 23

Q3 23

Q4 23

Q1 24

for the Nordic

e-commerce market

Loan book (SEKm)

2,336

2,552

2,640

2,763

2,694

Q1 23

Q2 23

Q3 23

Q4 23

Q1 24

  1. Based on the Payments loan book as of Q1 2024

Selected merchants

Active customers (LTM): 4.8 million

7

  • Stable income development
  • Low volatility in NGL items during Q1
  • Positive NII sensitivity since beginning of rate hikes
  • Margin decline vs. Q4 in line with expectations due to lag of increased funding costs

Stable income and margin development

Total income (SEKm)

NIM - Quarter1

882

926

906

934

933

7.8%

7.9%

7.7%

7.4%

7.3%

Q1 23

Q2 23

Q3 23

Q4 23

Q1 24

Q1 23

Q2 23

Q3 23

Q4 23

Q1 24

Y-o-Y: +6%

Y-o-Y:-0.4 p.p.

Q-o-Q: 0%

Q-o-Q:-0.4 p.p.

  1. Quarterly annualized

8

  • Yield increase driven by higher interest rate environment
  • Higher funding costs coming through in line with expectations

Rate hikes affecting both yield and funding costs

NIM, yield and funding costs1

8.09%

7.78%

7.88%

7.71%

7.35%

7.34%

6.89%

6.85%

7.12%

10.74%

10.77%

11.45%

11.45%

9.72%

10.00%

4.11%

7.91%

7.87%

8.29%

3.42%

3.73%

2.86%

2.23%

1.63%

1.02%

1.01%

1.17%

Q1 22

Q2 22

Q3 22

Q4 22

Q1 23

Q2 23

Q3 23

Q4 23

Q1 24

NIM

Yield

Funding costs

  1. Quarterly annualized

9

  • Volume and margin decline vs. Q4 primarily driven by seasonality in factoring
  • Stabilized market rates create enhanced visibility and improved sentiment

Corporate

Loan book (SEKm) and NIM1

9,808

9,608

9,544

9,705

8,733

7.9% 7.7% 8.0% 7.8%

6.9%

Q1 23

Q2 23

Q3 23

Q4 23

Q1 24

Y-o-Y:-11%

Loan book

Q-o-Q:-10%

  1. Quarterly annualized

Total income (SEKm) and margin1

217

191

191

179

165

9.1%

7.5%

7.9%

7.4%

7.2%

Q1 23

Q2 23

Q3 23

Q4 23

Q1 24

Y-o-Y:-13%

Total income

Q-o-Q:-8%

10

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Disclaimer

Norion Bank AB published this content on 23 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 April 2024 05:43:08 UTC.