Q3 2023

Quarterly report presentation

1

Collector Bank has become Norion Bank

Highlighting the strategic transformation journey

  • Streamlined business
    → Focused financing bank
  • Balanced and profitable growth
  • More balanced risk profile
  • Corporate and Real Estate accounting for c. 70% of the loan portfolio

Clarifying the customer offering and

optimizing opportunities for all

business areas

Medium-sized corporates and real estate companies in the Nordics

Merchants and private

individuals in the Nordics

Private individuals in

Sweden

2

Summary of Q3 2023

Y-o-Y comparison

Loan book

Total income

SEK 44,139m

SEK 906m

+6%

+12%

Net profit

Adjusted return on equity1

SEK 321m

16.6%

+9%

-2.0 p.p.

  1. Quarterly annualized

C/I

24.5%

-0.3 p.p.

CET1 / Total capital ratio

15.1% / 16.2%

Decision on P2G and

operational risk method

3

  • Lower new lending volumes given the uncertain macroeconomic environment
  • Continued selective approach
  • Strategic focus area going forward

Corporate

Loan book (SEKm)

10,743

10,570

9,808

9,608

9,544

Q3 22

Q4 22

Q1 23

Q2 23

Q3 23

Average loan2

SEK 47m

Average remaining maturity2

15 months

  1. Based on the Corporate loan book as of Q3 2023
  2. Based on the corporate lending loan book as of Q3 2023

Industry split1

Information &

Other

11%

Communication

4%

Manufacturing

Business services

25%

15%

Financial services &

Wholesale & Retail

23%

Investment companies

22%

Geographic split1

Other

20%

Sweden

35%

Finland

21%

Norway

24%

4

•

Continued selective

approach

•

Higher rate

environment

impacting

transaction activity

Real Estate (1/2)

Loan book (SEKm)

17,122 17,411 18,594 18,891

20,528

Industry split1

Other

19%

Retail

7%

Warehouse

8%

Offices

26%

Residential

40%

• Strategic focus area

going forward

Q3 22

Q4 22

Q1 23

Q2 23

Q3 23

Average loan

SEK 125m

Average remaining maturity

13 months

  1. Based on the Real Estate loan book as of Q3 2023

Geographic split1

Other

Denmark 5%

9%

Finland

16%

Germany

20%

Sweden

49%

5

  • 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

59%

Share of junior loans

41%

Average LTV - Senior loans

62%

Average LTV - Junior loans

73%

6

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

Consumer

Loan book (SEKm)

10,602

10,367

10,320

10,441

10,838

Q3 22

Q4 22

Q1 23

Q2 23

Q3 23

Average loan new sales

SEK 209,000

(LTM)

Average loan

SEK 156,000

New sales through own

~40%

distribution channels

  1. Based on the Consumer loan book as of Q3 2023

Geographic split1

Finland Norway

3% 1%

Sweden

96%

Average customer

Age: 50 years

Income: SEK 350,000

Women: 58% / Men: 42%

7

Payments

•

Double-digit

increase in

transaction volumes

Y-o-Y

•

High inflation and

rate hikes contribute

to a continued

uncertain climate

Transaction volumes (SEKm)

Geographic split1

3,727

3,646

3,514

Norway

Denmark

3,165

3,132

11%

1%

Finland

Sweden

48%

40%

Q3 22

Q4 22

Q1 23

Q2 23

Q3 23

for the Nordic

e-commerce market

Loan book (SEKm)

2,359

2,476

2,336

2,552

2,640

Q3 22

Q4 22

Q1 23

Q2 23

Q3 23

  1. Based on the Payments loan book as of Q3 2023

Selected merchants

Active customers (LTM): 4.6 million

8

  • Stable underlying income development
  • Lower income from Real Estate but positive NGL effects
  • Positive NII sensitivity since beginning of rate hikes

Total income holding up well with variations between line items

Total income (SEKm)

NIM - Quarter1

928

882

926

906

8.1%

7.8%

7.9%

811

7.1%

7.4%

Q3 22

Q4 22

Q1 23

Q2 23

Q3 23

Q3 22

Q4 22

Q1 23

Q2 23

Q3 23

Y-o-Y: +12%

Y-o-Y: +0.2 p.p.

Q-o-Q:-2%

Q-o-Q:-0.5 p.p.

  1. Quarterly annualized

9

  • Yield increase driven by higher interest rate environment
  • Higher funding costs coming through with expectations of further increases

Rate hikes affecting both yield and funding costs

NIM, yield and funding costs1

8.09%

7.78%

7.88%

7.35%

6.94%

7.12%

6.76%

6.89%

6.85%

9.72%

10.00%

10.74%

10.77%

7.68%

8.08%

7.91%

7.87%

8.29%

2.86%

3.42%

1.63%

2.23%

1.14%

1.02%

1.17%

0.92%

1.01%

Q3 21

Q4 21

Q1 22

Q2 22

Q3 22

Q4 22

Q1 23

Q2 23

Q3 23

NIM

Yield

Funding costs

  1. Quarterly annualized

10

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Disclaimer

Norion Bank AB published this content on 20 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 October 2023 06:54:07 UTC.