Norion Bank : Financial Report - Norion Bank AB Interim Report January June 2024

January-June 2024

Interim report January-June 2024

Second quarter of 2024

(compared to the second quarter of 2023)

• The loan portfolio amounted to SEK 47,410m (42,106)
• Total income amounted to SEK 947m (926)
• The C/I ratio amounted to 28.1% (24.9)
• The credit loss level amounted to 2.3% (2.5)
• Operating profit amounted to SEK 416m (432)
• Net profit amounted to SEK 326m (342) and earnings per share 1) amounted to SEK 1.59 (1.60)
• Return on equity amounted to 15.8% (18.7)
• The CET1 ratio amounted to 15.8% (15.0) and the total capital ratio amounted to 16.4% (16.1)

January-June 2024

(compared to January-June 2023)

• The loan portfolio amounted to SEK 47,410m (42,106)
• Total income amounted to SEK 1,880m (1,808)
• The C/I ratio amounted to 27.9% (25.4)
• The credit loss level amounted to 2.3% (2.5)
• Operating profit amounted to SEK 833m (818)
• Net profit amounted to SEK 655m (647) and earnings per share 1) amounted to SEK 3.12 (3.02)
• Return on equity amounted to 15.8% (18.0)
• The CET1 ratio amounted to 15.8% (15.0) and the total capital ratio amounted to 16.4% (16.1)

Significant events after the period

No significant events have occured after the end of the period.

1. See pages 4-5

Photo: Anna Roström

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Norion Bank AB (publ) 556597-0513

Highlights second quarter of 2024 (compared to the second quarter of 2023)

47,410 +13% 947 +2%

Loan portfolio (SEKm)

Total income (SEKm)

28.1% +3.2 326 -5%

C/I ratio

percentage points

Net profit (SEKm)

15.8% -2.9 15.8% +0.8

Return on equity

percentage points

CET1 ratio

percentage points

Loan portfolio (SEKm) and NIM (%)

	44,139	45,470	45,199	47,410
42,106
7.9%	7.4%	7.7%	7.3%	7.3%
Q2 2023	Q3 2023	Q4 2023	Q1 2024	Q2 2024

1) Earnings per share before and after dilution

EPS 1) (SEK) and RoE (%)

1.60	1.49	1.51	1.53	1.59
18.7%	16.6%
	16.3%	15.8%
Q2 2023	Q3 2023	Q4 2023	Q1 2024	Q2 2024

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Interim report January - June 2024

This is Norion Bank

Norion Bank Group is a business-oriented Nordic financing bank. The Group's brands - Norion Bank, Walley and Collector - offer customized financing solutions that meet distinct needs in three customer segments: medium-sized corporates and real estate companies, merchants, and private individuals. As a specialist in financing solutions, Norion Bank Group is a leading complement to traditional large banks, with a vision of being the leading Nordic financing bank in its chosen segments.

Norion Bank offers corporate and real estate loans, as well as factoring for medium-sized corporates and real estate companies. The Walley brand offers flexible payment and checkout solutions to merchants and private individuals. The Collector brand offers personal loans and credit cards to private customers, as well as savings accounts to private individuals and companies. Norion Bank Group (formerly Collector Bank) was founded in 1999 and has offices in Gothenburg, Stockholm, Helsingborg, Oslo and Helsinki. Business is conducted through Norion Bank AB (public), which is listed on Nasdaq Stockholm.

Key ratios Group

	Q2	Q1		Q2
SEKm	2024	2024	∆	2023	∆
Income statement
Net interest income	844	832	1%	826	2%
Total income	947	933	2%	926	2%
Net profit	326	329	-1%	342	-5%
Earnings per share before dilution, SEK	1.59	1.53	4%	1.60	-1%
Earnings per share after dilution, SEK	1.59	1.53	4%	1.60	-1%
Balance sheet
Loans to the public	47,410	45,199	5%	42,106	13%
Deposits and borrowings from the public	45,879	45,234	1%	38,753	18%
Debt securities in issue	1,817	1,249	46%	2,754	-34%
Subordinated liabilities	299	-	-	-	-
Total equity (shareholders of Norion Bank AB)	8,443	8,116	4%	7,187	17%
Key ratios1)
Net interest margin (NIM) - Period 2)	7.3%	7.3%		7.9%
Net interest margin (NIM) - LTM 2)	7.4%	7.6%		7.7%
Credit loss level - Period 2)	2.3%	2.3%		2.5%
Credit loss level - LTM 2)	2.4%	2.5%		2.5%
C/I ratio - Period 2)	28.1%	27.7%		24.9%
C/I ratio - LTM 2)	26.9%	26.0%		25.1%
Return on equity (RoE) - Period 2)	15.8%	15.8%		18.7%
Return on equity (RoE) - LTM 2)	16.1%	16.8%		18.9%
CET1 ratio 3)	15.8%	16.1%		15.0%
Tier 1 ratio 3)	15.8%	16.1%		16.1%
Total capital ratio 3)	16.4%	16.1%		16.1%
Average number of shares outstanding before dilution	205,381,004	205,381,004	0%	205,381,004	0%
Average number of shares outstanding after dilution	205,381,004	205,381,004	0%	205,381,004	0%
Average number of full-time employees	379	366	3%	341	11%
Adjusted key ratios 1)
Net interest margin (NIM) - Period 2)	7.3%	7.3%		7.9%
Net interest margin (NIM) - LTM 2)	7.4%	7.6%		7.7%
Credit loss level - Period 2)	2.3%	2.3%		2.5%
Credit loss level - LTM 2)	2.4%	2.5%		2.5%
C/I ratio - Period 2)	28.1%	27.7%		24.9%
C/I ratio - LTM 2)	26.9%	26.0%		25.1%
Return on equity (RoE) - Period 2)	15.8%	15.8%		18.7%
Return on equity (RoE) - LTM 2)	16.1%	16.8%		18.8%

1. See Definitions, pages 22-23, and norionbank.se/en-se/investor-relations-en/financial-information/key-financials for more information about key ratios
2. Key ratios that have not been prepared in accordance with IFRS but are deemed to facilitate the analysis of Norion Bank's development. See Definitions, pages 22-23
3. Key ratios according to capital adequacy rules (CRR). See note 12, pages 45-47

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Norion Bank AB (publ) 556597-0513

Key ratios Group, cont.

	Jan-Jun	Jan-Jun		Full year
SEKm	2024	2023	∆	2023
Income statement
Net interest income	1,676	1,634	3%	3,291
Total income	1,880	1,808	4%	3,648
Net profit	655	647	1%	1,294
Earnings per share before dilution, SEK	3.12	3.02	3%	6.02
Earnings per share after dilution, SEK	3.12	3.02	3%	6.02
Balance sheet
Loans to the public	47,410	42,106	13%	45,470
Deposits and borrowings from the public	45,879	38,753	18%	42,663
Debt securities in issue	1,817	2,754	-34%	1,248
Subordinated liabilities	299	-	-	-
Total equity (shareholders of Norion Bank AB)	8,443	7,187	17%	7,803
Key ratios1)
Net interest margin (NIM) - Period 2)	7.2%	7.8%		7.6%
Net interest margin (NIM) - LTM 2)	7.4%	7.7%		7.6%
Credit loss level - Period 2)	2.3%	2.5%		2.5%
Credit loss level - LTM 2)	2.4%	2.5%		2.5%
C/I ratio - Period 2)	27.9%	25.4%		25.6%
C/I ratio - LTM 2)	26.9%	25.1%		25.6%
Return on equity (RoE) - Period 2)	15.8%	18.0%		17.2%
Return on equity (RoE) - LTM 2)	16.1%	18.9%		17.2%
CET1 ratio 3)	15.8%	15.0%		15.9%
Tier 1 ratio 3)	15.8%	16.1%		17.0%
Total capital ratio 3)	16.4%	16.1%		17.0%
Average number of shares outstanding before dilution	205,381,004	205,381,004	0%	205,381,004
Average number of shares outstanding after dilution	205,381,004	205,381,004	0%	205,381,004
Average number of full-time employees	373	335	11%	343
Adjusted key ratios 1)
Net interest margin (NIM) - Period 2)	7.2%	7.8%		7.6%
Net interest margin (NIM) - LTM 2)	7.4%	7.7%		7.6%
Credit loss level - Period 2)	2.3%	2.5%		2.5%
Credit loss level - LTM 2)	2.4%	2.5%		2.5%
C/I ratio - Period 2)	27.9%	25.4%		25.6%
C/I ratio - LTM 2)	26.9%	25.1%		25.6%
Return on equity (RoE) - Period 2)	15.8%	18.0%		17.2%
Return on equity (RoE) - LTM 2)	16.1%	18.8%		17.2%

1. See Definitions, pages 22-23, and norionbank.se/en-se/investor-relations-en/financial-information/key-financials for more information about key ratios
2. Key ratios that have not been prepared in accordance with IFRS but are deemed to facilitate the analysis of Norion Bank's development. See Definitions, pages 22-23
3. Key ratios according to capital adequacy rules (CRR). See note 12, pages 45-47

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Interim report January - June 2024

Norion Bank Group is a business-oriented Nordic financing bank. The Group's brands - Norion Bank, Walley and Collector - offer customized financing solutions that meet distinct needs in three customer segments: medium-sized corporates and real estate companies, merchants, and private individuals. As a specialist in financing solutions, Norion Bank Group is a leading complement to traditional large banks, with a vision of being the leading Nordic financing bank in its chosen segments.

Norion Bank

Corporate and real estate loans, as well as factoring solutions, for medium-sized corporates and real estate companies.

Walley

Payment and checkout solutions for merchants and private customers.

Collector

Personal loans and credit cards for private individuals as well as savings accounts for private individuals and corporates.

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Norion Bank AB (publ) 556597-0513

A comment from our CEO

Policy rate cuts

The Riksbank and ECB made the first policy rate cuts during the spring. Market rates have consequently declined from their former peaks, and expectations of a more stabilized interest rate path remain, with the Riksbank expected to lead the way with further cuts. Lower policy rates have also supported increased optimism on the market in general, and among our clients specifically.

Increased optimism among clients

Interest from existing as well as potential clients has been solid during a longer period. The clarity current policy rate forecasts have created has supported further increased optimism among our corporate and real estate clients. The dialogues that have been held have hence turned into increased transaction volumes during the second quarter, with the Corporate segment showcasing a specifically strong development. We have an attractive position as a financing bank for medium-sized corporates, which remains as one of the bank's core focus areas. Demand remains good within both the Corporate and Real Estate segments. Net interest income has however been negatively affected by high volumes in stage 2 and stage 3, primarily related to the Real Estate segment. Our focus remains on close dialogues with our clients.

The Consumer segment keeps moving in the right direction. New sales show good profitability levels and we have had a strong volume increase during the quarter. Our expectations include somewhat lower quarterly growth going forward. Last, but not least, our private customers also welcome lower inflationary pressure and lower policy rates.

In summary, the bank delivers yet another stable quarterly result and the financial position remains good.

Continued investments in Walley

In the middle of August we will be welcoming our new colleague David Lundqvist, new General Manager for our payments business Walley, and part of Norion Bank's executive management team. David has solid industry experience within payment solutions and e-commerce through Klarna, Qliro and Instabee, where he has held several commercial as well as product focused positions.

Our payments business has had a strong and profitable development over the last couple of years. As part of the rebranding to Walley, during the fall of 2021, we clarified our product offering and our positioning towards larger merchants. Through the recruitment of David, we show that we continue to invest in and strengthen Walley further.

We keep growing our partnerships with existing merchants and I am also happy to announce that the partnership with XXL was launched just after the end of the quarter. XXL is the Nordic region's leading retailer of sporting and outdoor goods, and Walley is now the payment solutions provider for all the retailer's Nordic markets both online and in-store.

Issuance of hybrid bond

In the end of May, we issued a T2 bond of SEK 300 million under our MTN programme. It is currently the only hybrid bond we have outstanding to strengthen the capital position since the redemption of the AT1 bond of SEK 500 million in the end of the first quarter. Over time, Norion Bank aims to work with an efficient capital planning strategy, which includes issuance of both AT1 and T2 instruments.

Green bond framework for a sustainable future

Norion Bank has published its first green bond framework. Through a green bond framework, a company can issue green bonds, with the purpose of financing green projects/activities. Concrete examples of green projects/activities that Norion Bank finances are upgrades of properties, for increased energy efficiency, and clean transportation. Through a green bond framework, the issuer undertakes to report how the financing from the green bond is used, to ensure that the green bonds are used for the

right purpose.

It's important for the bank to act as a professional partner to our clients, and we value focus on active sustainability work and commitment. That's why the green bond framework is a step in the right direction for us as a company. The creation of the framework has also led to a tighter dialogue between different functions

and has hence contributed positively to increased integration of sustainability within the bank.

Focusing on financing solutions for medium-sized corporates, we want to contribute to Nordic growth, with sustainability as an important piece of the puzzle. We hope that we will be able to issue bonds under our green bond framework during the second half of 2024.

Martin Nossman

CEO

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Interim report January - June 2024

MARTIN  NOSSMAN, CEO

"Increased market

optimism amid policy rate cuts."

Photo: Anna Roström

Financial targets

Norion Bank's strategy is to maintain good risk adjusted profitability. In line with this strategy, the Board of Norion Bank adopted the following financial targets on 6 February 2024:

Profitability	Norion Bank aims to achieve a sustainable return on equity
above 15% over time.

Capital adequacy	Norion Bank's aim is that all capital ratios shall exceed the
regulatory requirement by 200-400 basis points.

Norion Bank's policy is to distribute potential surplus capital in

Dividend policyrelation to the capital adequacy target, subject to the bank's future outlook and capital planning, to its shareholders.

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Norion Bank AB (publ) 556597-0513

Photo: Anna Roström

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Interim report January - June 2024