Norion Bank : Finansiell rapport - Norion Bank Group Quarterly Report Presentation Q2 2024

Q2 2024

Quarterly report presentation

1

Summary of Q2 2024

Y-o-Y comparison

Loan book	Total income
SEK 47,410m	SEK 947m
+13%	+2%

Operating profit	Return on equity1
SEK 416m	15.8%
-4%	-2.9 p.p.

1. Quarterly annualized

C/I

28.1%

+3.2 p.p.

CET1 / Total capital ratio

15.8% / 16.4%

2

• Stabilized market rates create enhanced visibility and improved sentiment
• Strong volume development on the back of improved sentiment
• Selective approach
• Strategic focus area

Corporate

Loan book (SEKm)

9,608	9,544	9,705	9,992
			8,733

Q2 23	Q3 23	Q4 23	Q1 24	Q2 24
Average loan2			SEK 48m
Average remaining maturity2		14 months

1. Based on the Corporate loan book as of Q2 2024
2. Based on the corporate lending loan book as of Q2 2024

Industry split1

Other
17%	Business services
Information &	21%
Communication
5%
Wholesale & Retail	Manufacturing
19%	20%

Financial services &

Investment companies

19%

Geographic split1

Other

18%

Sweden

36%

Finland

20%

Norway

26%

3

• Selective approach
• High volumes in Stage 2 and 3 but net decline of SEK 1.2bn during Q2
• Strategic focus area

Real Estate (1/2)

Loan book (SEKm)

18,891 20,528 21,432 22,086 22,453

Q2 23	Q3 23	Q4 23	Q1 24	Q2 24
Average loan			SEK 126m
Average remaining maturity		15 months

1. Based on the Real Estate loan book as of Q2 2024

Industry split1

Other

Warehouse 10%

3%

Hotel

8%

Retail

12%

Office

29%

Geographic split1

Other

Denmark 4%

8%

Germany

19%

Finland

20%

Residential

37%

Sweden

49%

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	58%
Share of junior loans	42%
Average LTV - Senior loans	57%
Average LTV - Junior loans	73%

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

Consumer

Loan book (SEKm)

10,441 10,838 11,005 11,135 11,733

Q2 23	Q3 23	Q4 23	Q1 24	Q2 24
Average loan new sales			SEK 193,000
(LTM)
Average loan			SEK 170,000
Sales through own			~40%
distribution channels

1. Based on the Consumer loan book as of Q2 2024

Geographic split1

Finland Norway

3% 1%

Sweden

96%

Average customer

Age: 50 years

Income in SEK (at approval/current): 370,000 / 440,000

Women: 59% / Men: 41%

6

Payments

•	Strong growth in
	transaction volumes
•	Several new
	merchants signed
	during the year
•	Challenging
	environment for the

Transaction volumes (SEKm)

Geographic split1

		4,239		4,112	Norway	Denmark
3,646			1%
3,514		3,490		13%
						Sweden
					Finland	50%
					36%
Q2 23	Q3 23	Q4 23	Q1 24	Q2 24

Nordic e-commerce

market remains

Loan book (SEKm)

2,552	2,640	2,763	2,694	2,712
Q2 23	Q3 23	Q4 23	Q1 24	Q2 24

1. Based on the Payments loan book as of Q2 2024

Selected merchants

Active customers (LTM): 4.9 million

7

• Stable income development
• Income positively affected by seasonality primarily within Consumer
• Negative income effect from high Stage 3 volumes

Stable income and margin development

Total income (SEKm)						NIM - Quarter1
926	906	934	933	947	7.9%	7.7%
					7.4%	7.3%	7.3%

Q2 23	Q3 23	Q4 23	Q1 24	Q2 24	Q2 23	Q3 23	Q4 23	Q1 24	Q2 24
			Y-o-Y: +2%				Y-o-Y:-0.6 p.p.
			Q-o-Q: +2%				Q-o-Q:-0.1 p.p.

1. Quarterly annualized

8

Rate changes affecting both yield and funding costs

• IBOR rates have started to decline
• Funding costs have developed in line with expectations
  - peak likely reached during Q2

NIM, yield and funding costs1

		8.09%	7.78%	7.88%		7.71%
			7.35%	7.34%	7.29%
6.85%	7.12%
					11.45%	11.45%	11.47%
				10.74%	10.77%
		9.72%	10.00%
				3.73%	4.11%	4.18%
	8.29%				3.42%
7.87%
		2.86%
			2.23%
		1.63%
1.01%	1.17%
Q2 22	Q3 22	Q4 22	Q1 23	Q2 23	Q3 23	Q4 23	Q1 24	Q2 24
NIM
Yield

Funding costs

1. Quarterly annualized

9

• Stabilized market rates create enhanced visibility and improved sentiment
• Strong volume development on the back of improved sentiment
• Stable income and margin development

Corporate

Loan book (SEKm) and NIM1

9,608	9,544	9,705		9,992
			8,733
7.7%	8.0%	7.8%	6.9%	7.6%

Q2 23

Q3 23

Q4 23

Q1 24

Q2 24

Y-o-Y: +4%

Loan book

Q-o-Q: +14%

1. Quarterly annualized

Total income (SEKm) and margin1

	217
191		179	188
	9.1%	165
7.9%		7.4%	7.2%	8.0%

Q2 23

Q3 23

Q4 23

Q1 24

Q2 24

Y-o-Y:-1%

Total income

Q-o-Q: +14%

10