Norwegian Finans Holding ASA : STRONG GROWTH AND E
Post# of 301275
The group's comprehensive income amounted to NOK 290 million in Q4, corresponding to an earnings growth of NOK 43 million compared with the third quarter of 2016. The earnings growth is explained by strong loan growth, stable margins, good cost control and stable credit quality. Comprehensive income is impacted by a tax gain from the sale of Visa Europe with an effect of NOK 14 million.
The strong customer and loan growth continued in the fourth quarter, with a loan growth of NOK 3.5 billion, while deposits increased NOK 2.3 billion. The bank recruited 88,300 customers in the fourth quarter.
The group's comprehensive income in 2016 amounted to NOK 924 million, corresponding to an earnings growth of NOK 320 million compared with 2015. The earnings growth is explained by strong loan growth, expansion to Denmark and Finland, stable margins, good cost control and stable credit quality. Comprehensive income is impacted by a gain from the sale of Visa Europe with a net effect of NOK 58 million. The bank recruited more than 333,000 customers in 2016 and the loan growth was NOK 11.1 billion.
The bank has experienced high loan growth so far in the first quarter of 2017. The bank anticipates that a future pillar 2 requirement, which is expected to be communicated at the earliest during second quarter, will result in a higher capital requirement going forward. Based on this, the Board of Directors has decided to carry out a contemplated private placement of approximately NOK 500 million. The private placement is expected to increase the common equity tier 1 ratio with around 2.3%. Bank Norwegian had a common equity tier 1 ratio of 13.7% at the end of 2016. In addition to the capital increase, the bank will accommodate the loan growth to bring capital ratios to targeted levels. Existing capital base and internal cash generation is sufficient for the bank's growth ambitions.
At the end of 2016 the bank had a customer base of 940,900 customers, which can be broken down into 673,400 credit card customers, 147,100 loan customers and 120,400 deposit customers.
The Bank supports the Government's proposal to establish a debt register for the Norwegian market and Finance Norway's initiative regarding the establishment of a code of conduct for marketing of credit cards and unsecured loans in Norway.
Bank Norwegian is a wholly owned subsidiary of the listed company Norwegian Finans Holding ASA. Bank Norwegian started its operations in November 2007 and offers consumer loans, credit cards and deposit accounts to retail customers distributed through the Internet in the Nordic market. The bank offers, in cooperation with the airline Norwegian, a combined credit card and reward card. The bank started operations in Sweden in May 2013. In December 2015 the bank launched operations in Denmark and Finland, where it initially offered consumer loans and deposit accounts, while credit cards were launched in June 2016.
Bank Norwegian is an internet based bank offering simple and competitive products to the retail market. The operations are based on leading e-commerce solutions, synergies with the airline Norwegian, attractive terms for our customers, cost-effective operations and effective risk selection.
For further information, see the annual report 2016 and the investor presentation for the fourth quarter 2016 available at:
https://www.banknorwegian.no/OmOss/InvestorRelations
If you have questions you may call;
Interim CEO Pål Svenkerud; phone: +4793403904
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