Correction: NORWEGIAN FINANS HOLDING ASA: UPDATED VERSION OF REPORT FOR THE SECOND QUARTER 2019
Reference is made to the report for the second quarter 2019 published through stock exchange notices and 14.08.2019.
Please find attached an updated version of the quarterly reports due to an aggregation error in the specification tables of Note 5. The migration tables “Gross loans to customers” showed too high exposure of gross loans in stage 2 and too low exposure in stage 1. The main table in Note 5 - “Loans to customers by product groups”, as well as the “Loan loss allowance” tables, were correct in the original version.
For any questions please call:
CFO Pål Svenkerud; phone:
Head of treasury Mats Benserud; phone
NORWEGIAN FINANS HOLDING ASA: STABLE GROWTH AND EARNINGS IN BANK NORWEGIAN
The Group's comprehensive income in the second quarter 2019 amounted to NOK 475 million after tax, compared with NOK 483 million in the first quarter.
The underlying earnings development is strong and is driven by loan growth, stable margins, reduced commission income due to seasonal effects in the previous quarter, good cost control and stable credit quality.
Net interest income increased due to loan growth and one more interest day. Net commission income decreased due to seasonally high income in the previous quarter. Operating expenses were reduced due to seasonally lower personnel expenses and lower digital marketing spending. Loan loss provisions were stable in the quarter.
The customer and loan growth continued in the second quarter, with loan growth of NOK 1.1 billion. Deposits increased NOK 524 million. The currency effects were minor in the second quarter.
The bank recruited 57 800 new customers in the second quarter. At the end of the second quarter, the bank had a customer base of 1 635 500 customers, divided among 1 203 200 credit card customers, 200 400 instalment loan customers and 231 900 deposit customers.
Norwegian Finans Holding ASA entered into agreements on May 2, 2019, to acquire all the shares in the Irish company Lilienthal Finance Ltd. and through this company all rights to the Norwegian brand for banking services and access to customers in Europe. The NFH Group has initiated a process to apply for an EU banking license in Ireland in order to give Norwegian Finans Holding ASA and Bank Norwegian a more efficient access to expand the business concept with a fully digitalized bank in European markets.
Bank Norwegian started its operations in November 2007 and offers instalment loans, credit cards and deposit accounts to retail customers distributed through the Internet in the Nordic market. Bank Norwegian 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 instalment loans and deposit accounts in Denmark and Finland, while credit cards were launched in June 2016.
Bank Norwegian is a digital bank that offers simple and competitive products to the retail market. The strategy is based on leading digital solutions, synergies with the airline Norwegian, attractive terms for our customers, cost-effective operations and effective risk selection.
For further information, see Report for the second quarter 2019 and Investor Presentation for the second quarter 2019, which are available at:
For any questions please call:
CEO Tine Wollebekk; phone:
CFO Pål Svenkerud; phone:
Head of Communications and Public Affairs Kai-Morten Terning; phone:
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act
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