More than every fourth loan in Bank Norwegian is now in default.
On Friday morning, the bank reports net interest income in the second quarter of NOK 1,183 million, losses and loss provisions of NOK 370 million and a profit before tax of NOK 491 million. In the second quarter of last year, profit before tax amounted to NOK 773 million.
The decline from last year is primarily due to lower net interest income.
According to the news agency TDN Direkt, net analysts expected NOK 1218 million in net interest income in the previous quarter. Provisions for losses and losses were forecast to fall in the period from NOK 447 million to NOK 368 million.
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26 percent
Given that Bank Norwegian provides a lot of unsecured credit, the default is high. The online newspaper wrote after last year’s figures that almost every fourth loan in Bank Norwegian is in default.
As much as NOK 10.63 billion, 26 per cent of Bank Norwegian’s total lending of NOK 40.66 billion, was at the turn of the year in the so-called step 3. This step is used when the credit risk has increased so much that the loan is considered credit impaired, call it defaulted on a more popular word.
At the end of the first quarter, the Stage 3 loans amounted to NOK 10.15 billion out of a total of NOK 42.88 billion in gross lending. This corresponded to a share of 23.6 per cent, the same share at the turn of the year.
– In the second quarter, we continue to see negative effects from the pandemic on our revenues. However, we see a positive development after a year and a half of restrictions. Consumption is picking up. At the bank, we experienced a positive change in the use of credit cards in all four Nordic markets, says CFO and acting CEO Klara Lise Aasen in a stock exchange announcement on Friday morning.
A lot has happened
The last few months have been eventful for the bank. The most important news is that Swedish Nordax Bank AB has submitted a cash offer for Bank Norwegian of NOK 105 per share. This is an improvement on the first bid of NOK 95, and Nordax has stated that they will not go higher.
The offer has been approved by the board of Bank Norwegian and prices the now listed bank at NOK 19.6 billion. On Thursday evening, the share price was NOK 103.8, and it is uncertain whether Nordax will receive the necessary approval of 90 per cent among Bank Norwegian’s owners.
Some major shareholders have been negative to the offer. The most recent bidding period started on 6 August and ends on 6 September.
Read also: Big numbers for Bank Norwegian – pays dividends to investors
New top manager
At the end of June, it became known that CEO Tine Wollebekk had resigned to take up a new position as CEO of Swedish Avida Finans. CFO Klara Lise Aasen acts as interim CEO.
Just before the turn of the year, Bank Norwegian also decided to sell its portfolio of non-performing Danish repayment loans. The volumes here amounted to 1,400 million Danish kroner. A portfolio has also been sold in Sweden-
In the first half of the year, the bank also carried out an intra-group merger, in which Bank Norwegian ASA takes over all assets, rights and obligations in Norwegian Finans Holding ASA, which are wound up.
Bank Norwegian is a fully digital online bank that was established in 2007 and expanded to Sweden in 2013 and the rest of the Nordic region in 2015. The services include credit cards, consumer loans, deposits and insurance products for Nordic retail customers.
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