Comprehensive income on a consolidated basis amounted to 164.9 million kroner, compared with 229.7 million kroner in the fourth quarter of 2015.
The development in earnings should be seen in the context of the bank adopting IFRS from 1 January 2016. The expected proceeds of 60.4 million kroner from the sale of Visa Europe is recognized in Q4 2015 and the deposit insurance levy for 2016 of 11.3 million kroner are expensed in full in Q1. In addition, the first quarter is the first full quarter of operations in Denmark and Finland, generating a negative earnings impact of 22.7 million kroner.
The bank delivers a strong profit growth in Norway and Sweden, while Denmark and Finland are developing better than expected. The underlying profit growth is explained by a record strong loan growth, stable margins, good cost control and stable credit quality.
The strong customer and lending growth accelerated in Q1, with a lending growth of 2.482 million kroner, while deposits rose 2.561 million kroner. There was a particularly strong growth in lending in Norway and Finland. The bank recruited 68,900 new customers in Q1.
In order to capitalize on the significant growth opportunities in new and existing markets, Norwegian Finans Holding completed a private placement of 300 million kroner and a subsequent repair issue of up to NOK 40 million kroner will be carried out during June. Bank Norwegian's strong capital position will be further strengthened by the capital issues.
The bank maintained its strong liquidity position in Q1.
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 offers consumer loans and deposit accounts. Credit cards will be launched in Denmark and Finland in June 2016.
At the end of the first quarter of 2016 the bank had a customer base of 676,600 customers, which can be broken down into 490,800 credit card customers, 96,600 loan customers and 89,200 deposit customers.
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 report for the first quarter of 2016 and investor presentation for the first quarter 2016 available at:
If you have questions you may call;
CEO Erik Jensen; phone: +4792634501 or
CFO Pål Svenkerud; phone: +4793403904