Norion Bank Ab · OMXSTO:NORION
Norion Bank Ab — Q2 2025 Earnings Presentation
23 slides from Norion Bank Ab's earnings presentation, Jul 14, 2025
Slide 1: Q2 2025 Quarterly report presentation
Q2 2025 Quarterly report presentation 1
Slide 2: Summary of Q2 2025
Summary of Q2 2025 Y-o-Y comparison Loan book Total income C/I Initiated buybacks of SEK 49,383m SEK 978m 29.9% own shares +4% +3% +1.8 p.p. Operating profit Return on equity1 CET1 / Total capital Acquisition of Verkkokauppa.com’s SEK 472m 15.4% ratio consumer financing +14% -0.4 p.p. 15.4% / 16.5%
Slide 3: Corporate
Corporate • Limited direct Loan book (SEKm) Industry split1 impact from 11,582 11,221 11,170 10,738 Other potential tariffs 9,992 17% Business Services 22% Construction • Continued good 4% sentiment among Wholesale & Retail Financial services & clients but longer 16% Investment companies 22% lead ti
Slide 4: Real Estate (1/2)
Real Estate (1/2) • Selective approach Loan book (SEKm) Industry split1 22,453 22,495 23,073 22,135 Other • High transaction 21,060 Warehouse 14% activity 6% Office 32% Hotel • Cautious optimism 8% fueled by further Retail 9% rate cuts but longer lead times due in Residential 31% Q2 24 Q3 24 Q4 24 Q
Slide 5: Real Estate (2/2)
Real Estate (2/2) • Norion Bank acting as a leading Portfolio overview complement to the Share of senior loans 63% client’s primary bank Share of junior loans 37% • Low share of the client’s total debt Average LTV – Senior loans 59% financing Average LTV – Junior loans 78% • Professional clients • S
Slide 6: Consumer
Consumer • Good progress from investments in Loan book (SEKm) Geographic split1 proprietary 11,996 12,152 12,019 12,769 Finland Norway 0% 11,733 2% distribution model • Acquisition of DNB’s Sweden Swedish credit card 97% portfolio closed during the quarter • Reduced risk profile Q2 24 Q3 24 Q4 24 Q1
Slide 7: Payments
Payments • Another quarter showing strong growth in Transaction volumes (SEKm) Geographic split1 transaction volumes 5,413 5,078 Norway Denmark 1% with 4,112 4,408 4,456 17% outperformance of the underlying Sweden 49% market Finland 33% • 6 million active customers Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Loan
Slide 8: Acquisition of Verkkokauppas.com’s consumer financing business
Acquisition of Verkkokauppas.com’s consumer • One of Finland’s financing business largest e-commerce players and a Summary: leading retailer of consumer Credit portfolio expected to amount to SEK 350 electronics and million home products • Significant milestone in Approximately 90,000 end customers
Slide 9: Solid income and margin development
Solid income and margin development • Income positively Total income (SEKm) NIM – Quarter1 affected by seasonality primarily 1,022 7.3% 7.6% 978 7.1% within Consumer 947 895 922 6.7% 6.7% • Underlying income development in line with expectations given rate trajectory • Negative income effect from St
Slide 10: NIM negatively impacted due to cash accounting of Stage 3 volumes
NIM negatively impacted due to cash accounting of Stage 3 volumes • Reported NII and NIM and impact from cash accounting NIM negatively 0.6% 7.7% affected by cash 7.1% accounting principle applied to Stage 3 volumes within Real Estate Reported NIM Q2 25 Impact from cash accounting Underlying NIM Q2
Slide 11: Rate changes affecting both yield and funding costs
Rate changes affecting both yield and funding costs NIM, yield and funding costs1 8.09% • IBOR rates have 7.78% 7.88% 7.71% 7.59% continued to decline 6.85% 7.12% 7.35% 7.34% 7.29% 7.11% 6.72% 6.73% with resulting lower 11.45% 11.45% 11.47% 11.33% yield 9.72% 10.00% 10.74% 10.77% 10.88% 10.58% 10.53
Slide 12: LCR and NSFR at solid levels
LCR and NSFR at solid levels • Low liquidity risk Liquidity coverage ratio (LCR) Net stable funding ratio (NSFR) with high historic LCR and NSFR levels 140% 141% 409% 121% 124% • Requirements 397% 373% 112% 103% exceeded under 320% 330% updated SFSA interpretation of 204% rules • Continued strengthe
Slide 13: Stabilization of structural liquidity position
Stabilization of structural liquidity position • Regulatory liquidity Funding / loan book development profile strengthened during Q4 2024 and 1.19x 1.18x Q1 2025 partly by a 1.11x 1.03x structural increase 0.97x 1.01x 1.00x of liquidity position • No further increase during Q2 2025 • Increased exces
Slide 14: Corporate
Corporate • Strong volume and income increase Loan book (SEKm) and NIM1 Total income (SEKm) and margin1 Y-o-Y 11,582 11,221 11,170 217 226 224 10,738 9,992 196 • Cautious volume 188 development during 8.0% 7.9% 8.0% the quarter 7.6% 7.3% 7.3% 7.0% 7.2% 7.6% 7.8% • Continued strong sentiment but outl
Slide 15: Real Estate
Real Estate • Sound volume increase • Q1 2025 positively Loan book (SEKm) and NIM1 Total income (SEKm) and margin1 affected by c. SEK 23,073 416 22,453 22,495 22,135 140m in interest 21,060 income recognition 7.5% 7.5% 289 from Stage 3 268 263 274 volumes treated as cash accounting 4.7% 5.4% 5.4% 4.
Slide 16: Consumer
Consumer • Volume increase through c. SEK 650m from Loan book (SEKm) and NIM1 Total income (SEKm) and margin1 acquisition of DNB’s Swedish credit card 11,733 11,996 12,152 12,019 12,769 304 portfolio 256 9.8% 8.9% 226 230 8.4% 217 • Improved consumer 9.0% sentiment 7.2% 7.2% compared Q1 2025 6.7% 7.
Slide 17: Payments
Payments • Strong increase in Loan book (SEKm) and NIM1 Total income (SEKm) and margin1 transaction volumes 3,018 2,900 134 2,782 123 123 127 2,712 2,744 121 • Income generally coming through with a time lag as 9.0% 8.1% 8.0% 8.0% 8.6% 19.8% 17.8% 17.8% new merchants are 17.0% 17.0% building volumes
Slide 18: C/I remains at a strong level
C/I remains at a strong level • Focus on profitability and Total expenses (SEKm) C/I ratio efficiency 303 292 32.8% 281 • Cost increase during 266 247 21 19 20 28.1% 27.6% 27.5% 29.9% 17 the last year driven 16 by variable costs, 152 148 151 142 inflation and 137 organizational investments, 130 part
Slide 19: Continued prudent provisioning
• Improved payment patterns and credit Continued prudent provisioning quality in front book • Prudent provisioning Credit losses – Quarter1 maintained given macroeconomic outlook and 2.3% 2.1% regulatory changes 1.9% 1.8% 1.8% • Provisioning ratios remain solid – Stage 3 private customers (own portf
Slide 20: Solid earnings and profitability level
Solid earnings and profitability level Operating profit (SEKm) and EPS (SEK) Return on equity – Quarter1 525 17.8% 472 15.8% • Strong Y-o-Y 416 393 383 14.4% 15.4% 13.5% improvement in 2.01 1.81 operating profit 1.59 1.50 1.46 • Solid underlying earnings and profitability level Q2 24 Q3 24 Q4 24 Q1
Slide 21: Strong capital position with share buybacks initiated
Strong capital position with share buybacks initiated • CET1 ratio of 15.4% as of Q2 2025 Capital adequacy ratios and requirements • Total capital ratio of 16.9% 17.2% 16.5% 16.5% as of Q2 2025 15.8% 16.1% • Share buyback 13.2% program of SEK 10.9% 500m initiated 15.8% 16.1% 15.4% • Share buybacks o
Slide 22: Summary and outlook
Summary and outlook Macroeconomic Strong balance sheet Acquisition of DNB environment and rate Solid profitability and prudent Sweden’s credit card outlook provisioning portfolio completed Acquisition of Continued monitoring Verkkokauppa.com’s Selective approach Share buybacks initiated of credit qu
Slide 23: Norion Bank
Norion Bank Group