Norion Bank Ab · OMXSTO:NORION
Norion Bank Ab — Q3 2025 Earnings Presentation
22 slides from Norion Bank Ab's earnings presentation, Oct 17, 2025
Slide 1: Q3 2025 Quarterly report presentation
Q3 2025 Quarterly report presentation 1
Slide 2: Summary of Q3 2025
Summary of Q3 2025 Y-o-Y comparison Loan book Total income C/I Intention to continue SEK 49,051m SEK 919m 30.0% share buybacks +1% +3% +2.4 p.p. Operating profit Return on equity1 CET1 / Total capital Completed acquisition of Verkkokauppa.com’s SEK 434m 14.0% ratio consumer financing +10% -0.4 p.p.
Slide 3: Corporate
Corporate • Continued good Loan book (SEKm) Industry split1 sentiment among 11,582 11,221 11,170 Other 10,738 10,963 clients but longer 16% Business services 23% lead times in clients’ Construction 4% decision-making processes Financial services & Investment companies 17% Manufacturing • Loan book d
Slide 4: Real Estate (1/2)
Real Estate (1/2) • Selective approach • High transaction Loan book (SEKm) Industry split1 activity in the 22,495 23,073 Other market 21,060 22,135 21,010 14% Warehouse 6% • Cautious optimism Office 33% fueled by further Retail 7% rate cuts but longer Hotel 8% lead times due in clients’ decision- Re
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 64% client’s primary bank Share of junior loans 36% • Low share of the client’s total debt Average LTV – Senior loans 62% financing Average LTV – Junior loans 78% • Professional clients • S
Slide 6: Consumer
Consumer • Continued good Loan book (SEKm) Geographic split1 progress from Finland Norway 13,298 investments in 11,996 12,152 12,019 12,769 2% 0% proprietary distribution model Sweden 97% • Reduced risk profile in new lending • New lending at Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 attractive risk- Average cu
Slide 7: Payments
Payments • 9th consecutive quarter with double digit growth in Transaction volumes (SEKm) Geographic split1 transaction volumes 5,413 Denmark Norway 0% 5,078 4,973 16% • Continued 4,408 4,456 outperformance of the underlying Sweden 45% market Finland 39% • 6.2 million active Q3 24 Q4 24 Q1 25 Q2 25
Slide 8: Solid income and margin development
Solid income and margin development • Stable income Total income (SEKm) NIM – Quarter1 development with NIM +0.1p.p. vs. Q3 2024 1,022 7.6% 978 7.1% 895 922 919 • Income positively 6.7% 6.7% 6.8% affected by seasonality primarily within Consumer in Q2 • Negative income Q3 24 Q4 24 Q1 25 Q2 25 Q3 25
Slide 9: NIM negatively impacted by c. 70bps due to cash accounting of Stage 3 volumes
NIM negatively impacted by c. 70bps due to cash accounting of Stage 3 volumes • Reported NII and NIM and impact from cash accounting NIM negatively affected by cash 6.8% 0.7% 7.4% accounting principle applied to Stage 3 volumes within Real Estate Reported NIM Q3 25 Impact from cash accounting Underl
Slide 10: 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% 6.77% with resulting lower 11.45% 11.45% 11.47% 10.88% 10.58% 11.33% 10.53% yield 9.72% 10.00% 10.74%
Slide 11: 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 141% 124% 126% 397% 404% 121% • Requirements 373% 112% 103% exceeded under 320% 330% updated SFSA interpretation of 204% rules • Continued strengthe
Slide 12: Stabilization of structural liquidity position
Stabilization of structural liquidity position • Regulatory liquidity profile strengthened Funding / loan book development during Q4 2024 and 1.19x 1.18x 1.18x Q1 2025 partly by a 1.11x structural increase 1.03x 1.01x 1.00x of liquidity position • No further increase during Q2 and Q3 2025 • Increase
Slide 13: Corporate
Corporate • Cautious volume development with seasonally lower Loan book (SEKm) and NIM1 Total income (SEKm) and margin1 activity during Q3 11,582 11,221 11,170 10,963 217 226 224 10,738 206 • Continued strong 196 sentiment but outlook more 7.6% 7.8% 7.9% 8.0% 7.3% 7.3% 7.4% difficult to predict 7.0%
Slide 14: Real Estate
Real Estate Loan book (SEKm) and NIM1 Total income (SEKm) and margin1 • Seasonally lower 22,495 23,073 22,135 416 21,060 21,010 activity during Q3 7.5% 7.5% • Reported NIM and 263 274 289 285 total income margin 5.4% 5.3% 5.4% 5.3% strengthened vs. Q3 4.7% 4.7% 4.7% 4.8% 2024 due to lower negative i
Slide 15: Consumer
Consumer • Strong volume increase at attractive margins Loan book (SEKm) and NIM1 Total income (SEKm) and margin1 13,298 • Gradually improved 11,996 12,152 12,019 12,769 304 272 consumer sentiment 226 230 9.8% during 2025 8.9% 217 7.9% 8.3% • Seasonality effect of 7.2% 7.2% 7.6% 7.2% 7.6% c. SEK 30-
Slide 16: Payments
Payments • Strong increase in transaction volumes Loan book (SEKm) and NIM1 Total income (SEKm) and margin1 3,386 134 • Acquisition of 3,018 121 123 123 127 2,900 Verkkokauppa.com’s 2,744 2,782 consumer finance 17.8% 17.8% business closed 17.0% 17.0% 17.1% during Q3 with SEK 8.1% 8.0% 8.0% 8.6% 9.3%
Slide 17: 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 32.8% 292 281 275 • Cost increase during 247 21 19 20 27.6% 27.5% 29.9% 30.0% 21 the last year driven 16 by variable costs, 152 151 148 146 inflation and 137 organizational investments, 130 part
Slide 18: Continued prudent provisioning with gradually lower credit losses
• Improved payment patterns and credit Continued prudent provisioning with gradually lower quality in front book credit losses • Prudent provisioning Credit losses – Quarter1 maintained given macroeconomic outlook and 2.1% regulatory changes 1.9% 1.8% 1.8% • Provisioning ratios 1.7% remain solid – S
Slide 19: Solid earnings and profitability level
Solid earnings and profitability level • Strong Y-o-Y Operating profit (SEKm) and EPS (SEK) Return on equity – Quarter1 improvement in 525 17.8% operating profit 472 14.4% 15.4% 434 13.5% 14.0% 393 • RoE affected by c. 383 2.01 1.81 900m capital 1.70 1.50 1.46 buildup (net of first SEK 500m buybacks
Slide 20: Strong capital position with intention of new share buyback program
• CET1 ratio of 16.1% as of Q3 2025 Strong capital position with intention of new share • Total capital ratio of buyback program 18.1% as of Q3 2025 Capital adequacy ratios and requirements • First share buyback 18.1% program of SEK 16.7% 16.5% 500m completed • Successful issuance 13.0% of SEK 500m
Slide 21: Summary and outlook
Summary and outlook Macroeconomic Strong balance sheet Successful issuance of environment and rate Solid profitability and prudent Tier 2 capital outlook provisioning Acquisition of Intention to initiate Continued monitoring Verkkokauppa.com’s Selective approach further share buybacks of credit qual
Slide 22: Norion Bank Group
Norion Bank Group