Norion Bank AB

Welcome to Noron Banks Q3 report 24. My name is Martin Osman and I am the CEO. I have with me in ordinary order, CFA Peter Olsson. Let us start directly on page 2, where we have a summary of the quarter. We can mention a little about this quarter. It is two years, three months is the summer months, so it has been pretty calm the first two months of the quarter. We are very happy that the activity has actually started in the middle of September. Good activity, a lot of customer demand, feels a bit like a risk-willing. We said that already in the end of last year that we started another activity and interest in our business. It is going well, we are sure with the pension situation. We have also received some lower pensions. Generally, we all believe in a lower pension, so we think that contributes to an increased activity and interest in doing business. We have seen a lot of it in the end of the quarter. If we go in a little bit on the key, we can start by looking to the left. We see that the loan book has increased to 48.5 billion. It is an increase of 10% if we compare with the same period. The revenues are quite unchanged, 895 million. The -e-tals have continued to be at 27.5%. The moving average is 393 million. The withdrawal in capital is going up during this quarter to 14.4%. It is a decrease of just over 2%. But do not forget that we have accumulated just under 1.2 billion in capital during this period. The capital relationship continues to be improved, improved with 30 points. We have a total capital relationship of 16.7%. Some other things that have happened during the quarter, we have chosen to make an investment in Alecto. The strategic initiative is making it possible for us to find different solutions to our MBL portfolio. It is very good for us and is good news. We have also made an eminent green obligation, our first green obligation. We have been in the bank for some time, working with sustainability in all business areas. This is a hard ESG job. It includes everything from having a healthy credit distribution in the private sector, private segment, that is to say private loan payments. And then we also work in a structured and careful way. We have, unfortunately, analyzed all ESG aspects when it comes to new and existing customers, their loans in corporate and corporate loans. It is very nice that we have received the credit from the obligation market that pays attention to the work we have done. We are very happy that we have made our first green obligation. If we go into our different segments, we start on page 3 with the corporate segment. You see in the picture here, this is where the stock has grown. We have increased it by about 700 million a quarter. Again, good news, even if the flow came in September. Above all, it is corporate loans and it is Sweden that has had growth. The stock price has been relatively unchanged. This is where we believe and believe we have a possibility, which I think we showed in the quarter, that we have a very good position to offer financial solutions to medium-sized companies. Everyone talks about SME and we talk about M1I in SME. That is to say, our focus is customers and companies where you have employees, 50-250 employees, 100-500 in the transition or balance. This shows that we are very strong in this position. A very good financial situation. We managed to maintain a good margin with customers. I do not see any price pressure. Let's look at how the customers are in this segment. It continues to develop well. The last two quarters we have not seen any increase. Perhaps the opposite, but a little decrease where customers ask for a cheaper form of amortization or rent. So that customers feel less and much better than they did before. It was the previous quarter that continued to be able to do this. We can go into the properties on page 4. Pretty good stock. Then you can still see that there has been a certain change in the speed of a part of the solution of junior loans during the quarter. We have had amortization solutions of 2 billion and new business of 2 billion. So even if the stock is unchanged, it has still been a pretty good activity. Here we see just as the company is not another will and risk. There is a need and interest to do the stock business. In addition, there is nothing to say about any changes. Neither on average, nor above that. So we can go further to page 5 and look at some more details on the stock segment. The share of senior loans has increased to 61%. It has increased by 3% since the previous year. As I said earlier, we have had a solution and amortization on junior facilities. We look at some valuations here. Between Q2 and Q3, the value changes are relatively unchanged. If we look back a year, the value of the price is somewhere around 10%. But between the quarters, the value has been relatively unchanged. As I said, we still have a part of our commitment, a part of our property business that is in step 2 and step 3. We know that it is too big volumes. However, we see just as the company segment, no new customers who have challenges. The customers have continued to be good, but it is the same opposite as before. As I said earlier, we have a tight dialogue with the customers and a very good plan to solve the engagement that is left behind in rental payments. I think we will solve that over time. In general, if we get lower interest rates in the future, I think we will have some help to solve step 2 and step 3 volumes with lower interest rates. We can go to page 6 and look at our private segment. A small growth of just over 200 million SEK. It is really no use saying that. It will be a good update where I will tell you how it looks in Q2. We have a good competition situation. We can take good margin to the central risk. The flow in our own channels continues to improve. We have been working for a very long time now. Over 40% of the flow in our own channels is very pleasant. It is good for us for various reasons. Partly it will mean lower credit loss over time. It will mean lower revenue costs and a longer duration in the stock. Also here a little how the customers are. It is much better. We look at how many of our customers were first year. First or second memories, it is clearly lower. Both if you compare with the beginning of this year. Especially if you look from January 23, it is very much fewer customers who get first and second memories. This continues to improve. The fact remains that customers who have problems, who have got their third memory, continue to challenge the market. But generally it is good news. It has certainly improved the interest rate of our customers. It is certainly the reason. But it continues to improve. Partly the interest rate, but also the credit rating. The last years it helps us a little that customers have easier to pay their taxes. We look at the payments. We have seven. Very good quarter for Olli. We increase the transaction volumes to 4.4 billion compared to the same amount as 3.5. It is an increase of 25%. Very good development. We look at the e-commerce market. Generally, the e-commerce market has increased by about 10% this year. We have increased by about 15%. We are developing very well. Generally and also compared to the market. Credit stock is relatively unfriendly. As you can see, down to the left in the picture. We have had a lot of traders who have gone live during the summer. It always takes a little time before the traders build stock. So there will be a certain delay. More during the quarter, we have deepened the cooperation with a number of traders. Which is very good. We have had the book group as new customers during Q3. And we have very many interesting and really good customer positions. And after that quarter, or during that quarter, we have over 5 million active customers in Olli. So it's a very good quarter for Olli. And we have a very good position in our premium sales in Olli. So it's an important area. Again, Olli is a good source of income for the entire bank. It's a profitable business for us. So we have a very good position in Olli. So we are looking forward to this. If we look at page 8, and I will hand over to Peter, we will talk a little bit more about

the figures. Thanks for that. We will start by talking about the revenues. They rise to 195 million during this quarter. I think it's a good level. They are holding up well. We should remember that during the second quarter, we always have a positive seasonal effect. And in Q2 2024, it rose to somewhere between 30 and 35 million. So the revenues are more or less unchanged. It's the latest year. I think it's a pretty clean quarter when it comes to revenues. We don't have any big effects from treasury or other types of revenues. We have two factors that affect our NIMM. NIMM is up to .7% during Q2. There are no surprises from this perspective. There is a decrease from the second quarter. We reported .3% and all of them have been cleared away the seasonal effects. So we had a small increase of around 7.0%. And given where we are in the interest rate, we know that we are currently exposed to a small technical pressure. When we go on to page 9 and look at this in detail, we see the historical development. Here we can see what happens in Q3. It is clear that the yield is no longer increasing, but rather going down. Funding costs are flat or somewhat down. I should remember that during the third quarter, we had a full quarter with P2 costs. We didn't have that in Q2. But the timing and where we are in the interest rate cycle is our expectation. Absolutely that the funding costs will continue to go down. We have seen that they are on their way down a lot during the September months. They will go down, but they will not go down as quickly as we have seen. If we go on to page 10, we see the other effect that affects the reported NIM negative. We have talked about the earlier and more conservative way to handle the income tax reduction. We have seen the stage T credits in the asset segment. We have carefully chosen not to pay them in tax-based payments. We choose to be very explicit with what this effect means. During the third quarter, it goes up to about 90 points. If we had allowed ourselves to put back the income tax for these interest rates, the NIM would have gone up to .6% instead of the .7% that we report. At the bottom of the page, you can see how this has developed over time. This has become an increasingly large effect for us over time. If we go back to the beginning of 2023, this was not a big problem for us. It has gradually come to a level where we see that the level of the second quarter has been low. We are now at page 11. We look at our segment in more detail. We start with the company segment. As Martin said, we are in a good volume increase. We are up with almost 150 million under Q3. We have increased by 13% in volume during the last year. 7% is isolated under Q3. This is despite the fact that Q3 has two of three summer months. The increase has come during the month of September. Stable and good income. No weirdos. The NIM remains at a stable and good level compared to what we have seen earlier. We continue since 2012. The housing segment. Again, more or less flat development on the stock market. The same thing as regards the revenues. The NIM is also unchanged compared to what we saw in the second quarter. This is related to the side we showed earlier about the effect of our way of handling the revenue. We are here within the housing segment. The absolute part of the revenue comes from the effect. Therefore, the NIM remains at a good level. The private segment. Again, a good volume development. A good thing because it has been a summer period. An increase of about 200 million. A little lower increase in Q2. Which is completely according to the expectations we talked about then. We think we get through well with our distribution. We get a good risk reward in our new sales. Can take good margins to significantly lower PD levels than what we saw earlier. The most developed well is our private segment. The revenues are good. 226 million. Then we have a little bit of an incoming effect of about 15 million positive. This now under Q2, which is worth mentioning. Which we will take a look at. Tram 14. Payments. As I said, good transaction volumes. Increase by 25% year on year. However, the stock increases only by 6%. Increase in transaction volumes is both from existing and new traders. That the stock and revenues do not really agree at the same pace as the transaction volumes. We have also brought in new traders. We are in a phase of construction. We expect that both stock and revenues will come with a little delay. When these new traders are under Q2. Revenues and margins are kept at good levels. We continue to make good money on our payment segment. The stock continues to go well. And is profitable. It contributes in a positive way to the bank's surplus. Tram 15. Look at the costs. The revenue costs are developing well. Up to 247 million. Here now under Q3. We should remember that the cost of the stock is always low during Q3. The effect of the stock goes up to 20 million. If we take that into account, the cost of the stock is largely unchanged. Compared to where we were during Q2. We continue to have good control of the costs. The QE-data has gone up a bit in the last year. But we still think that a QE-data of .6% is at a very attractive and good level. Tram 16. Look at our equity reserve. The equity reserve goes up to 254 million. Here now under Q3. 2.1%. The private sector is driving the reserves here under Q3. Stage 3 private. Increased by 70 points. From 54.4 to 55.1%. We see a bit of a seasonal pattern in this. Q3 tends to be a bit weaker. So we don't see any warning flags from it. We should also remember that Q2 is seasonally strong. No major stock moves. As regards the company and the equity reserve. And thus no major equity reserve that is driven by the segments. Stage 17. Let's summarize it. We have a strong and good result. 393 million. It keeps up. Especially given the volumes we have in stage 3. And the way we handle the revenue management. And that we have a negative effect on the NIMM at about 90 points. And also where we are in the interest rate. I think we have a good stability and keep going well for the bank. And we have a drop in our own capital that goes up to 14.4%. And as Mark said earlier. We have accumulated over 1.2 almost 1.3 billion more in our own capital. During the last year. Let's go to the AFA. Let's look at the capital. As I said. The stock is increasing by a little over 1 billion during this quarter. And at the same time we are maintaining a good profitability. That makes us stronger. With about 30 points. Both on the capital and the total capital level. So we have a CTE that goes up to 16.1%. And a total capital level of 16.7%. We continue to maintain good buffers. In relation to our regulatory requirements. And we experience what we have said earlier. That we have the ambition to work more quickly. With the opportunity that exists. To emit more hybrid capital. To effectively our capital structure. It goes to 19. I do not even want to talk about some liquidity. We have a structurally good liquidity position in the bank. Here now in Q3. We report an LCR of 397%. And an NSF of 141%. Then as everyone has seen. The financial inspection came here at the end of September. With a legal statement. And a report on how to handle. Loan via digital platforms. We have not done our calculations before. According to EPIS new ways to look at the regulatory framework. So here in relation to Q3. Just to show how this works. If the new regulatory framework had been applied. Our LCR would have increased to 204%. And an NSF to 104%. On the NSF side. We have the biggest effect. For good part. We have good opportunities. We want to increase this level structurally. Even if we do not agree on the decision. We will work actively to increase this level. We have worked actively since a while ago. To increase the loan via our own channels. And we also have a proven access to the obligation market. Where we now emit our first green obligation. Here now under Q3. We have the tools available. To improve this position. We have a good liquidity. And the new regulatory framework does not change the underlying liquidity risk. We move on to page 20. And then I leave Martin again.

Topen, thank you. Summarize Q3. As we said, good activity. Another risk. There is an interest in doing business. In the last two years. The activity has been very good. In all areas. In the middle of September. There is a better activity. And customer dialogue. In all segments. Create liquidity. Both on the A-level and the absolute level. We are happy with this quarter. We continue to strengthen our balance. We improve capital from 30 points. So we are quite happy with this quarter. And we hope that. Even the interest continues to come down further. I think it will lead to an improved liquidity. And also make it a little easier for us. Or for our customers to come to terms with it. When you are following up with certain interest payments. Within the financial institutions. Summarize, we are happy. And we think this is a good quarter. So with that, we thank you for us. And open up for questions.

Next question comes from Emil Jonsson from DNB. Here you

go. Good morning, Martyn and Peter. We will start with a question. Directly on the corporate real estate loan. The loan that is in step 3. I still think the interest is underlying the loans. That we talked about earlier. And that is the interest. If you think that everything else is the same. That you would add on. One year of unpaid interest payments. On those loans. Would the reservations that have been taken. Would they be sufficient to cover that? Or would you need to make further reservations in the future?

Hi Emil. I'm not sure if I understand your question. But to interpret this. We do not pay interest payments. Which in itself creates a. So called a bad reserve. On these engagements. And beyond that, we reserve. On the capital debt itself. And that is the reservation. And that is the one we look at. And that we take into account. And if we get retroactively paid. For what is unpaid for interest payments today. Then it becomes a clean upside for us. In that case. I do not know if that was the answer to your question. I

do not agree with you either. You talk about accumulated interest. If we do not pay interest payments. Then it becomes a net interest.

I do not agree with you on the question. I mean I think about. If you have taken unpaid interest. Which is not paid. What is the effect of

that? It depends on what happens with the capital debt level. And that is why we choose not to pay interest payments. And that is the reason why we do not increase the risk.

We do not have any interest payments. That is the main trick. That is the part that we do not get. Do we get a pension? Do we not get a pension? Have we already taken into account that we should not get one?

Alright. Have you had any cases so far? I have not had any cases. I have been able to do some kind of recovery. And then I have been able to pay interest. Such as increased interest payments.

Yes. We have been mixed from quarter to quarter. Alright. I was going to ask. I thought about being careful and doing everything in the same way. Do we get a pension? If we do, then it will be a positive income for the pension.

Alright. I was also going to ask about the cost level. They have been flat compared to the previous quarter. If you are away from the season effect. If you are away from the season effect. Should we say that it is more of a coincidence? Or do you notice that the cost has decreased?

If you take away the season effect. Then it is the same cost as the quarter before. I think we have done some investments in the business. Especially before the customer is responsible for the company. We continue to work a lot with the rules. And the support functions around the rules. And I think we have done the big things. We have put the same need forward. To continue the growth rate

that has been historically.

One last question. You have now buffered CETS at almost 700 points. And you have a goal of distribution. To share excess capital. If you say that you would like to share. And you have now come down to the goal of the buffering. Is there something that you miss that would not be good? It weighs a lot on Return on Equity. That you put so much extra capital.

Yes, but you are right theoretically. As I mentioned there. With the effectiveness of the capital structure. And we have a very strong buffering level. At just CET level. If you look at the total capital. We are in the middle of the interval. At 200-400 points. That is what we have said. We have to take care of all capital levels. And that is where we are. At the lowest buffering levels. Which is the tight sector in that perspective. But it is clear that. Yes, it is necessary that we. That we emit more hybrids. So that your result will be correct.

Alright. That answers all my questions.

Thank you Emil.

Good morning. The important question here today is liquidity. And NSF at 103% is for tights. So what ratio do you want to be on in the future? And 2 includes a new green obligation in these 103%.

If we start with the second question. The answer is yes. Since it was emitted under Q3. And the 103% is calculated. On what we are per parent-child. We have as an ambition. To increase the level. I agree with you. We want to be somewhere between ,5-110. Within a few quarters.

Okay, great. On slide 9, you show that your funding cost has dropped. With two basis points. You said you had a negative contribution from T2. How big was that?

That is a 5-6 point. But again. If we look at the individual months on Q3. We see that September is clearly better. Than the other months. It will come down. But again. Where we are in the cycle. We are exposed to a little technical pressure.

Will it really come down so much. As we saw in history. Since you have to do more wholesale funding. Or do you have to increase the cost of the deposit on your platform. To get up the NSF?

I'm not as convinced. I think there are big uncertainties. In the dynamics you are looking for. I think it is a new market behavior. We have to be careful. It is not like that. That platform money. Has a negative impact on us. But they are not worth as much. From the perspective of the regulatory liquidity measures. We are still standing. And we say that 103 on the NSF side. Is structurally too low. Then there are probably other actors in the market. Who will now get worse. And the question is how their behavior will also be. On different platforms. I think you have to be careful. There can be a scenario. Where it will be a more profitable price dynamic. Rental setting on the platform money. I think you should be careful. Before you know exactly what the consequences will be.

If we speculate a little. You can tell me if I'm completely out cycling. You can not put too low a limit on Avanza's platform. Because the money will not flow into Avanza's own savings account. But they are attractive. Because you need a haircut of 50%. In that case you want to get the platform money. To come in via your own channels. In your own website. So you only get 10% haircut. Then you have to pay a lot on the rental fee. Or is that a wrong scenario?

There is a theoretical point in what you say. But there is also the argument. I mentioned the ongoing. Price setting on different platforms. I am careful. We are generally very careful. To say exactly where the impact will be. And it is generally the case. With the entire rental market. These new legal statements. Will play in a changed rental course. And how attractive it will be. For other actors to play. The rental market, the contract capital market. Play also in. We saw a powerful push. During the period where we had increased rents. I think no one has the exact answer. Are

you negative about that? As you would say. It can be positive in some ways.

One last question. In the consumer segment. How do you set the rents out to customers? Is it a stable plus a margin on the property loan? Or how does the falling stable affect? Is it the reason Nimmin fell to .2% in the quarter?

To start with. The falling of the quarter. Has to do with the positive effect of the season. If it is Q2 as you compare.

Yes, that was very clever.

It is rather that it should be compared. With the .1% that we have reported earlier. Which is more like for like in that perspective. Then as for the price on the private side. Then it is not a Ibor linked loan in that way. It is set in relation to the general rent situation. And our funding costs. Which determines how much we have. The possibility to take out against our customers. Then this is more of a generic product. Where it is a market price that controls.

And it is from customer to customer. It is a big difference. Then you can say as you look there. In the quarter it is .2% in Nimmin. And they have 7.1

% Q1. So there is actually no pressure. But

how often can you reset the interest against the customer? Does the falling stable affect anything? Or can you even expand the margin. Within this segment if it is not Ibor linked?

But we also have to take into account competitors. We have the freedom to change the interest. A little after how Ibor is changed. But we have to take into account how the market works. And how our competitors act. And how Ibor is stable. It is a sum of everything.

Absolutely. But the funding costs are a bit high. For all competitors as well. I mean the customers who take these loans. But I think they hardly know what Ibor is. Or how it develops in the future. Then you should be able to defend the margin. And clear a quite high Nimmin in the future. That

is exactly right. It is our funding costs that are higher than where Ibor is. As a stable price.

Alright. Thank you very

much.

Thank you. Can you hear me? Yes. Great. A follow up question on Jakobs question. About the NSF. You said it sounded like a target level of 107-110. What are your own expectations. When you are up to this level. It sounded like a few quarters. But should you expect improvements already. From the end of Q4. Or will it take a little longer. What are your expectations?

I hope and expect to see a gradual improvement. In the coming quarters. Then the NSF is more of a slow moving measure. In both directions. I think it should be added compared to the LCR. A shorter maturity measure. Where you can notice a bigger effect on a much shorter time. We are careful to give an exact time. Or the end point. When we are in this interval. But I expect a gradual improvement.

We will also have to wait for Q4.

Good. Thank you. If we go over to slide 10. The cash accounting has increased. How should we expect it to develop. In the coming quarters. Should it stabilize. Or when can we expect it to start to fall.

It is difficult

to

say exactly when. But we can say that a lower interest rate. Will make it easier for us. Or easier for the customers. We saw earlier when we started. Increasing step 2 and 3 in Q1. We did not think Q2 and Q3 would be a bigger improvement. But we think a success in improvement. Maybe a little in Q4 and then forward. From Q25 and forward. That is what we see today. I think it is the interest rate that is also the problem. And we do not want to help. With the flow down. And that we can increase the interest rates. But it is difficult to say exactly when. But we think a success in improvement. If the interest rates

start to rise. From mid-2025 towards the end. Can we expect that this too. I have seen a big rise. In cash accounting has come down. During this time. Or is it a reduction effect too?

When we think cash accounting can come down. What is the question?

If it is affected. Right now we are in a falling interest rate. And if the interest rate stabilizes. Do you think it will have an impact?

I think the time on our side. More or less without a downfall. We have a pretty good plan on how to solve this. With existing customers. The longer the better we

find solutions. And go

about getting down. Step by step. And we will be able to increase the interest rates.

I understand. And finally. In this falling interest rate. Of course it affects the interest rates. How do you think you will work with the costs? In 2025-2026. Is there a low falling rate you can work with. To keep the costs. Or how do you see it to grow in this falling interest rate?

I think we have no cost problem. As I said earlier. We have done a lot of investments. In a lot of regulatory issues. Dora is here. 2025 we have a base. There are a lot of regulatory issues. And there is a lot of money. We have invested a lot of money. Energy, resources. I don't think we should continue to invest. In the pace we have done before. Then we will see how early it will grow. If prices

will rise or fall. But I think we have no cost problem.

That is not the case. Cost is not our thing. I don't think the costs will go up. Especially much or down. I don't think we will see any drama in the future.

Relatively unchanged. What is your expectation?

Relatively. Not down but no drama on the upside.

Thank you. Super good.

Next question comes from Jens Hallen. From Carnegie Investment Bank. Here you

go. Good morning. Some quick questions. Let's start on the property side. The flow to step 2 and step 3 seems to have stopped. For us it is difficult to get into your step 1 loan. But is that a problem? Do you share that picture? Those who are on the border between step 1 and step 2. It is starting to be mapped off. Great. Thank you. Especially if it is Jolliwee. This with cash counting. It is impossible for us to have a gisting when it comes down. We have to assume that it is still there. I am interested in the underlying margin. I will explain. Ibor has come down. Your expectation margin should have dropped. The financial cost is quite high. It is mostly positive. But it was still quite flat. Step 3 affects the difference between Q2 and Q3. But we still had a flat margin in real estate. But the gap in real estate should have been decreasing. How conservative do you think it will be? A underlying margin in Q4 and Q1? If you can explain.

There is no price pressure on anything. There is no price pressure on new business. We can start with that. Peter can develop more technical. We are in the moment when Ibor has come down. Our funding costs are quite flat. We think that our funding costs will still come down. With the thought that Ibor has come down. I do not know if you have an answer to the question. But we do not see any price pressure on new business. In any of our segments. I do not know if you have any additional thoughts.

It is true. I understand where you are coming from. It is also true. Exactly what technical pressure we have on the NIMM. In the coming two quarters. It is difficult to say. The market is dynamic. But I think our important message is. To look at this longer time series. And where we were NIMM. Before the interest rates started to rise. We were at 68-69. Now we are down to 67. But then it is a bit of an apple and pear. Because in the first half of 2022. We did not have this problem. With cash accounting. That we have been doing now. So you would rather see it as. That we have been doing. Structurally or technically. From 68-69 to. If we had allowed ourselves to put back. The cash accounting effect to 76. We will have a little technical pressure. In the coming two quarters. But I am pretty convinced. That we will come out on the other side of the interest cycle. But as long as the interest rates are negative. Or zero. Then we will benefit. Compared to where we were before the interest rates started to rise.

I think we are keeping NIMM pretty good. If you compare 67 now. And then we go back one quarter of Q3 2022. Then we had 7 and 12. But then you also had 7% increase between interest and interest rates. And now we only have. Less than 6% of the net. That is one thing plus that we now have a 90% interest rate. So the NIMM stands quite well. And if we come to the normal interest rate level. Then we will have positive effects on NIMM. Then how long it can take two or three quarters. That's hard to say.

I was almost fascinated by how you have managed. To keep the underlying margin in the real estate sector. With the thought of that the margin of exchange. Against Stibor for example. We need to increase quite dramatically to compensate. Because the absolute level of Stibor has come down. I understand.

We keep the margin good. Then you get back to have less accounting principles. Then you get a more normal interest rate. And then the spread between IBOR and our funding forces. Then the NIMM will come up. So I think we are keeping it very good. With regard to the margin at least now in the short term.

Can I ask a question about the after question? We see a quarter and a quarter. And it is quite flat in the real estate sector. Is it a season effect here? Or are you careful? I think that the question is, if you look at big banks, they have not started in the real estate sector. There should be attractive customers with attractive margins. How do you see this?

It's a big question. It feels like they have not started the interest in doing business. It already started when the market realized that the interest rate would not be higher. You did not want to do business. How high is the interest rate? Now I know that the interest rate will not be higher than this. It will probably be lower. Which means that it is a big after question on the stock market. And it has also been quite a change. Even though the stock market is dependent on the stock market, we have had two billion in new business and two billion in the solution of the money.

So that's good that we are thinking.

Last question. On the consumer, this 15 million is positive, what is it? You have only positive effects. What is this?

It depends on the internal system, the system change and the income that should have been spent and booked in the previous quarter. So we are not really sure. We will have a little puzzle on that.

I think that the consumer as well. Somewhere a lot has happened in the private sector. We actually see a good performance. Many are pulled out of the market. There we also succeed to have good margins with a less risk. So even there you look at the market, we also do that in private.

This was a segment that you crumbled for many years and that you would keep as you seem to have gotten a little upturn. We are perhaps even too conservative. It was probably

right with the stock market, but we did a lot about how we acted in the past. We wanted a healthy profit and much better

quality. It was good with the stock market. We did that and now

we have taken a decision and now the market is working well.

Okay, you have talked for an hour. Thank you very much. That was all my questions. Thank you.

Good morning.

Good morning, Joanna.

I would like to hang out with the quality of the funding and the funding costs. How much of the investment comes from these investment tax forms that the financial inspection defines?

It is not a number that we have divided externally. We usually say that we give our currency split on the loan. You can see that the euro part we have, we have a very small part of the euro money that is via our own platform. Then most of it comes through our collaboration via Raisin primarily. Then when it comes to the weak loan, we have a good distribution between our own channels and platforms.

But you will still be affected by this new regulatory system. I am curious about the questions you have received from Jakob and SVB. Is your view that there will not be an increased competition in Sweden about the loan customers?

I think there are many different scenarios in front of us. There can be an increased loan in our own channels. It depends on which actors in the market who have the biggest challenges and not with this new regulatory system. What is the ability of the different actors to drive the loan in their own channels against platforms. We

do not conclude

that it can be a more profitable price on platform money from now on. We do not know what the development will be to drive more loans in our own channels. I think we have to be careful.

What would be positive with these new rules?

That people can not have as aggressive a price and drive volumes via platforms.

I have seen a lot of actors who have the lowest standards and have driven overnight money on platforms very aggressively upwards. They have to change their actions now and drive loans in their own channels or on longer loans, which means shorter

money.

It is likely to come down a bit in the net.

What do you think about this picture that the financial commission gives and that has been talked about in Europe? Is there a possibility that you have this type of loan platform for a large part of your funding and especially your situation?

We do not share the financial inspection assessment of this situation. I think we have a good historical and good internal statistics that shows that we have a very good index on the loans we have. It is about both our own platform and platform money. There is also a huge advantage from a stability perspective with platform money in geographies that are outside Sweden, where there is a different media picture that you diversify. All forms of diversification are good, as we see it. We do not really share the view.

We'll let that one go. You have a little higher levels on 3-step, 3-step, 2-step. How do you ensure that it will not be the same picture in a year or two?

We can never guarantee that. But it also has the contribution that you can say that we have ended up with the volume in step 2, step 3, where customers are on a lower interest rate. It has also happened that the interest rates have gone from 1 to 4 percent quite quickly. Some of the customers have had the challenge of paying their interest rates. If we have a different interest rate, as we have already seen now, then of course we will benefit from that customers will get a little easier and get on with their interest

rates. If the funding costs would go up for you, where should the income come from?

If the funding costs go up, we have 70-80 percent of our... It is stable and connected. 70-80 percent of our credit stock is stable and connected. Then it will be a higher interest rate with a

cut. Thank you very much.

Thank

you.

Thank you.

Thank you. Thank you for listening and wishing a nice weekend. Thank you.