Norion Bank AB

Welcome to Norden Bank's Q1-Rapport 2025. My name is Martin Åsman, I'm the CEO and I'm here with Peter Olsson. Before we start here on page 2 and sum up the quarter, we sent out on April 10th that we have had some customers who have paid back their rents, a number of private customers. We have From Q2 last year, we have had customers who are in need of their rent payments. We have had approximately 100 million per quarter from Q2. Therefore, it is very happy that we were able to communicate that we have received 140 million in rent from FACETs. So it's very cool that the customers are coming up. It's good and very exciting. Regarding numbers, we can also talk about what we can call a media rush. It has been established that we have a number of consultants in our Plastic Cement. And it's true, it's not a secret. It was already communicated by Banken Börsnotans 2015 as part of the official outsourcing. Unlike Storbank, we don't have an office network. We have to see new businesses all the time. We work with different consulting applications. It's our way to get new businesses in. We have a relatively short running time for our businesses, 18-24 months, so for us it's all about getting as much flow as possible and seeing as many potential loans as possible, and therefore working in different ways, both with some consultants and with our own employees. Of course, this is part of an origination. When we do a business, it is the bank's employees and of course the credit committee that makes all the decisions on which business we do and don't do. This is a pure way of saying business, potential business, an origination part. We also have news under the number that is not just in numbers, but then Baldor has then made a principle decision to share Norium Bank's shares with their shareholders. We don't know when in time, but we think it's a very good way for us to increase the fleet. I think it's good for Norium Bank and their shareholders. And as I said, we don't know when in time, but we think this is very, very positive. If we then jump into some figures and start to look at the top left on page 2, there you see that our loan amount now goes up to 47.5 billion. This is an increase of 5%, but a decrease of 2.8 billion compared to Q4. There is some explanation for that, Peter will come in on more detail, but I'll just start by explaining a little about the decrease of 2.8 billion. FX, about 1 billion. Then we have a number of return on investment effects that go up to 500 million. So the decrease is not so bloody, but there are some explanations about it. But as I said, we will talk about it a little further in the presentation. The revenues for this quarter go up to 1.22 billion. The KJV is at a good level of 27.5, even without a clean-up. Under these 40 million, we have increased by 30, still at a decent level. The GDP is at 525 million and the casting paid capital is 17.8. The capital reduction continues to be strengthened and improved. We have a very good level. Both the core primary and total capital reduction increases by 30 points. We go in and look a little at page 3, which is the corporate segment, and it is corporate credit and factoring in the north. We also see here a decrease with 350 million, also here the currency affects with 330, so it is a fairly unchanged development on the corporate stock. Then we should not forget that factoring is almost always weak during the first quarter and factoring decreases With about 500 million. So if we exclude that, we make a very good quarter on the business part. We increase the stock by one year with almost 30%. This is a segment that we have been talking about for a long time. We have found a very good position to deliver financial solutions to medium-sized companies in the north. There is a lot of potential and I think we will establish that position also this quarter and continue to be a profitable business. So here we see a good growth. We have analyzed our stock here within the company and have seen if there are any effects on these loans that are affected by the so-called trunk-tooling. Very few customers are affected by this outcome that is here today. There is a lot of Kundialog och stor aktivitet. Vi har inte sett egentligen någon påverkade alls av den här makroekonominnen. Framförallt USA-presidenten med tonlar och så vidare. Ingen effekt alls än så länge. Verket på företagarna fastigheter. Men som sagt, det gäller vårdmjuka. Så vi får se lite vad som händer framåt. Men vi tror fortfarande att Q2 är ett och brukar vara ett par kvartal. Men som sagt, det är lite osäker omvärld. Men so far so good. We go to page 4 and look at the assets. Here we also have a decline. This also affects the currency. We are decreasing with 2 billion. The currency affects with 650 and the already shown effects that we talked about earlier affects with 500. This means that we have a decrease of about 800. Millions, and then we can also see that the decrease is due to the fact that we have reduced the volume by 500 million, which is good and positive. So no dramatic decrease, but also here, as I said in the business part, good activity, very much interesting in that law. There is, as I said, a completely different risk value and interest in doing business, and of course it has to do with the interest rate. So still positive for our property segment. If we look at the geographical split and the different industries we are active in, there are no major changes to talk about at all. But a decent quarter for properties. We can go into a little more detail on property and page 5. Senior and junior, no major changes. There are no major changes between the quarter either. No major changes on the LTV level either. Junior, if you look at the price development in the book, it's pretty flat. Maybe a little positive, but somewhere between plus and minus zero. No, but as I said, we have an improvement in step 3. We still have high volumes in step 3, but now we have come down a little here. That was also what we said earlier, that we saw that we had in front of us that the step 3 volumes would be improved or reduced during the first half of the year. Now we have reduced it by 500 million and I think we have good plans and good activity to continue to reduce the volumes here during the second quarter. Let's go to page 6 and look at the private sector. Here you might see a slightly different trend. As we said, the macroeconomy with Trump in the USA did not affect companies and properties, so we might see a little more on the private sector. In February and March, we have seen a slightly lower demand. I think February and March have something to do with the consumer's view of the future, which looks a little more negative. Therefore, it has been a slightly lower demand. But as I said, this is a small segment. We are not chasing the market share, we are focusing on profitability ahead of growth. So we have chosen not to lower prices, but we continue where we have been before. We work a lot in one channel. Almost 50%. I think owning the channel is key for us. First, it's better quality for our customers, which means that the credit losses will go down over time. Number two, there is a much lower purchase cost in that channel, so it's to continue to make a private loan channel. We are now also trying to go into Finland, which we did during the first quarter now. You look at payment patterns with our customers. We have said earlier that There are fewer and fewer who get the first reminder. It continues this quarter, but what is very pleasing and positive for us and our customers, of course, is that there are clearly fewer, compared to a year ago, who have challenges with paying. That is to say that when you have received your last reminder, there are clearly fewer people who go to the cash register. And that, I would say, is a crime we have seen. This quarter. And that is very, very exciting. Then we go to page 7, and then we talk a little short. We have communicated earlier that we are going to buy, and now we have bought, DNB's, now I still say DNB's private portfolio. It's actually ours now. But we made this deal ready in early April. We have communicated it since earlier. But now it is clear that the deal is completed. What does this give us? Apart from the fact that we have from 24,000 to 25,000 cards to 95,000, and that's good, we have another platform to build our card business on. We've been looking at that for a while, to be able to grow our card business, to expand our privacy. So this is very good for us. It's not just that we have 70,000 new cards. We get a stock of 650 million, and we get platforms and systems to grow our card business. Incredibly good. And this business is profitable from day one. So the business is done, and we look forward to having a bigger card business. Wall-E. Fantastic to talk about Wall-E. We have a really good position in our payment solution Wall-E. A lot of customer dialogues in the future. More and more traders. We have an incredibly good momentum. If we look at the general e-commerce market for Q1, it decreases with a few percentages. Our market share increases by almost 28% under Q1, so we take the market. We have a very good position. This will grow forward. If we look at the volume of transactions, we can't really compare it to Q4, because you know that the season effects are up and down and back and forth. But if we compare it to Q1, Q24 and Q25, the volume of transactions goes up from 3.5 to almost 4.5. The number of active customers In Q1 2020, we had about 4.5 million active customers. The loan book is quite unfriendly, as you can see down below, about 2.7 billion. But it is also the case that new traders take 15-18 months before we see the stock grow from the fact that we have onboarded new traders. But a very good quarter again. And again, this is a product that contributes to the bank's total profitability. So we are very pleased with the development and we think this will continue forward. Let's go to page 9, where Peter will talk a bit more about the value effects that were quite big this quarter. And with that, I'll hand it over to Peter. So Peter, please.

Thank you very much. We are starting to break down the volume change today. The stock has totally decreased by about 2.8 billion compared to where we went out in the fourth quarter this year. And then we should have a negative FX effect of about 1.1 yards. It has been a volatile currency market and it is above all the Euro SEC movements that have affected us during this quarter and during the quarter as well. However, this is an impact on the stock market. We have a very limited impact on the result. We have managed to secure the currency movements in a good way during Q1 and we do so as usual. Then we have a change of a technology that affects with approximately 500 million. This is a one-off post and it has to do with how we actually handle these accumulated but unpaid interest rates that have been built up over time. Now this will be recorded as a negative post related to the public. But as I said, it is a one-time post and it has no result-based effect. So far, we have a underlying volume change of about 1.2 billion. There are a few different things that drive this. Above all, we had some expected mortgages in the investment segment. We flagged that in connection with the Q4 report, and these have come in according to expectations and also contributed to a better portfolio mix. In addition, we have also received lower Stage 3 volumes, which is positive. And then we have the seasonal effects, especially on factoring and payments, which Martin talked about earlier. So, in summary, we have a volume change that is minus 5.5%, but if we look at the underlying volume change, it was minus 2.3%. If we go to page 10 and look at the revenues, it goes to 1 billion 22 million kronor. Then we have, as previously mentioned, a positive effect of about 140 million kronor when we have revenues for the interest payments that we have received in relation to these step 3 credits. And these are then interest rates that have accumulated during 2023-2024. Even exclusive to this, we have a stable income level. And we have a NIM that goes up to 7.6% during this quarter. Page 11. We usually break down the NIM, and in previous quarters we have talked about how much that is missing from the NIM, given the way we handle these unpaid payments from the three creditors. This quarter, through the 140 million that we have received, we actually see the reverse effect, that the underlying number is a little lower than the reported number, and it is 30 points below the current quarter. If we look forward and at what pace, what run rate we hold on these credits, then of course they are affected by lower Steg 3 volumes. They are also affected by both FX-effects and how the housing rates have changed during this time. Should we give any form of guidance in the future, if we then take a theoretical scenario where there would not be any payments at all on these three credits during the second quarter, then the impact would be somewhere between 80 and 90 points, that is the round rate that we keep. We go to page 12 and look at the green line in Gilden. It goes up and is isolated under Q1. This is of course confirmed by the interest payments that we have received, the 140 million that we have received. If we had excluded them, we would still have the same trend, which is natural with gradually decreasing IBO rates. We have seen that both the yield and the funding costs have continued to drop even during this quarter. We can see that the same trend can continue even below Q2, but with an increasingly smaller effect if we look ahead. On page 13, regarding liquidity and trading costs, we can state that our regulatory liquidity has continued to strengthen and is strengthening rapidly during this quarter. We have an LCR that goes up to 330% and we have an NSFR that goes up to 121%. So now we have two quarters in a row where we continue to strengthen ourselves and we have actively worked to strengthen these levels after the legal decision that we made here during the fall. If we go to section 14, we can see this more from a purely non-technical perspective. During Q4, you saw how we actively worked to increase the structural liquidity position in the bank. We have continued to do this even during Q1, even if we have not really kept the same pace. But do we see how we have increased the level of total financing in relation to the loan in the last two quarters? As it was before, around 1.0 times and now we are up to 1.19 times. Translated into money, we have taken in about 9 billion in extra surplus liquidity here in just two quarters. And back to the summary of the NIM, of course, this must be taken into account. We have a weak negative carry on this extra surplus liquidity. And it is also given that if we had not needed to take in these extra 9 billion, then we could have acted a little differently regarding the pricing of our loan and also the structure regarding our loan. But we are, so to speak, clear with this now. We think we have succeeded very well, both on the structural liquidity side and above all the regulatory liquidity measures. So from these levels, we have no ambitions to increase further from where we are now. Since 2015, we have been talking about the segment, starting with the company segment. As I said, in terms of volume, we are down about 350 million. Almost the entire decline can be explained by FX-effects. In addition, we see a normal seasonal effect on the factoring side, which is part of this segment. This means that we see that the total development and both seasonal declines on factoring and Apex, we can see that the underlying loan business is doing well. There are stable margins and the revenues are also on a good level. If we look at this from a longer perspective, the business segment has had a clear comeback, where the volume is almost 30% and the revenues are almost 40%. Page 16, the property segment. I'm trying to do the same volume bridge here again, that the reported volumes are down by about 2 billion. Then we have minus about 650 million in FX effects from this. The educational and technical change that I mentioned initially is the absolute majority of that amount, about 500 million, relative to the property value, so it's minus 500 there. And of the volume reduction of about 850 million that is left, step 3 has decreased by 550 million. That is to say, it is a underlying volume decrease of about 300 million, as we can see here. So there seems to be big differences between reported decrease and underlying decrease. Then you see on the income level that it is here that the 140 million is added. This of course affects the total income, which is 416 million, and it is these incomes that actually explain the entire NING-strengthening, which is clear, as we see under Q1 this year. On page 17, the private sector, as I said, a slightly smaller volume decrease, about 130 million down. Partly driven by a little more cautious sentiment in the market, but we can also look at the index, which is 7.2%. It is strengthened somewhat during Q1, so it is also proof that we have prioritized profitability ahead of volume growth and kept up with some of the prices in the market. If we look at it from a longer perspective, the private segment is doing well. Year on year we have an increase in volume of 8% and the revenues are up by 10% and the corresponding price. We look at Wall-E, as I said, Martin talked about the transaction volumes. It has been going super well underground and they are up by 28% since April last year. However, you see in this picture that we do not have the same exchange rate on either the stock or the income. This has to do with the time lags that are built into the business model and when we have new traders in our portfolio, it takes time to reach the maturity of new traders. On the other hand, the stable and good revenues go up to 123 million and the margins are unchanged compared to the level we saw here during Q4. And again, payments are developing very well. It's a very profitable business for us, given the income we have in relation to a fairly limited capital bond relative to our other segments. If we go to page 19 and look at the costs, they go up to 281 million here in Q1. It is down a bit, so it should be, because the 303 million we reported under Q4 had about 15 million in one-time related posts and about 10 million in a seasonal effect. So if we had cleaned away the about 25 million from the 303 million, we would have landed just under 280 million and now we are landing at 281 million. So there are very small changes here with Q1 compared to where we were under Q4 and then despite the annual salary revision that is booked here now during the first quarter. Så jag tycker vi fortsätter uppvisa en bra kostnadskontroll och vi har ett KI-tal. Side 20, look at our credit loss reserves. They go up to 216 million or 1.8% here under Q1. You can see it on the graph on the side here that we are in a good trend. The credit loss percentage continues to go down. Then we talk about the company and property side here isolated under Q1. så ser det bra ut, egentligen inga ytterligare reserveringsbehov att tala om. Martin var inne på att vi ser en väldigt bra utveckling även på privatsidan och det gäller då vår Our front book, where we see better and better payment patterns. However, what drives the reservations for the most part during this quarter is the back book on the private side. And you can see that if you look at the level of reservations from stage 3 private. We usually talk about them. They are strongly marked during this quarter. An increase of 2.1 percentages. and they now go up to 57.9% at the end of the first quarter. Page 21, we sum it up then. We have a turnover of 525 million. It is just over the preliminary interval of 510-520 million that we publicly did here a few weeks ago. And this is of course much driven by the 140 million i extra ränteinbetalningar som är intäktsfört. Det flyter igenom hela vägen till resultatet. Men även utan de här inbetalningarna så upprätthåller vi en bra resultatnivå. We have a drop in our own capital during Q1 that increased by 17.8%. And we should remember that we have not yet made any withdrawals from our capital base or own capital for the repurchases that we hope to start here. Instead, we have rather accumulated our own capital. Our own capital is 1.35 billion higher here now in Q1 2025 compared to the corresponding period a year ago. Page 22 and the capital coverage, we continue as I said to strengthen the capital coverage with 30 points. A core capital relation that goes up to 16.1% and total capital coverage 17.2%. As I said, quite a lot is happening even on the capital side during this quarter. What affects in a positive direction is of course a very strong reported result. The volume changes we have seen, whether they are FX driven or underlying volume changes, volume decreases that we have seen here, continue of course to strengthen the capital. On the negative side, from January 1, 2025, we have fully implemented Basel IV, which has a negative impact on the capital. But net, we continue to strengthen ourselves with 30 points, and we show very strong buffer levels in relation to the regulatory requirements that we have. Then we go to page 23, I turn back to you Martin.

Great, thank you Peter. To summarize this and look a little forward, if we summarize with the different segments. Privately, as I said, a little further after the question is in February-March. We will see a little how it goes with the general public. Framtidstro, så fortsätter vi att förbättra kreditgivning. Vi ser, som Peter pratade om från BUC, att det ser bättre ut. Vi har jobbat med att förbättra kreditgivning under längre tid. Bättre kvalitet kommer att leda till lägre kreditförlust över tid. Det behöver vi se nu. Vi tittar, som sagt, lite på... Vi har gått in i Finland lite försiktigt under första kvartalet. Vi är väldigt glada nu att vi har... gjort affären klar där vi ökar vår kortdel och som ger oss en möjlighet att bygga kort klart bättre och större framåt så att privatsementet fortsatt bra. Företagsdelen As I said, there are no effects yet on the expansion of Tunla and so on, but we have to be cautious and look forward to it. Otherwise, I think the company looks very good. We have said that we have a very unique position to deliver financial solutions to a medium-sized company in the north. Stockholm is 30% in a year, so we have found a very good position there, and we will continue to do so in the future. What usually is good, without being able to guide too much what Q2 looks like, is that Q2 It's usually strong seasonally, and we still have good and many customer dialogues. In the properties, it's still a very good activity. A lot of customer dialogues, a lot of interest in doing business. That's what we continue to work with. The most important thing for us is to reduce our Step 3 volumes. And we have succeeded partly this quarter. And we look forward to continuing to improve that forward, that is to say to reduce Step 3 volumes. Wall-E is a very good quarter again for Wall-E. We have an incredibly good momentum in our Wall-E business. So it will be exciting to follow So all in all, very good quarter. Glad to have said that we have customers who have come up with their rents and pay accumulated rents, especially from 2024. The capital is still good, we are strengthening with 30 points despite the implementation of Basel. We have a very good position and position. All four segments have delivered a very good quarter. So it's exciting and that's it. Last but not least, as I said, we intend to buy back shares for up to SEK 500 million during the coming quarter. Det var nog det jag och Peter hade så vi tackar för att du tog dig till att lyssna och vi öppnar på frågan. Tackar.