Highlights (corresponding period last year in parentheses):
·Net interest margin increased to 1.72 (1.52) per cent
·Continued strong growth in lending to customers - 13.5 per cent over the previous 12 months
·Net interest income increased by 26.3 per cent to NOK 295.5 (234.0) million
·Low loan losses - loss rate of 0.14 (0.05) per cent
·Solid capitalisation - CET1 of 14.8 per cent
"We have delivered a solid quarter, continuing our planned growth and increasing our profitability. At the same time we have been able to be competitive in our pricing. Beyond the numbers we are proud to have the most satisfied customers in banking for the fifteenth year in a row, as noted by Norway's most recognised customer satisfaction index, Norsk Kundebarometer. In order to further focus the organisation towards innovative capability and customer value we have made some organisational changes. Increased innovation, understanding our customers' needs and including them in the Bank's development has been and will continue to be an important factor in our continued success," says Magnar Øyhovden, CEO of Skandiabanken ASA.
Net interest income has increased to NOK 295.5 (234.0) million, as a result of increased net lending to customers and a higher net interest margin.
Operating expenses were NOK 141.5 (144.6) million in the quarter. Adjusted for one-off costs of NOK 8.1 million, operating expenses in the quarter were NOK 133.3 million, and thus in line with development from previous quarters.
The net cost of losses in the quarter was NOK 20.0 (6.5) million, and the loan-loss rate was 0.14 (0.05). The increase in write-downs is primarily a consequence of migration to a new supplier for credit card solutions, which has improved data quality but led to a temporary delay in claims reminders. Skandiabanken expects part recovery and normalised loss levels in the third quarter. At the end of the quarter, the bank had recorded total write-downs of NOK 130.3 million, compared to NOK 117.7 million at the end of the first quarter of 2016.
At the end of the first quarter, the bank had a core Tier 1 capital ratio of 14.8 per cent, a Tier 1 capital ratio of 16.2 per cent and a total capital ratio amounting to 18.0 per cent.
The ongoing process related to winding up remaining service agreements with the Swedish Skandia Group showed good progress in the quarter. The remaining projects are expected to be completed during 2016, as previously communicated.
A detailed financial report for the group and for Skandiabanken ASA is attached to this notice. The report for the wholly owned subsidiary, Skandiabanken Boligkreditt AS, is distributed separately.
Contact details, Investor Relations
Brede Selseng, Head of IR Skandiabanken ASA, +47 971 62 171
Henning Nordgulen, CFO, Skandiabanken ASA, +47 952 65 990
Johnny Anderson, Head of Marketing & Communication, Skandiabanken ASA, +47 959 40 020
About Skandiabanken ASA
In April 2000, Skandiabanken was launched as the first purely digital bank in Norway. Today, the Bank offers a comprehensive range of financial products and services to individuals and households in Norway within payments and card services, deposit-based savings, investment products, long-term loans and short-term loans. The Bank has no branches and all products and services are offered directly through the digital platform, which is available on a broad range of user devices. As of 30 June 2016, Skandiabanken had 384 000 customers and total assets of NOK 71.6 billion. For more information, see skandiabanken.no/investor-relations.