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Collector Bank
Annual Report • Feb 5, 2025
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Annual Report
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Year-end report January–December 2024
Year-end report January–December 2024
Fourth quarter of 2024 (compared to the fourth quarter of 2023)
- The loan portfolio amounted to SEK 50,286m (45,470)
- Total income amounted to SEK 922m (934)
- The C/I ratio amounted to 32.8% (27.1)
- The credit loss level amounted to 1.9% (2.4)
- Operating profit amounted to SEK 383m (414)
- Net profit amounted to SEK 301m (326) and earnings per share 1) amounted to SEK 1.46 (1.51)
- Return on equity amounted to 13.5% (16.3)
- The CET1 ratio amounted to 15.8% (15.9) and the total capital ratio amounted to 16.9% (17.0)
Significant events after the period
After the end of the fourth quarter, the Swedish Financial Supervisory Authority has requested a statement from Norion Bank as a continuation of the previously initiated investigation regarding compliance with anti-money laundering regulations, which was initiated in May 2023 towards Norion Bank and a couple of other market participants. Norion Bank will comment on the matter no later than February 21, 2025.
January-December 2024 (compared to January-December 2023)
- The loan portfolio amounted to SEK 50,286m (45,470)
- Total income amounted to SEK 3,697m (3,648)
- The C/I ratio amounted to 29.1% (25.6)
- The credit loss level amounted to 2.1% (2.5)
- Operating profit amounted to SEK 1,609m (1,636)
- Net profit amounted to SEK 1,265m (1,294) and earnings per share 1) amounted to SEK 6.09 (6.02)
- Return on equity amounted to 14.8% (17.2)
- The CET1 ratio amounted to 15.8% (15.9) and the total capital ratio amounted to 16.9% (17.0)
- The Board of Directors proposes that no dividend will be paid for the financial year 2024. However, in line with the Bank's dividend policy – to distribute potential surplus capital in relation to the capital adequacy target to shareholders – the Board intends to initiate a share buyback program of up to approximately SEK 500m. The buyback program is expected to commence during the second quarter of 2025, given that the Annual General Meeting on May 6, 2025, authorizes the Board to repurchase its own shares, and that the Swedish Financial Supervisory Authority grants permission to repurchase shares.
Photo: Anna Roström
1) See pages 4-5
Highlights fourth quarter of 2024 (compared to the fourth quarter of 2023)
50,286
Loan portfolio (SEKm)
32.8%
C/I ratio
percentage points
+5.7
13.5%
Return on equity
-2.8
percentage points percentage points
Total income (SEKm)
301
-8%
Net profit (SEKm)
15.8%
CET1 ratio
-0.1
Loan portfolio (SEKm) and NIM (%) EPS 1) (SEK) and RoE (%)
1) Earnings per share before and after dilution
This is Norion Bank
Norion Bank Group is a business-oriented Nordic financing bank. The Group's brands – Norion Bank, Walley and Collector – offer customized financing solutions that meet distinct needs in three customer segments: medium-sized corporates and real estate companies, merchants, and private individuals. As a specialist in financing solutions, Norion Bank Group is a leading complement to traditional large banks, with a vision of being the leading Nordic financing bank in its chosen segments.
Norion Bank offers corporate and real estate loans, as well as factoring for medium-sized corporates and real estate companies. The Walley brand offers flexible payment and checkout solutions to merchants and private individuals. The Collector brand offers personal loans and credit cards to private customers, as well as savings accounts to private individuals and companies. Norion Bank Group (formerly Collector Bank) was founded in 1999 and has offices in Gothenburg, Stockholm, Helsingborg, Oslo and Helsinki. Business is conducted through Norion Bank AB (public), which is listed on Nasdaq Stockholm.
Key ratios Group
| SEKm | Q4 2024 |
Q3 2024 |
∆ | Q4 2023 |
|||
|---|---|---|---|---|---|---|---|
| Income statement | |||||||
| Net interest income | 831 | 805 | +3% | 864 | |||
| Total income | 922 | 895 | +3% | 934 | -1% | ||
| Net profit | 301 | 309 | -3% | 326 | -8% | ||
| Earnings per share before dilution, SEK | 1.46 | 1.50 | -3% | 1.51 | -3% | ||
| Earnings per share after dilution, SEK | 1.46 | 1.50 | -3% | 1.51 | -3% | ||
| Balance sheet | |||||||
| Loans to the public | 50,286 | 48,460 | +4% | 45,470 | +11% | ||
| Deposits and borrowings from the public | 53,017 | 45,753 | +16% | 42,663 | +24% | ||
| Debt securities in issue | 2,320 | 2,266 | +2% | 1,248 | +86% | ||
| Subordinated liabilities | 598 | 299 | +100% | - | - | ||
| Total equity (shareholders of Norion Bank AB) | 9,052 | 8,751 | +3% | 7,803 | +16% | ||
| Key ratios1) | |||||||
| Net interest margin (NIM) - Period 2) | 6.7% | 6.7% | 7.7% | ||||
| Net interest margin (NIM) - LTM 2) | 6.9% | 7.2% | 7.6% | ||||
| Credit loss level - Period 2) | 1.9% | 2.1% | 2.4% | ||||
| Credit loss level - LTM 2) | 2.1% | 2.3% | 2.5% | ||||
| C/I ratio - Period 2) | 32.8% | 27.6% | 27.1% | ||||
| C/I ratio - LTM 2) | 29.1% | 27.6% | 25.6% | ||||
| Return on equity (RoE) - Period 2) | 13.5% | 14.4% | 16.3% | ||||
| Return on equity (RoE) - LTM 2) | 14.8% | 15.5% | 17.2% | ||||
| CET1 ratio 3) | 15.8% | 16.1% | 15.9% | ||||
| Tier 1 ratio 3) | 15.8% | 16.1% | 17.0% | ||||
| Total capital ratio 3) | 16.9% | 16.7% | 17.0% | ||||
| Average number of shares outstanding before dilution | 205,381,004 | 205,381,004 | 0% | 205,381,004 | |||
| Average number of shares outstanding after dilution | 205,381,004 | 205,381,004 | 0% | 205,381,004 | |||
| Average number of full-time employees | 396 | 389 | +2% | 357 | +11% | ||
| Adjusted key ratios 1) | |||||||
| Net interest margin (NIM) - Period 2) | 6.7% | 6.7% | 7.7% | ||||
| Net interest margin (NIM) - LTM 2) | 6.9% | 7.2% | 7.6% | ||||
| Credit loss level - Period 2) | 1.9% | 2.1% | 2.4% | ||||
| Credit loss level - LTM 2) | 2.1% | 2.3% | 2.5% | ||||
| C/I ratio - Period 2) | 32.8% | 27.6% | 27.1% | ||||
| C/I ratio - LTM 2) | 29.1% | 27.6% | 25.6% | ||||
| Return on equity (RoE) - Period 2) | 13.5% | 14.4% | 16.3% | ||||
| Return on equity (RoE) - LTM 2) | 14.8% | 15.5% | 17.2% |
1) See Definitions, pages 22-23, and norionbank.se/en-se/investor-relations-en/financial-information/key-financials for more information about key ratios
2) Key ratios that have not been prepared in accordance with IFRS but are deemed to facilitate the analysis of Norion Bank's development. See Definitions, pages 22-23 3) Key ratios according to capital adequacy rules (CRR). See note 12, pages 43-45
| Key ratios Group, cont. | |||
|---|---|---|---|
| -- | -- | -- | ------------------------- |
| SEKm | Jan-Dec 2024 |
Jan-Dec 2023 |
∆ |
|---|---|---|---|
| Income statement | |||
| Net interest income | 3,313 | 3,291 | +1% |
| Total income | 3,697 | 3,648 | +1% |
| Net profit | 1,265 | 1,294 | -2% |
| Earnings per share before dilution, SEK | 6.09 | 6.02 | +1% |
| Earnings per share after dilution, SEK | 6.09 | 6.02 | +1% |
| Balance sheet | |||
| Loans to the public | 50,286 | 45,470 | +11% |
| Deposits and borrowings from the public | 53,017 | 42,663 | +24% |
| Debt securities in issue | 2,320 | 1,248 | +86% |
| Subordinated liabilities | 598 | - | - |
| Total equity (shareholders of Norion Bank AB) | 9,052 | 7,803 | +16% |
| Key ratios1) | |||
| Net interest margin (NIM) - Period 2) | 6.9% | 7.6% | |
| Net interest margin (NIM) - LTM 2) | 6.9% | 7.6% | |
| Credit loss level - Period 2) | 2.1% | 2.5% | |
| Credit loss level - LTM 2) | 2.1% | 2.5% | |
| C/I ratio - Period 2) | 29.1% | 25.6% | |
| C/I ratio - LTM 2) | 29.1% | 25.6% | |
| Return on equity (RoE) - Period 2) | 14.8% | 17.2% | |
| Return on equity (RoE) - LTM 2) | 14.8% | 17.2% | |
| CET1 ratio 3) | 15.8% | 15.9% | |
| Tier 1 ratio 3) | 15.8% | 17.0% | |
| Total capital ratio 3) | 16.9% | 17.0% | |
| Average number of shares outstanding before dilution | 205,381,004 | 205,381,004 | 0% |
| Average number of shares outstanding after dilution | 205,381,004 | 205,381,004 | 0% |
| Average number of full-time employees | 382 | 343 | +11% |
| Adjusted key ratios 1) | |||
| Net interest margin (NIM) - Period 2) | 6.9% | 7.6% | |
| Net interest margin (NIM) - LTM 2) | 6.9% | 7.6% | |
| Credit loss level - Period 2) | 2.1% | 2.5% | |
| Credit loss level - LTM 2) | 2.1% | 2.5% | |
| C/I ratio - Period 2) | 29.1% | 25.6% | |
| C/I ratio - LTM 2) | 29.1% | 25.6% | |
| Return on equity (RoE) - Period 2) | 14.8% | 17.2% | |
| Return on equity (RoE) - LTM 2) | 14.8% | 17.2% |
1) See Definitions, pages 22-23, and norionbank.se/en-se/investor-relations-en/financial-information/key-financials for more information about key ratios
2) Key ratios that have not been prepared in accordance with IFRS but are deemed to facilitate the analysis of Norion Bank's development. See Definitions, pages 22-23 3) Key ratios according to capital adequacy rules (CRR). See note 12, pages 43-45
Norion Bank Group is a business-oriented Nordic financing bank. The Group's brands – Norion Bank, Walley and Collector – offer customized financing solutions that meet distinct needs in three customer segments: medium-sized corporates and real estate companies, merchants, and private individuals. As a specialist in financing solutions, Norion Bank Group is a leading complement to traditional large banks, with a vision of being the leading Nordic financing bank in its chosen segments.
Norion Bank
Corporate and real estate loans, as well as factoring solutions, for medium-sized corporates and real estate companies.
Walley
Payment and checkout solutions for merchants and private customers.
Collector
Personal loans and credit cards for private individuals as well as savings accounts for private individuals and corporates.
A comment from our CEO
Since the end of the third quarter, the Swedish Riksbank has implemented further interest rate cuts, based on the improved inflation outlook and to provide further support to the economy. The so far implemented interest rate cuts have continued to bring optimism to the market and we have witnessed an improved sentiment and transaction activity - especially from the latter part of the year.
At the same time, geopolitical risks have further increased towards the end of the year. Ongoing military conflicts in various parts of the world continue to cause significant human suffering and constitute a risk factor, despite that financial markets have shown resilience so far. Furthermore, the outcome of the American election remains unpredictable but could potentially have impact on the economic agenda through for example tariffs, taxes, and changes in the USA's global commitment.
We are as always following the future developments, but conclude that a more favorable interest rate environment creates further predictability and increased interest among our clients.
Stable development and good loan book growth
2024 has come to an end and Norion Bank has delivered another year marked by stable results and a steadily growing loan book. In line with what we communicated by the end of the third quarter, we continue to see strong demand and increased activity among both existing and new clients. The additional interest rate cuts contribute to more favorable market conditions, especially for our clients within the Corporate and Real Estate segment.
Consequently, we have experienced significant loan book growth within both the Corporate and Real Estate segments, which increased by 19% and 8% respectively compared to the same quarter last year. The net interest income continues to be negatively affected by high volumes in stage 3, primarily within the Real Estate segment, but the negative development appears to have subsided and we continue to maintain selectivity in our choice of transacations.
Our Payment segment, Walley, has demonstrated very good development in transaction volumes over recent years, including during the fourth quarter. We noted particularly good growth during Black Week, where transaction volumes were significantly higher than during the corresponding week last year. We continue to develop successful partnerships with merchants and Walley places great emphasis on client satisfaction, technical innovation and the development of successful loyalty programs.
Furthermore, our Consumer segment continues to show solid growth as the loan book grew by 10% compared to the same quarter last year. We continue to prioritize sustainable lending and our work to improve credit quality is progressing very well. Additionally, I am happy to state that our initiative to increase the share of deposits through own channel is developing well. Around 45% of the loan portfolio was mediated through own channels by the end of the quarter, compared to about 40% the same period last year.
Acquisition of DNB Sweden´s credit card portfolio
Furthermore, we are happy to announce that we have entered into an agreement to acquire DNB Sweden's credit card portfolio. Norion Bank currently manages approximately 24,000 outstanding credit cards through the Consumer segment, and after completion of the acquisition, the number of credit card clients will increase to a total of approximately 100,000. The acquisition also complements our current offering with individual, active card programs that provide access to attractive partner deals, such as with TUI Sweden AB, one of Sweden's largest travel operators, and Wismo Automotive AB, exclusive agent to several well-known automotive companies in Sweden.
Intention to initiate share buyback program
In line with the Bank's dividend policy - to distribute potential surplus capital in relation to the capital adequacy target to the shareholders - we can now announce that the bank intends to initiate a share buyback program. The buyback program will amount to up to approximately SEK 500m and is expected to commence during the second quarter of 2025, given that the Annual General Meeting on May 6, 2025, authorizes the Board to repurchase its own shares and that the Swedish Financial Supervisory Authority grants permission to repurchase own shares. We are very happy to be able to contribute to increased value for our shareholders.
Strong results in employee survey
After several years of good results in the annual employee survey, I am very happy to announce that the result for 2024, with an eNPS of 61, never has been higher. Our colleagues communicate that Norion Bank is a workplace characterized by respect, inclusion, satisfaction and engagement. The survey indicates an overall very good climate and well-functioning cooperation between leaders and colleagues.
Engaged and satisfied employees lay the foundation for a company's success. I am very proud of the journey we have made together over the past few years and look forward to continuing to drive and develop the company forward together with my colleagues.
Martin Nossman CEO
MARTIN NOSSMAN, CEO
"Continued loan book growth and initiation of share buyback program"
Financial targets
Norion Bank's strategy is to maintain good risk adjusted profitability. In line with the strategy, the Board of Norion Bank has adopted the following financial targets:
Dividend policy
Norion Bank's policy is to distribute potential surplus capital in relation to the capital adequacy target, subject to the bank's future outlook and capital planning, to its shareholders.
The Group's development
Total income for the fourth quarter of 2024
Total income amounted to SEK 922 million (934) corresponding to a decrease of 1% compared to last year. Net interest income decreased by 4% compared to the previous year and amounted to SEK 831 million (864). Net interest income has continued to be negatively affected by high volumes in Stage 3, primarily within the Real Estate segment. The net interest margin amounted to 6.7% (7.7). Net commission income amounted to SEK 81 million (73) corresponding to an increase of 12%. The increase is primarily attributable to the Payment segment. Net gains and losses on financial items amounted to SEK 4 million (-11). Other income amounted to SEK 6 million (8).
Total income for the period January-December 2024
Total income amounted to SEK 3,697 million (3,648) during the period January-December 2024, corresponding to an increase of 1% compared to last year. Net interest income amounted to SEK 3,313 million (3,291) during the period January-December 2024, corresponding to an increase of 1%. Net interest income has continued to be negatively affected by high volumes in Stage 3, primarily within the Real Estate segment. The net interest margin amounted to 6.9% (7.6) during the period January-December 2024. Net commission income amounted to SEK 324 million (295) during the period January-December 2024, corresponding to an increase of 10% compared to last year. Net gains and losses on financial items amounted to SEK 30 million (24). Other income amounted to SEK 31 million (38).
Total expenses
Total expenses amounted to SEK 1,074 million (934) during the period January-December 2024, of which SEK 303 million (253) pertain to the fourth quarter of 2024. Total expenses has increased by 15% compared to the previous year. The increase is both volume related and driven by continued investments in the organization. The C/I ratio for the period January-December 2024 amounted to 29.1% (25.6) and to 32.8% (27.1) in the fourth quarter of 2024.
Loan portfolio
The total loan portfolio amounted to SEK 50,286 million (45,470) by the end of the fourth quarter of 2024, corresponding to an increase of 11% compared to last year and an increase of 4% compared to the previous quarter. The Corporate loan portfolio has increased by 19% compared to the previous year and increased by 8% compared to the previous quarter. The Real Estate loan portfolio has increased by 8% compared to the previous year and increased by 3% compared to the previous quarter. The Consumer loan portfolio has increased by 10% compared to the previous year and increased by 1% compared to the previous quarter. The Payments loan portfolio has increased by 9% compared to the previous year and increased by 10% compared to the previous quarter. Out of the total loan portfolio, Corporate amounted to 23% (21), Real Estate amounted to 46% (47), Consumer amounted to 24% (24), Payments amounted to 6% (6) and Other amounted to 1% (1) by the end of the quarter.
Credit losses
The credit loss level for the period January-December 2024 amounted to 2.1% (2.5) and to 1.9% (2.4) in the fourth quarter of 2024.
Operating profit, net profit, EPS and RoE
Operating profit amounted to SEK 1,609 million (1,636) during the period January-December 2024 and to SEK 383 million (414) in the fourth quarter of 2024. Net profit amounted to SEK 1,265 million (1,294) during the period January-December 2024 and to SEK 301 million (326) in the fourth quarter of 2024. Earnings per share amounted to SEK 6.09 (6.02) during the period January-December 2024 and to SEK 1.46 (1.51) in the fourth quarter of 2024. Return on equity amounted to 14.8% (17.2) during the period January-December 2024 and to 13.5% (16.3) in the fourth quarter of 2024.
Non-recurring items
Non-recurring items are defined as income and expenses that are not expected to appear on a regular basis.
2024
There were no non-recurring items in the first, second, third or fourth quarter of 2024.
2023
There were no non-recurring items in the first, second, third or fourth quarter of 2023.
Liquidity
Norion Bank's total liquidity amounted to SEK 15,650 million (7,508) as of 31 December 2024. Total liquidity consists of a liquidity portfolio and other liquid assets. The liquidity portfolio consists of highly liquid assets, e.g. municipal bonds, covered bonds and government issued securities, and amounted to SEK 11,486 million (4,304) as of 31 December 2024. Other liquid assets mainly consist of deposit accounts with Nordic banks and amounted to SEK 4,164 million (3,203) as of 31 December 2024.
On 30 September 2024 the Swedish Financial Supervisory Authority presented a legal position regarding handling of deposits through digital platforms. As of 31 December 2024 Norion Bank's liquidity coverage ratio (LCR) amounted to 320% (363) and net stable funding ratio (NSFR) to 112% (139). The numbers as of 31 December 2024 are reported in accordance with the legal position while the historical numbers are based on the previous method. The numbers are therefore not fully comparable.
Funding
Deposits and borrowings from the public amounted to approximately 79% (79) of Norion Bank's balance sheet, which by the end of the period amounted to SEK 53,017 million (42,663). This is the primary source of funding for the Group. Senior unsecured bonds issued amounted to SEK 2,300 million (1,248). Commercial papers issued amounted to SEK 20 million (0).
In 2024, Norion Bank AB issued two green, senior unsecured bonds to a total of SEK 1,200 million. The bonds have maturities of 2 and 3 years respectively and were the first bonds under Norion Bank's green framework. As of 31 December 2024, the register of green assets amounted to SEK 5,300 million.
Capital adequacy
Norion Bank has received permission from the Swedish Financial Supervisory Authority to include net profit for the period in own funds. A review of net profit for the period for Norion Bank AB has been performed by the bank's auditor, and Norion Bank has been allowed to include net profit in the Common Equity Tier 1 capital. On 28 March 2024, Norion Bank AB redeemed the AT1 bond of SEK 500 million that was issued in the first quarter of 2019. Norion Bank AB issued T2 bonds to a total of SEK 600 million during 2024. Over time, Norion Bank aims to work with an efficient capital planning strategy, which includes issuance of both Additional Tier 1 and Tier 2 instruments. At the end of the period, the risk-weighted exposure amount was SEK 53,713 million (46,862). As of 31 December 2024, the CET1 ratio amounted to 15.8% (15.9), the Tier 1 ratio to 15.8% (17.0) and the total capital ratio to 16.9% (17.0).
Other information
During the fourth quarter, Norion Bank AB entered into an agreement to acquire DNB Sweden's credit card portfolio. The acquisition strengthens Norion Bank´s position on the Swedish consumer banking market and is expected to be completed during the second quarter of 2025.
The macroeconomic environment
Following a period of high interest rates, to curb high inflation, both the Swedish Riksbank and the European Central Bank have carried out several interest rate cuts in 2024, followed by an improved inflation outlook. Consequently, market interest rates have declined, resulting in a more optimistic market sentiment. If current inflation and economic outlooks persist, forecasts indicate further interest rate reductions in 2025. However, ongoing military conflicts in several parts of the world continue to be a risk factor, despite that financial markets have shown resilience during 2024. The outcome of the American election may also have economic significance for Europe and the Nordic countries in form of potential tariffs, taxes, and changes in the USA's global commitment.
Further rate cuts support continued optimism
The loan portfolio of the Corporate segment amounted to SEK 11,582 million (9,705), corresponding to an increase of 19% over the previous year and an increase of 8% over the previous quarter. The Corporate segment accounted for 23% (21) of Norion Bank's loan portfolio by the end of the quarter. Total income amounted to SEK 217 million (179) during the quarter and to SEK 766 million (777) during the period January-December 2024. The net interest margin (NIM) amounted to 7.3% compared to 7.8% in the same quarter last year and 7.3% in the previous quarter. The NIM amounted to 6.8% (7.6) during the period January-December 2024. The total income margin amounted to 7.8% compared to 7.4% in the same quarter last year and 7.6% in the previous quarter. The total income margin amounted to 7.2% (7.7) during the period January-December 2024. The NIM and total income margins can vary between periods dependent on when amortizations and disbursements of new loans are made during respective period.
The engagement levels among existing and potential clients have been well maintained over a longer period, including during the final quarter of the year. Further reductions of market interest rates, due to policy rate cuts during last year, contribute to expectations of a more stabilized and favorable interest rate environment and to a continued positive sentiment among clients - especially within the Corporate Segment. The improved level of activity, observed during the third quarter, was sustained in the fourth quarter. Norion Bank continues to hold an interesting position within the Corporate segment, with the ambition to serve as an attractive complement to traditional large banks, primarily for medium-sized companies on the market.
Corporate
Norion Bank offers corporate loans and factoring solutions with particular focus on medium-sized companies in Sweden, Norway and Finland in a wide range of industries. Corporate loans are issued to companies against collateral. Factoring solutions primarily comprise purchasing of invoices both with and without right of recourse. Loan portfolio
Loan portfolio (SEKm) and NIM (%) Total income (SEKm) and margin (%)
Geographic split 1)
Other, 19%
Industry split 1)
51 SEKm Average loan in the portfolio 2)
18 Average remaining maturity (months) 2)
1) Based on the Corporate loan
portfolio as of 31 December 2024 2) Corporate lending
THE REAL ESTATE SEGMENT
Increased stability and improved activity
The loan portfolio of the Real Estate segment amounted to SEK 23,073 million (21,432), corresponding to an increase of 8% over the previous year and an increase of 3% over the previous quarter. The Real Estate segment accounted for 46% (47) of Norion Bank's loan portfolio by the end of the quarter. Total income amounted to SEK 274 million (336) during the quarter and to SEK 1,148 million (1,248) during the period January-December 2024. Net interest income was negatively affected by high volumes in Stage 3. The net interest margin (NIM) amounted to 4.7% compared to 6.6% in the same quarter last year and 4.7% in the previous quarter. The NIM amounted to 5.1% (6.5) during the period January-December 2024. The total income margin amounted to 4.8% compared to 6.4% in the same quarter last year and 4.7% in the previous quarter. The total income margin amounted to 5.2% (6.4) during the period January-December 2024. The NIM and total income margins can vary between periods dependent on when amortizations and disbursements of new loans are made during respective period.
The interest among existing and potential clients has been wellmaintained also during the final quarter of the year. Lower market interest rates, because of multiple reductions in policy rates throughout the year, have contributed to expectations of a more favorable interest rate trajectory. This fosters an increasingly positive market sentiment among clients - especially within the Real Estate segment. The improved level of activity, observed during the third quarter, was sustained in the fourth quarter. Norion Bank has continued to apply a more selective approach with regards to completed transactions and is actively working to reduce volumes in stage 3. The negative trend thus tends to have diminished. The majority of the Real Estate portfolio still constitutes of senior loans, amounting to 63% (58) by the end of the quarter. Norion Bank holds an attractive position within the Real Estate segment, which remains one of the company's focus areas going forward.
Real Estate
Norion Bank offers real estate loans focusing on metropolitan areas and university cities in the Nordic region and Germany. Real estate loans are issued to companies against collateral. Norion Bank offers both junior and senior lending. Financing is provided mainly for residential properties but also for offices and industrial properties. Loan portfolio
Photo: Anna Roström
Loan portfolio (SEKm) and NIM (%) Total income (SEKm) and margin (%)
Geographic split 1)
Industry split 1)
130 SEKm Average loan in the portfolio
14 Average remaining maturity (months)
1) Based on the Real Estate loan portfolio as of 31 December 2024
Continued stability and acquisition of DNB Sweden's credit card portfolio
The loan portfolio of the Consumer segment amounted to SEK 12,152 million (11,005), corresponding to an increase of 10% over the previous year and an increase of 1% over the previous quarter. The Consumer segment accounted for 24% (24) of Norion Bank's loan portfolio by the end of the quarter. Total income amounted to SEK 217 million (205) during the quarter and to SEK 908 million (852) during the period January-December 2024. The net interest margin (NIM) amounted to 6.7% compared to 7.1% in the same quarter last year and 7.2% in the previous quarter. The NIM amounted to 7.4% (7.4) during the period January-December 2024. The total income margin amounted to 7.2% compared to 7.5% in the same quarter last year and 7.6% in the previous quarter. The total income margin amounted to 7.8% (8.0) during the period January-December 2024.
Loan book volumes have been declining during the last few years given Norion Bank's focus on increasing the risk adjusted profitability within the segment. However, loan book growth has showed strong development in 2024 and also during the fourth quarter, following an increase in new sales coupled with less early redemptions and a less competitive market. Consequently, clients tend to have a more long-term commitment.
The focus on improving credit quality in new sales and increasing the share of new sales through own channels continues to yield good results. The share of new sales through own channel amounted to 45% at the end of the quarter, compared to around 40% at the end of 2023. Increased profitability and sound lending remain prioritized areas.
Furthermore, Norion Bank has entered into an agreement to acquire DNB Sweden's credit card portfolio and thus strengthens its position in the consumer finance market in Sweden. The bank currently manages approximately 24,000 outstanding credit cards through the Consumer segment, and after the completion of the acquisition, the total number of credit card clients will increase to a total of approximately 100,000. The acquired card business will also complement Norion Bank's existing offerings with individual, active card programs.
Consumer
Collector offers unsecured loans to private individuals of up to SEK 500,000 in Sweden and up to EUR 25,000 in Finland. Sales is conducted through own channels as well as loan intermediaries. Collector also offers credit cards, with a maximum credit limit of SEK 100,000, and savings accounts. Loan portfolio
Continued stability and acquisition of
DNB Sweden's credit card portfolio
Loan portfolio (SEKm) and NIM (%) Total income (SEKm) and margin (%)
Geographic split 1)
Norway, 1%
Average customer Personal loans
SEK
380,000 / 470,000 Average salary (At approval / Current)
Personal loans
179,000 Average loan new sales (SEK, LTM)
170,000 Average loan in the portfolio (SEK)
45% Sales through own channels
53,000 Customers
Credit cards
24,000 Cards outstanding
1) Based on the Consumer loan portfolio as of 31 December 2024
THE PAYMENTS SEGMENT
Strong growth in transaction volumes
The loan portfolio of the Payments segment amounted to SEK 3,018 million (2,763), corresponding to an increase of 9% over the previous year and an increase of 10% over the previous quarter. The Payments segment accounted for 6% (6) of Norion Bank's loan portfolio by the end of the quarter. Total income amounted to SEK 123 million (113) during the quarter and to SEK 505 million (464) during the period January-December 2024. The net interest margin (NIM) amounted to 8.0% compared to 6.8% in the same quarter last year and 8.1% in the previous quarter. The NIM amounted to 7.7% (7.5) during the period January-December 2024. The total income margin amounted to 17.0% compared to 16.7% in the same quarter last year and 17.8% in the previous quarter. The total income margin amounted to 17.5% (17.7) during the period January-December 2024.
Transaction volumes amounted to SEK 5,413 million (4,239) during the fourth quarter of 2024, which corresponds to an increase of 28% compared to the same quarter last year. Transaction volumes amounted to SEK 17,423 million (14,531) during the period January-December 2024, which corresponds to an increase of 20% compared to the same period last year.
The partnerships with both new and existing merchants continue to develop well. Several attractive collaborations were initiated during last year – for example with Nordiska Galleriet, Länna Möbler and Bohus. The Payment segment is working intensively to optimize customer experience, both through technological innovation and loyalty concepts, in order to enhance the shopping experience. Furthermore, the business continues to develop very well relative to the e-commerce market as whole. Profitable growth, combined with satisfied merchants and end customers, remain as core focus for the Payments business.
Payments
Walley offers payment and checkout solutions to e-commerce and retail chains, primarily in Sweden, Finland and Norway, as well as invoicing and payment by instalment services for private individuals. Walley offers specialized solutions focusing on the merchant's strategy and brand, primarily targeting larger merchants. Loan portfolio
Geographic split 1) Transaction volumes (SEKm)
+20% % change
Jan-Dec 2024 (Jan-Dec 2023) 5.5 M Active customers (LTM)
1,100 Average ticket size (SEK)
1) Based on the Payments loan portfolio as of 31 December 2024
Other information
Material risks and uncertainty factors
Through its operations, Norion Bank is exposed to several different risks: primarily credit risk, market risk (currency risk and interest rate risk), liquidity and financing risks as well as operational risk and other business risks. The Group's overall risk management policy focuses on the unpredictability of the financial markets and strives to minimize potentially unfavorable influences on the Group's financial results. Risk management is handled by the Group's management team according to policies established by the Board of Directors. The Board establishes written policies for overall risk management and for specific areas such as currency risk, interest rate risk, credit risk, operational risk and the use of derivatives and similar financial instruments. The Group's risk structure and its risk, liquidity and capital management are described in Norion Bank's annual report. There have been no significant changes since the publication of the annual report for the fiscal year 2023, except as reported in this interim report.
A company regulated by the Swedish Financial Supervisory Authority
Norion Bank AB (publ) has a license to conduct banking operations. The Bank conducts business in Sweden and through branches in Norway and Finland. Norion Bank AB (publ) is under the supervision of the Swedish Financial Supervisory Authority and is covered by its rules for capital adequacy and large exposures.
Employees
During the quarter, the average number of full-time employees (FTE) amounted to 396, which corresponds to an increase of 11% compared to the corresponding quarter last year. The number of full-time employees includes employees on fixed-term contracts, but not employees on parental leave or a leave of absence.
The Norion Bank share
Norion Bank's share ("NORION") is listed on Nasdaq Stockholm. As of 30 December 2024, the closing price for the Norion Bank share was SEK 36.40, corresponding to a market capitalization of SEK 7.5 billion. There were approximately 9,200 shareholders at the end of the period.
Share capital
As of 31 December 2024, the share capital amounted to SEK 149,421,957 divided into 205,381,004 ordinary shares. The Company has a single share series. Each share entitles the shareholder to one vote at the General Meeting.
Dividend
Norion Bank's policy is to distribute potential surplus capital in relation to the capital adequacy target, subject to the bank's future outlook and capital planning, to its shareholders.
| Shareholders at 31 December 2024 | % |
|---|---|
| Fastighets AB Balder | 44.1% |
| Erik Selin 1) | 19.4% |
| Provobis Holding AB | 6.9% |
| State Street Bank and Trust Company | 5.9% |
| Helichrysum Gruppen AB | 2.9% |
| JME Invest AB | 2.0% |
| Brunnudden Kapital AS | 1.4% |
| Vante AB | 1.4% |
| Nordnet | 1.2% |
| Avanza | 1.1% |
| Other shareholders | 13.7% |
| Total | 100.0% |
Share buyback
The Board has today announced its intention to initiate a share buyback program of up to approximately SEK 500m after the 2025 Annual General Meeting. The Board therefore intends to propose that the 2025 Annual General Meeting authorizes the Board to, on one or more occasions until the next Annual General Meeting, and given the approval of the Swedish Financial Supervisory Authority, decide on acquisition of the company's own shares on Nasdaq Stockholm.
Presentation for investors and analysts
A conference call will be held on 5 February 2025 at 10:30 a.m. (CET), during which CEO Martin Nossman and CFO Peter Olsson will present the report. The presentation will be held in Swedish and will be broadcasted live here. For those who wish to participate in the conference call, please register here. After registration, you will be provided a phone number and a conference ID to access the conference call. The presentation material will be in English and be available prior to the presentation.
Significant events after the period
The Swedish Financial Supervisory Authority has, after the end of the fourth quarter, requested a statement from Norion Bank as a continuation of the previously initiated investigation regarding compliance with anti-money laundering regulations, which was initiated in May 2023 towards Norion Bank and a couple of other market participants. Norion Bank will comment on the matter no later than February 21, 2025.
1) Privately and through wholly owned companies.
Definitions
Alternative performance measures (APMs) are financial measures of past or future earnings trends, financial position or cash flow that are not defined in the applicable accounting regulatory framework (IFRS), in the Capital Requirements Directive (CRD IV), or in the EU's Capital Requirement Regulation number 575/2013 (CRR). APMs are used by Norion Bank when relevant for monitoring and describing the bank's financial situation and enhance comparability between the periods. Norion Bank believes that these APMs provide valuable information and enhance the analysis of the Group's financial development. These are not necessarily comparable to similar APMs presented by other companies. See norionbank.se/en-se/investor-relations-en/financial-information/key-financials fore more information about key ratios.
Net interest margin (NIM)
Net interest margin (NIM) - Period
Net interest income for the period in relation to average loans to the public for the period.
Net interest margin (NIM) - LTM
Net interest income for the last twelve months in relation to average loans to the public for the last twelve months.
Adjusted net interest margin (NIM) - Period
Net interest income for the period, adjusted for non-recurring items, in relation to average loans to the public for the period.
Adjusted net interest margin (NIM) - LTM
Net interest income for the last twelve months, adjusted for non-recurring items, in relation to average loans to the public for the last twelve months.
C/I ratio
C/I ratio - Period
Total expenses for the period in relation to total income for the period.
C/I ratio - LTM
Total expenses for the last twelve months in relation to total income for the last twelve months.
Adjusted C/I ratio - Period
Total expenses for the period, adjusted for non-recurring items, in relation to total income for the period, adjusted for non-recurring items.
Adjusted C/I ratio - LTM
Total expenses for the last twelve months, adjusted for non-recurring items, in relation to total income for the last twelve months, adjusted for non-recurring items.
Credit loss level
Credit loss level - Period
Credit losses, net for the period in relation to average loans to the public for the period.
Credit loss level - LTM
Credit losses, net for the last twelve months in relation to average loans to the public for the last twelve months.
Adjusted credit losses, net - Period
Credit losses, net, adjusted for non-recurring items, for the period in relation to average loans to the public for the period.
Adjusted credit losses, net - LTM
Credit losses, net for the period, adjusted for non-recurring items, in relation to average loans to the public for the last twelve months.
Earnings per share 1)
Earnings per share after dilution1)
Net profit for the period attributable to the shareholders of Norion Bank AB in relation to average number of shares outstanding after dilution for the period.
Earnings per share before dilution1)
Net profit for the period attributable to the shareholders of Norion Bank AB in relation to average number of shares outstanding before dilution for the period.
1) Not alternative performance measures.
Definitions cont.
Return on equity (RoE)
Return on equity (RoE) - Period
Net profit for the period attributable to the shareholders of Norion Bank AB in relation to average equity attributable to the shareholders of Norion Bank AB for the period.
Return on equity (RoE) - LTM
Net profit attributable to the shareholders of Norion Bank AB for the last twelve months in relation to average equity attributable to the shareholders of Norion Bank AB for the last twelve months.
Adjusted return on equity (RoE) - Period
Net profit for the period attributable to the shareholders of Norion Bank AB, adjusted for non-recurring items, in relation to average equity attributable to the shareholders of Norion Bank AB for the period. For relevant periods prior to the intragroup merger between Norion Bank AB (previously Collector Bank AB) and Collector AB, the calculation includes net profit for the period attributable to the shareholders of Collector AB, adjusted for non-recurring items, in relation to average equity attributable to the shareholders of Collector AB for the period.
Adjusted return on equity (RoE) - LTM
Net profit attributable to the shareholders of Norion Bank AB for the last twelve months, adjusted for non-recurring items, in relation to average equity attributable to the shareholders of Norion Bank AB for the last twelve months. For relevant periods prior to the intra-group merger between Norion Bank AB (previously Collector Bank AB) and Collector AB, the calculation includes net profit attributable to the shareholders of Collector AB for the last twelve months, adjusted for non-recurring items, in relation to average equity attributable to the shareholders of Collector AB for the last twelve months.
Total income margin
Total income margin - Period
Total income for the period in relation to average loans to the public for the period.
2) Key ratios according to capital adequacy rules (CRR).
Other
Adjusted net interest income
Net interest income adjusted for non-recurring items.
Adjusted total income
Total income adjusted for non-recurring items.
Adjusted total expenses
Total expenses adjusted for non-recurring items.
Adjusted operating profit
Operating profit adjusted for non-recurring items.
Adjusted net profit
Net profit attributable to the shareholders of the parent company adjusted for non-recurring items.
Non-recurring items
Income and expenses that are not expected to appear on a regular basis. See The Group's development, pages 11-12.
CET1 ratio (Common Equity Tier 1 ratio) 2)
Common Equity Tier 1 capital in relation to total risk-weighted exposure amount. Refers to the consolidated situation. See note 12, pages 43-45
Tier 1 ratio 2)
Tier 1 capital in relation to total risk-weighted exposure amount. Refers to the consolidated situation. See note 12, pages 43-45
Total capital ratio 2)
Total own funds in relation to total risk-weighted exposure amount. Refers to the consolidated situation. See note 12, pages 43-45
Average number of full-time employees
Including employees on fixed-term contracts, but not on parental leave or leave of absence.
Income statement
| Group | ||||||
|---|---|---|---|---|---|---|
| Q4 | Q3 | Q4 | Full year | Full year | ||
| SEKm | Note | 2024 | 2024 | 2023 | 2024 | 2023 |
| Interest income1) | 1 306 | 1 304 | 1 282 | 5 236 | 4 609 | |
| Interest expense2) | -475 | -499 | -418 | -1 923 | -1 318 | |
| Net interest income | 4 | 831 | 805 | 864 | 3 313 | 3 291 |
| Commission income | 97 | 91 | 85 | 377 | 339 | |
| Commission expense | -16 | -14 | -12 | -53 | -44 | |
| Net commission income | 81 | 77 | 73 | 324 | 295 | |
| Net gains and losses on financial items | 4 | 7 | -11 | 30 | 24 | |
| Other income3) | 6 | 5 | 8 | 31 | 38 | |
| Total income | 922 | 895 | 934 | 3 697 | 3 648 | |
| Personnel expenses | 5 | -130 | -94 | -96 | -435 | -357 |
| Other expenses | 6 | -152 | -137 | -140 | -568 | -509 |
| Depreciation/amortization and impairment of tangible and intangible assets |
-21 | -16 | -17 | -71 | -67 | |
| Total expenses | -303 | -247 | -253 | -1 074 | -934 | |
| Profit before credit losses | 620 | 648 | 681 | 2 623 | 2 714 | |
| Credit losses, net | 7 | -237 | -254 | -268 | -1 014 | -1 078 |
| Operating profit | 383 | 393 | 414 | 1 609 | 1 636 | |
| Tax expense | -82 | -85 | -87 | -344 | -342 | |
| Net profit for the period | 301 | 309 | 326 | 1 265 | 1 294 | |
| Portion of net profit for the period attributable to: | ||||||
| shareholders of Norion Bank AB | 301 | 309 | 311 | 1 250 | 1 236 | |
| additional Tier 1 capital holders | - | - | 16 | 15 | 58 | |
| Earnings per share, before dilution, SEK | 1,46 | 1,50 | 1,51 | 6,09 | 6,02 | |
| Earnings per share, after dilution, SEK | 1,46 | 1,50 | 1,51 | 6,09 | 6,02 |
1) Consists mainly of interest income calculated according to the effective interest rate method. 2) Interest expenses for issued tier 1 capital instruments are reported in equity.
Statement of comprehensive income
| Group | ||||||
|---|---|---|---|---|---|---|
| Q4 | Q3 | Q4 | Full year | Full year | ||
| SEKm | Note | 2024 | 2024 | 2023 | 2024 | 2023 |
| Net profit for the period reported via income statement | 301 | 309 | 326 | 1 265 | 1 294 | |
| Items that have been or may be reclassified to the income statement |
||||||
| Exchange rate differences on translation of foreign currency | 0 | 0 | -1 | -1 | -3 | |
| Other comprehensive income for the period, net of tax | 0 | 0 | -1 | -1 | -3 | |
| Total comprehensive income for the period | 301 | 308 | 326 | 1 263 | 1 291 | |
| Portion of total comprehensive income for the period attribut able to: |
||||||
| shareholders of Norion Bank AB | 301 | 308 | 311 | 1 249 | 1 233 | |
| additional Tier 1 capital holders | - | - | 16 | 15 | 58 |
Balance sheet
| Group | |||
|---|---|---|---|
| Dec 31 | Dec 31 | ||
| SEKm | Note | 2024 | 2023 |
| ASSETS | |||
| Treasury bills and other bills eligible for refinancing with central banks, etc. | 13 | 5 276 | 346 |
| Loans to credit institutions | 4 164 | 3 203 | |
| Loans to the public | 8, 9 | 50 286 | 45 470 |
| Bonds and other interest-bearing securities | 13 | 6 210 | 3 958 |
| Shares and participating interests | 13 | 764 | 664 |
| Intangible assets | 141 | 104 | |
| Tangible assets | 75 | 109 | |
| Derivatives | 13 | 12 | 47 |
| Other assets | 160 | 42 | |
| Prepaid expenses and accrued income | 121 | 112 | |
| TOTAL ASSETS | 67 206 | 54 056 | |
| LIABILITIES AND EQUITY | |||
| Deposits and borrowings from the public | 10 | 53 017 | 42 663 |
| Debt securities in issue | 11 | 2 319 | 1 248 |
| Derivatives | 13 | - | - |
| Other liabilities | 734 | 799 | |
| Accrued expenses and prepaid income | 1 487 | 1 042 | |
| Subordinated liabilities | 11 | 598 | - |
| Total liabilities | 58 155 | 45 753 | |
| Equity attributable to additional Tier 1 capital holders | - | 500 | |
| Equity attributable to the shareholders of Norion Bank AB | 9 052 | 7 803 | |
| Total equity | 9 052 | 8 303 | |
| TOTAL LIABILITIES AND EQUITY | 67 206 | 54 056 |
Statement of changes in equity
Group
| Jan - Dec 2024 | Equity attributable to the shareholders of Norion Bank AB |
||||||
|---|---|---|---|---|---|---|---|
| SEKm | Share capital |
Other contribut ed capital |
Exchange differences, subsidiaries and associates |
Retained earnings, incl. net profit for the period |
Total | Additional Tier 1 instruments holders1) |
Total equity |
| Opening balance 1 January 2024 | 149 | 5 | -5 | 7 654 | 7 803 | 500 | 8 303 |
| Comprehensive income for the period | |||||||
| Profit for the period | 1 250 | 1 250 | 15 | 1 265 | |||
| Other comprehensive income for the period | -1 | -1 | -1 | ||||
| Total comprehensive income for the period | -1 | 1 250 | 1 249 | 15 | 1 263 | ||
| Transactions reported directly in equity | |||||||
| Additional Tier 1 instruments redeemed | -15 | -15 | |||||
| Redemption Tier 1 instruments | -500 | -500 | |||||
| Total transactions reported directly in equity | -515 | -515 | |||||
| Closing balance 31 December 2024 | 149 | 5 | -6 | 8 904 | 8 751 | - | 9 052 |
1) The issued Tier 1 instrument is deemed to fulfil the conditions of an equity instrument since the instrument, according to the conditions, does not have a set time to maturity, meaning that the issuer has an unconditional right to refrain from making repayments and the issuer of the instrument has full discretion regarding interest payments, that is to say no obligation to pay interest.
Group
| Jan - Dec 2023 | Equity attributable to the shareholders of Norion Bank AB |
||||||
|---|---|---|---|---|---|---|---|
| SEKm | Share capital |
Other contribut ed capital |
Exchange differences, subsidiaries and associates |
Retained earnings, incl. net profit for the period |
Total | Additional Tier 1 instruments holders1) |
Total equity |
| Opening balance 1 January 2023 | 149 | 5 | -2 | 6 418 | 6 570 | 500 | 7 070 |
| Comprehensive income for the period | |||||||
| Profit for the period | 1 236 | 1 236 | 58 | 1 294 | |||
| Other comprehensive income for the period | -3 | -3 | -3 | ||||
| Total comprehensive income for the period | -3 | 1 236 | 1 233 | 58 | 1 291 | ||
| Transactions reported directly in equity | |||||||
| Additional Tier 1 instruments redeemed | -58 | -58 | |||||
| Total transactions reported directly in equity | -58 | -58 | |||||
| Closing balance 31 December 2023 | 149 | 5 | -5 | 7 654 | 7 803 | 500 | 8 303 |
1) The issued Tier 1 instrument is deemed to fulfil the conditions of an equity instrument since the instrument, according to the conditions, does not have a set time to maturity, meaning that the issuer has an unconditional right to refrain from making repayments and the issuer of the instrument has full discretion regarding interest payments, that is to say no obligation to pay interest.
Cash flow statement
| Group | ||
|---|---|---|
| Full year | Full year | |
| SEKm | 2024 | 2023 |
| Operating activities | ||
| Operating profit | 1 609 | 1 636 |
| Adjustments for non-cash items in operating activities | 1 158 | 1 372 |
| Income taxes paid | -378 | -272 |
| Increase/decrease in assets and liabilities from operating activities | -2 490 | -374 |
| Cash flow from operating activities | -101 | 2 362 |
| Investing activities | ||
| Acquisitions/disposals of tangible assets | -1 | -1 |
| Acquisitions/disposals of intangible assets | -76 | -57 |
| Acquisitions/disposals of financial assets | -62 | - |
| Cash flow from investing activities | -139 | -58 |
| Financing activities | ||
| Decrease of liabilities | -30 | -33 |
| Additional Tier 1 instruments | -515 | -58 |
| Redemption of interest-bearing securities | -1 117 | -2 297 |
| Issuance of interest-bearing securities | 2 785 | 247 |
| Cash flow from financing activities | 1 123 | -2 141 |
| Cash and cash equivalents at the start of the period | 3 203 | 3 050 |
| Cash flow for the period | 883 | 163 |
| Exchange rate differences in cash and cash equivalents | 78 | -10 |
| Cash and cash equivalents at the end of the period | 4 164 | 3 203 |
| Paid and received interest of which is included in the cash flow from operating activities | ||
| Interest paid | 2 598 | 1 134 |
| Interest received | 4 613 | 4 581 |
Income statement
| Norion Bank AB | ||||||
|---|---|---|---|---|---|---|
| Q4 | Q3 | Q4 | Full year | Full year | ||
| SEKm | Note | 2024 | 2024 | 2023 | 2024 | 2023 |
| Interest income1) | 1 306 | 1 304 | 1 282 | 5 236 | 4 609 | |
| Interest expense2) | -475 | -499 | -418 | -1 923 | -1 318 | |
| Net interest income | 4 | 831 | 805 | 864 | 3 313 | 3 291 |
| Commission income | 97 | 91 | 85 | 377 | 339 | |
| Commission expense | -16 | -14 | -12 | -53 | -44 | |
| Net commission income | 81 | 77 | 73 | 324 | 295 | |
| Net gains and losses on financial items | 4 | 7 | -11 | 30 | 24 | |
| Other income | 6 | 5 | 8 | 31 | 38 | |
| Total income | 922 | 895 | 934 | 3 697 | 3 648 | |
| Personnel expenses | 5 | -130 | -94 | -96 | -435 | -357 |
| Other expenses | 6 | -152 | -137 | -140 | -568 | -509 |
| Depreciation/amortization and impairment of tangible and intangible assets |
-21 | -16 | -17 | -71 | -67 | |
| Total expenses | -303 | -247 | -253 | -1 074 | -934 | |
| Profit before credit losses | 620 | 648 | 681 | 2 623 | 2 714 | |
| Credit losses, net | 7 | -237 | -254 | -268 | -1 014 | -1 078 |
| Operating profit | 383 | 393 | 414 | 1 609 | 1 636 | |
| Appropriations | -331 | - | -288 | -331 | -288 | |
| Tax expense | -15 | -85 | -30 | -278 | -285 | |
| Net profit for the period | 36 | 309 | 95 | 1 000 | 1 063 | |
| Portion of net profit for the period attributable to: | ||||||
| shareholders of Norion Bank AB | 36 | 309 | 80 | 985 | 1 005 | |
| additional Tier 1 capital holders | - | - | 16 | 15 | 58 |
1) Consists mainly of interest income calculated according to the effective interest rate method. 2) Interest expenses for issued tier 1 capital instruments are reported in equity. Comparison periods are recalculated.
Statement of comprehensive income
| Norion Bank AB | ||||||
|---|---|---|---|---|---|---|
| Q4 | Q3 | Q4 | Full year | Full year | ||
| SEKm | Note | 2024 | 2024 | 2023 | 2024 | 2023 |
| Net profit for the period reported via income statement | 36 | 309 | 95 | 1 000 | 1 063 | |
| Items that have been or may be reclassified to the income statement |
||||||
| Exchange rate differences on translation of foreign currency | 0 | 0 | -1 | -1 | -3 | |
| Other comprehensive income for the period, net of tax | 0 | 0 | -1 | -1 | -3 | |
| Total comprehensive income for the period | 35 | 308 | 95 | 999 | 1 060 | |
| Portion of total comprehensive income for the period attribut able to: |
||||||
| shareholders of Norion Bank AB | 35 | 308 | 79 | 984 | 1 002 | |
| additional Tier 1 capital holders | - | - | 16 | 15 | 58 |
Balance sheet
| Norion Bank AB | |||
|---|---|---|---|
| Dec 31 | Dec 31 | ||
| SEKm | Note | 2024 | 2023 |
| ASSETS | |||
| Treasury bills and other bills eligible for refinancing with central banks, etc. | 13 | 5 276 | 346 |
| Loans to credit institutions | 4 164 | 3 203 | |
| Loans to the public | 8,9 | 50 286 | 45 470 |
| Bonds and other interest-bearing securities | 13 | 6 210 | 3 958 |
| Shares and participating interests | 13 | 764 | 664 |
| Shares and participating interests in group entities | 0 | 0 | |
| Intangible assets | 141 | 104 | |
| Tangible assets | 75 | 109 | |
| Derivatives | 13 | 12 | 47 |
| Other assets | 160 | 42 | |
| Prepaid expenses and accrued income | 121 | 112 | |
| TOTAL ASSETS | 67 206 | 54 056 | |
| LIABILITIES AND EQUITY | |||
| Deposits and borrowings from the public | 10 | 53 017 | 42 663 |
| Debt securities in issue | 11 | 2 319 | 1 248 |
| Derivatives | 13 | - | - |
| Other liabilities | 393 | 524 | |
| Accrued expenses and prepaid income | 1 487 | 1 042 | |
| Subordinated liabilities | 11 | 598 | - |
| Total liabilities | 57 814 | 45 478 | |
| Tax allocation reserve | 1 651 | 1 320 | |
| Total liabilities | 1 651 | 1 320 | |
| Equity attributable to additional Tier 1 capital holders | - | 500 | |
| Equity attributable to the shareholders of Norion Bank AB | 7 741 | 6 757 | |
| Total equity | 7 741 | 7 257 | |
| TOTAL LIABILITIES AND EQUITY | 67 206 | 54 056 |
Statement of changes in equity
Norion Bank AB
| Jan - Dec 2024 | Restricted equity | Unrestricted equity | ||||
|---|---|---|---|---|---|---|
| SEKm | Share capital |
Statutory reserve |
Development expenditure fund |
Additional Tier 1 instruments1) |
Retained earnings, incl. net profit for the period |
Total equity |
| Opening balance 1 January 2024 | 149 | 3 | 102 | 500 | 6 503 | 7 257 |
| Transfer of development expenses | 29 | -29 | - | |||
| Redemption Tier 1 instruments | -500 | -500 | ||||
| Cost additional Tier 1 instruments | -15 | -15 | ||||
| Profit for the period | 1 000 | 1 000 | ||||
| Other comprehensive income for the period | -1 | -1 | ||||
| Closing balance 31 December 2024 | 149 | 2 | 131 | - | 7 459 | 7 741 |
1) The issued Tier 1 instrument is deemed to fulfil the conditions of an equity instrument since the instrument, according to the conditions, does not have a set time to maturity, meaning that the issuer has an unconditional right to refrain from making repayments and the issuer of the instrument has full discretion regarding interest payments.
Norion Bank AB
| Jan - Dec 2023 | Restricted equity | Unrestricted equity | ||||
|---|---|---|---|---|---|---|
| SEKm | Share capital |
Statutory reserve |
Development expenditure fund |
Additional Tier 1 instruments1) |
Retained earnings, incl. net profit for the period |
Total equity |
| Opening balance 1 January 2023 | 149 | 6 | 79 | 500 | 5 521 | 6 256 |
| Transfer of development expenses | 23 | -23 | - | |||
| Cost additional Tier 1 instruments | -58 | -58 | ||||
| Profit for the period | 1 063 | 1 063 | ||||
| Other comprehensive income for the period | -3 | -3 | ||||
| Closing balance 31 December 2023 | 149 | 3 | 102 | 500 | 6 503 | 7 257 |
1) The issued Tier 1 instrument is deemed to fulfil the conditions of an equity instrument since the instrument, according to the conditions, does not have a set time to maturity, meaning that the issuer has an unconditional right to refrain from making repayments and the issuer of the instrument has full discretion regarding interest payments.
PARENT COMPANY
Cash flow statement
Norion Bank AB
| SEKm | Full year 2024 |
Full year 2023 |
|---|---|---|
| Operating activities | ||
| Operating profit | 1 609 | 1 636 |
| Adjustments for non-cash items in operating activities | 1 158 | 1 372 |
| Income taxes paid | -378 | -272 |
| Increase/decrease in assets and liabilities from operating activities | -2 490 | -374 |
| Cash flow from operating activities | -101 | 2 362 |
| Investing activities | ||
| Acquisitions/disposals of tangible assets | -1 | -1 |
| Acquisitions/disposals of intangible assets | -76 | -57 |
| Acquisitions/disposals of financial assets | -62 | - |
| Cash flow from investing activities | -139 | -58 |
| Financing activities | ||
| Decrease of liabilities | -30 | -33 |
| Additional Tier 1 instruments | -515 | -58 |
| Redemption of interest-bearing securities | -1 117 | -2 297 |
| Issuance of interest-bearing securities | 2 785 | 247 |
| Group contributions paid/received | 0 | 0 |
| Cash flow from financing activities | 1 123 | -2 141 |
| Cash and cash equivalents at the start of the period | 3 203 | 3 050 |
| Cash flow for the period | 883 | 163 |
| Exchange rate differences in cash and cash equivalents | 78 | -10 |
| Cash and cash equivalents at the end of the period | 4 164 | 3 203 |
| Paid and received interest of which is included in the cash flow from operating activities |
| Interest paid | 2 598 | 1 134 |
|---|---|---|
| Interest received | 4 613 | 4 581 |
Notes
The stated amounts in the notes are in millions of SEK (SEKm) and at book value unless otherwise stated. The interim report on pages 2-24 constitute an integrated part of this financial report.
Note 1. General information
Norion Bank AB (publ) company registration number 556597- 0513, is a bank limited company with its registered office in Gothenburg. The company has a license to conduct banking operations and is listed on Nasdaq Stockholm. The Bank conducts business in Sweden and through branches in Norway and Finland.
Note 2. Accounting policies
Accounting policies
The interim report is prepared in accordance with IAS 34, and the Swedish Financial Supervisory Authority's Regulations and General Guidelines on the Annual Accounts for Credit Institutions and Securities Companies (FFFS 2008:25, Chapter 7, Sections 2-3 and Chapter 8), the Annual Accounts Act for Credit Institutions and Securities Companies (Chapter 7, Sections 7-8 ÅRKL).
The parent company has prepared its accounts in accordance with Swedish Annual Act for Credit Institutions and Securities Companies, the Swedish Financial Supervisory Authority's Regulations and General Guidelines (FFFS 2008:25) on Annual
The address of the headquarters is Lilla Bommens Torg 11, SE-411 09 Gothenburg, Sweden. Norion Bank AB (publ) is under the supervision of the Swedish Financial Supervisory Authority and is covered by its rules for capital adequacy and large exposures.
Reports in Credit Institutions and Securities Companies and the Supplementary Accounting Rules for Legal Entities (RFR 2) issued by the Swedish Financial Reporting Board.
Accounting principles, methods of calculation and presentation are essentially unchanged compared with those applied in the 2023 Annual Report.
Changes in IFRS
None of the changes in the accounting regulations issued for application 2024 are deemed to have a significant impact on Norion Bank and its financial reports, capital adequacy or large exposures.
Note 3. Operating segments
Group and Norion Bank AB
| Q4 2024 | ||||||
|---|---|---|---|---|---|---|
| SEKm | Corporate | Real estate | Consumer | Payments | Other1) | Total |
| Net interest income | 204 | 269 | 204 | 57 | 97 | 831 |
| Net commission income | 3 | - | 14 | 65 | 0 | 81 |
| Net gains and losses on financial items | 10 | 5 | -1 | -5 | -6 | 4 |
| Other income | 0 | 0 | 0 | 5 | 1 | 6 |
| Total income | 217 | 274 | 217 | 123 | 92 | 922 |
| Credit losses, net | 68 | -156 | -120 | -17 | -13 | -237 |
| Net interest margin (NIM) | 7,3% | 4,7% | 6,7% | 8,0% | - | 6,7% |
| Total income margin | 7,8% | 4,8% | 7,2% | 17,0% | - | 7,5% |
| Loans to the public | 11 582 | 23 073 | 12 152 | 3 018 | 461 | 50 286 |
1) Including eliminations.
Note 3. Operating segments, cont.
Group and Norion Bank AB
| Q3 2024 | ||||||
|---|---|---|---|---|---|---|
| SEKm | Corporate | Real estate | Consumer | Payments | Other1) | Total |
| Net interest income | 188 | 263 | 214 | 55 | 85 | 805 |
| Net commission income | 2 | - | 13 | 63 | 0 | 77 |
| Net gains and losses on financial items | 6 | 0 | 0 | -1 | 2 | 7 |
| Other income | 0 | 0 | 0 | 4 | 1 | 5 |
| Total income | 196 | 263 | 226 | 121 | 87 | 895 |
| Credit losses, net | -32 | -19 | -174 | -16 | -12 | -254 |
| Net interest margin (NIM) | 7,3% | 4,7% | 7,2% | 8,1% | - | 6,7% |
| Total income margin | 7,6% | 4,7% | 7,6% | 17,8% | - | 7,5% |
| Loans to the public | 10 738 | 22 495 | 11 996 | 2 744 | 488 | 48 460 |
| 1) Including eliminations. |
Group and Norion Bank AB
| Q4 2023 | ||||||
|---|---|---|---|---|---|---|
| SEKm | Corporate | Real estate | Consumer | Payments | Other1) | Total |
| Net interest income | 188 | 345 | 193 | 46 | 91 | 864 |
| Net commission income | 2 | 0 | 11 | 59 | 0 | 73 |
| Net gains and losses on financial items | -12 | -10 | 0 | 1 | 9 | -11 |
| Other income | 0 | 0 | 0 | 7 | 1 | 8 |
| Total income | 179 | 336 | 205 | 113 | 101 | 934 |
| Credit losses, net | 45 | -95 | -212 | -6 | - | -268 |
| Net interest margin (NIM) | 7,8% | 6,6% | 7,1% | 6,8% | - | 7,7% |
| Total income margin | 7,4% | 6,4% | 7,5% | 16,7% | - | 8,3% |
| Loans to the public | 9 705 | 21 432 | 11 005 | 2 763 | 566 | 45 470 |
Note 3. Operating segments, cont.
Group and Norion Bank AB
| Full year 2024 | ||||||
|---|---|---|---|---|---|---|
| SEKm | Corporate | Real estate | Consumer | Payments | Other1) | Total |
| Net interest income | 728 | 1 133 | 855 | 224 | 374 | 3 313 |
| Net commission income | 10 | 2 | 54 | 258 | 0 | 324 |
| Net gains and losses on financial items | 28 | 13 | -1 | -6 | -4 | 30 |
| Other income | 0 | 0 | 0 | 29 | 1 | 31 |
| Total income | 766 | 1 148 | 908 | 505 | 370 | 3 697 |
| Credit losses, net | -37 | -366 | -518 | -68 | -25 | -1 014 |
| Net interest margin (NIM) | 6,8% | 5,1% | 7,4% | 7,7% | - | 6,9% |
| Total income margin | 7,2% | 5,2% | 7,8% | 17,5% | - | 7,7% |
| Loans to the public | 11 582 | 23 073 | 12 152 | 3 018 | 461 | 50 286 |
1) Including eliminations.
Group and Norion Bank AB
| Full year 2023 | ||||||
|---|---|---|---|---|---|---|
| SEKm | Corporate | Real estate | Consumer | Payments | Other1) | Total |
| Net interest income | 766 | 1 260 | 795 | 197 | 274 | 3 291 |
| Net commission income | 15 | 0 | 55 | 225 | 0 | 295 |
| Net gains and losses on financial items | -5 | -12 | 2 | 6 | 32 | 24 |
| Other income | 1 | 0 | 0 | 36 | 1 | 38 |
| Total income | 777 | 1 248 | 852 | 464 | 307 | 3 648 |
| Credit losses, net | -55 | -238 | -722 | -62 | 0 | -1 078 |
| Net interest margin (NIM) | 7,6% | 6,5% | 7,4% | 7,5% | - | 7,6% |
| Total income margin | 7,7% | 6,4% | 8,0% | 17,7% | - | 8,4% |
| Loans to the public | 9 705 | 21 432 | 11 005 | 2 763 | 566 | 45 470 |
1) Including eliminations.
Note 4. Net interest income
Group and Norion Bank AB
| Q4 | Q3 | Q4 | Full year | Full year | |
|---|---|---|---|---|---|
| SEKm | 2024 | 2024 | 2023 | 2024 | 2023 |
| Loans to the public1) | 1 195 | 1 209 | 1 211 | 4 833 | 4 393 |
| Interest-bearing securities | 82 | 70 | 44 | 299 | 138 |
| Loans to credit institutions | 30 | 25 | 27 | 104 | 78 |
| Total interest income | 1 306 | 1 304 | 1 282 | 5 236 | 4 609 |
| Deposits and borrowings from the public | -431 | -463 | -394 | -1 800 | -1 188 |
| Subordinated liabilities | -12 | -8 | - | -22 | - |
| Debt securities in issue | -32 | -28 | -24 | -101 | -129 |
| Other interest expenses | 0 | 0 | 0 | -1 | -1 |
| Total interest expense | -475 | -499 | -418 | -1 923 | -1 318 |
| Net interest income | 831 | 805 | 864 | 3 313 | 3 291 |
1) Interest income calculated according to the effective interest rate method.
Note 5. Personnel expenses
Group and Norion Bank AB
| Q4 | Q3 | Q4 | Full year | Full year | |
|---|---|---|---|---|---|
| SEKm | 2024 | 2024 | 2023 | 2024 | 2023 |
| Salaries and other remuneration | -86 | -60 | -63 | -288 | -240 |
| Pension costs | -27 | -22 | -23 | -98 | -82 |
| Social security costs | -10 | -11 | -8 | -37 | -31 |
| Other staff related costs | -6 | -1 | -2 | -13 | -4 |
| Total personnel expenses | -130 | -94 | -96 | -435 | -357 |
Note 6. Other expenses
Group and Norion Bank AB
| Q4 | Q3 | Q4 | Full year | Full year | |
|---|---|---|---|---|---|
| SEKm | 2024 | 2024 | 2023 | 2024 | 2023 |
| Consultancy expenses | -41 | -41 | -43 | -167 | -174 |
| IT expenses | -30 | -29 | -25 | -112 | -87 |
| Other purchased services | -43 | -35 | -38 | -146 | -125 |
| Postage expenses | -7 | -7 | -7 | -29 | -33 |
| Other operating expenses | -30 | -26 | -26 | -114 | -90 |
| Total other expenses | -152 | -137 | -140 | -568 | -509 |
Note 7. Credit losses, net
Group and Norion Bank AB Q4 Q3 Q4 Full year Full year SEKm 2024 2024 2023 2024 2023 Loans at amortized cost Credit impairment provisions - Stage 1 28 -4 23 -17 -69 Credit impairment provisions - Stage 2 12 22 13 187 -96 Credit impairment provisions - Stage 3 -195 -122 -170 -464 -629 Total expected credit losses on balance sheet items -155 -104 -134 -295 -794 Portfolio revaluation - POCI -13 -12 - -25 - Total impairment gains and losses - POCI -13 -12 - -25 - Actual credit losses for the period -70 -138 -133 -697 -284 of which utilised share of previous provision -47 -117 -100 -475 -277 Total write-offs -70 -138 -133 -697 -284 Recoveries 1 0 - 3 - Total recoveries 1 0 - 3 - Total credit impairment -237 -254 -268 -1 014 -1 078
Note 8. Loans to the public
Group and Norion Bank AB
| Dec 31 | Dec 31 | |
|---|---|---|
| SEKm | 2024 | 2023 |
| PRIVATE CUSTOMERS 3) | ||
| Total gross carrying amount | 19 850 | 18 438 |
| of which Stage 1 | 11 988 | 10 617 |
| of which Stage 2 | 686 | 743 |
| of which Stage 3 | 6 738 | 6 549 |
| of which Stage 3 - POCI 1) | 437 | 529 |
| Total credit impairment provisions | -4 245 | -4 134 |
| of which Stage 1 | -271 | -271 |
| of which Stage 2 | -216 | -235 |
| of which Stage 3 | -3 758 | -3 628 |
| of which Stage 3 - POCI 1) | - | - |
| Total carrying amount, private customers | 15 604 | 14 303 |
| Private customers | ||
| Provision ratio for loans Stage 1 | 2,3% | 2,5% |
| Provision ratio for loans Stage 2 | 31,5% | 31,7% |
| Provision ratio for loans Stage 3 | 55,8% | 55,4% |
| Provision ratio for loans Stage 3 - POCI 1) | 0,0 % | 0,0 % |
| Total provision ratio, private customers 2) | 21,9% | 23,1% |
| CORPORATE CUSTOMERS 4) | ||
| Total gross carrying amount | 35 971 | 32 282 |
| of which Stage 1 | 28 898 | 25 118 |
| of which Stage 2 | 2 454 | 5 330 |
| of which Stage 3 | 4 619 | 1 834 |
| Total credit impairment provisions | -1 289 | -1 115 |
| of which Stage 1 | -171 | -152 |
| of which Stage 2 | -52 | -219 |
| of which Stage 3 | -1 066 | -744 |
| Total carrying amount, corporate customers | 34 681 | 31 167 |
| Corporate customers | ||
| Provision ratio for loans Stage 1 | 0,6% | 0,6% |
| Provision ratio for loans Stage 2 | 2,1% | 4,1% |
| Provision ratio for loans Stage 3 | 23,1% | 40,6% |
| Total provision ratio, corporate customers | 3,6% | 3,5% |
Note 8. Loan to the public, cont.
| Group and Norion Bank AB | ||
|---|---|---|
| Dec 31 | Dec 31 | |
| SEKm | 2024 | 2023 |
| TOTAL | ||
| Total gross carrying amount | 55 820 | 50 720 |
| of which Stage 1 | 40 886 | 35 734 |
| of which Stage 2 | 3 140 | 6 074 |
| of which Stage 3 | 11 357 | 8 383 |
| of which Stage 3 - POCI 1) | 437 | 529 |
| Total credit impairment provisions | -5 535 | -5 249 |
| of which Stage 1 | -442 | -423 |
| of which Stage 2 | -268 | -454 |
| of which Stage 3 | -4 824 | -4 372 |
| of which Stage 3 - POCI 1) | - | - |
| Total carrying amount, Total | 50 286 | 45 470 |
| Stage 3 loans / Total loans, gross, % 2) | 20,5% | 16,7% |
| Stage 3 loans / Total loans, net, % 2) | 13,1% | 8,9% |
| Total | ||
| Provision ratio for loans Stage 1 | 1,1% | 1,2% |
| Provision ratio for loans Stage 2 | 8,5% | 7,5% |
| Provision ratio for loans Stage 3 | 42,5% | 52,2% |
| Provision ratio for loans Stage 3 - POCI 1) | 0,0 % | 0,0% |
| Total provision ratio 2) | 10,0% | 10,5% |
1) Purchased credit-impaired assets are subject to net accounting from the time of acquisition, consequently no explicit provisioning is shown for these receivables.
2) Excluding purchased credit-impaired assets. 3) Includes the segments Consumer, Payments and parts of Other.
4) Includes the segments Corporate and Real Estate and parts of Other.
Note 9. Reconciliation of credit losses provisions for loans
The tables below show reconciliations of provisions for credit losses related to loans to the public measured at Amortized Cost.
| Group and Norion Bank AB | ||||
|---|---|---|---|---|
| SEKm | Stage 1 | Stage 2 | Stage 3 | Total |
| Opening balance 1 January 2024 | 423 | 454 | 4 372 | 5 249 |
| New and derecognized financial assets, net | 57 | -129 | -96 | -167 |
| Changes due to changed credit judgement | - | - | - | - |
| Changes due to change in credit risk | -40 | -58 | 560 | 462 |
| Other adjustments1) | 2 | 1 | -12 | -10 |
| Closing balance 31 December 2024 | 442 | 268 | 4 824 | 5 535 |
1) Movements recognised outside Credit impairment line, foreign exchange effect, etc.
Group and Norion Bank AB SEKm Stage 1 Stage 2 Stage 3 Total Opening balance 1 January 2023 355 362 3 775 4 492 New and derecognized financial assets, net 41 -51 256 247 Changes due to changed credit judgement - - - - Changes due to change in credit risk 28 146 373 547 Other adjustments1) -1 -4 -32 -37 Closing balance 31 December 2023 423 454 4 372 5 249
1) Movements recognised outside Credit impairment line, foreign exchange effect, etc.
Note 10. Deposits and borrowings from the public
Group and Norion Bank AB
| Dec 31 | Dec 31 | |
|---|---|---|
| SEKm | 2024 | 2023 |
| EUR | 27 914 | 16 707 |
| SEK | 24 339 | 25 659 |
| NOK | 763 | 297 |
| Total | 53 017 | 42 663 |
Note 11. Debt securities in issue and subordinated liabilities
| Group and Norion Bank AB | ||||
|---|---|---|---|---|
| DEBT SECURITIES IN ISSUE SEKm |
Dec 31 2024 |
Dec 31 2023 |
||
| ISIN | Carrying amount |
Nominal amount |
Carrying amount |
Nominal amount |
| SE0013105137 | 499 | 500 | 498 | 500 |
| SE0013106317 | 699 | 700 | - | - |
| SE0013361557 | 601 | 600 | - | - |
| SE0013361953 | 500 | 500 | - | - |
| SE0015811112 | - | - | 750 | 750 |
| Commercial papers | 20 | 20 | - | - |
| Total | 2 319 | 2 320 | 1 248 | 1 250 |
| SUBORDINATED LIABILITIES | Dec 31 | Dec 31 | ||
| SEKm | 2024 | 2023 | ||
| ISIN | Carrying amount |
Nominal amount |
Carrying amount |
Nominal amount |
| SE0013361664 | 299 | 300 | - | - |
| SE0013361946 | 299 | 300 | - | - |
| Total | 598 | 600 | - | - |
Note 12. Capital adequacy
Norion Bank AB
| Dec 31 2024 |
||
|---|---|---|
| SEKm | Amount | Percentage of risk exposure amount |
| Common Equity Tier 1 capital requirement (Pillar 1) | 2 417 | 4,5% |
| Other Common Equity Tier 1 capital requirement (Pillar 2) | 350 | 0,7% |
| Buffer requirements | 2 156 | 4,0% |
| Total Common Equity Tier 1 (CET1) capital requirement | 4 923 | 9,2% |
| Common Equity Tier 1 (CET1) capital | 8 499 | 15,8% |
| Tier 1 capital requirement (Pillar 1) | 3 223 | 6,0% |
| Other tier 1 capital requirement (Pillar 2) | 467 | 0,9% |
| Buffer requirements | 2 156 | 4,0% |
| Total Tier 1 capital requirement | 5 846 | 10,9% |
| Tier 1 capital | 8 499 | 15,8% |
| Capital requirements (Pillar 1) | 4 297 | 8,0% |
| Other capital requirement (Pillar 2) | 622 | 1,2% |
| Buffer requirements | 2 156 | 4,0% |
| Total capital requirement | 7 075 | 13,2% |
| Own funds | 9 097 | 16,9% |
NOTES
| Norion Bank AB | ||
|---|---|---|
| OWN FUNDS, SEKm | Dec 31 2024 |
Dec 31 2023 |
| Capital instruments and the related share premium accounts: Equity | 149 | 149 |
| Retained earnings | 7 897 | 6 590 |
| Net profit for the period after deductions related to the consolidated situation and other foreseeable charges |
1 000 | 1 063 |
| Common Equity Tier 1 capital before regulatory adjustments | 9 046 | 7 803 |
| Deduction: | ||
| Additional value adjustments | -402 | -241 |
| Intangible assets | -141 | -104 |
| Deferred tax assets | -5 | -4 |
| Application of the transitional rules IFRS9 | - | - |
| Total regulatory adjustments to Common Equity Tier 1 | -548 | -350 |
| Common Equity Tier 1 (CET1) capital | 8 499 | 7 453 |
| Perpetual subordinated loan | - | 500 |
| Additional Tier 1 instruments | - | 500 |
| Tier 1 capital | 8 499 | 7 953 |
| Supplementary capital | 598 | - |
| Tier 2 capital | 598 | - |
| Total own funds | 9 097 | 7 953 |
| Norion Bank AB | |||
|---|---|---|---|
| Dec 31 | Dec 31 | ||
| RISK EXPOSURE AMOUNT, SEKm | 2024 | 2023 | |
| Credit risks, using the standardized approach | |||
| Central government or central banks exposures | - | - | |
| Municipalities and other associations | - | - | |
| Institutional exposures | 855 | 684 | |
| Funds units exposures | 899 | 844 | |
| Corporate exposures | 29 959 | 28 316 | |
| Retail exposures | 9 968 | 8 780 | |
| Exposures with mortgage in residential property | 8 | 13 | |
| Exposures in default | 7 697 | 4 565 | |
| Items associated with particularly high risk | - | - | |
| Exposures in the form of covered bonds | 266 | 230 | |
| Equity exposures | 62 | - | |
| Other exposures | 409 | 360 | |
| Total | 50 123 | 43 792 | |
| Risk exposure amount credit valuation adjustment risk (CVA) | 22 | 31 | |
| Risk exposure amount market risk | 16 | 35 | |
| Risk exposure amount operational risk (Alternative Standardised Approach) | 3 552 | 3 005 | |
| Total risk exposure amount | 53 713 | 46 862 |
Note 12. Capital adequacy, cont.
| Norion Bank AB | |||
|---|---|---|---|
| Dec 31 | Dec 31 | ||
| CAPITAL REQUIREMENTS, SEKm | 2024 | 2023 | |
| Capital requirement for credit risk using the standardized approach | |||
| Central government or central banks exposures | - | - | |
| Municipalities and other associations | - | - | |
| Institutional exposures | 68 | 55 | |
| Funds units exposures | 72 | 67 | |
| Corporate exposures | 2 397 | 2 265 | |
| Retail exposures | 797 | 702 | |
| Exposures with mortgage in residential property | 1 | 1 | |
| Exposures in default | 616 | 365 | |
| Items associated with particularly high risk | - | - | |
| Exposures in the form of covered bonds | 21 | 18 | |
| Equity exposures | 5 | - | |
| Other exposures | 33 | 29 | |
| Total capital requirement for credit risk | 4 010 | 3 503 | |
| Risk exposure amount credit valuation adjustment risk (CVA) | 2 | 2 | |
| Risk exposure amount market risk | 1 | 3 | |
| Risk exposure amount operational risk (Alternative Standardised Approach) | 284 | 240 | |
| Total Pillar 1 capital requirement | 4 297 | 3 749 | |
| Concentration risk | 328 | 306 | |
| Interest rate risk for the banking book | 294 | 194 | |
| Total Pillar 2 capital requirement | 622 | 501 | |
| Capital buffers | |||
| Capital conservation buffer | 1 343 | 1 172 | |
| Countercyclical capital buffer Total capital requirement - Capital buffers |
813 2 156 |
742 1 913 |
|
| Total capital requirement | 7 075 | 6 163 |
| Norion Bank AB | |||
|---|---|---|---|
| Dec 31 | Dec 31 | ||
| CAPITAL REQUIREMENT | 2024 | 2023 | |
| Capital ratios and capital buffers | |||
| CET1 ratio | 15,8% | 15,9% | |
| Tier 1 ratio | 15,8% | 17,0% | |
| Total capital ratio | 16,9% | 17,0% | |
| Institution specific buffert requirement | 4,0% | 4,1% | |
| of which capital conservation buffer | 2,5% | 2,5% | |
| of which countercyclical capital buffer | 1,5% | 1,6% | |
| CET1 available to meet buffers | 7,9% | 9,0% |
A review has been carried out of the earnings for January - December 2024, which allows net profit for the period to be included in own funds.
Note 13. Financial instruments at fair value
The table below contains financial instruments measured at fair value by valuation level. To determine the fair value for financial instruments various methods are used, depending on the degree of observable market data in the valuation and activity in the market. The objective of the fair value measurement is to arrive at the price at which an orderly transaction would take place between market participants at the measurement date under current market conditions. It is not considered to be any individual assumptions that have a significant impact on the fair value of the assets or the bank's results and equity.
The methods are divided into three different levels:
Level 1: Quoted market values
Valuations in Level 1 are determined by reference to unadjusted quoted market prices for identical asset- and liability instruments in active markets where the quoted prices are readily available and the prices represent actual and regularly occurring market transactions on an arm's length basis.
Level 2: Valuation techniques based on observable inputs
In Level 2 valuation techniques, all significant inputs to the valuation models are observable either directly or indirectly. Level 2 valuation techniques include using discounted cash flows, option pricing models, recent transactions and the price of another instrument that is substantially the same.
Level: 3 Valuation techniques with significant unobservable inputs
Level 3 valuation techniques incorporate significant inputs that are unobservable. These techniques are generally based on extrapolating from observable inputs for similar instruments, analysing historical data or other analytical techniques.
Significant transfers and reclassifications between levels
Transfers between the different levels may take place where there are indications that market conditions have changed.
| Group and Norion Bank AB | ||||
|---|---|---|---|---|
| SEKm | Dec 31 2024 | |||
| ASSETS | Level 1 | Level 2 | Level 3 | Total |
| Derivative instruments | - | 12 | - | 12 |
| Treasury bills and other bills eligible for refinancing with central banks, etc. | 3 807 | - | - | 3 807 |
| Bonds and other interest-bearing securities | 4 687 | - | - | 4 687 |
| Shares and participating interests | - | 5 | 759 | 764 |
| Total financial assets | 8 494 | 16 | 759 | 9 270 |
| LIABILITIES | ||||
| Derivative instruments | - | - | - | - |
| Other financial liabilities | - | - | - | - |
| Total financial liabilities | - | - | - | - |
| SEKm | Dec 31 2023 | |||
|---|---|---|---|---|
| ASSETS | Level 1 | Level 2 | Level 3 | Total |
| Derivative instruments | - | 47 | - | 47 |
| Treasury bills and other bills eligible for refinancing with central banks, etc. | 230 | - | - | 230 |
| Bonds and other interest-bearing securities | 3 210 | - | - | 3 210 |
| Shares and participating interests | - | 5 | 659 | 664 |
| Total financial assets | 3 440 | 52 | 659 | 4 151 |
| LIABILITIES | ||||
| Derivative instruments | - | - | - | - |
| Other financial liabilities | - | - | - | - |
| Total financial liabilities | - | - | - | - |
Note 13.Financial instruments at fair value, cont.
Group and Norion Bank AB
| Changes in level 3 | Dec 31 2024 | Dec 31 2023 |
|---|---|---|
| Assets | Assets | |
| SEKm | Equity instruments |
Equity instruments |
| Opening balance for the period | 659 | 528 |
| Acquisition | - | 157 |
| Divestment | - | - |
| Changes in unrealised gains or losses for items held at closing day | 38 | -27 |
| Closing balance for the period | 697 | 659 |
Financial instruments in Level 3 refer to investments in funds. Norion Bank uses different measurement techniques depending on available data.
The investment portfolio is measured quarterly in accordance with IPEV guidelines and primarily following an external measurement where a transaction in the company has been made in the past 12 months with at least one external party. If such measurement is not possible, or if there are objective reasons to do so, as a secondary option, an internal measurement is made based on assumed discounted cash flow.
Financial instruments are transferred to or from level 3 depending on whether the internal assumptions have changed in significance to the valuation. There were no transfers of financial instruments to or from level 3 during the period.
Note 14. Financial assets and liabilities
Norion Bank has classified its financial instruments by class taking into account the characteristics of the instruments. The fair value of each class of financialassets and liabilities are compared with its carrying amount. A description of the characteristics of the classes can be found in note 37 in the Annual Report 2023.
Group and Norion Bank AB
| Dec 31 2024 | Dec 31 2023 | |||
|---|---|---|---|---|
| SEKm | Carrying amount |
Fair value | Carrying amount |
Fair value |
| Loans1) | 54 450 | 54 450 | 48 673 | 48 673 |
| Debt securities | 11 486 | 11 489 | 4 304 | 4 304 |
| Equity instruments | 759 | 759 | 659 | 659 |
| Derivatives | 12 | 12 | 47 | 47 |
| Other | 86 | 86 | 5 | 5 |
| Financial assets | 66 791 | 66 795 | 53 688 | 53 688 |
Group and Norion Bank AB
| Dec 31 2024 | Dec 31 2023 | |||
|---|---|---|---|---|
| SEKm | Carrying amount |
Fair value | Carrying amount |
Fair value |
| Deposits | 53 017 | 53 017 | 42 663 | 42 663 |
| Debt securities issued | 2 319 | 2 319 | 1 248 | 1 248 |
| Derivatives | - | - | - | - |
| Subordinated liabilities | 598 | 598 | - | - |
| Other | 384 | 384 | 292 | 292 |
| Financial liabilities | 56 318 | 56 318 | 44 203 | 44 203 |
1) Loans includes Loans to credit institutions and Loans to the public.
Note 15. Related parties
During the period normal business transactions were executed between companies in the Group and between other related parties.
Note 16. Pledged assets, contingent liabilities and commitments
PLEDGED ASSETS
| Group and Norion Bank AB | ||
|---|---|---|
| Dec 31 | Dec 31 | |
| SEKm | 2024 | 2023 |
| For own liabilities and provisions | None | None |
| Total | None | None |
| CONTINGENT LIABILITIES | ||
| Group and Norion Bank AB | ||
| Dec 31 | Dec 31 | |
| SEKm | 2024 | 2023 |
| Contingent liabilities | None | None |
| Total | None | None |
| COMMITMENTS | ||
| Group and Norion Bank AB | ||
| Dec 31 | Dec 31 | |
| SEKm | 2024 | 2023 |
| Unutilized credit limits | 5 974 | 4 685 |
| Other commitments | 163 | 158 |
| Total | 6 137 | 4 843 |
Note 17. After the end of the period
The Swedish Financial Supervisory Authority has, after the end of the fourth quarter, requested a statement from Norion Bank as a continuation of the previously initiated investigation regarding compliance with anti-money laundering regulations, which was initiated in May 2023 towards Norion Bank and a couple of other market participants. Norion Bank will comment on the matter no later than February 21, 2025.
Assurance by the Board of Directors and the CEO
The Board of Directors and the CEO hereby certify that the interim report provides a fair and accurate overview of the operations, position and results of the parent company and the Group and describes the significant risks and uncertainties faced by the parent company and the companies in the Group. This year-end report has not been reviewed by the company's auditors.
Gothenburg, February 5 2025
Board of Directors & CEO
Erik Selin Chairman of the Board Charlotte Hybinette Board member
Marie Osberg Board member
Ulf Croona Board member Arian Falck Raoof Board member
Bengt Edholm Board member
Martin Nossman CEO
Forthcoming corporate events
Annual report 2024 4 April 2025 Interim report January-March 2025 24 April 2025 Annual General Meeting 2025 6 May 2025 Interim report January-June 2025 14 July 2025 Interim report January-September 2025 17 October 2025
Contact information
For more information, please contact:
CEO
Martin Nossman Phone: +46 703 30 26 75 Email: [email protected]
CFO
Peter Olsson Phone: +46 737 12 04 46 Email: [email protected]
IR MANAGER
Jessica Almgren Phone: +46 76 946 45 13 E-mail: [email protected] norionbank.se norionbank.no norionbank.fi
This is information that Norion Bank AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Market Act. The information was submitted for publication, through the agency of the contact persons set out above, on February 5, 2025 at 7.30 a.m. CET.