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Collector Bank

Quarterly Report Apr 25, 2023

3030_10-q_2023-04-25_4875dfab-1bd6-4a07-95b7-e359f5ad5204.pdf

Quarterly Report

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INTERIM REPORT JANUARY–MARCH 2023

Interim report January-March 2023 Collector Bank AB (publ) 556597-0513 1

Interim report January–March 2023

FIRST QUARTER OF 2023

(COMPARED TO THE FIRST QUARTER OF 2022)

  • The loan portfolio amounted to SEK 41,699m (38,734)
  • Total income amounted to SEK 882m (723)
  • The C/I ratio amounted to 26.0% (26.7)
  • The credit loss level amounted to 2.6% (2.1)
  • Operating profit amounted to SEK 385m (329)
  • Net profit amounted to SEK 305m (260) and earnings per share 1) amounted to SEK 1.42 (1.22) • Return on equity amounted to 17.4% (18.1)
  • Adjusted return on equity 2) amounted to 17.4% (17.6)
  • The CET1 ratio amounted to 14.6% (13.6) and the total capital ratio amounted to 15.7% (16.1)

SIGNIFICANT EVENTS DURING THE PERIOD

On 28 March 2023, a press release was published stating that the Board of Collector Bank proposes changing the company name from Collector Bank AB to Norion Bank AB. The proposal reflects the strategic changes the company has made in recent years in terms of streamlining the business and a clear focus on balanced and profitable growth. The purpose of the proposal is also to clarify the company's customer offering. The change of the company name requires approvals by the Annual General Meeting, the Swedish Financial Supervisory Authority and the Swedish Companies Registration Office.

SIGNIFICANT EVENTS AFTER THE PERIOD

No significant events have occured after the end of the period.

1) See pages 4-5 2) See page 20

HIGHLIGHTS FIRST QUARTER OF 2023 (COMPARED TO THE FIRST QUARTER OF 2022)

Loan portfolio

SEKm 41,699 +8% 882 +22%

Total income

SEKm

C/I ratio

26.0% +17%

percentage points

Net profit

SEKm

-0.8 305

percentage points

Adj. return on equity CET1 ratio 17.4% 14.6% +1.0

-0.2 percentage points

Loan portfolio (SEKm) and NIM (%) EPS 1) (SEK) and adj. RoE (%)

1) Earnings per share after dilution (attributable to the shareholders of Collector Bank AB)

This is Collector Bank

Collector Bank specializes in financing solutions for medium-sized corporates and real estate companies, private individuals and merchants, and is a complement to large traditional banks. The corporate and real estate offering includes corporate lending, factoring and real estate lending. The bank's services for private individuals include personal loans, credit cards and deposit accounts. Checkout and payment solutions, targeting merchants and private individuals, are offered through the brand Walley. The company has offices in Gothenburg (headquarters), Stockholm, Helsingborg, Helsinki and Oslo. Collector Bank AB (publ) is listed on Nasdaq Stockholm.

Key ratios Group

SEKm Q1
2023
Q4
2022
Q1
2022
INCOME STATEMENT
Net interest income 809 839 -4% 645 25%
Total income 882 928 -5% 723 22%
Net profit 305 346 -12% 260 17%
Earnings per share before dilution, SEK 1.42 1.62 -13% 1.22 16%
Earnings per share after dilution, SEK 1.42 1.62 -13% 1.22 16%
BALANCE SHEET
Loans to the public 41,699 41,490 1% 38,734 8%
Deposits and borrowings from the public 36,442 36,842 -1% 32,519 12%
Debt securities in issue 3,243 3,337 -3% 5,127 -37%
Subordinated liabilities - - - 500 -100%
Total equity (shareholders of Collector Bank AB) 6,860 6,570 4% 5,667 21%
KEY RATIOS 1)
Net interest margin (NIM) - Period 2) 7.8% 8.1% 6.9%
Net interest margin (NIM) - LTM 2) 7.6% 7.5% 6.8%
Credit loss level - Period 2) 2.6% 2.5% 2.1%
Credit loss level - LTM 2) 2.5% 2.4% 2.4%
C/I ratio - Period 2) 26.0% 24.9% 26.7%
C/I ratio - LTM 2) 25.7% 25.9% 28.4%
Return on equity (RoE) - Period 2) 17.4% 20.8% 18.1%
Return on equity (RoE) - LTM 2) 18.2% 18.3% 16.0%
CET1 ratio 3) 14.6% 14.3% 13.6%
Tier 1 ratio 3) 15.7% 15.4% 14.8%
Total capital ratio 3) 15.7% 15.4% 16.1%
Average number of full-time employees 328 327 1% 300 9%
ADJUSTED KEY RATIOS 1)
Net interest margin (NIM) - Period 2) 7.8% 8.1% 6.9%
Net interest margin (NIM) - LTM 2) 7.6% 7.5% 6.8%
Credit loss level - Period 2) 2.6% 2.5% 2.1%
Credit loss level - LTM 2) 2.5% 2.4% 2.4%
C/I ratio - Period 2) 26.0% 24.9% 26.7%
C/I ratio - LTM 2) 25.7% 25.9% 28.4%
Return on equity (RoE) - Period 2) 17.4% 20.8% 17.6%
Return on equity (RoE) - LTM 2) 18.1% 18.2% 15.7%

1) See Definitions, pages 19-20, and collector.se/en/about-collector/investors/financial-information/ 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 Collector's development. See Definitions, pages 19-20 3) Key ratios according to capital adequacy rules (CRR). See note 12, pages 42-44

Key ratios Group, cont.

SEKm Full year
2022
INCOME STATEMENT
Net interest income 2,899
Total income 3,212
Net profit 1,141
Earnings per share before dilution, SEK 5.34
Earnings per share after dilution, SEK 5.34
BALANCE SHEET
Loans to the public 41,490
Deposits and borrowings from the public 36,842
Debt securities in issue 3,337
Subordinated liabilities -
Total equity (shareholders of Collector Bank AB) 6,570
KEY RATIOS 1)
Net interest margin (NIM) - Period 2) 7.5%
Net interest margin (NIM) - LTM 2) 7.5%
Credit loss level - Period 2) 2.4%
Credit loss level - LTM 2) 2.4%
C/I ratio - Period 2) 25.9%
C/I ratio - LTM 2) 25.9%
Return on equity (RoE) - Period 2) 18.3%
Return on equity (RoE) - LTM 2) 18.3%
CET1 ratio 3) 14.3%
Tier 1 ratio 3) 15.4%
Total capital ratio 3) 15.4%
Average number of full-time employees 308
ADJUSTED KEY RATIOS 1)
Net interest margin (NIM) - Period 2) 7.5%
Net interest margin (NIM) - LTM 2) 7.5%
Credit loss level - Period 2) 2.4%
Credit loss level - LTM 2) 2.4%
C/I ratio - Period 2) 25.9%
C/I ratio - LTM 2) 25.9%
Return on equity (RoE) - Period 2) 18.2%
Return on equity (RoE) - LTM 2) 18.2%

1) See Definitions, pages 19-20, and collector.se/en/about-collector/investors/financial-information/ 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 Collector's development. See Definitions, pages 19-20 3) Key ratios according to capital adequacy rules (CRR). See note 12, pages 42-44

A comment from our CEO

2022 started with the Russian invasion of Ukraine, which led to worldwide ramifications and created turbulence in financial markets during the full year. In the first quarter of 2023, volatility on financial markets increased once again driven by a number of specific events within the banking sector, which started with the takeover of Silicon Valley Bank in the US. In Europe, UBS was also forced to take over Credit Suisse under noticed forms. The consequential effects include higher financing costs, lower asset valuations and higher volatility in financial markets. At the same time, focus has remained on high inflation rates and higher policy rates. Despite uncertainty in the macroeconomic environment, Collector Bank has shown stable development both during 2022 and the first quarter of 2023. We stand on solid ground and do not see any direct effects of the turbulence in 2023. Deposits and borrowings from the public is Collector Bank's primary source of funding. 96% of our deposits are covered by the government deposit guarantee scheme, which is a number that has been stable, quarter over quarter, over the years. We also have low risk taking in the management of our liquidity portfolio as we invest in issuers with low risk profile at floating rate, have short durations and the absolute majority of our portfolio has mark-to-market valuation.

In 2019, we initiated a strategic transformation journey, moving focus from high growth to profitability. As a result, we also have a more balanced risk profile and a stronger balance sheet. The results of the changes are clearly visible in the financial development in recent years. Today, we are a bank that shows good profitability, and I am glad that we have already made that journey given the current uncertain macroeconomic environment.

The loan book amounted to SEK 41,699 million, which corresponds to a growth of 8% since the first quarter of 2022, primarily driven by the Corporate and Real Estate segments.

Corporate and Real Estate have seen stable results development. Since the second half of 2022, our focus has remained on lower volume growth given the macroeconomic uncertainty. From a long-term perspective, we still have an attractive position as a financing bank with a distinct focus on medium-sized corporates and real estate companies in the Nordics. Our target market is large, and we are uniquely positioned as a complement to larger traditional banks by being one of few players offering corporate and real estate loans in the size of SEK 30-300 million.

Payments maintain solid transaction volumes and stable results development despite a challenging market still characterized by declining online sales. Since the fall of 2021, the business has operated under the brand Walley, which is one of the leading players on the Nordic payment solutions market. Going forward, our aim is to increase awareness among both merchants and end customers.

The Consumer loan book continues to decrease, both in absolute and relative terms, as our focus is to prioritize increased profitability over volume growth as well as to ensure sound and sustainable lending. Increased profitability is a longterm focus, and the work is progressing well.

Interest income continues to be positively affected by the higher policy rate environment, primarily driven by the Corporate and Real Estate segments. Interest costs have however increased during the quarter driven by gradually increased competition in the deposit market. The credit loss level amounted to 2.6% during the quarter. We hence remain conservative with regards to our credit loss provisioning, and increase our provisioning levels, even though we see some signs of slightly deteriorating payment patterns. Return on equity amounted to 17.4% during the quarter. We consequently maintain solid underlying profitability.

New company name and clarification of our customer offering

By the end of March, we published a press release with the announcement that the Board of Directors of Collector Bank proposes to change the company name from Collector Bank AB to Norion Bank AB. The proposal reflects the strategic changes we have made in recent years in terms of streamlining the business and a clear focus on balanced and profitable growth. Today, Collector Bank is a business-oriented Nordic bank that offers financing solutions to medium-sized corporates and real estate companies, merchants and private individuals. From a business perspective, we hence create a clear brand group with three distinct brands directed at our three primary customer groups. The proposal aims to optimize the opportunities for all individual business areas. If the proposal is approved by the General Meeting and the relevant authorities, the business will, starting in the fall, be conducted under three different brands: Norion Bank, Collector and Walley. Our aim with a new corporate name and brand is both to further strengthen our positioning and to clarify our customer offering.

Martin Nossman CEO

MARTIN  NOSSMAN, CEO

"Stable quarter in a turbulent market"

Interim report January-March 2023 Collector Bank AB (publ) 556597-0513 7

The Group's development

Total income for the first quarter of 2023

Total income amounted to SEK 882 million (723) corresponding to an increase of 22% compared to last year. Net interest income increased by 25% compared to the previous year and amounted to SEK 809 million (645). Higher market rates have had a positive impact on interest income. Funding costs have also increased following higher policy rates and gradually increased competition in the deposit market. The net interest margin amounted to 7.8% (6.9). Net commission income decreased by 7% compared to last year and amounted to SEK 72 million (77). Net gains and losses on financial items amounted to SEK -9 million (-11). Other income amounted to SEK 9 million (11). The business has developed positively compared to the first quarter of 2022 with the Corporate and Real Estate segments having contributed strongly.

Total expenses

Total expenses amounted to SEK 229 million (193) during the first quarter of 2023. The C/I ratio for the period amounted to 26.0% (26.7). Collector Bank hence continues to prove solid cost control.

Loan portfolio

The total loan portfolio amounted to SEK 41,699 million (38,734) by the end of the first quarter of 2023, corresponding to an increase of 8% compared to last year and an increase of 1% compared to the previous quarter. The Corporate loan portfolio has increased by 7% compared to the previous year and decreased by 7% compared to the previous quarter. The Real Estate loan portfolio has increased by 22% compared to the previous year and increased by 7% compared to the previous quarter. The Consumer loan portfolio has decreased by 7% compared to the previous year and remains unchanged compared to the previous quarter. The Payments loan portfolio is unchanged compared to the previous year and has decreased by 6% compared to the previous quarter. Out of the total loan portfolio, Corporate amounted to 24% (24), Real Estate amounted to 45% (39), Consumer amounted to 25% (29), Payments amounted to 6% (6) and Other amounted to 2% (2) by the end of the quarter.

Credit losses

The credit loss level in the first quarter of 2023 amounted to 2.6% (2.1). The credit loss level for the underlying banking operations is presented on page 9.

Operating profit, net profit, EPS and RoE

Operating profit amounted to SEK 385 million (329) in the first quarter of 2023. Net profit amounted to SEK 305 million (260) during the period. Earnings per share amounted to SEK 1.42 (1.22) during the period. Return on equity amounted to 17.4% (18.1) during the period.

Non-recurring items

Non-recurring items are defined as income and expenses that are not expected to appear on a regular basis.

2023

There were no non-recurring items in the first quarter of 2023.

2022

There were no non-recurring items in the first, second, third or fourth quarter of 2022.

Liquidity and financial investments

As of 31 March 2023, cash and cash equivalents amounted to SEK 2,496 million (2,361). Collector Bank's excess liquidity is invested in Swedish municipal bonds, covered bonds, government issued securities and deposit accounts primarily with Nordic banks. At the end of the period, the Group's financial investments amounted to SEK 3,641 million (3,703).

Funding

Deposits and borrowings from the public amounted to approximately 75% (72) of Collector Bank's balance sheet, which by the end of the period amounted to SEK 36,442 million (32,519). This is the primary source of funding for the Group. Senior unsecured bonds issued amounted to SEK 3,243 million (2,991). Commercial papers issued amounted to SEK 0 million (2,136).

Capital adequacy

Collector 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 Collector Bank AB has been performed, and Collector Bank has been allowed to include net profit in the Common Equity Tier 1 capital. Over time, Collector 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 45,494 million (41,157). As of 31 March 2023, the CET1 ratio amounted to 14.6% (13.6), the Tier 1 ratio to 15.7% (14.8) and the total capital ratio to 15.7% (16.1).

The macroeconomic environment and financial markets

Central Banks all around the world have carried out policy rate increases at a pace never seen before. The policy rate increases have however not managed to curb inflation which remains at a high level, in which energy and food prices have played a large role. The market expects additional rate hikes in order to reduce the inflation rate and macroeconomic forecasts have as a consequence been revised down.

Uncertainty in the financial markets increased during the first quarter as a number of financial institutions in the US and Europe were deemed insolvent, or likely insolvent, by their respective supervisory authority. As a consequence, risk premiums for financial institutions have been affected, assets have decreased in value and overall volatility in financial markets has increased.

Credit loss level (%) Q1
2023
Q1
2022
Reported 2.6% 2.1%
Reported, excl. purchased debt portfolios 2.6% 2.1%

DEVELOPMENT IN THE CORPORATE SEGMENT

A calmer beginning of the year following the macroeconomic environment Loan portfolio

The loan portfolio of the Corporate segment amounted to SEK 9,808 million (9,182), corresponding to an increase of 7% over the previous year and a decrease of 7% over the previous quarter. The Corporate segment accounted for 24% (24) of Collector Bank's loan portfolio by the end of the quarter. Total income amounted to SEK 191 million (150) during the quarter. The net interest margin (NIM) amounted to 7.9% compared to 6.6% in the same quarter last year and 8.0% in the previous quarter. The total income margin amounted to 7.5% compared to 7.0% in the same quarter last year and 7.9% in the previous quarter. 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 income development was solid during the quarter. Transaction activity continued to be muted as market sentiment was tentative. On the back of the uncertain macroeconomic backdrop, Collector Bank has applied a more selective approach with regards to completed transactions. In combination amortizations it has impacted the loan book growth during the quarter. The loan book for factoring was seasonally weak. Collector Bank has an attractive position within the Corporate segment which is one of the company's focus areas going forward.

9,808 SEKm 24%

Corporate

Collector Bank offers corporate loans and factoring solutions with particular focus on small and medium-sized enterprises 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.

CORPORATE

Loan portfolio (SEKm) and NIM (%) Total income (SEKm) and margin (%)

Geographic split 1) Industry split 1)

DEVELOPMENT IN THE REAL ESTATE SEGMENT

Adaption to the new market situation

The loan portfolio of the Real Estate segment amounted to SEK 18,594 million (15,252), corresponding to an increase of 22% over the previous year and an increase of 7% over the previous quarter. The Real Estate segment accounted for 45% (39) of Collector Bank's loan portfolio by the end of the quarter. Total income amounted to SEK 327 million (232) during the quarter. The net interest margin (NIM) amounted to 7.3% compared to 6.4% in the same quarter last year and 7.8% in the previous quarter. The total income margin amounted to 7.3% compared to 6.4% in the same quarter last year and 7.9% in the previous quarter. The NIM and total income margins can vary between periods dependent on when amortizations and disbursements of new loans are made during respective period. Total income was positively impacted by some SEK 30 million in the previous quarter for exposures that had previously been included in Stage 3. Thus, the comparability between the quarters is affected.

Transaction activity remained muted following the decline during the end of last year. Market participants still have to adapt to the new financial environment and demand is driven by i.a. lower activity on the bond market. On the back of the macroeconomic developments and declining market sentiment, Collector Bank has applied a more selective approach with regards to completed transaction. The market sentiment has therefore had an impact on the loan book growth. The majority of the Real Estate portfolio still constitutes of senior loans, which amounted to 62% (68) by the end of the quarter.

Real Estate

Collector 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. Collector Bank offers both junior and senior lending. Financing is provided mainly for residential properties but also for offices and industrial properties.

REAL ESTATE

Loan portfolio (SEKm) and NIM (%) Total income (SEKm) and margin (%)

Industry split 1) Geographic split 1)

125 SEKm Average loan in the portfolio

17 Average remaining maturity (months)

1) Based on the Real Estate loan portfolio as of 31 March 2023

DEVELOPMENT IN THE CONSUMER SEGMENT 25%

Continued focus on increased profitability over volume growth

The loan portfolio of the Consumer segment amounted to SEK 10,320 million (11,141), corresponding to a decrease of 7% over the previous year and the loan portfolio is unchanged compared to the previous quarter. The Consumer segment accounted for 25% (29) of Collector Bank's loan portfolio by the end of the quarter. Total income amounted to SEK 207 million (218) during the quarter. The net interest margin (NIM) amounted to 7.4% compared to 7.3% in the same quarter last year and 7.4% in the previous quarter. The total income margin amounted to 8.0% compared to 7.8% in the same quarter last year and 7.9% in the previous quarter.

Loan book volumes have been declining during the last few years given Collector Bank's focus on increasing profitability within the segment. Interest rate increases have been made during the quarter to compensate for increased funding costs due to higher policy rates. Going forward, Collector Bank continues to prioritize higher profitability over volume growth within the segment.

Loan portfolio

10,320 SEKm

Consumer

Collector Bank offers unsecured loans to private individuals of up to SEK 500,000 in Sweden and up to EUR 25,000 in Finland. Sales is mainly made through loan intermediaries but also through the bank's own channels. Collector Bank also offers credit cards, with a maximum credit limit of SEK 100,000.

CONSUMER

Loan portfolio (SEKm) and NIM (%) Total income (SEKm) and margin (%)

Geographic split 1) Average customer Personal loans

50years

203,000 Average loan new sales (SEK, LTM)

145,000 Average loan in the portfolio (SEK)

~30% Sales through own channels

50,000 Customers

24,000 Cards outstanding

1) Based on the Consumer loan portfolio as of 31 March 2023

DEVELOPMENT IN THE PAYMENTS SEGMENT 6%

Stable volume development

The loan portfolio of the Payments segment amounted to SEK 2,336 million (2,336), which is unchanged compared to the previous year and corresponds to a decrease of 6% over the previous quarter. The Payments segment accounted for 6% (6) of Collector Bank's loan portfolio by the end of the quarter. Total income amounted to SEK 113 million (125) during the quarter. The net interest margin (NIM) amounted to 8.1% compared to 9.1% in the same quarter last year and 8.5% in the previous quarter. The total income margin amounted to 18.9% compared to 20.9% in the same quarter last year and 19.1% in the previous quarter.

Transaction volumes amounted to SEK 3,132 million (3,191) during the first quarter of 2023, which corresponds to a decrease of 2% compared to the same quarter last year. Transaction volumes remain at stable levels despite continued challenging conditions for the e-commerce market. The Payments segment hence continues to show relatively stronger growth than the market as both new and existing merchants have shown relatively stronger performance compared to the market. The work to ensure end customer satisfaction is progressing well and app users continue to increase every quarter. Profitable growth, in combination with satisfied merchants and end customers, remains as core focus for the Payments segment.

Loan portfolio

Payments

Collector Bank 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. Collector Bank offers specialized solutions focusing on the merchant's strategy and brand, primarily targeting larger merchants.

Since Q3 2021 the business is conducted through the brand Walley.

PAYMENTS

Loan portfolio (SEKm) and NIM (%) Total income (SEKm) and margin (%)

Geographic split 1)

Transaction volumes (SEKm)

Q1 2023 (Q1 2022) -2% % change

1) Based on the Payments loan portfolio as of 31 March 2023

Other information

Material risks and uncertainty factors

Through its operations, Collector 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 Collector Bank's Annual Report. There have been no significant changes since the publication of the annual report, except as reported in this interim report.

A company regulated by the Swedish Financial Supervisory Authority

Collector Bank AB (publ) has a license to conduct banking operations. The Bank conducts business in Sweden and through branches in Norway and Finland. Collector 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 328, which corresponds to an increase of 9% 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 Collector Bank share

Collector Bank's share ("COLL") is listed on Nasdaq Stockholm. As of 31 March 2023, the closing price for the Collector Bank share was SEK 35.865, corresponding to a market capitalization of SEK 7.4 billion. There were approximately 10,900 shareholders at the end of the period.

First day of trading in the Collector Bank share was on 15 August 2022 as the merger between Collector Bank AB and Collector AB had been completed. Last day of trading in the previously listed Collector AB share was on 11 August 2022.

Shareholders at 31 March 2023 %
Fastighets AB Balder 44.1%
Erik Selin 17.6%
StrategiQ Capital AB 6.9%
State Street Bank and Trust Company 4.5%
Helichrysum Gruppen AB 3.3%
Nordnet Pensionsförsäkring 2.6%
JME Invest AB 2.0%
SEB AB 1.5%
Vante AB 1.4%
Avanza Pension 1.2%
Other shareholders 14.9%
Total 100.0%

Share capital

On 4 May 2022, a reverse share split and a split were carried out prior to the merger with Collector AB to achieve a 1:1 exchange ratio. More information is available in the merger prospectus.

As of 31 March 2023, the share capital amounted to SEK 20,538,100, 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

According to the adopted dividend policy dividends may be low or not occur at all in the medium term.

Presentation for investors and analysts

A conference call will be held on 25 April 2023 at 09:30 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 at https://ir.financialhearings.com/collector-bank-q1-2023. To participate in the conference call, please dial +46 850 516 386 or +44 2031 984 884, pin code 9391286#. The presentation material will be in English and be available prior to the presentation on the website collector.se/en

Events after the end of the period

No significant events have occurred after the end of the period.

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 Collector Bank when relevant for monitoring and describing the bank's financial situation and enhance comparability between the periods. Collector 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 collector.se/en/about-collector/investors/financial-information/ 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 nonrecurring 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 Collector 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 Collector Bank AB in relation to average number of shares outstanding before dilution for the period.

Return on equity (RoE)

Return on equity (RoE) - Period

Net profit for the period attributable to the shareholders of Collector Bank AB in relation to average equity attributable to the shareholders of Collector Bank AB for the period.

Return on equity (RoE) - LTM

Net profit attributable to the shareholders of Collector Bank AB for the last twelve months in relation to average equity attributable to the shareholders of Collector Bank AB for the last twelve months.

Adjusted return on equity (RoE) - Period

Net profit for the period attributable to the shareholders of Collector Bank AB, adjusted for non-recurring items, in relation to average equity attributable to the shareholders of Collector Bank AB for the period. For relevant periods prior to the intragroup merger between 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.

1) Not alternative performance measures.

Definitions cont.

Adjusted return on equity (RoE) - LTM

Net profit attributable to the shareholders of Collector Bank AB for the last twelve months, adjusted for non-recurring items, in relation to average equity attributable to the shareholders of Collector Bank AB for the last twelve months. For relevant periods prior to the intra-group merger between 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.

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 8-9.

2) Key ratios according to capital adequacy rules (CRR).

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 42-44.

Tier 1 ratio 2)

Tier 1 capital in relation to total risk-weighted exposure amount. Refers to the consolidated situation. See note 12, pages 42-44.

Total capital ratio 2)

Total own funds in relation to total risk-weighted exposure amount. Refers to the consolidated situation. See note 12, pages 42-44.

Average number of full-time employees

Including employees on fixed-term contracts, but not on parental leave or leave of absence.

Income statement Group

Group

Q1 Q4 Q1 Full year
SEKm Note 2023 2022 2022 2022
Interest income1) 1 040 1 008 741 3 385
Interest expense2) -232 -169 -96 -486
Net interest income 4 809 839 645 2 899
Commission income 83 83 88 342
Commission expense -11 -11 -11 -43
Net commission income 72 73 77 299
Net gains and losses on financial items -9 6 -11 -24
Other income3) 9 10 11 39
Total income 882 928 723 3 212
Personnel expenses3) 5 -90 -92 -76 -321
Other expenses3) 6 -122 -122 -109 -448
Depreciation/amortization and impairment of tangible and intangible assets3) -17 -17 -7 -63
Total expenses -229 -231 -193 -832
Profit before credit losses 653 697 529 2 381
Credit losses, net 7 -268 -260 -200 -938
Operating profit 385 437 329 1 442
Tax expense -80 -91 -69 -302
Net profit for the period 305 346 260 1 141
Portion of net profit for the period attributable to:
shareholders of Collector Bank AB 291 333 251 1 097
additional Tier 1 capital holders 13 13 10 44
Earnings per share, before dilution, SEK4) 1,42 1,62 1,22 5,34
Earnings per share, after dilution, SEK4) 1,42 1,62 1,22 5,34

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.

3) IFRS 16 Leases started to be applied from quarter 3, 2022. The group's leasing agreement has been taken over with the merger of Collector AB and consists mostly of office premises and to a lesser extent vehicles. All right-of-use assets are reported under the item Tangible fixed assets and leasing liabilities under the item Other liabilities in the balance sheet.

4) On May 4, 2022, a reverse share split and a split were carried out before the merger of Collector AB to achieve the 1:1 exchange ratio. After the share split, the total number of shares in Collector Bank AB amount to 205 381 004. Historical data for the total number of shares in this report have been adjusted in accordance with IAS 33.

Statement of comprehensive income Group

Group

Q1 Q4 Q1 Full year
SEKm
Note
2023 2022 2022 2022
Net profit for the period reported via income statement 305 346 260 1 141
Items that have been or may be reclassified to the income statement
Exchange rate differences on translation of foreign currency -2 1 1 2
Other comprehensive income for the period, net of tax -2 1 1 2
Total comprehensive income for the period 303 347 261 1 143
Portion of total comprehensive income for the period attributable to:
shareholders of Collector Bank AB 290 334 252 1 099
additional Tier 1 capital holders 13 13 10 44

Balance sheet Group

Group

Mar 31 Dec 31 Mar 31
SEKm Note 2023 2022 2022
ASSETS
Treasury bills and other bills eligible for refinancing with central banks, etc. 13 286 267 182
Loans to credit institutions 2 496 3 050 2 361
Loans to the public 8, 9 41 699 41 490 38 734
Bonds and other interest-bearing securities 13 3 355 2 970 3 521
Shares and participating interests 13 523 533 396
Intangible assets 83 79 91
Tangible assets 129 137 0
Derivatives 13 36 - -
Other assets 38 68 70
Prepaid expenses and accrued income 89 82 100
Total assets 48 734 48 676 45 456
LIABILITIES AND EQUITY
Deposits and borrowings from the public 10 36 442 36 842 32 519
Debt securities in issue 11 3 243 3 337 5 127
Derivatives 13 - 7 40
Other liabilities 711 687 502
Accrued expenses and prepaid income 979 733 601
Subordinated liabilities 11 - - 500
Total liabilities 41 375 41 606 39 288
Equity attributable to additional Tier 1 capital holders 500 500 500
Equity attributable to the shareholders of Collector Bank AB 6 860 6 570 5 667
Total equity 7 360 7 070 6 167
Total liabilities and equity 48 734 48 676 45 456

Statement of changes in equity Group

Group

January - March 2023 Equity attributable to the shareholders of Collector Bank AB SEKm Share capital Other contributed capital Exchange differences, subsidiaries and associates Retained earnings, incl. net profit for the period Total Additional Tier 1 instruments holders¹⁾ 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 291 291 13 305 Other comprehensive income for the period -2 -2 -2 Total comprehensive income for the period 149 5 -4 6 710 6 860 13 303 Transactions reported directly in equity Additional Tier 1 instruments redeemed -13 -13 Total transactions reported directly in equity -13 -13 Closing balance 31 March 2023 149 5 -4 6 710 6 860 500 7 360

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

January - December 2022 Equity attributable to the shareholders of
Collector Bank AB
SEKm Share
capital
Other
contributed
capital
Exchange
differences,
subsidiaries
and as
sociates
Retained
earnings,
incl. net
profit for
the period
Total Additional
Tier 1
instru
ments
holders¹⁾
Total
equity
Opening balance 1 January 2022 149 5 -4 5 266 5 416 500 5 916
Comprehensive income for the period
Profit for the period 1 097 1 097 44 1 141
Other comprehensive income for the period 2 2 2
Total comprehensive income for the period 2 1 097 1 099 44 1 143
Transactions reported directly in equity
Additional Tier 1 instruments redeemed -44 -44
Collector AB merger 55 55 55
Total transactions reported directly in equity 55 55 -44 11
Closing balance 31 December 2022 149 5 -2 6 418 6 570 500 7 070

Total

Statement of changes in equity Group, cont.

Group
January - March 2022 Equity attributable to the shareholders of
Collector Bank AB
SEKm Share
capital
Other
contributed
capital
Exchange
differences,
subsidiaries
and asso
ciates
Retained
earnings,
incl. net
profit for
the period
Total Additional
Tier 1
instru
ments
holders¹⁾
Total
equity
Opening balance 1 January 2022 149 5 -4 5 266 5 416 500 5 916
Comprehensive income for the period
Profit for the period 251 251 10 260
Other comprehensive income for the period 1 1 1
Total comprehensive income for the period 1 251 252 10 261
Transactions reported directly in equity
in equity
Additional Tier 1 instruments redeemed -10 -10
Total transactions reported directly in equity -10 -10
Closing balance 31 March 2022 149 5 -3 5 517 5 668 500 6 167

Cash flow statement Group

Group

Jan-Mar Full year Jan-Mar
SEKm 2023 2022 2022
Operating activities
Operating profit 385 1 442 329
Adjustments for non-cash items in operating activities 423 862 131
Income taxes paid -36 -156 -33
Increase/decrease in assets and liabilities from operating activities -1 249 -1 871 -3 162
Cash flow from operating activities -477 277 -2 735
Investing activities
Acquisitions/disposals of tangible assets 0 -1 0
Acquisitions/disposals of intangible assets -12 -38 -9
Cash flow from investing activities -12 -39 -9
Financing activities
Decrease of liabilities -8 -31 -
Additional Tier 1 instruments -13 -44 -10
Redemption of interest-bearing securities -50 -4 384 -1 151
Issuance of interest-bearing securities - 1 970 1 024
Cash flow from financing activities -71 -2 489 -137
Cash and cash equivalents at the start of the period 3 050 5 228 5 228
Cash flow for the period -560 -2 251 -2 881
Exchange rate differences in cash and cash equivalents 6 73 14
Cash and cash equivalents at the end of the period 2 496 3 050 2 361

Paid and received interest of which is included in the cash flow from operating activities

Interest paid 164 454 118
Interest received 1 033 3 384 745

Income statement Parent Company

Collector Bank AB

Q1 Q4 Q1 Full year
SEKm Note 2023 2022 2022 2022
Interest income1) 1 040 1 008 741 3 385
Interest expense2) -232 -169 -96 -486
Net interest income 4 809 839 645 2 899
Commission income 83 83 88 342
Commission expense -11 -11 -11 -43
Net commission income 72 73 77 299
Net gains and losses on financial items -9 6 -11 -24
Other income 9 10 11 40
Total income 882 928 723 3 213
Personnel expenses 5 -90 -92 -76 -321
Other expenses 6 -122 -122 -109 -448
Depreciation/amortization and impairment of tangible and intangible assets -17 -17 -7 -63
Total expenses -229 -231 -193 -832
Profit before credit losses 653 697 529 2 382
Credit losses, net 7 -268 -260 -200 -938
Operating profit 385 437 329 1 443
Appropriations - -277 - -277
Tax expense -80 -35 -69 -246
Net profit for the period 305 125 260 920
Portion of net profit for the period attributable to:
shareholders of Collector Bank AB 291 112 251 876
additional Tier 1 capital holders 13 13 10 44

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 Parent Company

Q1 Q4 Q1 Full year
SEKm
Note
2023 2022 2022 2022
Net profit for the period reported via income statement 305 125 260 920
Items that have been or may be reclassified
to the income statement
Exchange rate differences on translation of foreign currency -2 1 1 1
Other comprehensive income for the period, net of tax -2 1 1 1
Total comprehensive income for the period 303 126 261 921
Portion of total comprehensive income for the period attributable to:
shareholders of Collector Bank AB 290 113 252 877
additional Tier 1 capital holders 13 13 10 44

Balance sheet Parent Company

Mar 31 Dec 31 Mar 31
SEKm Note 2023 2022 2022
ASSETS
Treasury bills and other bills eligible for refinancing with central banks, etc. 13 286 267 182
Loans to credit institutions 2 496 3 050 2 361
Loans to the public 8,9 41 699 41 490 38 734
Bonds and other interest-bearing securities 13 3 355 2 970 3 521
Shares and participating interests 13 523 533 396
Shares and participating interests in group entities 0 0 13
Intangible assets 83 79 73
Tangible assets 129 137 0
Derivatives 13 36 - -
Other assets 38 68 70
Prepaid expenses and accrued income 89 82 100
Total assets 48 734 48 676 45 450
LIABILITIES AND EQUITY
Deposits and borrowings from the public 10 36 442 36 842 32 519
Debt securities in issue 11 3 243 3 337 5 127
Derivatives 13 - 7 40
Other liabilities 494 470 354
Accrued expenses and prepaid income 979 733 601
Subordinated liabilities 11 - - 500
Total liabilities 41 158 41 388 39 141
Tax allocation reserve 1 032 1 032 755
Total liabilities 1 032 1 032 755
Equity attributable to additional Tier 1 capital holders 500 500 500
Equity attributable to the shareholders of Collector Bank AB 6 045 5 756 5 055
Total equity 6 545 6 256 5 555
Total liabilities and equity 48 734 48 676 45 450

Statement of changes in equity Parent Company

Collector Bank AB

January - Mars 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 3 -3 -
Cost additional Tier 1 instruments -13 -13
Profit for the period 305 305
Other comprehensive income for the period -2 -2
Closing balance 31 March 2023 149 5 82 500 5 809 6 545

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.

Collector Bank AB

January - December 2022 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 2022 149 5 71 500 4 579 5 304
Transfer of development expenses 8 -8 -
Cost additional Tier 1 instruments -44 -44
Profit for the period 920 920
Other comprehensive income for the period 1 1
Collector AB merger 74 74
Closing balance 31 December 2022 149 6 79 500 5 521 6 256
January - March 2022 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 2022 149 5 71 500 4 579 5 304
Transfer of development expenses 2 -2 -
Cost additional Tier 1 instruments -10 -10
Profit for the period 260 260
Other comprehensive income for the period 1 1
Closing balance 31 March 2022 149 6 73 500 4 827 5 555

Cash flow statement Parent Company

Collector Bank AB

Jan-Mar Full year Jan-Mar
SEKm 2023 2022 2022
Operating activities
Operating profit 385 1 443 329
Adjustments for non-cash items in operating activities 423 861 132
Income taxes paid -36 -156 -33
Increase/decrease in assets and liabilities from operating activities -1 249 -1 851 -3 148
Cash flow from operating activities -477 297 -2 720
Investing activities
Acquisitions/disposals of tangible assets 0 -1 0
Acquisitions/disposals of intangible assets -12 -38 -9
Cash flow from investing activities -12 -39 -9
Financing activities
Decrease of liabilities -8 -31 -
Additional Tier 1 instruments -13 -44 -10
Redemption of interest-bearing securities -50 -4 384 -1 151
Issuance of interest-bearing securities - 1 970 1 024
Group contributions paid/received - -6 -
Cash flow from financing activities -71 -2 495 -137
Cash and cash equivalents at the start of the period 3 050 5 214 5 214
Cash flow for the period -560 -2 237 -2 866
Exchange rate differences in cash and cash equivalents 6 73 13
Cash and cash equivalents at the end of the period 2 496 3 050 2 361

Paid and received interest of which is included in the cash flow from operating activities

Interest paid 164 454 118
Interest received 1 033 3 384 745

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 2-20 constitute an integrated part of this financial report.

Note 1. General information

Collector 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.

The address of the headquarters is Lilla Bommens Torg 11, SE-411 09 Gothenburg, Sweden. Collector 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.

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 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 2022 Annual Report.

CHANGES IN IFRS

None of the changes in the accounting regulations issued for application 2023 are deemed to have a significant impact on Collector and its financial reports, capital adequacy or large exposures.

Note 3. Operating segments

Group

Q1 2023
SEKm Corporate Real estate Consumer Payments Other1) Group
Net interest income 201 326 192 49 41 809
Net commission income 3 - 14 55 0 72
Net gains and losses on financial items -14 0 0 1 3 -9
Other income 0 0 0 9 0 9
Total income 191 327 207 113 44 882
Net interest margin (NIM) 7.9% 7.3% 7.4% 8.1% - 7.8%
Total income margin 7.5% 7.3% 8.0% 18.9% - 8.5%
Loans to the public 9 808 18 594 10 320 2 336 641 41 699

1) Including eliminations.

Group

Q4 2022
SEKm Corporate Real estate Consumer Payments Other1) Group
Net interest income 212 337 194 51 44 839
Net commission income 2 - 14 57 0 73
Net gains and losses on financial items -5 2 -1 -1 12 6
Other income 0 0 0 9 0 10
Total income 210 339 207 116 56 928
Net interest margin (NIM) 8.0% 7.8% 7.4% 8.5% - 8.1%
Total income margin 7.9% 7.9% 7.9% 19.1% - 8.9%
Loans to the public 10 570 17 411 10 367 2 476 667 41 490

Group

Q1 2022
SEKm Corporate Real estate Consumer Payments Other1) Group
Net interest income 141 231 205 55 14 645
Net commission income 3 - 14 60 0 77
Net gains and losses on financial items 6 1 0 0 -18 -11
Other income 0 0 0 10 1 11
Total income 150 232 218 125 -3 723
Net interest margin (NIM) 6.6% 6,4% 7.3% 9.1% - 6.9%
Total income margin 7.0% 6.4% 7.8% 20.9% - 7.7%
Loans to the public 9 182 15 252 11 141 2 336 824 38 734

Note 3. Operating segments, cont.

Group

Full year 2022
SEKm Corporate Real estate Consumer Payments Other1) Group
Net interest income 691 1 060 824 217 106 2 899
Net commission income 10 - 58 230 0 299
Net gains and losses on financial items 5 16 -3 -4 -38 -24
Other income 1 0 0 37 1 39
Total income 706 1 077 879 481 69 3 212
Net interest margin (NIM) 7.5% 6.8% 7.6% 8.8% - 7.5%
Total income margin 7.6% 7.0% 8.1% 19.5% - 8.3%
Loans to the public 10 570 17 411 10 367 2 476 667 41 490

1) Including eliminations.

Note 4. Net interest income

Group

Q1 Q4 Q1 Full-year
SEKm 2023 2022 2022 2022
Loans to the public1) 1 010 983 735 3 333
Interest-bearing securities 24 14 6 38
Loans to credit institutions 7 11 0 14
Total interest income 1 040 1 008 741 3 385
Deposits and borrowings from the public -197 -141 -77 -396
Subordinated liabilities - - -5 -11
Debt securities in issue -34 -28 -13 -78
Amounts owed to credit institutions -1 0 0 -1
Total interest expense -232 -169 -96 -486
Net interest income 809 839 645 2 899

1) Interest income calculated according to the effective interest rate method.

Note 4. Net interest income, cont.

Collector Bank AB

Q1 Q4 Q1 Full-year
SEKm 2023 2022 2022 2022
Loans to the public1) 1 010 983 735 3 333
Interest-bearing securities 24 14 6 38
Loans to credit institutions 7 11 0 14
Total interest income 1 040 1 008 741 3 385
Deposits and borrowings from the public -197 -141 -77 -396
Subordinated liabilities - - -5 -11
Debt securities in issue -34 -28 -13 -78
Amounts owed to credit institutions -1 0 0 -1
Total interest expense -232 -169 -96 -486
Net interest income 809 839 645 2 899

1) Interest income calculated according to the effective interest rate method.

Note 5. Personnel expenses

Group

Q1 Q4 Q1 Full-year
SEKm 2023 2022 2022 2022
Salaries and other remuneration -62 -63 -53 -219
Pension costs -20 -20 -16 -69
Social security costs -7 -7 -6 -27
Other staff related costs -1 -1 -1 -6
Total personnel expenses -90 -92 -76 -321
Q1 Q4 Q1 Full-year
SEKm 2023 2022 2022 2022
Salaries and other remuneration -62 -63 -53 -219
Pension costs -20 -20 -16 -69
Social security costs -7 -7 -6 -27
Other staff related costs -1 -1 -1 -6
Total personnel expenses -90 -92 -76 -321

Note 6. Other expenses

Group

Q1 Q4 Q1 Full-year
SEKm 2023 2022 2022 2022
Consultancy expenses -47 -46 -35 -161
IT expenses -19 -19 -10 -73
Other purchased services -28 -29 -20 -101
Postage expenses -9 -7 -9 -32
Other operating expenses -20 -21 -36 -82
Total other expenses -122 -122 -109 -448

Collector Bank AB

Q1 Q4 Q1 Full-year
SEKm 2023 2022 2022 2022
Consultancy expenses -47 -46 -35 -161
IT expenses -19 -19 -10 -73
Other purchased services -28 -29 -20 -101
Postage expenses -9 -7 -9 -32
Other operating expenses -20 -21 -36 -82
Total other expenses -122 -122 -109 -448

Note 7. Credit losses, net

Group and Collector Bank AB

Q1 Q4 Q1 Full-year
SEKm 2023 2022 2022 2022
Loans at amortized cost
Credit impairment provisions - Stage 1 -16 -1 12 3
Credit impairment provisions - Stage 2 -140 -91 -42 -146
Credit impairment provisions - Stage 3 -78 -135 -76 -533
Total -234 -227 -106 -676
Portfolio revaluation - POCI - 0 - -51
Impairment gains and losses - POCI - 0 - -51
Write-offs -33 -33 -95 -212
Recoveries - - - -
Total -33 -33 -95 -212
Total credit impairment -268 -260 -200 -938

Note 8. Loans to the public

Group and Collector Bank AB

Mar 31 Dec 31 Mar 31
SEKm 2023 2022 2022
PRIVATE CUSTOMERS 3)
Total gross carrying amount 17 016 17 077 17 423
of which Stage 1 9 648 9 836 10 521
of which Stage 2 504 536 544
of which Stage 3 6 268 6 087 5 613
of which Stage 3 - POCI 1) 596 618 745
Total credit impairment provisions -3 745 -3 594 - 3 151
of which Stage 1 -234 -214 -223
of which Stage 2 -144 -133 -121
of which Stage 3 -3 366 -3 247 -2 807
of which Stage 3 - POCI 1) - - -
Total carrying amount, private customers 13 271 13 483 14 272
Private customers
Provision ratio for loans Stage 1 2.4% 2.2% 2.1%
Provision ratio for loans Stage 2 28.5% 24.8% 22.3%
Provision ratio for loans Stage 3 53.7% 53.3% 50.0%
Provision ratio for loans Stage 3 - POCI 1) 0.0 % 0.0 % 0.0 %
Total provision ratio, private customers 2) 22.8% 21.8% 18.9%
CORPORATE CUSTOMERS 4)
Total gross carrying amount 29 393 28 905 25 175
of which Stage 1 24 442 24 939 22 056
of which Stage 2 4 026 3 107 2 603
of which Stage 3 926 859 516
Total credit impairment provisions -965 -898 -713
of which Stage 1 -136 -141 -120
of which Stage 2 -351 -229 -130
of which Stage 3 -478 -528 -463
Total carrying amount, corporate customers 28 428 28 007 24 462
Corporate customers
Provision ratio for loans Stage 1 0.6% 0.6% 0.5%
Provision ratio for loans Stage 2 8.7% 7.4% 5.0%
Provision ratio for loans Stage 3 51.6% 61.4% 89.7%
Total provision ratio, corporate customers 3.3% 3.1% 2.8%

Note 8. Loans to the public, cont.

Group and Collector Bank AB

Mar 31 Dec 31 Mar 31
SEKm 2023 2022 2022
TOTAL
Total gross carrying amount 46 409 45 982 42 598
of which Stage 1 34 090 34 775 32 577
of which Stage 2 4 530 3 642 3 147
of which Stage 3 7 194 6 947 6 129
of which Stage 3 - POCI 1) 596 618 745
Total credit impairment provisions -4 710 -4 492 -3 864
of which Stage 1 -370 -355 -343
of which Stage 2 -495 -362 -251
of which Stage 3 -3 845 -3 775 -3 270
of which Stage 3 - POCI 1) - - -
Total carrying amount, Total 41 699 41 490 38 734
Stage 3 loans / Total loans, gross, % 2) 15.7% 15.3% 14.6%
Stage 3 loans / Total loans, net, % 2) 8.1% 7.8% 7.5%
Total
Provision ratio for loans Stage 1 1.1% 1.0% 1.1%
Provision ratio for loans Stage 2 10.9% 9.9% 8.0%
Provision ratio for loans Stage 3 53.4% 54.3% 53.4%
Provision ratio for loans Stage 3 - POCI 1) 0.0 % 0.0 % 0.0 %
Total provision ratio 2) 10.3% 9.9% 9.2%

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 Collector 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 -15 -49 82 19
Changes due to changed credit judgement - - - -
Changes due to change in credit risk 31 189 -4 216
Other adjustments 1) -1 -7 -9 -17
Closing balance 31 March 2023 370 495 3 845 4 710

1) Movements recognised outside Credit impairment line, foreign exchange effect, etc.

Group and Collector Bank AB

SEKm Stage 1 Stage 2 Stage 3 Total
Opening balance 1 January 2022 354 207 3 178 3 739
New and derecognized financial assets, net -7 -26 433 400
Changes due to changed credit judgement - - - -
Changes due to change in credit risk 4 172 100 275
Other adjustments 1) 4 9 64 78
Closing balance 31 December 2022 355 362 3 775 4 492

1) Movements recognised outside Credit impairment line, foreign exchange effect, etc.

Group and Collector Bank AB

SEKm Stage 1 Stage 2 Stage 3 Total
Opening balance 1 January 2022 354 207 3 178 3 739
New and derecognized financial assets, net -11 -5 47 31
Changes due to changed credit judgement - - - -
Changes due to change in credit risk -1 47 29 75
Other adjustments 1) 1 2 16 19
Closing balance 31 March 2022 343 251 3 270 3 864

1) Movements recognised outside Credit impairment line, foreign exchange effect, etc.

Note 10. Deposits and borrowings from the public

Group and Collector Bank AB
Mar 31 Dec 31 Mar 31
SEKm 2023 2022 2022
EUR 15 770 14 641 9 934
SEK 20 340 21 673 22 548
NOK 331 527 37
Total 36 442 36 842 32 519

Note 11. Debt securities in issue and subordinated liabilities

DEBT SECURITIES IN ISSUE

Group and Collector Bank AB

Mar 31 Dec 31 Mar 31
2023 2022 2022
SEKm ISIN Carrying
amount
Nominal
amount
Carrying
amount
Nominal
amount
Carrying
amount
Nominal
amount
COLLB 3, FRN 21/231) SE0013104577 550 550 550 550 550 550
COLLB 4, FRN 21/232) SE0013360427 1 000 1 000 1 000 1 000 1 000 1 000
COLLB 5, FRN 21/243) SE0015811112 750 750 750 750 750 750
COLLB 7, FRN 22/254) SE0013105137 300 300 300 300 300 300
COBK01 , FRN 21/235) NO0011152449 643 644 687 688 691 692
Commercial papers - - 50 50 2 136 2 138
Total 3 243 3 244 3 337 3 338 5 127 5 130

1) Issued under Collector Bank's MTN programme, with a total frame of SEK 5 billion, with a coupon of 3m STIBOR +1.35%. 2) Issued under Collector Bank's MTN programme, with a total frame of SEK 5 billion, with a coupon of 3m STIBOR +1.20%. 3) Issued under Collector Bank's MTN programme, with a total frame of SEK 5 billion, with a coupon of 3m STIBOR +1.27%.

4) Issued under Collector Bank's MTN programme, with a total frame of SEK 15 billion, with a coupon of 3m STIBOR +2.40%.

5) Issued under Collector Bank's MTN programme, with a total frame of SEK 5 billion, with a coupon of 3m NIBOR +1.20%.

SUBORDINATED LIABILITIES

Group and Collector Bank AB

Mar 31
Dec 31
Mar 31
2023 2022 2022
SEKm ISIN Carrying
amount
Nominal
amount
Carrying
amount
Nominal
amount
Carrying
amount
Nominal
amount
COLLB 2, MTN1, 17/27 SE0010101402 - - - - 500 500
Total - - - - 500 500

Note 12. Capital adequacy

Mar 31
2023
SEKm Amount Percentage of risk
exposure amount
Common Equity Tier 1 capital requirement (Pillar 1) 2 047 4,5%
Other Common Equity Tier 1 capital requirement (Pillar 2) 267 0,6%
Buffer requirements 1 603 3,5%
Total Common Equity Tier 1 (CET1) capital requirement 3 918 8,6%
Common Equity Tier 1 (CET1) capital 6 652 14,6%
Tier 1 capital requirement (Pillar 1) 2 730 6,0%
Other tier 1 capital requirement (Pillar 2) 356 0,8%
Buffer requirements 1 603 3,5%
Total Tier 1 capital requirement 4 689 10,3%
Tier 1 capital 7 152 15,7%
Capital requirements (Pillar 1) 3 640 8,0%
Other capital requirement (Pillar 2) 475 1,0%
Buffer requirements 1 603 3,5%
Total capital requirement 5 718 12,6%
Own funds 7 152 15,7%
Mar 31 Dec 31 Mar 31
OWN FUNDS, SEKm 2023 2022 2022
Capital instruments and the related share premium accounts: Equity 149 149 149
Retained earnings 6 406 5 500 5 244
Net profit for the period after deductions related to the consolidated situation and
other foreseeable charges
305 920 260
Common Equity Tier 1 capital before regulatory adjustments 6 860 6 570 5 654
Deduction:
Additional value adjustments -121 -70 -16
Intangible assets -83 -79 -73
Deferred tax assets -3 -3 -2
Significant investments in the financial sector - - -
Application of the transitional rules IFRS9 - 43 43
Total regulatory adjustments to Common Equity Tier 1 -208 -109 -48
Common Equity Tier 1 (CET1) capital 6 652 6 461 5 606
Perpetual subordinated loan 500 500 500
Additional Tier 1 instruments 500 500 500
Tier 1 capital 7 152 6 961 6 106
Supplementary capital - - 500
Tier 2 capital - - 500
Total own funds 7 152 6 961 6 606

Note 12. Capital adequacy, cont.

Mar 31 Dec 31 Mar 31
RISK EXPOSURE AMOUNT, SEKm 2023 2022 2022
Credit risks, using the standardized approach
Central government or central banks exposures - - -
Municipalities and other associations - - -
Institutional exposures 581 689 546
Funds units exposures 684 692 544
Corporate exposures 26 256 25 719 22 452
Retail exposures 7 851 8 212 8 443
Exposures with mortgage in residential property 16 17 22
Exposures in default 3 954 3 790 3 901
Items associated with particularly high risk 562 543 555
Exposures in the form of covered bonds 217 207 204
Equity exposures - - -
Other exposures 323 330 266
Total 40 443 40 199 36 933
Risk exposure amount credit valuation adjustment risk (CVA) 28 27 25
Risk exposure amount market risk 34 28 21
Risk exposure amount operational risk 4 989 4 989 4 178
Total risk exposure amount 45 494 45 244 41 157
Mar 31 Dec 31 Mar 31
CAPITAL REQUIREMENTS, SEKm 2023 2022 2022
Capital requirement for credit risk using the standardized approach
Central government or central banks exposures - - -
Municipalities and other associations - - -
Institutional exposures 46 55 44
Funds units exposures 55 55 44
Corporate exposures 2 100 2 058 1 796
Retail exposures 628 657 675
Exposures with mortgage in residential property 1 1 2
Exposures in default 316 303 312
Items associated with particularly high risk 45 43 44
Exposures in the form of covered bonds 17 17 16
Equity exposures - - -
Other exposures 26 26 21
Total capital requirement for credit risk 3 235 3 216 2 955
Risk exposure amount credit valuation adjustment risk (CVA) 2 2 2
Risk exposure amount market risk 3 2 2
Risk exposure amount operational risk 399 399 334
Total Pillar 1 capital requirement 3 640 3 619 3 293
Concentration risk 284 274 243
Interest rate risk for the banking book 191 179 204
Total Pillar 2 capital requirement 475 453 448
Capital buffers
Capital conservation buffer 1 137 1 131 1 029
Countercyclical capital buffer 466 395 51
Total capital requirement - Capital buffers 1 603 1 526 1 079
Total capital requirement 5 718 5 599 4 820

Note 12. Capital adequacy, cont.

Mar 31 Dec 31 Mar 31
CAPITAL REQUIREMENT 2023 2022 2022
Capital ratios and capital buffers
CET1 ratio 14.6% 14.3% 13.6%
Tier 1 ratio 15.7% 15.4% 14.8%
Total capital ratio 15.7% 15.4% 16.1%
Institution specific buffert requirement 3.5% 3.4% 2.6%
of which capital conservation buffer 2.5% 2.5% 2.5%
of which countercyclical capital buffer 1.0% 0.9% 0.1%
CET1 available to meet buffers 7.7% 7.4% 8.1%

A review has been carried out of the earnings for January - March 2023, 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.

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 Collector Bank AB

31 Mar 2023
SEKm Level 1 Level 2 Level 3 Total
ASSETS
Derivative instruments - 36 - 36
Treasury bills and other bills eligible for refinancing with central banks, etc. 57 - - 57
Bonds and other interest-bearing securities 2 599 - - 2 599
Shares and participating interests - 5 518 523
Total financial assets 2 656 41 518 3 215
LIABILITIES
Derivative instruments - - - -
Other financial liabilities - - - -
Total financial liabilities - - - -

Note 13. Financial instruments at fair value, cont.

SEKm 31 Dec 2022
Level 1 Level 2 Level 3 Total
ASSETS
Derivative instruments - - - -
Treasury bills and other bills eligible for refinancing with central banks, etc. 56 - - 56
Bonds and other interest-bearing securities 2 604 - - 2 604
Shares and participating interests - 5 528 533
Total financial assets 2 659 5 528 3 192
LIABILITIES
Derivative instruments - 7 - 7
Other financial liabilities - - - -
Total financial liabilities - 7 - 7
SEKm 31 Mar 2022
ASSETS Level 1 Level 2 Level 3 Total
Derivative instruments - - - -
Treasury bills and other bills eligible for refinancing with central banks, etc. 182 - - 182
Bonds and other interest-bearing securities 3 521 - - 3 521
Shares and participating interests - - 396 396
Total financial assets 3 703 - 396 4 099
LIABILITIES
Derivative instruments - 40 - 40
Other financial liabilities - - - -
Total financial liabilities - 40 - 40

Group and Collector Bank AB

Changes in level 3 Mar 31 Dec 31 Mar 31
2023 2022 2022
Assets Assets Assets
SEKm Equity instru
ments
Equity instru
ments
Equity instru
ments
Opening balance for the period 528 396 396
Acquisition - 100 -
Divestment - - -
Changes in unrealised gains or losses for items held at closing day -10 32 0
Closing balance for the period 518 528 396

Financial instruments in Level 3 refer to investments in unlisted companies and funds. Collector 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

Group and Collector Bank AB

Mar 31 2023 Dec 31 2022 Mar 31 2022
SEKm Carrying amount Fair value Carrying amount Fair value Carrying amount Fair value
Loans1) 44 195 44 195 44 540 44 540 41 095 41 095
Debt securities 3 641 3 631 3 237 3 236 3 703 3 703
Equity instruments 518 518 528 528 396 396
Derivatives 36 36 - - - -
Other 33 33 30 30 - -
Financial assets 48 423 48 413 48 335 48 334 45 194 45 194

Group and Collector Bank AB

Mar 31 2023
Dec 31 2022
Mar 31 2022
Carrying amount Fair value Carrying amount Fair value Carrying amount Fair value
Deposits 36 442 36 442 36 842 36 842 32 519 32 519
Debt securities issued2) 3 243 3 243 3 337 3 337 5 127 5 127
Derivatives - - 7 7 40 40
Other 176 176 109 109 55 55
Financial liabilities 39 861 39 861 40 295 40 295 37 741 37 741

Collector 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 2022.

1) Loans includes Loans to credit institutions and Loans to the public.

2) Debt securities issued includes Debt securities issued and Subordinated liabilities.

Note 15. Related parties

During the period normal business transactions were executed between companies in the Group and between other related parties. The group structure changed accordingly with the merger between Collector AB and Collector Bank AB with Collector Bank AB as the surviving company, was completed on 15 August 2022. On the same date the shares of Collector Bank AB were listed on the Nasdaq Stockholm exchange and the company Collector AB was dissolved.

Note 16. Pledged assets, contingent liabilities and commitments

PLEDGED ASSETS

Group and Collector Bank AB

Mar 31 Dec 31 Mar 31
SEKm 2023 2022 2022
For own liabilities and provisions None None None
Total None None None

CONTINGENT LIABILITIES

Group and Collector Bank AB

Mar 31 Dec 31 Mar 31
SEKm 2023 2022 2022
Contingent liabilities None None None
Total None None None

COMMITMENTS

Group and Collector Bank AB

Mar 31 Dec 31 Mar 31
SEKm 2023 2022 2022
Unutilized credit limits 4 921 5 800 5 423
Other commitments 161 158 148
Total 5 081 5 958 5 571

Note 17. After the end of the period

There were no significant events after the end of the period.

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 interim report has not been reviewed by the company's auditor.

Gothenburg, April 25, 2023

BOARD OF DIRECTORS & CEO

Erik Selin Chairman of the Board Christoffer Lundström Board member

Charlotte Hybinette Board member

Ulf Croona Board member Marie Osberg Board member

Bengt Edholm Board member

Martin Nossman CEO

Forthcoming corporate events

Annual General Meeting 2023 4 May 2023 Interim report January-June 2023 13 July 2023 Interim report January-September 2023 20 October 2023

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]

HEAD OF IR & COMMUNICATIONS

Madeleine Mörch Phone: +46 737 12 04 52 E-mail: [email protected] collector.se collector.no collector.fi

This is information that Collector Bank AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, on April 25, 2023 at 7.30 a.m. CET.

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