Monobank continues progress with significant growth in loan portfolio
- High demand and attractive growth opportunities within consumer credit
- Solid loan growth, ending on NOK 451 million
- Total income increased to NOK 11.1 million, up from NOK 5.3 million in Q1
- Operating expenses in line with budgets
- Break even result to be reached during Q3 2016
- Credit quality in line with projections
Bergen, 11 August 2016:
Monobank continues to progress. Since operations started in November 2015 the consumer finance bank has experienced strong demand for its loan and deposit products. Per June total loans amounted to NOK 451 million. The credit quality remain in line with projections. Monobank reiterates its growth ambition a raises the 2016 total net outstanding loans target to NOK 750-800 million.
Second quarter loan growth was NOK 189 million before prepaid agency commissions, resulting in a loan balance of NOK 451 million at the end of the second quarter, excluding prepaid agency commissions and unspecified loss provisions.
Deposits from customers amounted to approximately NOK 524 million. Bank deposits and holdings liquid securities were NOK 208 million and total equity amounted to NOK 156 million.
Second quarter interest income was NOK 13.9 million. Net interest income was NOK 11.7 million. Marketing and operating cost were well in line with budget and defaults were insignificant. Monobank decided to make a provision of NOK 3.1 million for loan losses in the second quarter. This resulted in a net loss of NOK 5.2 million before tax for the quarter, largely in line with budget.
“We’re pleased to see that the positive development experienced through the first months of the year continued in the second quarter. We remain optimistic for the remainder of 2016 and expect total loans to be between NOK 750 and NOK 800 million by year-end and we expect to be break even from Q3 onwards. Or main focus remain to strengthen our position in the growing consumer finance market in Norway – while in parallel explore strategic growth opportunities within our market space”, said Bent H. Gjendem, Chief Executive Officer at Monobank.
The increased guidance for year-end net loan volume compares with the NOK 674 million budget published in the October 2015 investor presentation. The increase is partly a function of stronger-than-expected loan demand and partly by longer-than-assumed average loan durations.
The board will continue to monitor the bank’s capital structure and capital adequacy to ensure that liquidity and capital position are maintained at satisfactory levels.
For further information contact:
Bent H. Gjendem, Chief Executive Officer at Monobank, phone: +47 996 11 996
About Monobank AS:
Monobank is an internet-based bank offering unsecured lending to qualified private individuals in Norway. Operations started out of Bergen, Norway, in November 2015 after received its banking licence from the Financial Supervisory Authority of Norway. The bank also offers attractive deposit rates on its savings accounts. Deposits up to NOK 2 million are guaranteed by the Norwegian Bank’s Guarantee fund, of which Monobank is a member.
For further information, please visit the company web page www.monobank.no