MyBank ASA: Divesting the consumer finance portfolio to Sparebank1 Kreditt AS

Friday, January 22, 2021

MyBank ASA has finalised a deal to divest its consumer finance portfolio to Sparebank1 Kreditt AS with closing expected by the end of the first quarter 2021. The portfolio includes all consumer finance loans that are less than 61 days overdue and comprised NOK 197m as of December 31, 2021. The deal includes an upfront payment and a profit-sharing agreement over the coming three years and will result in a P&L gain to be booked in Q1 2021 when the transfer is complete. The transaction marks the end of the strategic shift from consumer finance to mortgages, as no downside risk will be retained on the portfolio after the sale.

MyBank will for the time being retain its portfolio of non-performing consumer loans (NOK 57m as of December 31, 2020).

The sale releases NOK45,3m in equity and the proforma capital ratio as of December 31 2020 is 40%. Hence the bank is one of the best capitalised banks in the Nordics providing a strong base for further growth in 2021.

Comment from Sparebank1: “Through close collaboration we were able to come up with an agreement that add value but reduce risk on both sides. This is a new way of thinking collaboration, and we hope to see more opportunities like this”, says Christian Meland, Commercial Manager in SpareBank 1 Kreditt AS.

For more information, contact:

MyBank CEO Jakob Bronebakk - +47 404 33 738