MyBank ASA: Q2 2018 results – continued strong loan growth and loan portfolio improvements
- Development of MyBank’s online retail banking business continued in the quarter, with growth in net loans of NOK 127.3 million, after accounting for the one-off sale of NOK 34.6 million in non-performing loans. Adjusted for non-performing loan sales, growth was 21.5% compared to NOK 133.2 million Q1 2018
- Pre-tax loss for the quarter was NOK 24.9 million. This includes credit loss provisions of NOK 19.9 million of which approximately NOK 8.5 million was a one-off write down caused by the disposal of non-performing loans
- Improved IT systems and operational processes and additional agents allowed the bank to process nearly twice as many applications as in the previous quarter (more than 50 000 in Q2)
- A new Chief Credit Officer and two additional credit specialists have been recruited, due to start in Q3. They are expected to contribute to continued improvements to the bank’s credit quality
- In Q2 MyBank entered into two separate agreements with Lindorff Kapital AS: a one-off sale to dispose of its existing portfolio of loans that were more than 180 days past due and a forward flow agreement to sell new non-performing loans as they become 180 days past due on a monthly basis
“At the end of the second quarter, sales- and cost levels were well within previously indicated levels and we have taken a number of actions to achieve further improvements, which we expect will speed up our path to profitability going forward. Throughout Q2 we also continued to improve our operational processes and took significant steps to improve the overall quality of our loan portfolio going forward,” said MyBank CEO, Christen Fredriksen.
“By disposing of loans that were more than 180 days past due and by entering into a favorable forward flow agreement we have improved overall loan portfolio quality and made it easier for investors and analysts to judge the future financial development of the bank. These agreements will also help free up funds for new lending,” Fredriksen continued.
MyBanks regnskap for 2. kvartal 2018 er nå tilgjengelig på våre Investor Relations sider, https://mybank.no/investor-relations.