Komplett Bank annual report 2019

Letter from the CEO Komplett Bank’s goal is to become a leading consumer finance bank in the Nordic region. We provide essential and valuable flexibility to our customers. We help our customers refinance and consolidate existing debt, provide short-term financing in times when expenses are escalating, and we offer high-yield savings accounts. Our aim is to help our customers take control of their finances. We remain dedicated to our strategic roadmap for geographical and product-wise expansion. In the first half of 2019, we launched credit cards in both Sweden and Finland and in the beginning of 2020 we launched deposit accounts in Sweden. Consumer lending growth in both Finland and Sweden continued at stable, good rates. As a result, we significantly improved our portfolio diversification. By the end of the year we had net loans of NOK 8.5 billion and 270,000 customers spread across our products and markets. At the same time, a challenging regulatory regime and substantial market changes came to define the market for consumer lending in Norway. The challenging situation put significant strain on our operations, and we ended the year with higher costs, increased losses on loans and disappointing profitability. During the year, Komplett Bank received a report from the FSA in which our anti-money laundering (AML) procedures were deemed insufficient. The FSA also levied an administrative fee on Komplett Bank related to these findings. At Komplett Bank, we always strive to comply with all applicable rules and regulations, and we place tremendous importance on our shared responsibility in preventing financial crime. I was therefore very displeased when I read the report. However, we quickly and effectively addressed the FSA’s remarks. On October 1, we delivered the final report to the FSA. I am very satisfied with how we tackled our shortcomings and closed the gaps. In addition, Komplett Bank underwent significant organisational changes throughout the year, which were necessary to adapt and to improve in a changing environment. We strengthened several aspects of our business, including organisational oversight, compliance and credit risk management. I am very proud of the hard work put in by our dedicated employ- ees during the year, and I really believe that in 2019 we demon- strated that Komplett Bank is capable of rapidly adjusting to and overcoming new and changing conditions. Komplett Bank was founded with the aim of offering attractive, flexible and digital financing solutions to creditworthy customers while maintaining a lean and cost-efficient organisation. By adher- ing to this strategy, Komplett Bank has built a strong platform for responsible growth and value creation. Today, Komplett Bank remains well capitalised, highly diversified and in a strong competitive position in the attractive Nordic markets. In 2020, we will remain relentlessly focused on risk management and profitability. We will work to improve customer experience, further strengthen our credit risk management procedures and enhance our operational performance. I am confident that we will end 2020 with an even stronger platform for responsible growth and long-term value creation for all our stakeholders. In 2019, Komplett Bank has successfully adapted to substantial market changes and a fast-changing regulatory environment, and we remain well- capitalised and highly diversified. In 2020, we will continue to improve and further strengthen our position in the Nordic consumer finance market. Jan Olov Haglund, Chief Executive Officer 8 Letter from the CEO