Komplett Bank Annual Report 2020

Letter from the CEO Since 2014, Komplett Bank has been offering simple and intuitive financing services to creditworthy private individuals, creating financial flexibility for each customer. By being a responsible lender and offering liquidity to the private market, Komplett Bank also contributes to generating economic activity and growth, creating value for society. The customers At the end of 2020, Komplett Bank had more than 320,000 customers in Norway, Sweden, Finland and Germany, up by more than 50,000 from the previous year. We are proud of the trust our customers place in us, but first let’s return to the very beginning of this special year we have put behind us. Komplett Bank entered 2020 with increased uncertainty about loan losses after the fourth quarter of 2019. This uncertainty increased further towards the end of the first quarter of 2020, when the acceleration of Covid-19 cases brought with it the increased risk of an economic downturn. As a responsible employer and lender, the Bank’s response was first and foremost to ensure that employees and their families were taken care of, while at the same time helping existing customers who had temporary problems servicing their loans. This was part of the joint effort volunteer work the authorities strongly encouraged during these special times. We then decided to temporarily reduce our risk appetite, and effectively put the brakes on issuing loans to new customers. This meant that Komplett Bank’s net lending growth was negative in the first two quarters of the year. Despite rapidly rising unemployment in the Nordic countries, and an economic slowdown as society was partially shut down, we experienced that our customers prioritised servicing their loans. Only a few customers asked for temporary relief, which we continuously assessed and granted. Earnings In June, Komplett Bank resumed its lending activity to new cus- tomers, and after gradually increasing its level of activity, the Bank returned to net lending growth in the fourth quarter. At the same time, loan losses were stable at a satisfactory level throughout all four quarters, which is important for the Bank’s profitability and ability to contribute to society. Although revenues declined last year due to our controlled slowdown in new lending, lower costs, helped by the Bank’s flexible business model, and lower loan losses contributed to the net profit in 2020 ending at NOK 263 million, up 30 percent from 2019. This is a result that I am very proud of, and it comes from dedicated and targeted work from all the Bank’s employees who have quickly adapted to their new everyday life working from home offices. Based on the Bank’s target for core Tier 1 capital adequacy, the return on equity would have been 18% for the year adjusted for the negative macroeconomic provisions related to Covid-19. In comparison, our goal is a long-term return on equity of 20%. ESG In the annual report, we have included an extended section on Komplett Bank’s social responsibility. New this year is that we have carried out a materiality analysis in which the Bank’s most impor- tant stakeholders have contributed with views about which factors we should prioritise within the environment, social conditions and corporate governance (ESG) areas. The most material topics that were highlighted were anti-corruption and money laundering, responsible lending, as well as data security and privacy – which is in line with leading ESG framework assessments of our industry. As a result of the work with ESG, we have set important key figures and targets in 2020, at the same time as the Bank’s Board and management agree that we will increase the level of ambition in the ESG areas in the years to come. 2020 was the year when Komplett Bank truly benefitted from the organisation’s ability to adapt, and in the fourth quarter of the year the Bank resumed net lending growth. With attractive products, good profitability and a solid balance sheet, Komplett Bank is now positioned to deliver good growth and sustainable value creation for its stakeholders in the years to come. 8 Letter from the CEO

RkJQdWJsaXNoZXIy NTYyMDE=