CEO of a Swiss FinTech company (Numbrs Personal Finance) and CEO of Raiffeisen’s multi-country greenfield bank (ZUNO Bank). In addition, Øyvind Oanes has extensive experience from various board positions in Norway, including Monobank and BRAbank, and internationally with GE Global Banking and BAWAG Group. In January 2022, Komplett Bank announced a new and leaner management structure to increase market focus and adaptability. The new management team was reduced from ten to six members and more flexible and efficient decision-making processes were introduced. In the new structure, Mr. Eirik Holtedahl took over as new CFO of Komplett Bank. Mr Holtedahl has been with the Bank since 2017 and has more than 20 years of experience from the industry. He came from the position of Director of Credit Cards. From June 2021 until 1 October 2021, he held the position of interim CEO until Mr Øyvind Oanes assumed the position as CEO. To ensure the best possible coordination and focus of the Bank’s commercial efforts and growth ambitions, Komplett Bank has introduced a new Chief Commercial Officer role in the management team. Mr Enok Hanssen, who has been with the Bank since 2017, has taken up this new position. He previously held the position of Director of Loans and POS financing in Komplett Bank. Additionally, in order to build a leaner and more efficient operation of the Bank going forward, a broader COO role has been established. Mr Wilhelm B. Thomassen, a long-term member of the top management at Komplett Bank, has assumed this role. Review of the annual accounts The annual financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS). Komplett Bank has identified the cost-income ratio, loan loss ratio, return on equity (ROE) and adjusted return on equity (ROE adj.) as Alternative Performance Measures in addition to the financial information prepared in accordance with IFRS as adopted by the EU. Please see note 22 for further details. 2021 financial highlights: Ǵ Total income: NOK 884 million Ǵ Pre-tax profit/(loss): NOK (278) million Ǵ Net lending: NOK 7,398 million as at 31 December 2021 Ǵ Cost-income ratio: 47.4% Ǵ Loan loss ratio: 9.4% Ǵ Adjusted loan loss ratio: 3.3% Ǵ Return on Equity (ROE): -11.2% Ǵ Adjusted return on equity (ROE adj.): 6.6% Profit and Loss Income Komplett Bank’s total income was NOK 876million in 2021, a reduction of NOK 224million (-20%) compared to 2020. The reduced income was driven by lower net interest income, which declined by 17% from NOK 1,069million in 2020. InOctober 2021, Komplett Bank sold a portfolio of non-performing loans for a gross carrying amount of NOK 1.4 billion. As a consequence of the disposal, net interest income was reduced by NOK 63.5million. Throughout 2021 average yield on credit cards declined from16.4% to 14.6%, while average yield on loans declined by 0.9 percentage points to 13.0%. The yield decline is driven by new sales at lower yields replacing loans churning at higher yields, with refinancing loans driving growth in Norway and the temporary interest cap andmarketing restriction in Finland being themost significant explanatory factors. In 2020, Finland’s parliament approved the government’s proposal of a legislative change that includes a temporary 10%p.a. interest cap on new loans, down frompreviously 20%, as well as a ban on direct marketing to consumers. These restrictions were in effect until the end of September 2021. In the second half of 2021, Komplett Bank introduced amore restrictive pricing policy, and in the fourth quarter yields for both credit cards and loans have improved. Income fromcommissions and fees decreased fromNOK 20million in 2020 to a negative of NOK 11million in 2021. TABLE 2: INCOME NOK million 2021 2020 Change Interest income 965 1,214 -20 % Interest expense -82 -145 -44 % Net interest income 884 1,069 -17 % Net commission and fees -11 20 -157 % Other 4 12 -65% Total income 876 1,100 -20 % 32 Board of Directors’ Report
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