Board of Directors’ Report Overview Komplett Bank ASA (the “Bank”) started operations in March 2014 when the company received its banking licence from the Norwegian authorities. Komplett Bank offers attractive consumer financing products to creditworthy customers. The Bank’s product suite consists of consumer loans, credit cards and point-of-sale (POS) finance products, as well as deposit products in the Norwegian, Swedish and German markets. The Bank’s main products are consumer loans, including annuity loans, as well as flexible loans which give the customer more flexibility in drawing on credit line. In April 2020, Komplett Bank also launched a refinancing product in Norway. In addition, the Bank offers the “Komplett Bank Mastercard,” a credit card tailored especially for online shopping. The Bank’s deposit products are characterised by attractive interest rates in Norway, Sweden and Germany. As a member of the Norwegian Banks’ Guarantee Fund, Norwegian customer deposits are guaranteed up to NOK 2 million per customer. Foreign deposits are guaranteed up to EUR 100,000. Komplett Bank follows a strategic roadmap based on geographical and product diversification and expansion. The Bank’s strategy involves building a digital, scalable, and efficient operational model with good risk control. The Norwegian banking license allows the Bank to offer its products throughout the EEA area. In the short to medium term, the focus for lending activities will be on the Nordic region. The Bank’s registered offices are at Vollsveien 2A in Lysaker outside Oslo, Norway. In November 2017 the Bank was listed on the main list of the Oslo Stock Exchange with the ticker symbol “KOMP.” Strategy and long-term ambitions Komplett Bank is experiencing continuous high demand for its products. In 2022, the Bank launched several strategic initiatives related to product improvement, process automation, and simplification of the technology platform to increase scalability and reduce costs. These initiatives were launched in the wake of a period of negative growth and profitability development, and a successful implementation in line with the Bank’s plan helped reverse the negative growth trend during the past year. The initiatives related to product and internal processes contributed to increased conversion in all markets, and quarterly sales growth from the 2nd quarter of 2022. In the last quarter of the year, loan growth was at a record high, with a conversion rate that was four times higher than in January 2022. The Bank also succeeded in passing on increased deposit costs to its loan customers, which helped to keep the net interest margin at a relatively stable level in the 4th quarter of 2022. On the cost side, Komplett Bank made several investments throughout the past year to adapt its IT and organization and create a better platform for long-term profitability. As of the 4th quarter of 2022, the number of employees had been reduced by 40% compared to the same period the previous year. Implemented and ongoing initiatives are expected to have further impact on Komplett Bank’s cost level and profitability in 2023. In the 4th quarter of 2023, the Bank’s goal is: Ǵ 60% growth in gross loan balance compared to the level in Q2 2022. Ǵ Cost/Income ratio of around 30 % Ǵ Return on targeted equity of around 10% Further, the Bank has prolonged its dividend policy of distributing surplus capital not required for growth initiatives. Dividend capacity is estimated to be 30-50% of after-tax earnings. For 2022, Komplett Bank reported a marginally positive result. Therefore, the Bank is not positioned to pay out dividends for the year. Operational review Loan growth and product development Komplett Bank follows a diversified multichannel marketing and distribution strategy. A well-diversified loan book, a solid balance sheet, and strong distribution capacity towards a growing and robust Nordic consumer finance market contribute to the Bank’s favorable market position. During 2022, net loans increased by NOK 1,713 million to NOK 9.1 billion at the end of the year. The growth was mainly driven by increased new sales, as a result of generally favorable market conditions and better conversion rates, supported by a strengthening of the Bank’s refinancing product. Consumer loans in Norway increased by NOK 150 million. Consumer loans in Sweden and Finland increased by NOK 797 30 Board of Directors’ Report
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