Aprila Bank’s total income tripled from 2020 to NOK 50.1 million in 2021, supported by strong growth in new customers. Results are backed by the extensive and unmet need for financing among small businesses in Norway. 

- We are providing financing to a vast market of small businesses, most of them with an unmet need for financing. Through 2021 we have gained a market leading position, which is supported by strong growth in the number of customers and income, says CEO Halvor Lande.
 
Aprila Bank’s gross income from lending grew by 109 per cent from Q4 2020 to NOK 21.1 million. Total income grew even faster by 131 per cent to NOK 17 million. Credit line to small businesses has been the strongest growth driver with at 360% growth in total income, and a 141% growth in customers since Q4 2020. Credit line now accounts for more than 2/3 of Aprila Bank’s total income.

- The demand from underserved businesses is strong, and we believe that we have just seen the tip of the iceberg of financing needs from small businesses. This gives a strong foundation for further growth, says Lande.

Clear pathway towards profitability

In the fourth quarter, total income surpassed costs for the first time. Aprila expects to achieve profitability in Q2 2022.

- Total income is now bigger than costs and is growing at 25% per quarter. Our variable costs are very low compared to traditional banks, so our cost base is growing a lot slower. This is due to the underlying profitability and scalability of Aprila Bank’s business model. We expect to become profitable in the second quarter, and become very profitable already in Q4, says Lande 

According to IFRS 9, loan loss allowances should be recognised up front when issuing new loans. The result is that loan loss provisions will be elevated in periods of high growth, normalising over time. In Q4 21, Aprila Bank realised losses of NOK 1 million, and booked loan loss provisions of NOK 5.9 million, in total NOK 6.9 million. The ratio of total loan losses to gross income was 33%. Over time the bank expects total loan losses to be less than 25% of gross income.

Positive development among Norwegian small businesses

Aprila Bank’s access to day-to-day accounting data for most of its customers provides a unique insight into the customers’ financial position and the bank will continue to closely monitor the financial health of its customers and continuously align its risk appetite with the customers’ financial performance. Through this data, the bank can perceive trends in the Norwegian SME-market. 

- During the pandemic we have observed that the demand for credit decreases with every shutdown and increases as restrictions are taken down. The average Aprila Bank customer has performed very well, but there are large differences between industries as some have benefitted from the pandemic and others are struggling to remain afloat, says Lande. 

The report and presentation are available on the company’s website:
https://www.aprila.no/investor-relations

The results will be presented in a webcast with CEO Halvor Lande and CFO Kjetil Barli on 14 February 2022 at 10:00 CET.

The presentation and subsequent Q&A session will be held in English and may be viewed live at 
https://events.webcast.no/viewer-registration/JV6KQdUb/register 

A recording of the presentation will be made available on https://www.aprila.no/investor-relations  after the presentation.

About Aprila Bank
Aprila is a product- and technology company offering improved access to financing for businesses through innovative financial solutions. Aprila’s API-based technology platform supports both direct customer relationships as well as customer relationships established through partners. The bank commenced operations in April 2018.

Contact
Halvor S. Lande
CEO
Tel: +47 924 32 305
halvor.lande@aprila.no 

Kjetil Barli
CFO
Tel: +47 908 42 016
kjetil@aprila.no