2025-02-14 07:34:39
Q4 24 and 2024 in brief
Aprila Bank delivered a pre-tax profit of NOK 8.9 million and a return on equity of 12.2% in the fourth quarter 2024. Pre-tax profit for 2024 amounted to NOK 37.3 million, equivalent to a return on equity of 13.9%.
Total income amounted to NOK 52.8 million in the fourth quarter and NOK 208 million in 2024. The latter represents a total income growth of 29% compared to 2023. Loan losses amounted to NOK 11.7 million in the fourth quarter and NOK 57 million in 2024, in line with the banks expectations.
Relief in capital requirements
With reference to the announcement published on NOTC, the FSA informed Aprila on 19 December 2024, that its Pillar 2 requirement (P2R) will be reduced from 5.4% to 4.8% with effect from 31 May 2024. The FSA also informed Aprila that the banks P2R no longer needs to consist of 100% common equity tier 1 (CET1) capital, as per the banks latest SREP from May 2024, but may consist of minimum 56.25% CET1 capital and minimum 75% tier 1 capital. In addition, the FSA stated that it intends to perform a new SREP already in 2025.
The change implies a relief of 2.7% in the CET1 requirement (from 19.4% to 16.7%), equivalent to NOK 25 million based on the total risk exposure amount of NOK 920 million as of 31 December 2024.
Key figures:
- Gross lending declined by NOK 39 million in Q4 and reached NOK 1,072 million by the end of the quarter. The decline was caused by the divestment of a NOK 92 million portfolio of non-performing loans
- Adjusted for the NPL-divestment, gross lending grew by NOK 53 million in the quarter
- In 2024, gross lending increased by 18%; from NOK 909 million at year-end 2023 to NOK 1,072 million at year-end 2024
- The bank had 5,108 lending accounts (credit line and downpayment loans) at the end of the quarter, an increase of 6% year-on-year
- Cost/income was 61% in the quarter and 55% for the full year
- Return on equity was 12.2% in the quarter and 13.9% for the full year
Growth has picked up in 2025
The bank delivered weaker than expected gross lending growth in the second half of 2024. During the year however, the bank completed a set of initiatives intended to accelerate the growth:
- We increased the maximum credit limit from NOK 5 million to 15 million in second quarter
- We launched company guarantees in the third quarter
- We launched downpayment loans in the fourth quarter, and
- During the year we increased the sales team from 2 to 6 members.
Our growth so far in 2025 indicates that our efforts to accelerate growth are starting to yield results. In January, the bank delivered an all-time-high monthly gross lending growth of NOK 55 million, representing more than three times the average monthly gross lending growth in the fourth quarter last year.
Looking ahead, we are confident that the continued adaptation of new technology, combined with the scalability of Aprilas business model, will continue to improve the banks underlying operating expenses and loan losses relative to total income. We expect this to contribute to a steady improvement of the banks return on equity over time.
The report and presentation are available on the companys website:
https://www.aprila.no/investor-relations
The results will be presented in a webcast with Acting CEO Kjetil S. Barli and Acting CFO Espen Engelberg today at 10:00 CET. The presentation will be held in English. Please register your attendance using the following link: https://www.aprila.no/content/investor-relations/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 an innovative product- and technology company offering enhanced access to financing for businesses. Aprilas API-based technology platform supports both direct customer relationships as well as customer relationships established through partners. The bank commenced operations in April 2018.
For further information, please contact:
Kjetil S. Barli
Acting CEO
+47 908 42 016
kjetil@aprila.no
Espen Engelberg
Acting CFO
+47 954 55 405
espen.engelberg@aprila.no