Bluestep Bank AB (publ) Interim report 2021

The first half year 2021 in brief

Performance and financial position

• Lending to the public increased by 6% to SEK 17 071m (SEK 16 140m). Excluding the personal loan portfolio, which was divested on the 1st of January 2021, and currency effects the increase was 10%. All three countries are showing a positive portfolio development, mainly driven by increased lending to customer segments with lower risk.
• New lending increased by 17% to SEK 3 380m (SEK 2 877m). Adjusted for the personal loan portfolio and currency effects the increase was 20%.
• Operating profit increased by 81% and amounted to SEK 182m (SEK 101m). Net interest income has remained stable thanks to loan book growth and lower interest expenses achieved by diversifying the Group’s financing. This has offset the loss of income from divesting the high yield personal loan portfolio. Operating expenses during the first half of 2021 have decreased by 9% compared to the same period previous year. Efficiency enhancements during 2021 as well as one-off costs in 2020 have contributed to the overall cost decrease. Additionally, the low credit losses have contributed to the increased profit.
• Net credit losses amounted to SEK 0m (SEK 44m). This is equivalent to a credit loss level of 0.00% (0.54%). The decrease is mainly related to the divestment of the personal loan portfolio, but credit losses related to mortgages have also decreased compared to the previous year.
• The Common Equity Tier 1 ratio (”CET1”) was 21.9% (19.4%). The long-term CET1-target is at least 16%.

Financing

• The diversification of the Group’s financing continued during the first half year, with increased outstanding bond volumes and reduced deposits from the public.
• In April the Bank issued its first senior unsecured bond in NOK. The volume amounted to NOK 200m with a tenor of three years. A new senior unsecured bond of SEK 500m, also with a tenor of 3 years, was issued at the same time. In conjunction with the issuance, a repurchase of SEK 130m was made of the outstanding senior unsecured bond which matures in December 2021. Later during spring, the volumes of the above-mentioned bonds were increased by NOK 350m and SEK 250m respectively.
• At the end of the period, the Group had an outstanding volume of SEK 2 620m and NOK 550m in senior unsecured bonds (under the Bank’s MTN-programme), SEK 2 900m in covered bonds (under the Bank’s MTCN-programme) as well as RMBS funding of SEK 617m.
• Deposits from the public decreased as planned by 17% to SEK 11 074m (SEK 13 340m).

Strategic development and significant events

• The divestment of the personal loan portfolio was finalised on January 1st, 2021. Bluestep is thereby a pure mortgage bank.
• As a part of the Bank’s work with sustainability, green mortgages were launched in March.
• The process of creating a common Nordic back office for lending- and depositadministration with common processes and systems is continuing according to plan.
• Johanna Clason left Bluestep and her role as Chief Financial Officer (”CFO”) in the beginning of the second quarter. Pontus Sardal joined as new CFO for the Bank in July.
• There have been no material effects on either profit- or volume development due to the Covid-19 pandemic during the first half of 2021.

The Interim report for the first half year of 2021 can be downloaded from: https://www.bluestepbank.com/investor-relations/financial-reports/

For additional information, please contact:

Pontus Sardal, CFO
pontus.sardal@bluestep.se

Tel: +46 701 499 315

Or visit www.bluestepbank.com

This information is information that Bluestep Bank AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation, the Swedish Securities Market Act and the Norwegian Securities Trading Act § 5 – 12. The information was submitted for publication, through the agency of the contact person set out above at 08:30 CET on 26 August 2021.