Enity Bank Group AB (publ) Year-end report 2024

Performance and financial position

The financial performance and financial position are impacted by the acquisition of Bank2, which was fully consolidated on 31 October 2023. Since the merger on 2 April 2024, the results of Bank2 are included in the Norwegian branch.

• Lending to the public increased by 10% to MSEK 28,832 (MSEK 26,205).

• New lending amounted to MSEK 11,073 (MSEK 7,009).

• Net interest income increased to MSEK 1,114 (MSEK 959), an increase of 16%.

• Operating profit amounted to MSEK 400 (MSEK 298), an increase of 34%.

• Net credit losses amounted to MSEK 41 (MSEK 48), equivalent to a credit loss level of 0.14% (0.18%).

• The return on equity was 12.5% (11.2%).

• The Common Equity Tier 1 (’CET1’) ratio was 16.7% (15.5%).

• The total capital ratio amounted to 18.7% (16.0%).

Financing and funding

The Group’s strategy is to have a well-diversified funding structure, mainly comprising of retail deposits from the public and the issuance of covered and senior unsecured bonds. During 2024, a tap issue of MSEK 200 of a covered bond with maturity in November 2027 was completed. At the end of the period MSEK 5,200 of covered bonds were outstanding under the Bank’s MTCN-programme.

During the year, senior unsecured bonds amounting to MSEK 2,000 were issued. During the same period senior unsecured bonds amounting to MSEK 1,550 and MNOK 550 were repaid. At the end of the period, the Bank had an outstanding volume of MSEK 2,300 of senior unsecured bonds under the Bank’s MTN-programme.

The Bank issued Tier 2-instruments (T2) amounting to MSEK 300 under the MTN-programme during the year.

Deposits from the public amounted to MSEK 23,203 (MSEK 20,513) at the end of the period.

Strategic development and significant events

The year was marked by persistent macroeconomic uncertainty, with central banks across Sweden, Finland and Norway initially taking a cautious stance to rate cuts while closely monitoring inflationary pressures and geopolitical risks. Inflation decreased, prompting the Swedish Central bank and the ECB to begin interest rate cuts and to communicate a lower interest rate curve.

In Sweden, declining inflation and the anticipation of gradual interest rate cuts led to increased activity in the housing market throughout the year. House prices stabilised, and transaction volumes rose, which contributed to improved new mortgage lending. Despite continued high interest rates and lower wages, net credit losses remained at low levels.

In Norway, the housing market showed resilience, and the refinancing activity was supported despite Norges Bank’s hesitancy to proceed with interest rate cuts. Both brands in Norway, Bluestep and Bank2, experienced steady growth, and Enity has strengthened its position as the leading bank in specialist mortgages.

The housing market in Finland remained subdued as a result of continued restrictive monetary policy and weak economic performance. Despite this, the Bank’s Finnish operations showed robust growth, with new lending volumes stabilising at a higher level compared to the previous year. By the end of the fourth quarter, the Finnish loan portfolio surpassed MEUR 100, reflecting a 94% growth from 31 December 2023, despite the challenging market conditions.

On the 2nd of December, Bluestep Bank AB (publ) changed name to Enity Bank Group AB (publ) after approval by the SFSA and registration with the Swedish Companies Registration Office. All three existing brands – Bluestep Bank, Bank2 and 60plusbanken – are thereby gathered under the group name Enity Bank Group. The brands will continue to act separately, like before, and customers are not affected by the change of names. The branches of the Bank also changes names and the new names are presented in the group structure in the administration report.

After the cross-border merger of Bank2 where the operations of Bank2 continues through the Norwegian branch of Enity Bank, the data migration of the Bank2 banking book was completed during October 2024. This led to Enity Bank strengthening its position as a specialist mortgage provider in the Nordic region. During the year, one-off costs relating to the merger and the integration amounted to approximately MSEK 32.

The continued work with automating processes, improving the customer experience and building a Nordic organisation, enabled the Bank to carry out two internal restructuring processes during the year. This resulted in one-off costs of MSEK 55 for severance pay.

Significant events and other information after the end of the period

The indirect majority shareholder in the Bank (EQT VII) has decided to initiate a review of strategic options for the Group. This includes, but is not limited to, a potential public listing. Further updates will be provided if and when appropriate.

No other significant events have occurred after the 31st of December 2024 that would impact the financial result or financial performance of the Group.

For further information, please contact:

Björn Lander, CEO, Enity Bank Group
+ 46 (0)73 673 1899
bjorn.lander@enity.com

 Juan Navas, Head of Communications, Enity Bank Group
+46 (0)70 306 2245
juan.navas@enity.com

Or visit: www.enity.com

Enity Bank Group AB (publ) is publishing this information which is obliged to be made publicly available pursuant to the EU Market Abuse Regulation 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 18.30 CET on 19^th of February 2025.