Santander Consumer Bank results for Q2 2022

• The Group’s outstanding loans increased by 3% (5.7 Bn NOK) compared to Q4 2021.
• The Group’s new lending has increased with 5.2% in Q2 2022 compared to Q2 2021. The increase in Q2 2022 is driven by strong Auto sales (11% increase compared to the first six month of 2021), especially in the used cars and private leasing segment. Unsecured sales in the first half of 2022 were close to the first six month of 2021 in NOK, but slightly lower by -0.2% on a consolidated basis due to a stronger NOK.
• Net interest income decreased with 4% in 2022 compared to the same period in 2021. A significantly stronger NOK and a shift from high yield unsecured products to secured products are having a negative impact on interest income.
• The Group's profit before tax was 940 MM NOK in Q2 2022, up by 32% compared to same quarter last year. The main drivers of the increase were lower losses due to better performance on the portfolio and trading gains, partly offset by lower interest income.

Auto and leisure

The Group maintained its position as market leader in the Nordic auto finance market with a strong focus on partnerships with dealers and importers. The Group has financed 43.836 new and 98.916 used cars year to date, Q2 2022, up 8.3% and 12.9% respectively compared to the same period in 2021.

The acceleration of EV and Hybrid car adoption continues. So far in 2022, 41% of all new cars financed by the Group are EVs and 30% are hybrids. Finance penetration is significantly higher for EVs than for non-EVs.

Unsecured

The Group’s Consumer Loans portfolio in Q2 2022 has decreased by -3.3% in outstanding volumes compared to Q4 2021. The Nordic Sales Finance portfolio decreased by -0.5% in Q2 2022 compared to Q4 2021. The Group’s Credit Card portfolio has decreased by -5.3% in Q2 2022 compared to Q4 2021.

Within the green energy financing area, The Group observed a positive trend especially in the Danish and Finnish market during Q2. This is a strategic important area within our responsible banking agenda.

Deposit

Total outstanding volumes for the Group is 72 513 MM NOK as of Q2 2022, representing a decrease of 791 MM NOK (-1%) compared to Q4 2021.

Volumes in the Danish platform represent the largest share of deposits within the three markets. Outstanding balances as of Q2 2022 were 29 793 MM NOK, ending the quarter 2% higher than Q4 2021. However, this increase is due to the depreciation of the NOK compared to DKK.