Member Profile. ANFH Finansieringsselskapenes Forening The Association of Norwegian Finance Houses

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1 Finansieringsselskapenes Forening The Association of Norwegian Finance Houses

2 NOTE: Sources and definitions are provided in the accompanying supplemental document

3 Norwegian economic context Population 1 (millions on January 1) Real GDP growth 2 0.7% 2.2% Household Final Consumption Expenditure 5 2.1% 0.0% Unemployment 3 3.5% 3.5% Inflation 4 2.0% 1.9% Real household consumption per capita 6 ( /inhabitant) Real adjusted household gross disposable income per capita 7 ( /inhabitant) Saving rate % 13.5% Indebtedness ratio % 187.6% Source: Eurostat 1-9

4 Norwegian economic context Norway compared to the rest of Europe Real GDP growth rate 2 and household final consumption growth 5 for 2015 Household real adjusted gross disposable income 7 vs. household real consumption 6 ( per capita, 2015) 5% % % % % % FI IT FR ES BE DK PT NO DE LT NL UK PL SE CZ TR Real GDP Growth Household Final Consumption Expenditure 0 BE CZ DK DE ES FR IT LT NL PL PT FI SE UKNO Household real consumption Household real adjusted gross disposable income Source: Eurostat 2, 5-7

5 Norwegian economic context Norway compared to the rest of Europe Household saving rate 8 (%) Household gross debt-to-income ratio 9 (%) 20% 300% 15% 250% 10% 200% 5% 150% 0% 100% 50% -5% LT PL UK PT FI DK ES CZ IT BE NO FR NL DE SE 0% LT PL CZ IT FR DE BE FI PT ES UK SE NO NL DK Source: Eurostat 8&9

6 Norwegian consumer credit market structure Dec 2014 ()* Dec 2015 ECB Dec 2015 ()* 1. Total lending to households in mil (outstandings)** Consumer credit*** Loans for house purchasing Loans for other purposes**** Growth of total consumer credit national market in terms of outstandings (CAGR 09-14) ( - including car finance) na (ECB) na Source: *Estimates provided by the Norwegian member association on the size of the national market. **exchange rate of 1 Euro = 8.9 Norwegian Kroner used. ***includes overdraft and working capital facilities. ****includes housebuilding loans.

7 Norwegian consumer credit market structure Norwegian banks Total lending to household increased by 7 % in Unsecured loans and Credit Cards increased by 11 % in We expect further growth due to growth in house prices and low interest on mortgages. All companies dealing with consumer credit in Norway are required to be licensed, witch includes universal and specialized banks and finance houses. European lenders are present in the market through subsidiaries or branches. Point of sale is an important channel for car finance companies. Also Credit cards but to a lessor extent Members do not offer cross boarder finance but some members have subsidiaries or branches abroad. Car loans and leasing are mainly sold at point of sale but also on the internet. Cards are mainly sold on the internet or by cross-sales. A small portion of Cards are sold at point of sale. Unsecured loans are mainly sold by agents and on Internet. Also TV adverts and direct mail are used. More than 75 % of new car loans were offered by Top 5 players More than 60 % of unsecured loans and Credit Cards were offered by Top 5 We estimate Car- loans and leasing to have 50 % of the Consumer Credit market and Credit Cards and Unsecured loans about 25 % each. Source:

8 membership Some members are specialized in unsecured loans and Cards or in Autofinance, leasing or factoring, others have the whole product range The Universal banks offer mortgage loans but are only members for the products listed above. Customers that have partially repaid their mortgages can top-up the loan. It s unknown how much of these loans that are used to finance consumer goods. Members do not offer equity loans but customers that apply for unsecured loans are not asked what the will finance. Source:

9 membership membership structure Finance houses 27 Captives 6 Specialised banks 3 Universal banks 1 Other - Share of total national consumer credit & car finance market Share of total national mortgage market 0.0% na Share of new consumer credit granted Growth of total consumer credit member market in terms of outstandings (CAGR 09-15): 17.0% Consumer car finance na 74% Non auto PoS 13 na 1% Personal loans na 25% Revolving na 0% Source: Eurofinas 12,14