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Klarna Group

Klarna Group's price/earnings (P/E) rose 634% to 437 in 2018

By Helgi Library - November 21, 2019

Klarna Group stock traded at NOK 45,142 per share at the end 2018 implying a market capitalization of USD 5,500 mil. Since the end of 2...

Klarna Group's share price (end of period) rose 120% to NOK 45,142 in 2018

By Helgi Library - November 21, 2019

Klarna Group stock traded at NOK 45,142 per share at the end of 2018 implying a market capitalization of USD 5,500 mil. Since the end o...

Klarna Group's capital adequacy ratio fell 17.6% to 15.0% in 2018

By Helgi Library - July 4, 2019

Klarna Group's capital adequacy ratio reached 15.0% at the end of 2018, down from 18.2% compared to the previous year. Histor...

Profit Statement 2016 2017 2018
Net Interest Income SEK mil 1,181 1,452 1,802
Net Fee Income SEK mil 2,115 2,719 3,671
Other Income SEK mil -6.69 -13.2 -21.6
Total Revenues SEK mil 3,290 4,158 5,450
Staff Cost SEK mil 1,077 1,161 1,462
Operating Profit SEK mil 592 1,023 944
Provisions SEK mil 424 501 786
Net Profit SEK mil 113 345 103
Balance Sheet 2016 2017 2018
Interbank Loans SEK mil 1,235 1,249 2,722
Customer Loans SEK mil 8,450 13,874 19,979
Total Assets SEK mil 12,085 19,025 28,216
Shareholders' Equity SEK mil 2,792 4,242 4,844
Interbank Borrowing SEK mil 755 197 1,418
Customer Deposits SEK mil 5,839 8,492 14,582
Issued Debt Securities SEK mil ... 2,292 2,594
Ratios 2016 2017 2018
ROE % 4.26 9.80 2.28
ROA % 1.09 2.22 0.438
Costs (As % Of Assets) % 25.9 20.2 19.1
Costs (As % Of Income) % 82.0 75.4 82.7
Capital Adequacy Ratio % 18.8 18.2 15.0
Net Interest Margin % 11.3 9.34 7.63
Loans (As % Of Deposits) % 145 163 137
NPLs (As % Of Loans) % 4.60 3.26 3.12
Provisions (As % Of NPLs) % 107 141 144
Valuation 2016 2017 2018
Price/Earnings (P/E) 180 59.5 437
Price/Book Value (P/BV) 7.30 4.84 9.32
Dividend Yield % 0 0 0
Earnings Per Share (EPS) 113 345 103
Book Value Per Share 2,792 4,242 4,844
Dividend Per Share 0 0 0

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summary Unit 2011 2012 2013 2014 2015 2016 2017 2018
income statement                
Net Interest Income SEK mil ... ... ... 828 968 1,181    
Total Revenues SEK mil   1,170 1,572 1,980 2,582 3,290    
Operating Profit SEK mil   203 277 329 505 592    
Net Profit SEK mil   24.0 54.1 75.2 127 113    
balance sheet                
Interbank Loans SEK mil   460 613 756 500 1,235    
Customer Loans SEK mil   2,860 3,501 4,513 6,104 8,450    
Debt Securities SEK mil ... ... ... 500 790 942    
Total Assets SEK mil   3,627 4,624 7,195 8,755 12,085    
Shareholders' Equity SEK mil   779 832 2,029 2,519 2,792    
Interbank Borrowing SEK mil   75.7 168 386 709 755    
Customer Deposits SEK mil   2,203 2,680 3,705 3,959 5,839    
Issued Debt Securities SEK mil ... ... ... ... ... ...    
ratios                
ROE %   3.61 6.72 5.26 5.59 4.26    
ROA %   0.733 1.31 1.27 1.60 1.09    
Costs (As % Of Assets) %   29.6 31.4 27.9 26.0 25.9    
Costs (As % Of Income) %   82.6 82.4 83.4 80.4 82.0    
Capital Adequacy Ratio % ... 23.4 17.8 15.2 19.2 18.8    
Net Interest Margin % ... ... ... 14.0 12.1 11.3    
Interest Income (As % Of Revenues) % ... ... ... 41.8 37.5 35.9    
Fee Income (As % Of Revenues) % ... ... ... 58.4 62.7 64.3    
Staff Cost (As % Of Total Cost) % ... ... ... 42.9 43.8 39.9    
Equity (As % Of Assets) %   21.5 18.0 28.2 28.8 23.1    
Loans (As % Of Deposits) %   130 131 122 154 145    
Loans (As % Assets) %   78.9 75.7 62.7 69.7 69.9    
NPLs (As % Of Loans) % ... ... ... ... 3.98 4.60    
Provisions (As % Of NPLs) % ... ... ... ... 142 107    
valuation                
Market Capitalisation (End Of Period) USD mil ... 800 1,000 1,400 2,250 2,250    
Number Of Shares (Average) mil   1.00 1.00 1.00 1.00 1.00    
Share Price (End Of Period) NOK ... 5,203 6,426 10,922 18,992 20,390    
Earnings Per Share (EPS)   24.0 54.1 75.2 127 113    
Book Value Per Share   779 832 2,029 2,519 2,792    
Dividend Per Share   0 0 0 0 0    
Price/Earnings (P/E) ... 217 119 145 149 180    
Price/Book Value (P/BV) ... 6.68 7.72 5.38 7.54 7.30    
Dividend Yield % ... 0 0 0 0 0    
Earnings Per Share Growth % ... -52.9 126 39.0 69.1 -11.0    
Book Value Per Share Growth % ... 42.2 6.86 144 24.1 10.8    
income statement Unit 2011 2012 2013 2014 2015 2016 2017 2018
income statement                
Interest Income SEK mil ... ... ... 923 1,053 1,283    
Interest Cost SEK mil ... ... ... 94.3 84.7 102    
Net Interest Income SEK mil ... ... ... 828 968 1,181    
Net Fee Income SEK mil ... ... ... 1,156 1,618 2,115    
Other Income SEK mil ... ... ... -4.31 -4.31 -6.69    
Total Revenues SEK mil   1,170 1,572 1,980 2,582 3,290    
Staff Cost SEK mil ... ... ... 708 908 1,077    
Depreciation SEK mil ... ... ... 98.0 104 113    
Other Cost SEK mil ... ... ... 845 1,064 1,508    
Operating Cost SEK mil   967 1,295 1,651 2,076 2,698    
Operating Profit SEK mil   203 277 329 505 592    
Provisions SEK mil   172 210 228 335 424    
Extra and Other Cost SEK mil   0 0 0 0 0    
Pre-Tax Profit SEK mil   31.6 66.8 101 170 168    
Tax SEK mil   7.67 12.7 26.0 42.7 54.8    
Net Profit SEK mil   24.0 54.1 75.2 127 113    
Dividends SEK mil   0 0 0 0 0    
growth rates                
Net Interest Income Growth % ... ... ... ... 16.9 21.9    
Net Fee Income Growth % ... ... ... ... 39.9 30.8    
Total Revenue Growth % ... 56.0 34.3 26.0 30.4 27.4    
Operating Cost Growth % ... 74.4 33.9 27.5 25.8 29.9    
Operating Profit Growth % ... 3.77 36.2 19.0 53.4 17.1    
Pre-Tax Profit Growth % ... -53.8 111 51.8 67.7 -1.22    
Net Profit Growth % ... -52.9 126 39.0 69.1 -11.0    
balance sheet Unit 2011 2012 2013 2014 2015 2016 2017 2018
balance sheet                
Cash SEK mil ... ... ... 0.015 0.055 0.040    
Interbank Loans SEK mil   460 613 756 500 1,235    
Customer Loans SEK mil   2,860 3,501 4,513 6,104 8,450    
Debt Securities SEK mil ... ... ... 500 790 942    
Fixed Assets SEK mil ... ... ... 1,330 1,245 1,267    
Total Assets SEK mil   3,627 4,624 7,195 8,755 12,085    
Shareholders' Equity SEK mil   779 832 2,029 2,519 2,792    
Of Which Minority Interest SEK mil   0 0 0 0 0    
Liabilities SEK mil   2,848 3,792 5,166 6,236 9,293    
Interbank Borrowing SEK mil   75.7 168 386 709 755    
Customer Deposits SEK mil   2,203 2,680 3,705 3,959 5,839    
Retail Deposits SEK mil ... ... ... 3,343 3,514 5,301    
Corporate Deposits SEK mil ... ... ... 362 445 539    
Issued Debt Securities SEK mil ... ... ... ... ... ...    
Other Liabilities SEK mil ... ... ... ... ... ...    
asset quality                
Non-Performing Loans SEK mil ... ... ... ... 258 409    
Gross Loans SEK mil ... 3,046 3,718 4,748 6,470 8,887    
Total Provisions SEK mil ... 185 218 234 366 437    
growth rates                
Customer Loan Growth % ... 34.7 22.4 28.9 35.2 38.4    
Total Asset Growth % ... 24.5 27.5 55.6 21.7 38.0    
Shareholders' Equity Growth % ... 42.2 6.86 144 24.1 10.8    
Customer Deposit Growth % ... 17.6 21.6 38.2 6.87 47.5    
Retail Deposit Growth % ... ... ... ... 5.11 50.8    
Corporate Deposit Growth % ... ... ... ... 23.1 21.0    
ratios Unit 2011 2012 2013 2014 2015 2016 2017 2018
ratios                
ROE %   3.61 6.72 5.26 5.59 4.26    
ROA %   0.733 1.31 1.27 1.60 1.09    
Costs (As % Of Assets) %   29.6 31.4 27.9 26.0 25.9    
Costs (As % Of Income) %   82.6 82.4 83.4 80.4 82.0    
Capital Adequacy Ratio % ... 23.4 17.8 15.2 19.2 18.8    
Tier 1 Ratio % ... 23.4 17.8 15.2 19.2 15.9    
Net Interest Margin % ... ... ... 14.0 12.1 11.3    
Interest Spread % ... ... ... 13.5 11.7 11.0    
Asset Yield % ... ... ... 15.6 13.2 12.3    
Cost Of Liabilities % ... ... ... 2.10 1.48 1.32    
Payout Ratio %   0 0 0 0 0    
Interest Income (As % Of Revenues) % ... ... ... 41.8 37.5 35.9    
Fee Income (As % Of Revenues) % ... ... ... 58.4 62.7 64.3    
Other Income (As % Of Revenues) % ... ... ... -0.218 -0.167 -0.203    
Cost Per Employee USD per month ... ... ... 8,156 8,680 8,242    
Cost Per Employee (Local Currency) SEK per month ... ... ... 58,017 70,486 72,126    
Staff Cost (As % Of Total Cost) % ... ... ... 42.9 43.8 39.9    
Equity (As % Of Assets) %   21.5 18.0 28.2 28.8 23.1    
Loans (As % Of Deposits) %   130 131 122 154 145    
Loans (As % Assets) %   78.9 75.7 62.7 69.7 69.9    
NPLs (As % Of Loans) % ... ... ... ... 3.98 4.60    
Provisions (As % Of NPLs) % ... ... ... ... 142 107    
Provisions (As % Of Loans) % ... 6.48 6.22 5.20 5.99 5.17    
Cost of Provisions (As % Of Loans) %   6.89 6.60 5.69 6.32 5.82    
other data Unit 2011 2012 2013 2014 2015 2016 2017 2018
other data                
Employees   672 778 1,017 1,074 1,244    
Clients mil ... ... 25.0 ... ... ... ...  

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Klarna Group's net profit fell 70.0% to SEK 103 mil in 2018

By Helgi Library - July 4, 2019

Klarna Group made a net profit of SEK 103 mil under revenues of SEK 5,450 mil in 2018, up -70.0% and 31.1% respectively compared to the previous year. Historically, the bank’s net profit reached an all time high of SEK 345 mil in 2017 and an all time low of SEK 24.0 ...

Klarna Group's net interest margin fell 18.3% to 7.63% in 2018

By Helgi Library - July 4, 2019

Klarna Group's net interest margin amounted to 7.63% in 2018, down from 9.34% compared to the previous year. Historically, the bank’s net interest margin reached an all time high of 14.0% in 2014 and an all time low of 7.63% in 2018. The average margin ...

Klarna Group's net interest income rose 24.0% to SEK 1,802 mil in 2018

By Helgi Library - July 4, 2019

Klarna Group generated total banking revenues of SEK 5,450 mil in 2018, up 31.1% compared to the previous year. Historically, the bank’s revenues containing of interest, fee and other non-interest income reached an all time high of SEK 5,450 mil in 2018 and an ...

Klarna Group's customer loan growth fell 31.5% to 44.0% in 2018

By Helgi Library - July 4, 2019

Klarna Group's customer loan growth reached 44.0% in 2018, down from 64.2% compared to the previous year. Historically, the bank’s loans growth reached an all time high of 64.2% in 2017 and an all time low of 22.4% in 2013. In the last decade, the average...

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Finance

Klarna Group has been growing its revenues and asset by 28.3% and 47.7% a year on average in the last 3 years. Its loans and deposits have grown by 48.5% and 54.4% a year during that time and loans to deposits ratio reached 137% at the end of 2018. The company achieved an average return on equity of 5.45% in the last three years with net profit growing -6.69% a year on average. In terms of operating efficiency, its cost to income ratio reached 82.7% in 2018, compared to 80.0% average in the last three years.

Equity represented 17.2% of total assets or 24.2% of loans at the end of 2018. Klarna Group's non-performing loans were 3.12% of total loans while provisions covered some 144% of NPLs at the end of 2018.

Valuation

Klarna Group stock traded at NOK 45,142 per share at the end of 2018 resulting in a market capitalization of USD 5,500 mil. Over the previous five years, stock price rose by 603% or 47.7% a year on average. That’s compared to an average ROE of 5.44% the bank generated for its shareholders. This closing price put stock at a 12-month trailing price to earnings (PE) of 437x and price to book value (PBV) of 9.32x in 2018.

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