02 September 2021, 15:04 CEST
Update on process with FSA
As stated in the stock exchange notice dated 25 March 2021, and in the prospectus dated 19 April 2021, the Norwegian Financial Supervisory Authority (FSA) has reviewed certain accounting practices and their implications for Axactor SE’s (the Company) Annual Report 2019 and Half-Year Report 2020. The review was conducted under the Securities Trading Act §19-1, second paragraph.
A notice regarding the preliminary conclusion from FSA received on 31 August 2021, states that FSA require the Company to expand its valuation models for expected future credit losses on portfolios of non-performing loans (NPL) with more input variables and scenario analysis capturing current and future macroeconomic conditions.
The Company does not expect significant revaluations of its current NPL book value, neither negative nor positive, following such expansion of its valuation models.
The notice also includes the preliminary conclusion that the Company will be required to conduct a new valuation of expected future credit losses for one specific NPL portfolio as of 2019 and onwards. The book value of the portfolio in question was reduced through the Company’s ordinary quarterly revaluation process in 2020 and is performing above its active forecast in 2021.
The Company will continue the dialogue with FSA until a final conclusion is received.
For additional information, please contact:
Kyrre Svae, Chief of Strategy & IR
Mobile phone: +47 478 39 405