Slide 1: Interim Presentation Q3 – 2019
Instabank Interim Presentation Q3 – 2019 October 28 th 2019 instabank.no www.instabank.no
Slide 2: Important information and disclaimer
Important information and disclaimer THIS PRESENTATION (THE “PRESENTATION”) HAS BEEN PRODUCED BY INSTABANK ASA (THE “COMPANY” OR “INSTABANK”), SOLELY FOR USE AT THE PRESENTATION TO INVESTORS AND IS STRICTLY CONFIDENTIAL AND MAY NOT BE REPRODUCED OR REDISTRIBUTED, IN WHOLE OR IN PART, TO ANY OTHER PE
Slide 3: Key highlights Q3-19
Key highlights Q3-19 Positive experiences from the new debt register Having complete and “real time” information about the unsecured debt of applicants has improved the credit assessments significantly Launch of Instapay Mastercard in additional distribution channels Distribution extended from p
Slide 4: Key figures Q3-2019
Key figures Q3-2019 Net profit before tax of 17.6 MNOK + 89 % vs Q3-18 Total income of 63.7 MNOK + 22 % vs Q3-18 Losses on loans 2.5 % vs 2.4 % Q3-18 Quarterly growth in net loans of 101 MNOK - 73 % vs Q3-18 Outstanding net loans of 2,719 MNOK + 23 % vs Q3-18 Equity per share of 1.66 NOK
Slide 5: Product portfolio
Product portfolio Unsecured consumer loans Deposit accounts Point of sales financing KEY METRICS KEY METRICS Credit cards NOK 2,719m NOK 2,891m INSTORE Direct Financing in net loans in deposits Mobile – QR code UPGRADE 28,765 8,450 Hybrid leasing customers customers Credit Cards NOK 95k NOK 342k Inv
Slide 6: Distribution channels
Distribution channels Brand distribution Agent distribution Partner distribution + potential new partners Brand Agent Partner distribution volume as of Q3-19 26 % distribution volume as of Q3-19 65 % distribution volume as of Q3-19 9% 6 DRAFT
Slide 7: Instapay Mastercard
Instapay Mastercard Instabank launched the Instapay Mastercard credit card in Instabank has on October 15th launched the Instapay Q1-19 as a payment instrument on top of the flexible loan Mastercard in the direct and agent distribution channels product for POS finance customers at Skeidar 7 DRAF
Slide 8: Net loan development
Net loan development Net loan balance growth Net loans to customers Key comments MNOK MNOK Finland Increased growth in Finland driven by direct 3 200 376 2 719 marketing efforts as well as optimised pricing 2 605 2 618 83 2 482 and process improvements. Finland is the 2 700 47 25 2 211 most attrac
Slide 9: Funding cost and yields
Funding cost and yields Development in funding cost and yields Key comments Attractive interest rate, affected by mix of products, distribution channel, 13,0 % 13,1 % 13,0 % 13,0 % 13,0 % and risk assessment Interest rate on deposits decreased as the deposit mix has changed in favor of EUR and S
Slide 10: Solid profit development
Solid profit development Net profit before tax Key comments MNOK • Instabank has been operative for three years this September and has a history of increased profit quarter by quarter, except for Q1-19 profit affected by a one-time adjustment of 5 MNOK in loan loss provisions • In Q3-19, net profit
Slide 11: Total income
Total income Total income detailed Total income MNOK MNOK 63,7 54,3 58,3 58,3 52,3 1,9 3,2 6,1 0,7 1,7 8,6 7,8 8,2 8,8 10,3 70,2 73,5 74,5 78,0 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 60,1 Key comments -11,9 -14,5 -13,5 -13,4 -13,4 -7,8 Increased total income in Q3 driven by increased margins, volume growth
Slide 12: Operating expenses
Operating expenses Operating expenses detailed Key comments MNOK 30,4 31,9 29,8 28,9 26,4 2,2 1,3 2,7 As in the previous quarter, Q3-19 administrative costs include one off 8,7 1,5 10,1 10,3 8,3 10,2 advisory costs of approximately 1.4 MNOK 6,3 5,8 12,0 6,7 4,5 Q3-19 Other expenses positively im
Slide 13: Credit risk developing well
Credit risk developing well Impairment losses Key comments MNOK 30 10,0 % 22,0 20 17,5 17,2 Losses on loans in Q3-19 increased slightly from a low level in the previous 15,8 12,6 5,0 % quarter 10 3,0 % 3,4 % 2,4 % 2,4 % 2,5 % Loan losses have decreased significantly over the past two quarters 0
Slide 14: Capital adequacy
Capital adequacy Developments in capital adequacy ratios Key comments 23,7 % 23,7 % 23,6 % • Total capital ratio was 23,6 % by the end of Q2, 2,6 % above the 22,7 % 21,6 % 1,7 % 1,7 % 1,6 % regulatory capital requirement of 21 % 1,7 % 1,1 % 1,0 % 1,0 % 2,0 % 1,1 % 1,3 % • Instabank is committed to c
Slide 15: Systemic risk buffer reciprocity would have a positive impact on the CET1 requirement
Systemic risk buffer reciprocity would have a positive impact on the CET1 requirement Instabank already benefits from reciprocity rules for the countercyclical buffer However, an increased systemic risk in Norway, without reciprocity rules would increase the CET 1 requirement by 0,5 % point If
Slide 16: Outlook
Outlook Presence in three countries gives Instabank the strategic opportunity to focus its Updated outlook for growth efforts where the most profitable growth can be achieved and net loans (MNOK) Profitability and scalability The business setup is able to handle significantly higher volumes in a
Slide 17: Financial summary
Financial summary P&L (NOK ‘000) Balance sheet (NOK ‘000) Items YTD 2019 Q3-19 Q2-19 Q1-19 FY 2018 Q4-18 Q3-18 Items Q3-19 Q2-19 Q1-19 Q4-18 Q3-18 Operating income Assets Interest income 225 767 77 950 74 466 73 351 222 546 70 207 60 090 Loans and deposits with credit institutions 155 611 185 466 15
Slide 18: Share price and ownership
Share price and ownership Top 20 shareholders as of 24.10.2019 Share price development since OTC listing in October 2016 Share price (NOK) # Shareholders # of shares % 1 KISTEFOS AS 83 126 568 25,0% 2 HODNE INVEST AS 28 054 360 8,4% 3 VELDE HOLDING AS 23 775 000 7,1% 4 BIRKELUNDEN INVESTERINGSSELSKA
Slide 19: Thank You
Thank You instabank.no www.instabank.no