Avarda Bank AB · OMXSTO:AVARDA
Avarda Bank AB — TF Bank — Q1 2020 Earnings Presentation
23 slides from Avarda Bank AB's earnings presentation, April 2020
Slide 1: 1st Quarter 2020 Result Presentation
Wt TFBank 1st Quarter 2020 RESULT PRESENTATION ‘TE TEBank
Slide 2: Highlights January - March 2020
HIGHLIGHTS JANUARY - MARCH 2020 = The coronavirus outbreak in Europe # Additional provisioning for expected credit losses of SEK 30 million = EPS financial target for 2020 abandoned = Expanded segment reporting — Credit Cards To TFBank » Withdrawal of dividend proposal of 0,50 SEK YW TFBank
Slide 3: Share of TF Bank's loan book
Share of TF Bank's loan book ▪ ▪ 79% ▪ ▪ ▪ Share of TF Bank's operating income ▪ 5.5bn 7% 8 75% Loan book Loan book Countries growth 3
Slide 4: Share of TF Bank's loan book
Share of TF Bank's loan book ▪ ▪ 16% ▪ ▪ Share of TF Bank's operating income 1.1bn 7% 7 20% Loan book Loan book Countries growth 4
Slide 5: Share of TF Bank's loan book
Share of TF Bank's loan book ▪ ▪ 5% ▪ ▪ ▪ Share of TF Bank's operating income 5% 0.4bn 21% 2 Loan book Loan book Countries growth 5
Slide 6: Loan book by segment
8,000 ▪ 7,000 ‒ 6,000 ▪ 5,000 ‒ 4,000 3,000 ▪ ‒ 2,000 1,000 ▪ 0 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 ‒ TF Bank Consumer Lending Ecommerce Solution Credit Cards 6
Slide 7: Loan book and outlook by country
Sweden ▪ Focus on profitability and e-commerce Loan book Norway ▪ Continued positive longterm outlook on the norwegian economy. Focus on growth and margins Finland ▪ New rate cap proposal of 10% until the end of the year. If Sweden Norway Finland implemented it will mean low origination in consumer
Slide 8: Quarterly financials
250 25.0% 90 60.0% 70 8.0% 78 80 208 213 80 60 196 71 71 50.0% 60 200 189 20.0% 70 67 51 176 6.0% 50 47 46 60 40.0% 44 SEK million 15.0% SEK million SEK million 150 38.0% 15.6% 50 37.6% 36.5% 37.3% 37.7% 40 15.0% 14.3% 13.7% 30.0% 4.0% 13.2% 40 30 100 10.0% 3.7% 3.6% 3.5% 3.4% 3.4% 30 20.0% 20 2.0%
Slide 9: Loan portfolio quality and total assets
7,000 94% 94% 3,2% 3,2% 6,000 5,000 SEK Million 94% 4,000 3,000 Total Assets SEK 9.0bn 2,000 1,000 5% 4% 2% 4% 2% 1% 0 1 Jan 2019 31 Dec 2019 31 Mar 2020 Stage 1, net* Stage 2, net* Stage 3, (non-performing)* 12,6% 17,5% ▪ 12,6% 3,8% Total Assets Total Assets ▪ SEK 41.7bn SEK 37.4bn ▪ Peer 1 Peer 2
Slide 10: Growth 12M and Q1
▪ +26% 289 300 ‒ 250 ‒ 230 ▪ 200 ‒ 150 +11% ▪ 100 ‒ 73 66 50 0 12M'18 12M'19 Q1'19 Q1'20 10
Slide 11: Operating profit and cost/income by segment
16.0% C/I: 38% 100 +73 +10 -10 +73 90 80 90 80 12.3% 80 12.0% 70 70 9.9% 9.6% 60 C/I: 28% SEK million 60 SEK Million 50 45 50 8.0% 40 40 5.1% C/I: 56% 30 24 30 C/I: 108% 4.0% 20 20 11 10 10 0 0.0% 0 Consumer Ecommerce Credit Cards TF Bank Consumer Ecommerce Credit Cards TF Bank Consumer Ecommerce Cr
Slide 12: Deposits and liquidity reserve
9,000 8,000 Distribution of deposits ▪ 7,000 Sweden ‒ 6,000 Germany SEK million 4,008 15% Finland ‒ 5,000 5% ‒ Germany 52% 4,000 28% ‒ 24% of deposits 3,000 Norway Norway ‒ 2,151 2,000 ▪ 1,000 Sweden 1,086 Finland Central banks ‒ 0 419 Deposits from Liquidity reserve* ‒ the public ‒ 12
Slide 13: Capital ratios and headroom
17,1% 17,1% ▪ T1+T2 14,1% Headroom 5.3% T1 14,1% 12,5% Headroom 4.5% ▪ T1+T2 11,8% Headroom 4.6% T1 9,6% T1 9,6% ▪ CET1 12.5% CET1 CET1 CET1 7.9% 7.9% 7.9% ▪ Capital ratios Headroom to CET1 legal capital Headroom to T1 legal capital Headroom to T1+T2 legal capital 31 March 2020 requirements (includi
Slide 14: Looking Ahead
LOOKING AHEAD = Stricter focus on portfolio management, liquidity and ROE. = Short term focus will be Norwegian consumer loans, e-commerce and German credit cards. = Expect portfolio quality to be impacted by COVID-19 in coming quarters - additional provision 30 MSEK
Slide 15: Q&A Session
Q&A Session 15
Slide 16: Appendix
APPENDIX 16
Slide 17: Corporate Profile
CORPORATE PROFILE Our Products Operating with modern and scalable infrastructure offering our retail customers online consumer loans, deposits and credit cards. For retailers we offer leading ecommerce and brick-and-mortar payment solutions Our DNA ~~ We aim to deliver effortless banking t¢ 01 custo
Slide 18: Loan portfolio and operating income history
▪ 7,000 900 6,000 800 ▪ 700 5,000 600 SEK million 4,000 500 3,000 400 300 2,000 200 1,000 100 ▪ 0 1992 2001 2010 2019 0 Loan portfolio Operating income 18
Slide 19: Financial Targets and Dividend Policy
FINANCIAL TARGETS AND DIVIDEND POLICY The Board of Directors of TF Bank intends to establish new financial targets once the macroeconomic outlook has stabilised. Currently, TF Bank has the following targets: Efficiency TF Bank aims to achieve a cost/income ratio of below 35% in 2020 All capital rati
Slide 20: Board of Directors
Mari Thjømøe Charlotta Björnberg- Tone Bjørnov Chairman of the Board Paul Board member since 2015 since 2018 Board member since Current commitments: Board member since 2017 Chairman: Filmparken AS, Storyline Studios AS, Hausmann AS 2017 Current commitments: Board member: Storyline Studios Current co
Slide 21: Management
Mattias Carlsson Mikael Meomuttel CEO CFO, Deputy CEO and Head of Investor Education: MSc, Engineering Physics, Uppsala University. Relations Current commitments: Smedslättens Tennisbanor Aktiebolag Education: MSc, Business/Economics and Finance, University (chairman), Qred AB (chairman), and Tronst
Slide 22: Regional managers
▪ Vilma Sool Regional manager Juho Maanpää Head of Finland Juris Pūce Head of Latvia Björn Skytt CIO Baltics Extensive consumer Before joining TF Bank Before joining TF Bank Head of Estonia finance experience in in 2016, worked for in 2010 worked as Finland within seven years in integration manager
Slide 23: Contact
Contact Investor relations Mikael Meomuttel +46 706 26 95 33 ir@tfbank.se www.tfbankgroup.com