Avarda Bank AB · OMXSTO:AVARDA
Avarda Bank AB — TF Bank — Q4 2019 Earnings Presentation
23 slides from Avarda Bank AB's earnings presentation, February 2020
Slide 1: 4th Quarter 2019 Result Presentation
“Il TFBank 4‘ Quarter 2019 RESULT PRESENTATION
Slide 2: Highlights January - December 2019
HIGHLIGHTS JANUARY - DECEMBER 2019 = Loan book growth, +46% = Operating profit growth, +26%* = Return on equity, 31% = New and extended agreements within Ecommerce Solutions E i f the credit card operations in 7 xpansion o = ale fit TFBank = Subordinated Tier 2 bonds of SEK 100 million issued * excl
Slide 3: Consumer Lending
CONSUMER LENDING DIVERSIFIED PORTFOLIO WITH NORDIC BAS At a glance Loan sizes (average) and customer profile . 79 % of the loan portfolio distributed over 8 countries . Product offering tailored for each market Middle income . Marketed through direct channels, own data base and external partners SEK
Slide 4: Ecommerce Solutions
ECOMMERCE SOLUTIONS NEXT GENERATION PAYMENT SOLUTIONS At a glance Key metrics . Best-in-class white label checkout solution Share of the Amount outstanding with CRM functionality for online retailers - Group's loan portfolio SEK 1351 million Checkout+ (31 Dec 2019) = Checkout+ allows retailers to of
Slide 5: EUR million
▪ ‒ 15,0 ‒ 12,0 ▪ 10,9 ‒ 9,0 ‒ EUR million ▪ 6,0 4,4 ▪ 3,0 ▪ 0,0 Q3'19 Q4'19 ▪ 5
Slide 6: SEK million SEK million SEK million
+48% +6% 7 000 +7% 6 000 +46% 4 858 5 145 6 496 5 000 4 423 6 099 4 010 SEK million 4 000 3 466 6 000 5 625 3 000 5 090 2 000 5 000 4 449 1 000 0 SEK million 4 000 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 3 000 +37% +9% 2 000 1 500 1 351 1 202 1 241 1 200 1 080 983 SEK million 1 000 900 600 0 Q4'18 Q1'19 Q2'19
Slide 7: Growth and Diversification
GROWTH AND DIVERSIFICATION Norway Loan book SEK 2,140m (33%) Change 12M’19: +56% Finland Strong growth for consumer Loan book SEK 1,672m (26%) fending Change 12M'19: +40% Profitability and steady growth in both segments Sweden Loan book SEK 710m (11%) Change 12M'19: +7% 5 Focus on profitability and
Slide 8: SEK million SEK million SEK million
250 25,0% 80 78 60,0% 60 8,0% 71 71 208 67 51 70 66 196 50,0% 50 47 46 200 189 20,0% 44 172 176 60 41 6,0% 40,0% 40 50 SEK million 15,0% SEK million SEK million 150 16,3% 38,6% 38,0% 15,6% 37,6% 37,3% 15,0% 36,5% 14,3% 13,7% 40 30,0% 30 4,0% 3,9% 100 10,0% 3,7% 3,6% 3,5% 30 3,4% 20,0% 20 20 2,0% 50
Slide 9: ▪ +26% ‒ ‒ ▪ ‒ +16% ‒ ▪ 0 Q4'18 Q4'19 12M'18 12M'19
▪ +26% 289 300 ‒ 250 ‒ 230 ▪ 200 ‒ 150 +16% ‒ 100 ▪ 75 65 50 0 Q4'18 Q4'19 12M'18 12M'19 9
Slide 10: +48 MSEK Q4'18 Q4'19
▪ 300 +48 MSEK ‒ 263 250 ‒ 215 ▪ 200 ‒ 150 ‒ +42% 100 79 ▪ 56 ‒ 50 ‒ 0 Q4'18 Q4'19 12M'18 12M'19 10
Slide 11: +11 MSEK Q4'18 Q4'19
▪ ‒ 30 +11 MSEK 26 ‒ 25 ▪ 20 15 ‒ 15 ‒ 10 9 ▪ 5 ‒ 0 Q4'18 Q4'19 12M'18 12M'19 ‒ -5 -4 11
Slide 12: Distribution of deposits
8 000 7 000 Distribution of deposits ▪ 6 000 Germany Sweden ‒ 3 288 SEK million 5 000 17% ‒ Finland 4 000 Germany 46% 6% ‒ ‒ 3 000 26% of deposits Norway 31% ▪ 2 245 2 000 Norway ‒ Sweden 1 000 1 222 1 867 ‒ Finland 442 0 Deposits from Liquidity reserve* ‒ the public 12
Slide 13: Capital ratios 31 December 2019
17,2% T1+T2 17,2% 14,1% ▪ Headroom 4,6% 12,5% T1 14,1% Headroom 3,7% Headroom 3,7% T1+T2 12,6% ▪ T1 10,4% T1 10,4% CET1 12,5% ▪ CET1 8,8% CET1 8,8% CET1 8,8% ▪ Capital ratios Headroom to CET1 legal capital Headroom to T1 legal capital Headroom to T1+T2 legal capital 31 December 2019 requirements (in
Slide 14: Board proposes DPS 0,50 SEK per share
Board proposes DPS 0,50 SEK per share — ROE 30,6% - Growth 2020 — EPS14.50 — SyRB - Norway The Finnish and Norwegian markets for consumer loans will continue to be the most significant growth contributors for the group The credit card business in Germany will continue to grow quickly as we sell more
Slide 15: Q&A Session
Q&A Session 15
Slide 16: Appendix
APPENDIX 16
Slide 17: Corporate Profile
CORPORATE PROFILE Our Products Se 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 to our cust
Slide 18: SEK million
▪ 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
FINANCIAL TARGETS — Growth TF Bank aims to achieve earnings per share of at least 14.50 SEK in 2020 Efficiency TF Bank aims to achieve a cost/income ratio of below 35% in 2020 Capital structure !l capital ratios shall exceed the legal requirement (including pillar 2) by at least 2.5% points Dividend
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: BB Bank ASA, Current commitm
Slide 21: Group management
Mattias Carlsson Mikael Meomuttel CEO CFO, Deputy CEO and Head of Investor Education: MSc, Engineering Physics, Uppsala University. Relations Current commitments: BB Bank ASA (chairman), Avarda AB Education: MSc, Business/Economics and Finance, University (chairman), Avarda Oy (chairman), Smedslätte
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
‘TF TFBank Contact Investor relations Mikael Meomuttel +46 706 26 95 33 ir@tfbank.se www.tfbankgroup.com