Morrow Bank AB · OMXSTO:MORROW
Morrow Bank AB — Q1 2025 Earnings Presentation
26 slides from Morrow Bank AB's earnings presentation, May 7, 2025
Slide 1: Q1 2025 results
morrowbank.com Q1 2025 results Morrow Bank ASA
Slide 2: Disclaimer
Disclaimer morrowbank.com This presentation has been prepared solely for information purposes by Morrow Bank ASA (the “Company”, the “Bank” or “Morrow Bank”). This presentation is being made only to, and is only directed at, persons to whom such presentation may lawfully be communicated ("relevant p
Slide 3: Providing financial flexibility to Nordic consumers
Providing financial flexibility to Nordic consumers morrowbank.com Offering convenient consumer financing… …to creditworthy individuals… …across the Nordics Flexible consumer loans NOK ~600k customer average annual income NOK ~160k average loan amount BNOK No-fees credit cards ~600 ~60% market homeo
Slide 4: Scalable and efficient consumer banking platform
Scalable and efficient consumer banking platform morrowbank.com Well-diversified Nordic loan book ▪ Solid operational performance in Q1 2025 19% ▪ Q1 profit before tax increased by 43% y-o-y to NOK 83 million 36% BNOK ▪ …enabling increased profitability 15.4 ▪ New products to drive accelerated growt
Slide 5: Morrow to become a Swedish bank around year-end
Morrow to become a Swedish bank around year-end morrowbank.com - Granted banking license 1 April and initiated transfer to Nasdaq Stockholm Q1-Q3 2024 Q4 2024 2025 From 2026 Establishment of Swedish Assessment of potential Start of Swedish banking legal entity (AB) Q2: SFSA decision redomiciliation
Slide 6: Redomiciliation enabling higher ROTE target
Redomiciliation enabling higher ROTE target morrowbank.com Loan balance Cost/income ratio Loan loss ratio Return on target equity BNOK % % % oan loss ratio ( ) 15-17% 4-4.5% 25Q1 at 24% w/o one-offs Old New Raising mid-term ROTE target to 15-17% by year-end 2026, reflecting Swedish capital requireme
Slide 7: Outperforming peers on growth and efficiency
Outperforming peers on growth and efficiency morrowbank.com Growth last three years1 Cost/income ratio2 Return on equity (ROE) Annualised per 25Q1 25Q1 25Q1 29% 27% 22% 21% * 28% 18% 21% 35% * 11% * 15% * 37% 10% 5% 48% * 6% * 4% 85% -6% Morrow Bank Price/book currently at ~1x vs 1.4x average for Sw
Slide 8: Financial review
Financial review
Slide 9: Building scale by growing in the most profitable markets
Building scale by growing in the most profitable markets morrowbank.com Total gross loans MNOK , , , , ▪ Controlled growth in Q1 impacted by seasonality, , , product adjustments and FX effects (strong NOK) – Underlying growth of MNOK 274 in FI and SE ▪ Gross loan balance growth of 26% year-on-year ▪
Slide 10: Stable net interest margins – improving end of quarter
Stable net interest margins – improving end of quarter morrowbank.com Yields, performing loans and deposits eposits oans and credit cards . . ▪ Net loan-deposit margin of 10.5% in Q1 (10.6% Q4) . . . ▪ Reference rate adjusted in Finland from 1 January impacting loan yield ▪ Mitigated through the qua
Slide 11: Total income continues to grow
Total income continues to grow morrowbank.com Total income (MNOK) ▪ Total income growth of 16% year-on-year ▪ Driven by organic growth and acquisition of performing Swedish loan portfolios ▪ Q1 impacted by reduced reference rate in FI and lower interest income on liquidity – partially offset by one-
Slide 12: Stable underlying cost base
Stable underlying cost base morrowbank.com Cost/income (M ) ne off Cost income ratio ( ) ▪ Stable underlying OPEX despite continued loan growth, including portfolio acquisitions. ▪ Cost/income ratio at 27.5% ▪ MNOK 10 in redomiciliation related one-offs . . ▪ C/I of 24.4% excl. one-offs . . . ~23% .
Slide 13: Loan loss ratio continuing to improve
Loan loss ratio continuing to improve morrowbank.com Loan losses oan losses (M ) oan loss ratio ▪ Decrease in nominal losses driven by stable balance and improving credit quality ▪ Overall loan loss ratio continued to decline in the quarter to 4.3% (Q1 2024: 5.2%) 4.0-4.5% ▪ Current level expected t
Slide 14: Profitability increasing – higher ROTE target
Profitability increasing – higher ROTE target morrowbank.com Profit (MNOK) rofit after ta rofit before ta eturn on Target uity ( T ) ▪ Q1 2025 profit before tax up 43% year-on-year ▪ NOK 0.4 per share in dividend for 2024 paid in 15-17% April; 50% of 2024 profits ▪ Return on target equity (ROTE) at
Slide 15: Strong balance sheet – room for growth and dividends
Strong balance sheet – room for growth and dividends morrowbank.com Capital adequacy - CET1 C T headroom C T re uirement ▪ CRR3 effective 1 April 2025: Capital requirement relief – operational risk exposure reduced from MNOK 1,566 to MNOK 570 . ▪ Capital situation improved: Headroom to CET1 requirem
Slide 16: Summary and outlook
Summary and outlook
Slide 17: Growth drivers
Growth drivers morrowbank.com Scalable New Direct Close follow-up Portfolio platform products marketing of clients acquisitions Automation and Launching in Encouraging initial CRM for activation, Growth opportunities if self-service Norway and results driven by upsell and lower churn value accretive
Slide 18: Attractive value-creation potential
Attractive value-creation potential morrowbank.com Today Towards end-2026 Longer-term A scalable banking platform Excess capital growing Driving returns ▪ Proved scalability and industry ▪ Level playing field with Swedish ▪ Allocate capital to where it creates leading cost-efficiency peers to increa
Slide 19: Q&A
Q&A
Slide 20: morrowbank.com
morrowbank.com
Slide 21: Appendix
MORROW morrowbank.com APPENDIX
Slide 22: Profit and loss
Profit and loss morrowbank.com Amounts in MNOK Q1 2025 Q4 2024 2024 2023 Net interest margin* (%) Interest income 450.1 493.8 1,762.7 1,380.0 Interest expenses -134.4 -159.2 -552.2 -359.8 Net interest income 315.8 334.7 1,210.5 1,020.2 8.8 % 8.5 % 8.5 % 8.7 % 8.0 % Commission income and fees 25.8 17
Slide 23: Balance sheet
Balance sheet morrowbank.com 31 Mar. 31 Dec. 31 Dec. 31 Dec. Amounts in MNOK 2025 2024 2023 2022 Liquidity and funding Assets Loans and deposits with credit 687% 1,791.4 2,084.0 1,530.0 807.8 660% institutions Net loans to customers 13,768.4 13,847.5 11,076.0 9,110.7 528% Certificates and bonds 2,44
Slide 24: Shareholder overview
Shareholder overview morrowbank.com Largest 20 shareholders Management and members of the Board of Directors Shares Shares Share options* Warrants # Shareholder % Role Name (thousand) (thousand) (thousand) (thousand) 1 Kistefos AS 47,787 20.7% CFO Eirik Holtedahl 2,642 287 800 2 UBS AG 19,807 8.6%
Slide 25: Headroom to capital requirements
Headroom to capital requirements morrowbank.com 24Q4 capital adequacy 25Q1 capital adequacy C T headroom C T re uirement Tier (T ) C T headroom C T re uirement Tier (T ) Additional Tier (AT ) Common uity Tier (C T ) Additional Tier (AT ) Common uity Tier (C T ) 20.4% . . . . . . . . . . Capital rati
Slide 26: Nordic region remains well positioned
Nordic region remains well positioned morrowbank.com GDP growth (%) Unemployment (%) Inflation (%) 3 10 NO SE FI 10 9 9 8 8 2 7 7 6 6 1 5 5 4 4 3 3 0 2 2 1 1 -1 0 0 2024 2025 2026 2024 2025 2026 2024 2025 2026 ▪ GDP growth to support demand for ▪ Unemployment outlook remains stable, ▪ Inflation leve