Morrow Bank AB · OMXSTO:MORROW
Morrow Bank AB — Q1 2024 Earnings Presentation
23 slides from Morrow Bank AB's earnings presentation, May 7, 2024
Slide 1: First quarter results 2024
morrowbank.com First quarter results 2024 Morrow Bank ASA
Slide 2: Q1 2024 highlights: income growth, cost efficiency and improving loan loss ratio yield higher returns
Q1 2024 highlights: income growth, cost efficiency and morrowbank.com improving loan loss ratio yield higher returns ▪ Continued strong demand across the Nordics, loan book surpassed NOK 12 billion Solid income growth ▪ Total income of NOK 296 million, up 3.4% vs. Q4 2023 ▪ Operating expenses remain
Slide 3: Operational highlights and outlook
morrowbank.com Operational highlights and outlook Photo: craftedbygc
Slide 4: Exceeded growth and cost efficiency targets, positive development continuing in Q1 2024
Exceeded growth and morrowbank.com cost efficiency targets, Target of >50% loan balance growth achieved BNOK 12.2 positive development BNOK 11.8 Q1’22 continuing in Q1 Stated ambition to 2024… grow loan balance Q4’23 Q1’24 By more than 50% by Stated ambition Positive trend year-end 2024 achieved con
Slide 5: …and confirming our outlook for Q4 2025
…and confirming our outlook for Q4 2025 morrowbank.com Stable gross loan balance growth Cost/income ratio improving Loan loss ratio starting to decline Return on Target Equity improving BNOK % % % oan lo ratio 0 2 4 • On track to deliver on growth target • Continued focus on cost efficiency • Tighte
Slide 6: First quarter financial review
morrowbank.com First quarter financial review Photo: craftedbygc
Slide 7: Allocating growth capacity to most profitable markets
Allocating growth capacity to most profitable markets morrowbank.com Total gross loans Gross loan balance growth of 13% year-on-year and MNOK 3.9% in Q1 2024: 2 24 Finland 4 0 0 0 2 ▪ Underlying Q1 development: MNOK 214 (+4.1%) 2 ▪ Focus on profitable growth and market share 2 2 ▪ Attractive margins
Slide 8: Successful loan repricing supporting solid margins
Successful loan repricing supporting solid margins morrowbank.com Yields, performing loans and deposits Increased interest rates across loan book % 5 0 ▪ Strengthened pricing capabilities for loans and 0 2 deposits 4 4 ▪ Repriced loan rates on new and existing 2 customers ▪ Credit card rates inching
Slide 9: Total income continues to grow
Total income continues to grow morrowbank.com Total income Total income up 3.4% vs Q4 2023 MNOK ▪ Driven by loan growth and repricing ▪ Net commissions and fees and capital gains up NOK 1.5 million vs. the previous quarter ▪ Year-on-year total income growth of 26% – double the loan balance growth of
Slide 10: Cost/income demonstrating scalability
Cost/income demonstrating scalability morrowbank.com Cost/income picture Cost/income ratio improved for five consecutive quarters ▪ Cost/income ratio of 27% in Q1 2024, down from 28% in Q4; halved since Q1-2022 ▪ Continued growth at stable cost levels, demonstrating scalability 35% ▪ Income increase
Slide 11: Loan losses bucking the trend and starting to decline
Loan losses bucking the trend and starting to decline morrowbank.com Stable loan balance and stage evolution Ample loan loss provisioning Loan loss ratio trend turned in Q1 Stage distribution (MNOK) Loan loss provision (%) Loan losses tag tag 2 tag oan lo oan lo ratio tag tag 2 tag ▪ Steady distribu
Slide 12: Successful turnaround delivered, profitability set to improve further
Successful turnaround delivered, profitability set to morrowbank.com improve further Profit Profits at the highest level since Q2 2021 MNOK ▪ Profit before tax of NOK 58 million in Q1,up 5 15% vs the previous quarter 55 5 ▪ Improvement driven by income growth, 5 while containing operating costs and
Slide 13: Capital levels provide headroom and support growth
Capital levels provide headroom and support growth morrowbank.com • Capital ratio decreased due to growth and phase-in of IFRS 9- Capital adequacy transition (fully completed as of 2025) • Capital requirement decreased due to increasing Finnish share of the loan book 0 • Requirement set to increase
Slide 14: Summary and key take-aways
morrowbank.com Summary and key take-aways
Slide 15: Scalable bank platform in place, positioned for continued growth and value creation
Scalable bank platform in place, positioned for morrowbank.com continued growth and value creation • Continued strong demand, loan book above NOK 12 billion Solid income growth • A solid 3.4% income growth in the quarter • Highly competitive cost/income ratio of 27% Scalability driving cost efficien
Slide 16: Growth and improved profits drive returns up
Growth and improved profits drive returns up morrowbank.com Return on Target Equity (ROTE) 1 1 % • Q1 2024 ROTE improvement driven by loan growth and cost efficiency 1 12 • Sustained outlook: 10-12% ROTE in Q4 2025 • or gian nich ank ’ r turn limit d high 1 4 requirements of 15- … di h r at 0–12% 1
Slide 17: Q&A
17 Q&A ri RROW morrowbank.com
Slide 18: Appendix
[MORROW morrowbank.com APPENDIX
Slide 19: Morrow Bank ASA – a diversified Nordic consumer finance company
Morrow Bank ASA – a diversified Nordic consumer finance company morrowbank.com Key facts Gross loan balance of NOK 12.2 billion ▪ Established in 2014, listed in 2017 Norway Finland Sweden Loans Credit Cards ▪ Norwegian banking license (EU passporting) ▪ Fully centralised operations (<75 FTEs) 8% 24
Slide 20: Profit and loss
Profit and loss morrowbank.com Amounts in MNOK Q1 2024 Q4 2023 2023 2022 Net interest margin* (%) Interest income 408.6 398.2 1,380.0 907.0 Interest expenses -122.1 -120.1 -359.8 -113.7 8.8 % 9.3 % 8.9 % 9.1 % 8.8 % Net interest income 286.4 278.1 1,020.2 793.3 Commission income and fees 13.9 13.5 6
Slide 21: Balance sheet
Balance sheet morrowbank.com 31 Mar 31 Dec. 31 Dec Amounts in MNOK 2024 2023 2022 Liquidity and funding Assets 567% Loans and deposits with credit 2,037.6 1,530.0 807.8 institutions Net loans to customers 11,373.1 11,076.0 9,110.7 302% 310% 291% Certificates and bonds 944.2 926.1 1,453.5 Other intan
Slide 22: Shareholder overview
Shareholder overview morrowbank.com Largest 20 shareholders Management and members of the Board of Directors Shares Share options Warrants # Shareholder Shares (thousand) % Role Name (thousand) (thousand) (thousand) 1 Kistefos AS 47,787 20.8% CFO Eirik Holt dahl 2,463 44 800 2 UBS AG 19,716 8.6% CO
Slide 23: morrowbank.com
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