Slide 1: Interim presentation Q1-2024
Interim presentation Q1-2024 April 30th, 2024
Slide 2: Key highlights
Key highlights Profit before tax: 24.2 MNOK vs 31.6 MNOK in Q1-23 Profit after tax: 18.2 MNOK Growth in gross loans: 321 MNOK to 6,595 MNOK Increased growth in business lending New Security deposit account product launched Will contribute to lower funding costs
Slide 3: Net loans and margin developments
Net loans and margin developments
Slide 4: Gross loans development | Well diversified loan book
Gross loans development | Well diversified loan book GROSS LOANS BALANCE GROWTH (MNOK) KEY COMMENTS: 476 493 • Solid growth in gross loans of 321MNOK in the quarter, of which 79 345 321 270 262 207 MNOK came from changes in exchange rates 194 174 165 139 123 141 91 65 • Lending to SMEs grew 65 MNOK
Slide 5: Yields and funding cost | Attractive margins
Yields and funding cost | Attractive margins LENDING AND LIQUIDITY YIELD, INTEREST RATE DEPOSITS: KEY COMMENTS: 19.3 % 18.7 % 17.7 % • Highly attractive yield for business lending at19.3 % 12.0 % 12.1 % 12.2 % 12.1 % 11.6 % • Deposit rates developments influenced by markets rates as well as 8.5 % 8.
Slide 6: Gross lending portfolio | Transparent and simple
Gross lending portfolio| Transparent and simple Gross Loans # Customers Avg Ticket Size Yield Consumer Loans Unsecured loans offered in Norway, Finland and 3,172’’ 27,013 117’ 13.2 % Sweden Mortgages First or second priority mortgages for refinancing of 2,615’’ 2,818 928’ 9.0 % unsecured debt or hou
Slide 7: Deposits volumes | Diversified funding
Deposits volumes | Diversified funding Volume # Customers Avg. Deposit Size Avg. deposit rate Norway 3,536’’ 14,803 239’ 4.6 % Germany 2,754’’ 15,735 175’ 3.7 % Finland 104’’ 4,112 25’ 1.1 % Sweden 16’’ 1,760 9’ 0.5 % Total 6,410’’ 36,410 176’ 4.1 %
Slide 8: Profitability, risk and capital
Profitability, risk and capital
Slide 9: 28 consecutive quarters with profits
Q4-16 -14.2 Q1-17 -4.2 Q2-17 1.6 2.1 % Q3-17 2.9 3.7 % Q4-17 3.8 3.2 % Q1-18 5.4 5.6 % Q2-18 8.9 8.4 % Q3-18 9.3 Q4-18 10.4 7.3 % 7.5 % Q1-19 4.4 2.6 % Q2-19 12.8 7.2 % Q3-19 17.6 9.7 % Q4-19 20.3 10.8 % Q1-20 7.1 4.0 % Q2-20 13.2 7.7 % Q3-20 17.6 10.1 % Q4-20 19.1 Q1-21 18.7 10.7 % 10.2 % Q2-21 26.
Slide 10: Total income | High growth in income
Total income | High growth in income TOTAL INCOME (MNOK): KEY COMMENTS: 125.1 112.4 116.5 102.8 100.8 ▪ The increase in total interest income from Q1-23 of 44.9 MNOK to 164.9 MNOK comes from a 12-month gross lending growth of 1,300 MNOK and increased loan yield to 11.5 % from 10.4 % in the same quar
Slide 11: Operating expenses | Demonstrating economy of scale
Operating expenses | Demonstrating economy of scale OPERATING EXPENSES BREAKDOWN (MNOK): KEY COMMENTS: 45.7 46.0 42.3 38.4 39.7 2.7 2.1 1.7 2.3 1.8 18.8 ▪ Total operating expenses were at the same level as in the previous quarter. 17.8 19.6 15.2 16.0 3.9 3.8 5.0 2.7 2.8 15.7 15.4 15.8 16.4 16.9 ▪ We
Slide 12: Credit risk | Mortgages represent low credit risk
Credit risk | Mortgages represent low credit risk IMPAIRMENT LOSSES (MNOK): KEY COMMENTS: 60.0 10.0 % 46.6 46.3 40.0 30.8 32.9 33.4 5.0 % 20.0 2.4 % 2.5 % 3.1 % 2.9 % ▪ The loan loss ratio decreased to 2.9 % from 3.1 % in the previous quarter 2.3 % 0.0 0.0 % Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Impairment
Slide 13: Regulatory Capital | Solid capital adequacy
Regulatory Capital | Solid capital adequacy DEVELOPMENTS IN CAPITAL ADEQUACY RATIOS: KEY COMMENTS: 25.1 % 23.3 % 24.2 % 22.9 % 22.3 % • Common Equity Tier 1 Capital (CET1) ratio was 18.4 %, 3.8 % points above the 2.5 % 2.3 % 2.5 % 2.1 % 2.0 % 2.2 % 2.1 % regulatory capital requirement 2.1 % 1.8 % 1.
Slide 14: Strategy and ambitions
Strategy and ambitions
Slide 15: Where do we stand today, and where are we headed?
Where do we stand today, and where are we headed? Turning point: Market conditions are probably at a low point now Current situation: Ex pected developments: ▪ The Central banks are finished increasing policy rates and cuts are expected late 2024 or 2025 ▪ Net interest margins have decreased due to
Slide 16: Product strategy | Continued expansion and diversification
Product strategy | Continued expansion and diversification FROM a specialised consumer finance bank Diversification and scale up TO a focused commercial bank Savings NO Savings FI/SE Mortgages NO Scaling Mortgages Security saving account Consumer loans NO/FI Consumer loans SE Sales finance FI Credit
Slide 17: Key value propositions | The Nordic Challenger Bank
Key value propositions| The Nordic Challenger Bank A dynamic and innovative challenger bank with a solid Continued strong growth in net loans at attractive 1 market position, a customer-centric approach, and 4 margins significant growth potential in the fintech sector Lean operational platform and o
Slide 18: Thank you for your attention
Thank you for your attention Continue to see lists of management, board of directors, share holders, income statement and balance sheet.
Slide 19: Management | Experienced and competent
Management | Experienced and competent ROBERT BERG | CEO KJETIL KNUDSEN | CRO Berg is one of the Co-founders who established Instabank in 2016 . Prior to that he Knudsen joined the Company in 2018. He has previously held various positions in has been CEO in yA Bank, Commercial Director in Ikano Bank
Slide 20: Board of directors | Seasoned and diligent
Board of directors | Seasoned and diligent MONA CATHRINE NYLANDER | CHAIRPERSON ODD HARALD HAUGE | BOARD MEMBER Hauge is an investor, consultant and author. He is the founder of Nettavisen where Nylander is currently CFO in Kitron. Her previous experiences include positions as he also served as Chie
Slide 21: The share | Euronext Growth Oslo Børs, ticker INSTA
The share | Euronext Growth Oslo Børs, ticker “ INSTA” Top 20 shareholders (Per April 26th, 2024) Share price development (last 12 months) # Shareholders # of shares % 1 KISTEFOS AS 94,268,606 24.9% 2 HODNE INVEST AS 37,546,909 9.9% 3 VELDE HOLDING AS 30,044,521 7.9% 4 BIRKELUNDEN INVESTERINGSSELSKA
Slide 22: Income statement & Balance sheet | Overview
Income statement & Balance sheet | Overview INCOME STATEMENT (NOK THOUSAND) BALANCE SHEET (NOK THOUSAND) P&L Q1-24 FY 2023 Q4-23 Q3-23 Q2-23 Q1-23 Balance Sheet 31.03.24 31.12.23 30.09.23 30.06.23 31.03.23 Total income: Assets Interest Income using the effective interest method 164,924 564,521 162,4
Slide 23: Instabank is the Nordic challenger bank for corporate and private customers
Instabank is the Nordic challenger bank for corporate and private customers. Founded in 2016.