Slide 1: Instabank Interim Presentation Q1/2018
Instabank Interim Presentation – Q1/2018 – May 2 nd 2018 instabank.no www.instabank.no
Slide 2: Important information and disclaimer
Important information and disclaimer THIS PRESENTATION (THE “PRESENTATION”) HAS BEEN PRODUCED BY INSTABANK ASA (THE “COMPANY” OR “INSTABANK”), SOLELY FOR USE AT THE PRESENTATION TO INVESTORS AND IS STRICTLY CONFIDENTIAL AND MAY NOT BE REPRODUCED OR REDISTRIBUTED, IN WHOLE OR IN PART, TO ANY OTHER PE
Slide 3: Key highlights & developments Q1-2018
Key highlights & developments Q1-2018 Q1 profit of NOK 4.0 million Full year profit for 2017 was NOK 2.3 million Continued high loan growth NOK 251 million during Q1 Issued Bonds Issued 65 MNOK in additional Tier 1 and Tier 2 bonds Signed forward flow agreement Forward Flow agreement regardi
Slide 4: Key figures Q1-2018
Key figures Q1-2018 Quarterly growth in net loans of NOK 251 million Outstanding net loans of NOK 1,569 million Customer deposits of NOK 1,844 million Total income of NOK 38.0 million Net profit after tax of NOK 4.0 million Total equity of NOK 287 million Operating expenses & loan loss
Slide 5: Product portfolio | Transparent and simple
Product portfolio | Transparent and simple Unsecured consumer loans Deposit accounts Insurance products Point of sales financing Offered to private consumers older Offered to private individuals in Norway Offered to private individuals in Norway Complete offering already in place: than 23 ye
Slide 6: Distribution channels (I) | Several customer in-roads
Distribution channels (I) | Several customer in-roads Brand distribution Agent distribution Partner distribution + potential new partners Brand Agent Partner distribution volume as of Q1-18 43% distribution volume as of Q1-18 56% distribution volume as of Q1-18 1% 6 DRAFT
Slide 7: Distribution channels (II) | Instabank as a brand
Distribution channels (II) | Instabank as a brand Customer acquisition strategy Brand awareness – Men 35-55y * 20% 13% 11% 8% Week 8 Week 12 Week 33 Week 49 2017 Customer satisfaction – Aug ‘17 ** 1,2 % 0,8 % 6,6 % 39,6 % 51,7 % Very satisfied Satisfied Neither / Nor Dissatisfied Very dissatisfied D
Slide 8: Distribution channels (III) | Instabank as a partner
Distribution channels (III) | Instabank as a partner POS Finance with SkeidarLiving Group AS Hybrid Leasing Solutions with Finance Technology AS In Q4-17 Instabank announced that the bank had been In Q1-18 Instabank launched a hybrid leasing solution in co- granted exclusive rights to the distri
Slide 9: Geographical presence | Gradual expansion strategy
Geographical presence | Gradual expansion strategy Cross-boarder expansion strategy Illustration of geographical presence Net loans distribution (%) * Operational platform capable of fast, agile and cost-efficient cross-boarder CURRENT FOOTPRINT expansion already in place 6,0 % POTENTIAL MARKETS
Slide 10: Continued high loan growth
Continued high loan growth Net loans to customers Number of loan customers Key comments MNOK # Strong emphasis on marketing 12,000 1800 11,000 1600 1 569 through the year to strengthen 10,000 1400 1 318 8,475 brand awareness and to boost 8,000 sales 1200 1 093 6,719 1000 6,000 Stronger focus on
Slide 11: Continued profitability
Continued profitability Total income Net result after tax MNOK 40 38,0 MNOK 6 4,0 35 4 32,1 30,5 2,2 2,1 30 2 1,2 25 23,7 0 2 - 20 15,0 15 4 - -3,2 6 - 10 6,0 8 - 5 -8,0 -10 0 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 11
Slide 12: Disciplined cost control
Disciplined cost control Operating expenses by category Key comments MNOK 25,4 Operating expenses developing 1,2 according to plan 25 ,0 Depreciation and amortisation 20,0 20,5 18,8 6,1 Increased «Other administrative 20 ,0 0,7 0,9 16,3 15,9 0,6 3,1 2,9 Other administrative expenses» due to inve
Slide 13: Well balanced credit risk management
Well balanced credit risk management Impairment losses Past due days at end of quarter 23.7% 25 .0 % 23.7% 25 .0 % 3300.0 .0%% 30.0 % 22.9% 22. 9,0 MNOK 26.5% 26.5% 26.3% 26.3% 3 7,9 25.8% 33.5 .5%% 7,6 4.7 % 4.7 % 8,0 7,2 2255.0 .0%% 23.7% 23.7% 23.7%25.0 % 20 .0 % 20 .0 % 22.9% 22.9% 18.9% 18.9% 4
Slide 14: Balance sheet structure
Balance sheet structure Assets and liabilities & equity Key financial ratios MNOK 2 111 2 229 25 00 Other assets 10 0 % 16 0% 146% 20 00 90 % 14 0% 1 323 Certificates and bonds 137% 15 00 80 % 1 011 70 % 115% 118% 12 0% 10 00 845 Loans to customers 527 60 % 68 % 97% 97% 10 0% 50 0 Loans and deposits
Slide 15: Funding costs and yields
Funding costs and yields Development in yields and funding costs Key comments 17 ,0% Attractive interest rate, affected by mix of products, distribution 13,6% 13,4% 13,2% 12 ,0% 13,0% 12,8% 12,8% channel, and risk assessment Stable funding cost 7,0 % Low yield on liquidity, reflecting risk pro
Slide 16: Instabank outlook
Instabank outlook Strategy Exploring opportunities for further geographical expansion More products to diversify and attract new retail & online partners Continued focus on data insight, operational efficiency and optimal credit decision processes Continued strong Distribution of related pro
Slide 17: Private placement of NOK [50-120]m at NOK [2.00-2.20] per share
Private placement of NOK [50-120]m at NOK [2.00-2.20] per share Transaction rationale Capital adequacy ratios (%) Selected transaction details ** Transaction timeline ** Maintain solid foothold within 68.3 % CET1 T1 * T2 * Issuer Instabank ASA 1 Norwegian Consumer Finance Pre-sounding of key shareho
Slide 18: Appendix
Appendix Instabank 18
Slide 19: Financial summary
Financial summary P&L (NOK ‘000) Balance sheet (NOK ‘000) Items Q1-18 FY 2017 Q4-17 Q3-17 Q2-17 Q1-17 Items Q1-18 Q4-17 Q3-17 Q2-17 Q1-17 Operating income Assets Interest income 42 323 97 536 36 416 29 074 20 939 11 107 Loans and deposits with credit institutions 127 704 40 929 46 456 50 887 39 133
Slide 20: Share price and ownership
Share price and ownership Top 20 shareholders as of 30.04.2018 Share price development since OTC listing in October 2016 # Shareholders # of shares % 1 Skeidarliving Group AS 20,000,000 9.8% Share price (NOK) Volume (‘000) 2 Hodne Holding AS 14,385,419 7.0% 3 Velde Holding AS 13,605,856 6.6% 4.0 4,0
Slide 21: Thank You
Thank You instabank.no www.instabank.no