Slide 1: Interim presentation Q2-2023
Interim presentation Q2-2023 August 10th 2023
Slide 2: Key highlights
Key highlights Net profit after tax increased 34 % to 23,8 MNOK from the same quarter last year Strong growth in Total income, cost to income ratio decreased to 38 % from 46 % in Q2-22 Growth in net loans of 109 MNOK in the quarter, YTD 547 MNOK Capital constraints hampered growth in the quarter Mor
Slide 3: Net loans and margin developments
Net loans and margin developments
Slide 4: Net loan development | Well diversified loan book
Net loan development | Well diversified loan book NET LOAN BALANCE GROWTH (MNOK) KEY COMMENTS: • Capital constraints was limiting growth the two first months • Growth in net loans of 109 MNOK in Q2-23, YTD 547 MNOK • Mortgage lending increased 120 MNOK in Q2-23 to 2,075 MNOK NET LOANS TO CUSTOMERS (
Slide 5: Yields and funding cost | Attractive margins
Yields and funding cost | Attractive margins Lending and liquidity yield, and interest rate deposits KEY COMMENTS: 11.6 % 12.0 % • Increased market rates the last year have put pressure on the 11.3 % 10.8 % 10.6 % net interest margin 8.3 % 7.1 % 7.6 % 6.2 % 6.4 % • The increase in mortgages yield fr
Slide 6: Diversified loan portfolio | Transparent and simple
Diversified loan portfolio| Transparent and simple Net Loans # Customers Avg Ticket Size Yield Consumer Loans Unsecured loans offered in Norway, Finland and 2,632’’ 25,013 105’ 12,0 % Sweden Mortgages First or second priority mortgages for refinancing 2,075’’ 2,268 914’ 8,3 % of unsecured debt or ho
Slide 7: Deposits volumes | Diversified funding
Deposits volumes | Diversified funding Volume # Customers Avg. Deposit Size Avg. deposit rate Norway 3,275’’ 11,913 275’ 3,4 % Finland 253’’ 4,075 62’ 1,1 % Germany 1,752’’ 9,824 178’ 2,4 % Sweden 18’’ 1,760 10’ 0,6% Total 5,298’’ 27,572 199’ 2,9 %
Slide 8: Profitability, risk and capital
Profitability, risk and capital
Slide 9: Total income | High growth in income
Total income | High growth in income TOTAL INCOME (MNOK): KEY COMMENTS: 98.0 100.8 102.8 88.0 86.2 ▪ Total interest income increased by 38.2 MNOK from the same quarter last year to 132.7 MNOK in Q2-23 driven by increased loan yield to 10,4 % from 9.2 % and growth in net loans ▪ The increase in inter
Slide 10: Operating expenses | Demonstrating economy of scale
Operating expenses | Demonstrating economy of scale OPERATING EXPENSES BREAKDOWN (MNOK): KEY COMMENTS: 40.2 39.7 38.0 38.4 2.3 36.1 1.8 2.3 ▪ Stable development in operating expenses despite the growth in net loans in 2.0 1.9 the period, demonstrating economy of scale 12.6 14.0 11.6 15.2 16.0 8.1 3.
Slide 11: Credit risk | Mortgages represent low credit risk
Credit risk | Mortgages represent low credit risk IMPAIRMENT LOSSES (MNOK): 40.0 10.0 % KEY COMMENTS: 32.1 30.8 32.9 30.0 24.0 23.7 20.0 5.0 % ▪ Stable development in losses on loans in the last quarters 10.0 2.2 % 2.7 % 2.4 % 2.5 % 2.1 % 0.0 0.0 % Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Impairment losses Loa
Slide 12: Profits | Long term growth in profit
Profits | Long term growth in profit PROFIT AFTER TAX (NOKM) & RETURN ON EQUITY: 16.6 %16.6 % 14.7 % 13.8 % 13.2 % 13.2 % 12.6 % 12.4 % 10.8 % 10.7 %10.2 % 10.9 % 9.7 % 10.1 % 25.5 25.4 24.4 23.8 23.7 8.4 % 7.7 % 20.6 7.3 % 7.5 % 7.2 % 19.5 18.4 17.8 15.1 5.6 % 14.3 14.0 13.3 13.2 3.7 % 3.2 % 4.0 %
Slide 13: Regulatory Capital | Solid capital adequacy
Regulatory Capital | Solid capital adequacy DEVELOPMENTS IN CAPITAL ADEQUAICY RATIOS: KEY COMMENTS: 24.9 % 25.1 % 22.5 % 23.3 % 21.7 % 2.7 % 2.5 % 1.6 % 1.6 % 2.3 % 2.5 % 2.1 % 1.2 % 1.2 % 2.1 % • Successfully completed a private placement of new shares in Q2-23, raising 70 MNOK in gross proceeds 18
Slide 14: Strategy and ambitions
Strategy and ambitions
Slide 15: 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 Credit Card FI Credit Cards DE Consumer loans NO/FI Consumer loans SE Sales finance FI Multi product acc
Slide 16: Financials | Guiding as per Q2-23
Financials | Guiding as per Q2-23 Strategic ambition Outlook 2023 mid-term PROFIT AFTER TAX ~100 mill. > 210 mill. Strong improvement in profits Among the better Proof of Success ROE >13 % > 19 % Strong improvement in performance Among the better Proof of Succes GROSS LOANS > 6.0 Bn 9.0 Bn Growth is
Slide 17: Key value propositions | The Nordic Challenger Bank
Key value propositions| The Nordic Challenger Bank A dynamic and innovative challenger bank with a Continued strong growth in net loans at attractive 1 solid market position, a customer-centric approach, 4 margins and 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 Knudsen joined the Company in 2018. He has previously held various positions in he has been CEO in yA Bank, Commercial Director in Ikano Bank
Slide 20: Board of directors | Season and diligent
Board of directors | Season and diligent MONA CATHRINE NYLANDER | CHAIRPERSON ODD HARALD HAUGE | BOARD MEMBER Hauge is an investor, consultant and author. He is the founder of Nettavisen Nylander is currently CFO in Kitron. Her previous experiences include positions where he also served as Chief Edi
Slide 21: The share | Euronext Growth Oslo Børs, ticker INSTA
The share | Euronext Growth Oslo Børs, ticker “INSTA” Top 20 shareholders (1. August 2023) 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 INVESTERINGSSELSKAP AS 20
Slide 22: Income statement & Balance sheet | Overview
Income statement & Balance sheet | Overview INCOME STATEMENT (NOK THOUSAND) BALANCE SHEET (NOK THOUSAND) P&L Q2-23 Q1-23 FY 2022 Q4-22 Q3-22 Q2-22 Balance Sheet 30.06.23 31.03.23 31.12.22 30.09.22 30.06.22 Total income: Assets Interest Income using the effective interest method 134,255 120,926 393,6
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.