Slide 1: Interim Presentation Q4-2024
INTERIM PRESENTATION Q4-2024
Slide 2: Highlights
Profit after tax: 26.6 MNOK, +1.4 MNOK vs Q4-23 Return on equity: 11.3 % Accelerating growth for business lending Business lending grew 168 MNOK in the quarter and sustained attractive profitability Highlights Revised decision on capital composition for Pillar 2 Common equity tier 1 (CET1) capital r
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: 345 321 • Continued growth for the most profitable segments, business lending and mortgages that now account for 52 % of total lending, up from 41 % one year ago 228 174 168 165 172 139 119 107 91 65
Slide 5: Gross lending portfolio | Transparent and simple
Gross lending portfolio| Transparent and simple Gross Loans # Customers Avg Ticket Size Yield Mortgages First or second priority mortgages for refinancing of 3,018’’ 3,077 981’ 9.1 % unsecured debt or house improvements Consumer Loans Unsecured loans offered in Norway, Finland and 2,620’’ 24,465 107
Slide 6: Yields and funding cost | Attractive margins
Yields and funding cost | Attractive margins LENDING* AND LIQUIDITY YIELD, INTEREST RATE DEPOSITS: KEY COMMENTS: 19.3 % 19.2 % 18.7 % 18.5 % 18.0 % • Highly attractive yield for business lending at 18.0 % 13.3 % 13.3 % 13.4 % 13.3 % 13.0 % 9.0 % 9.2 % 9.1 % 9.1 % 8.9 % • The interest rate for deposi
Slide 7: Profitability, risk and capital
Profitability, risk and capital
Slide 8: 31 consecutive quarters with profits
Q4-16 -8.0 Q1-17 -3.2 Q2-17 1.2 2.1 % Q3-17 2.2 3.7 % Q4-17 2.1 3.2 % Q1-18 4.0 5.6 % Q2-18 6.7 8.4 % Q3-18 7.0 Q4-18 8.3 7.3 % 7.5 % Q1-19 3.3 2.6 % Q2-19 9.6 7.2 % Q3-19 13.3 9.7 % Q4-19 15.1 10.8 % Q1-20 5.3 4.0 % Q2-20 9.9 7.7 % Q3-20 13.2 10.1 % Q4-20 14.3 Q1-21 14.0 10.7 %10.2 % Q2-21 19.5 13.
Slide 9: Total income | High growth in income
Total income | High growth in income TOTAL INCOME (MNOK): KEY COMMENTS: 125.1 128.4 126.4 120.9 116.5 ▪ Total income in Q4 2024 was 126.4 MNOK, up 1.3 MNOK from the same quarter last year. An increase in net interest income of 13.4 MNOK was partly offset by a decrease in net other income of 12.1 MNO
Slide 10: Operating expenses | Economy of scale
Operating expenses | Economy of scale OPERATING EXPENSES BREAKDOWN (MNOK): KEY COMMENTS: 61.2 53.3 3.0 45.7 46.0 46.0 2.2 ▪ Operating expenses were impacted by non-recurring costs and reached 61.1 2.1 25.9 2.7 2.6 23.6 MNOK, representing an increase of 7.9 MNOK from the previous quarter. 19.6 18.8 1
Slide 11: Credit risk | Mortgages represent low credit risk
Credit risk | Mortgages represent low credit risk IMPAIRMENT LOSSES (MNOK): KEY COMMENTS: 50.0 46.6 46.3 10.0 % 38.9 39.9 40.0 8.0 % ▪ Loan losses came in at 32.2 MNOK/ 2.0 %, down 14.4 MNOK from the same quarter last 32.2 year 30.0 6.0 % 20.0 4.0 % 3.1 % 2.9 % 10.0 2.4 % 2.5 % 2.0 % 2.0 % ▪ Losses
Slide 12: Regulatory Capital | Solid capital adequacy
Regulatory Capital | Solid capital adequacy DEVELOPMENTS IN CAPITAL ADEQUACY RATIOS: KEY COMMENTS: 22.9 % 23.2 % 23.4 % 23.2 % 22.2 % 2.2 % 2.1 % 2.1 % 2.1 % 2.0 % • (CET1) ratio was 19.4 %, down 0.1 % points from the end of Q3-24 and 1.0 % 1.8 % 1.8 % 1.8 % 1.8 % 1.8 % points above the regulatory c
Slide 13: Strategy and ambitions
Strategy and ambitions
Slide 14: Strategic move towards a Europe
Strategic move towards a Europe Instabank to apply for a Banking License in Finland • Instabank’s board of directors has initiated the process of applying for a banking license in Finland. The framework and business environment for niche banks in Norway is still considered more restrictive and less
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 Scaling Mortgages Credit Cards DE Consumer loans NO/FI Consumer loans SE Sales finance FI Security depos
Slide 16: Financials | Guiding as per Q4-24
Financials | Guiding as per Q4-24 Outlook 2025 Strategic ambition mid-term PROFIT AFTER TAX ~ 125 mill. > 200 mill. Strong improvement in profits Among the better Proof of Success ROE > 12 % > 15 % Strong improvement in performance Among the better Proof of Success GROSS LOANS ~ 8.7 Bn > 10.0 Bn Gro
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 margins 1 market position, a customer-centric approach, and 4 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 | CHIEF EXECUTIVE OFFICER JØRGEN RUI | CHIEF MARKETING OFFICER Berg is one of the Co-founders who established Instabank in 2016 . Prior to that he has Rui was recruited to the Instabank team in 2020. He has previously served as Director for been CEO
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 he Nylander is currently CFO in Kitron. Her previous experiences include positions as CFO also served as
Slide 21: Deposits volumes | Diversified funding
Deposits volumes | Diversified funding Volume # Customers Avg. Deposit Size Avg. deposit rate Norway 3,639’’ 19,509 187’ 4.5 % Germany 3,020’’ 18,037 167’ 3.3 % Finland 76’’ 3,232 23’ 1.1 % Sweden 12’’ 1,275 9’ 0.5 % Total 6,747’’ 42,053 160’ 3.9 %
Slide 22: The share | Oslo Euronext Growth, ticker INSTA
The share | Oslo Euronext Growth, ticker “INSTA” Top 20 shareholders (Per February 6th, 2025) 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
Slide 23: Income statement & Balance sheet | Overview
Income statement & Balance sheet | Overview INCOME STATEMENT (NOK THOUSAND) BALANCE SHEET (NOK THOUSAND) P&L FY 2024 Q4-24 Q3-24 Q2-24 Q1-24 FY 2023 Balance Sheet 31.12.24 30.09.24 30.06.24 31.03.24 31.12.23 Total income: Assets Interest Income 722,350 187,135 184,782 179,267 171,166 577,555 Loans a
Slide 24: Instabank is the Nordic challenger bank. Founded in 2016.
Instabank is the Nordic challenger bank for corporate and private customers. Founded in 2016.