Avarda Bank AB · OMXSTO:AVARDA
Avarda Bank AB — TF Bank — Q4 2020 Earnings Presentation
24 slides from Avarda Bank AB's earnings presentation, January 2021
Slide 1: 4th Quarter 2020 Result Presentation
Slide 2: Highlights October - December 2020
HIGHLIGHTS OCTOBER - DECEMBER 2020 = Strong growth during the quarter +8% in local currencies = More than 53,000 card customers in Germany — 15,000 new card customers in Q4 = — Record volumes for Ecommerce Solutions = Intention to sign new FF contracts in Finland and Norway during the beginning of 2
Slide 3: Consumer Lending: Share of loan book and operating income
Share of TF Bank's loan book Share of TF Bank's operating income ▪ 73% 72% ▪ 5.8bn 20% 8 ▪ Loan book Loan book Countries growth* ▪ APR-New originations, volume weighted 25,00% 20,00% 15,00% ▪ 10,00% 5,00% 0,00% NO, FI, SE EE, LV, LT, PL 3
Slide 4: Ecommerce Solutions: Share of loan book and operating income
▪ Share of TF Bank's loan book Share of TF Bank's operating income ▪ 17% 21% ▪ 1.3bn 34% 7 ▪ Loan book Loan book Countries growth* 4
Slide 5: Credit Cards: Share of loan book and operating income
Share of TF Bank's loan book Share of TF Bank's operating income ▪ 10% 7% ▪ ▪ 0.8bn 177% 2 ▪ Loan book Loan book Countries growth*** ▪ ▪ ▪ 5
Slide 6: Loan book by business area, Q4'19 to Q4'20
▪ 8 000 ‒ 7 000 6 000 ▪ 5 000 ‒ 4 000 ▪ 3 000 ‒ 2 000 1 000 ▪ 0 ‒ Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 TF Bank Consumer Lending Ecommerce Solutions Credit Cards 6
Slide 7: Loan book by country
Sweden ▪ Focus on profitability and e-commerce. Loan book Norway ▪ Continued positive long term outlook on the Norwegian economy. Focus on growth and margins. Finland ▪ New rate cap of 10% until Q3 2021 for consumer loans. Sweden Norway Finland Baltics Poland Germany The Baltic states ▪ Portfolio ma
Slide 8: Operating income, margins and costs by quarter
250 234 25,0% 100 95 60,0% 70 8,0% 218 61 62 213 210 90 85 60 60 208 80 80 60 78 50,0% 200 20,0% 80 51 6,0% 70 50 40,0% 40,6% SEK million SEK million 15,0% SEK million 150 60 37,9% 38,7% 37,3% 37,7% 40 50 30,0% 4,0% 13,2% 12,7% 30 100 12,0% 11,9% 12,1% 10,0% 40 3,5% 3,4% 20,0% 3,3% 3,3% 3,2% 30 20 2
Slide 9: Credit Cards results
Credit Credit Credit Cards 90 Cards Cards -5,2 80 75 -4,0 -9,0 77 ▪ 70 70 ‒ 60 ‒ SEK million 50 ▪ 40 ‒ 30 20 10 0 Q4'19 Q2'20 Q4'20 9
Slide 10: SEK million
▪ 80 73 74 72 70 66 ‒ 60 ‒ 50 ‒ SEK million 40 ▪ 30 ‒ 20 ‒ 10 0 Q1'20 Q2'20 Q3'20 Q4'20 10
Slide 11: SEK million
16 14 ▪ 14 ‒ 12 10 10 ‒ 10 ‒ SEK million 8 ▪ 6 6 ‒ 4 ‒ 2 0 Q1'20 Q2'20 Q3'20 Q4'20 11
Slide 12: SEK million
0 Q1'20 Q2'20 Q3'20 Q4'20 ▪ ‒ -2 ‒ -4 ‒ SEK million -5 ▪ -6 ‒ -7 -8 ‒ -9 -10 -10 -12 12
Slide 13: Deposits and liquidity reserve
10 000 9 000 Distribution of deposits 8 000 ▪ Sweden 7 000 ‒ Germany 12% Finland SEK million 6 000 4 658 4% ‒ 5 000 Germany 53% ‒ 4 000 31% Norway ‒ 24% of deposits 3 000 Norway ‒ 2 716 2 000 1 021 Other ▪ 1 000 Sweden 1 002 1 098 Central banks ‒ Finland 0 338 Deposits from Liquidity reserve* ‒ the
Slide 14: Capital ratios and headroom to legal requirements
17,3% ▪ T1+T2 17,3% 14,1% Headroom 5,5% 12,8% T1 14,1% ▪ Headroom 4,5% Headroom 4,8% T1+T2 11,8% T1 9,6% T1 9,6% CET1 12,8% ▪ CET1 8,0% CET1 8,0% CET1 8,0% ▪ Capital ratios Headroom to CET1 legal capital Headroom to T1 legal capital Headroom to T1+T2 legal capital 31 December 2020 requirements (incl
Slide 15: Looking Ahead
LOOKING AHEAD = Intention to announce new financial targets - H2 2021 # Intention to sign new forward flow deals - clean balance sheet policy =" Covid-19 — Back to lockdown in several markets, might lead to short-term reduced customer demand ‘TF TFBank 15
Slide 16: Q&A Session
Q&A Session 16
Slide 17: Appendix
APPENDIX 17
Slide 18: Corporate Profile
CORPORATE PROFILE Our Products Operating with modern and scalable infrastructure offering our retail customers online consumer loans, deposits and credit cards. For retailers we offer leading ecommerce and brick-and-mortar payment solutions Our DNA We aim to deliver effortless banking to our custome
Slide 19: Loan portfolio and operating income 1993-2020
▪ 9 000 1 000 8 000 900 800 ▪ 7 000 6 000 700 SEK million 600 5 000 500 4 000 400 3 000 300 2 000 200 1 000 100 ▪ 0 1993 2002 2011 2020 0 Loan portfolio Operating income 19
Slide 20: Financial Targets and Dividend Policy
FINANCIAL TARGETS AND DIVIDEND POLICY The Board of Directors of TF Bank intends to establish new financial targets once the macroeconomic outlook has stabilised. Currently, TF Bank has the following targets: Efficiency TF Bank aims to achieve a cost/income ratio of below 35% in 2020 Capital structur
Slide 21: Board of Directors
John Brehmer Charlotta Björnberg- Tone Bjørnov Chariman of the Board Paul Board member since 2015 since 2020 Board member since Current commitments: Board member since 2017 Chairman: Filmparken AS, Storyline Studios AS, Hausmann AS 2010 Current commitments: Board member: Storyline Studios Current co
Slide 22: Group management
Mattias Carlsson Mikael Meomuttel CEO CFO, Deputy CEO and Head of Investor Education: MSc, Engineering Physics, Uppsala University. Relations Current commitments: Qred AB (chairman), and Tronstad Education: MSc, Business/Economics and Finance, University Consulting AB (board member). of Borås/Univer
Slide 23: Regional managers and management team
▪ Vilma Sool Regional manager Juho Maanpää Head of Finland Juris Pūce Head of Latvia Björn Skytt CIO Baltics Extensive consumer Before joining TF Bank Before joining TF Bank Head of Estonia finance experience in in 2016, worked for in 2010 worked as Finland within seven years in integration manager
Slide 24: Contact: Investor relations
‘TF TFBank Contact Investor relations Mikael Meomuttel +46 706 26 95 33 ir@tfbank.se www.tfbankgroup.com