Slide 1: Interim Presentation Q2 – 2019
Instabank Interim Presentation Q2 – 2019 August 16 th 2019 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 Q2-19
Key highlights & developments Q2-19 Record high Q2 net profit of 12.7 MNOK Losses on loans came down to 15.7 MNOK or 2.4 % of gross loan balance Net loan growth of 13 MNOK Finland performed well with a net loan growth of 92 MNOK, net loans in Norway decreased by 99 MNOK, while net loans in Swede
Slide 4: Key figures Q2-2019
Key figures Q2-2019 Net profit before tax of 12.8 MNOK + 43 % vs Q2-18 Total income of 61.1 MNOK + 30 % vs Q2-18 Losses on loans 2.4 % vs 2.3 % Q2-18 Quarterly growth in net loans of 13 MNOK - 95 % vs Q2-18 Outstanding net loans of 2,618 MNOK + 43 % vs Q2-18 Total equity of 539 MNOK + 52
Slide 5: Net loan development
Net loan development Net loan balance growth Net loans to customers Number of loan customers MNOK MNOK MNOK 3 200 # 30 000 27 046 2 605 2 618 26 144 376 2 700 2 482 47 25 25 000 24 023 6 511 2 211 6 469 5 661 20 427 655 2 200 803 455 266 271 895 1 835 4 711 20 000 1 700 16 000 15 000 123 1 200 10 00
Slide 6: Funding costs and yields
Funding costs and yields Development in yields and funding costs Key comments 12,9 % 13,0 % 13,1 % 13,0 % 13,0 % Attractive interest rate, affected by mix of products, distribution channel, and risk assessment Interest rate on deposits 2,0 % decreased as deposit mix 1,9 % 1,8 % 1,7 1,6 % 1,6 % c
Slide 7: Total income
Total income Total income Total income detailed MNOK MNOK 0,7 1,9 3,2 1,7 8,6 7,8 8,8 58,3 58,3 2,8 10,3 52,3 54,3 44,8 8,3 70,2 73,5 74,5 60,1 49,9 -10,2 -11,9 -14,5 -13,5 -13,4 -6,1 -7,8 -11,0 -12,2 -13,8 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Interest Income Interest expenses
Slide 8: Operating expenses
Operating expenses Operating expenses detailed Cost/income ratio MNOK MNOK 31,9 30,4 29,8 58% 58% 1,3 2,2 55% 26,0 26,4 2,7 51% 49% 1,1 8,7 1,5 10,1 44% 43% 6,3 8,3 10,2 35% 35% 36% 6,3 10,2 12,0 4,5 6,7 11,4 10,3 7,1 6,9 7,9 1,4 1,6 1,9 2,0 2,2 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q2-18 Q3-18 Q4-18 Q1-19
Slide 9: Credit risk development
Credit risk development Impairment losses Past due days at end of quarter MNOK % of gross lending 25 45,0 % 10,0 22,0 2,6 % 2,8 % 9,0 2,5 % 40,0%% 2,1 % 20 8,0 1,7 % 1,8 % 17,5 35,0%% 31,4 % 31,2 % 1,5 % 15,8 7,0 30,0%% 27,9 % 27,3 % 15 6,0 % 6,8 % 7,7 % 0,5 % 12,6 23,7 % 6,0 % 25,0 % 1,2 % 5,0 % 0,
Slide 10: Net profit
Net profit Net profit after tax Key comments MNOK 9,6 • Net profit after tax increased from the previous quarter 8,3 6,7 7,0 primarily as Q1 19 included a one-time adjustment of 5 MNOK in loan loss provisions 3,3 While total income remained the same as in the previous quarter, operating cost decre
Slide 11: Balance sheet structure
Balance sheet structure Assets and liabilities & equity Key financial ratios MNOK 50% 140% 3 415 3 576 Other assets 3800 3 379 3 060 45% 120% 2800 2 394 Certificates and bonds 40% 115% 114% 112% 106% 106% 35% 100% Loans and deposits with 1800 29% 28% 28% credit institutions 30% 80% 800 Loans to cust
Slide 12: Product portfolio
Product portfolio Unsecured consumer loans Deposit accounts Point of sales financing Structured as either a revolving credit Offered to private individuals in Complete offering already in place: facility or an amortizing loan Norway, Finland and Sweden. − Web payment solutions Upper credit l
Slide 13: Distribution channels
Distribution channels Brand distribution Agent distribution Partner distribution + potential new partners Brand Agent Partner distribution volume as of Q2-19 27 % distribution volume as of Q2-19 63 % distribution volume as of Q2-19 10 % 14 DRAFT
Slide 14: Outlook
Outlook Presence in three countries gives Instabank the strategic opportunity to focus its efforts where the Updated outlook for growth most profitable growth can be achieved. and net loans (MNOK) Profitability and scalability The business setup is able to handle significantly higher volumes in
Slide 15: Appendix
Appendix EE] Instabank
Slide 16: Financial summary
Financial summary P&L (NOK ‘000) Balance sheet (NOK ‘000) Items Q2-19 Q1-19 FY 2018 Q4-18 Q3-18 Q2-18 Items Q2-19 Q1-19 Q4-18 Q3-18 Q2-18 Operating income Assets Interest income 74 466 73 351 222 546 70 207 60 090 49 926 Loans and deposits with credit institutions 185 466 150 497 142 298 145 110 116
Slide 17: Share price and ownership
Share price and ownership Top 20 shareholders as of 13.08.2019 Share price development since OTC listing in October 2016 # Shareholders # of shares % Share price (NOK) 1 KISTEFOS AS 83 126 568 25,0% 2 HODNE INVEST AS 28 054 360 8,4% 3 VELDE HOLDING AS 23 775 000 7,1% 4 BIRKELUNDEN INVESTERINGSSELSKA
Slide 18: Thank You
Thank You instabank.no www.instabank.no