Slide 1: Interim Presentation Q3-2024
INTERIM PRESENTATION Q3-2024 November 1st, 2024
Slide 2: Highlights
Profit before tax: 35.2 MNOK, -0.7 MNOK vs Q2-24 Profit after tax: 26.4 MNOK, return on equity 11.5 % Successful sale of non-performing loans of 302 MNOK The transaction was operating profit-positive and confirms the valuation of impaired loans Highlights Strong growth for the most profitable produc
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: 493 345 • Accelerated growth in the most profitable segments: business 321 262 228 194 174 165 lending and mortgages that now accounts for over 50% of total 139 119 107 91 65 54 lending 37 31 28 • Bu
Slide 5: Gross lending portfolio | Transparent and simple
Gross lending portfolio| Transparent and simple Gross Loans # Customers Avg Ticket Size Yield Consumer Loans Unsecured loans offered in Norway, Finland and 2,629’’ 26,565 99’ 13.3 % Sweden Mortgages First or second priority mortgages for refinancing of 2,962’’ 3,182 931’ 9.1 % unsecured debt or hous
Slide 6: Yields and funding cost | Attractive margins
Yields and funding cost | Attractive margins LENDING* AND LIQUIDITY YIELD, INTEREST RATE DEPOSITS: KEY COMMENTS: 18.7 % 19.3 % 19.2 % 18.5 % • Highly attractive yield for business lending at 18.2 % 17.7 % 13.1 % 13.3 % 13.3 % 13.4 % 13.3 % 9.0 % 9.2 % 9.1 % • The interest rate for deposits was down
Slide 7: Profitability, risk and capital
Profitability, risk and capital
Slide 8: 30 consecutive quarters with profits
Q4-16 -14.2 Q1-17 -4.2 Q2-17 1.6 2.1 % Q3-17 2.9 3.7 % Q4-17 3.8 3.2 % Q1-18 5.4 5.6 % Q2-18 8.9 8.4 % Q3-18 9.3 Q4-18 10.4 7.3 % 7.5 % Q1-19 4.4 Q2-19 12.82.6 % 7.2 % Q3-19 17.6 9.7 % Q4-19 20.3 10.8 % Q1-20 7.1 4.0 % Q2-20 13.2 7.7 % Q3-20 17.6 10.1 % Q4-20 19.1 Q1-21 18.7 10.7 %10.2 % Q2-21 26.0
Slide 9: Total income | High growth in income
Total income | High growth in income TOTAL INCOME (MNOK): KEY COMMENTS: 125.1 128.4 120.9 112.4 116.5 ▪ Total income came in at 128.4 MNOK, up 15.9 MNOK / 14 % from the same quarter last year ▪ The increase in total interest income of 34.1 MNOK from Q2-23 is due to a 12-month gross lending growth of
Slide 10: Operating expenses | Economy of scale
Operating expenses | Economy of scale OPERATING EXPENSES BREAKDOWN (MNOK): KEY COMMENTS: 53.3 45.7 46.0 46.0 2.2 42.3 2.7 2.1 2.6 ▪ The increase in operating expenses is attributed to costs associated with preparing 1.7 23.6 18.8 18.2 for the launch of credit cards in Germany next year and the insou
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 % 39.9 ▪ Losses on loans of 39.9 MNOK were positively impacted by a gain from the sale of 38.9 40.0 33.4 8.0 % non-performing loans (NPL) in Finland, which confirms to the valuation of non-
Slide 12: Regulatory Capital | Solid capital adequacy
Regulatory Capital | Solid capital adequacy DEVELOPMENTS IN CAPITAL ADEQUACY RATIOS: KEY COMMENTS: 24.2 % 22.9 % 23.2 % 23.4 % 22.2 % 2.3 % 2.1 % • (CET1) ratio was 19.5 %, up 0,2 % points from the end of Q2-24 and 1.2 % points 2.0 % 2.2 % 2.1 % 2.1 % 1.8 % 1.8 % 1.8 % 1.8 % above the regulatory cap
Slide 13: Strategy and ambitions
Strategy and ambitions
Slide 14: 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 15: Financials | Guiding as per Q3-24
Financials | Guiding as per Q3-24 Outlook 2024 Strategic ambition mid-term PROFIT AFTER TAX ~ 90 mill. > 200 mill. Strong improvement in profits Among the better Proof of Success ROE > 10 % > 15 % Strong improvement in performance Among the better Proof of Success GROSS LOANS ~ 6.8 Bn ~ 10.0 Bn Grow
Slide 16: 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 1 market position, a customer-centric approach, and 4 margins significant growth potential in the fintech sector Lean operational platform and o
Slide 17: 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 18: 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 he Knudsen joined the Company in 2018. He has previously held various positions in has been CEO in yA Bank, Commercial Director in Ikano Bank
Slide 19: 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 Nylander is currently CFO in Kitron. Her previous experiences include positions as he also served as Chie
Slide 20: Deposits volumes | Diversified funding
Deposits volumes | Diversified funding Volume # Customers Avg. Deposit Size Avg. deposit rate Norway 3,830’’ 18,204 210’ 4.7 % Germany 2,846’’ 16,806 1569’ 3.5 % Finland 79’’ 3,256 24’ 1.1 % Sweden 13’’ 1,277 10’ 0.5 % Total 6,768’’ 39,543 171’ 4.1 %
Slide 21: The share | Euronext Growth Oslo Børs, ticker INSTA
The share | Euronext Growth Oslo Børs, ticker “ INSTA” Top 20 shareholders (Per October 30th, 2024) Share price development (last 12 months) 2.1 # 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% 2 4 BIRKELUNDEN INVESTERIN
Slide 22: Income statement & Balance sheet | Overview
Income statement & Balance sheet | Overview INCOME STATEMENT (NOK THOUSAND) BALANCE SHEET (NOK THOUSAND) P&L Q3-24 Q2-24 Q1-24 FY 2023 Q4-23 Q3-23 Balance Sheet 30.09.24 30.06.24 31.03.24 31.12.23 30.09.23 Total income: Assets Interest Income 184,782 179,267 171,166 577,555 166,509 150,676 Loans and
Slide 23: Instabank is the Nordic challenger bank. Founded in 2016.
Instabank is the Nordic challenger bank for corporate and private customers. Founded in 2016.