Slide 1: Interim Presentation Q4 – 2021
Instabank Interim Presentation Q4 – 2021 February 10 th, 2022 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 Q4-21
Key highlights Q4-21 Record high profit before tax of 34,9 MNOK, after tax 25.5 MNOK Profits up 82 % from the same quarter last year Net loans growth of 173 MNOK Net loans growth in 2021 of 1.012 MNOK Mortgages volume growth of 204 MNOK Mortgages now represents 26 % of total net loans and 40%
Slide 4: Net loan development
Net loan development Net loan balance growth Net loans to customers MNOK MNOK4 000 3 609 3 783 356 3 312 298 3 500 2 955 998 242 2 771 794 212 204 3 000 582 177 184 173 162 340 127 140 124 109 109 106 2 500 57 57 2 000 39 38 1 143 29 1 128 1 172 15 18 1 100 1 071 13 1 500 -16 -6 -1 1 000 -16 -30 -43
Slide 5: Diversified loan portfolio
Diversified loan portfolio Net Loans # Customers* Avg Ticket Size* Yield Consumer Loans 2,417’’ 23,443 103’ 11.2 % Mortgages 998’’ 1,436 694’ 6.8 % Sales Finance 165’’ 16,767 10’ 15,8 % Credit Card 204’’ 4,473 46’ 14.9 % Total 3,783’’ 48,348 78’ 10.4 % *) Includes accounts with zero balance with an
Slide 6: Diversified funding volume
Diversified funding volume Volume # customers Avg. deposit Deposit rates size end Q4-21 Norway 2,638’’ 7,756 348’ 1.17 %* Finland 589’’ 3,864 152’ 0.45 % Sweden 86’’ 1,702 50’ 0.55 % Germany 734’’ 3,606 204’ 0.12 %** Total 4,047’’ 16,748 242’ 0.78 % *) Up to NOK 500’, 1,12 % for deposits between NOK
Slide 7: Development in yields and funding cost
Development in yields and funding cost Development in yields and funding cost Key comments ▪ Yield for mortgages and consumer loans at the same level as per end 12,8 % of Q3-21 11,8 % 11,5 % 11,2 % 11,2 % ▪ Following increased deposit rates in Norway, the overall interest margin increased 0.1 % poin
Slide 8: Total income
Total income Total income Total income detailed* MNOK 89,8 MNOK 86,2 74,5 9,8 70,1 70,6 10,0 11,8 7,7 12,2 85,7 90,4 70,4 75,9 68,0 -12,1 -9,6 -9,1 -9,5 -10,5 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Key comments Total Interest income Interest expenses Net other income ▪ Total int
Slide 9: Operating expenses
Operating expenses Operating expenses breakdown Key comments MNOK ▪ Total operating expenses decreased 1.3 MNOK from the previous quarter 31,7 31,7 33,2 31,9 and came in at 31.9 MNOK 31,3 1,5 1,5 1,6 1,5 1,8 ▪ Despite growth in net loans of more than 1 billion NOK in 2021, operating 13,0 12,3 13,1 1
Slide 10: Credit risk
Credit risk Impairment losses Key comments 30,0 MNOK 10,0 % 23,0 ▪ Losses on loans came in at 23.0 MNOK or 2.4 % of gross loans to 19,3 20,3 20,5 17,1 customers, up from 20.4 MNOK/ 2.3 % in Q3-21 20,0 5,0 % ▪ The increase is because of seasonal effects as expected, partly offset by 10,0 an increased
Slide 11: Profit development
Profit development Net profit Key comments MNOK ▪ Profit before tax hits record high 34.9 MNOK, and net profit was 25.2 MNOK, up from 14.2 MNOK in the same quarter last year. ▪ The quarterly return on equity (ROE) was 16.6 %, up from 10.7 % in 34,9 32,6 Q4-20 ▪ For 2021, Instabank achieved a net pro
Slide 12: Capital adequacy
Capital adequacy Developments in capital adequacy ratios Key comments • Common equity Tier 1 Capital ratio was 19.4 %, and the total capital ratio 23,3 % 23,0 % 22,8 % 22,4 % 22,3 % was 22.3 % at the end of Q4-21, 2.0 % points above the total regulatory 2,0 % 2,0 % 1,9 % 1,8 % 1,7 % 1,5 % 1,4 % 1,4
Slide 13: From startup to economies of scale
From startup to economies of scale ECONOMIES OF START UP EXPANSION SCALE 2016 | 2017 2018 | 2020 2021 | 2023 Establish core capabilities Build and develop Ensure profitability Capitalize on strategic and capabilities to enable Focus on loans and operational platform; product- and deposits Economies
Slide 14: Markets and products
Markets and products Target growth in markets with highest ROE at any given time Unsecured Mortgage Deposits Retail Online Cards Q3-2016 Q2-2020 Q3-2016 Q4-2017 Q4-2018 Q2-2019 Q4-2017 Tbd Q3-2018 Q2-2020 Q2-2020 Tbd Q4-2018 Tbd Q1-2019 Tbd Tbd Tbd na na Q3-2020 na na na Our target is to achieve a m
Slide 15: Financials
Financials Updated outlook Strategic ambitions Profit >115 mill. >230 mill. Strong improvement in profits Among the better Proof of success ROE >15 % >20 % Strong improvement in performance Among the better Proof of success Net loans 5.3 Bn. ~ 9.0 Bn. Growth is necessary to improve profits Growth sh
Slide 16: Targets for 2022
Targets for 2022 o Increased diversification Repositioning from a typical consumer loans bank o Growth approx.1.4 billion NOK Current excess equity and generated profits enable high growth o Strong profit growth > 35 % increase in result after-tax within reach instabank.no www.instabank.no
Slide 17: Share price and ownership
Share price and ownership Instabank is listed at Euronext Growth at Oslo Børs, ticker “INSTA” Top 20 shareholders as of February 7th 2022 Share price development last 12 months # Shareholders # of shares % 1 KISTEFOS AS 83 126 568 24,99% Share price (NOK) 2 HODNE INVEST AS 30 588 311 9,20% 3 VELDE H
Slide 18: Financial summary
Financial summary P&L (NOK ‘000) Balance sheet (NOK ‘000) P&L FY 2021 Q4-21 Q3-21 Q2-21 Q1-21 FY 2020 Q4-20 Balance Sheet 31.12.21 30.09.21 30.06.21 31.03.21 31.12.20 Total income: Assets Interest Income using the effective interest method 320 034 90 444 85 705 75 886 67 999 272 117 70 421 Loans and
Slide 19: Key figures Q4-21
Key figures Q4-21 Net profit before tax of 34.9 MNOK + 82 % vs Q4-20 Total income of 89.8 MNOK + 28 % vs Q4-20 Losses on loans 2.4 % vs 2.6 % Q4-20 Outstanding net loans of 3.783 MNOK + 1.012 MNOK vs Q4-20 Return on Equity of 16.6 % vs 10.8 % in Q4-20 Equity per share of 1.88 NOK vs 1.63
Slide 20: Thank You
Thank You instabank.no www.instabank.no