Slide 1: Interim presentation Q2-2024
Interim presentation Q2-2024 August 15th, 2024 Instabank is a proud sponsor of the @bildbyrån Norwegian Athletics Federation
Slide 2: Key highlights
Key highlights Profit before tax: 35.9 MNOK, + 5.8 MNOK vs Q2-23 Profit after tax: 26.9 MNOK, return on equity 12.0 % Successful sale of non-performing loans of 167 MNOK The transaction was operating profit-positive and confirms the valuation of impaired loans Business lending launched one year ago
Slide 3: Proud main sponsor of the Norwegian Athletics Federation
Proud main sponsor of the Norwegian Athletics Federation Norwegian Athletics Federation has challenged the world and reached the top in events previously unexpected for Norwegians to dominate We want to learn more about that culture - and contribute to it @bildbyrån
Slide 4: Instabank cheers for those who challenge
Instabank cheers for those who challenge Becoming the best is about dedication, challenging, guts, thinking new and differently This is true for Instabank and the Norwegian athletes we proudly sponsor Håvard Bentdal Sander Aae Skotheim Markus Rooth Henriette Jæger Ingvaldsen Age: 22 Age: 22 Age: 23
Slide 5: Net loans and margin developments
Net loans and margin developments
Slide 6: Gross loans development | Well diversified loan book
Gross loans development | Well diversified loan book GROSS LOANS BALANCE GROWTH (MNOK) KEY COMMENTS: 493 345 321 • Mortgages increased by 119 MNOK to reach 2.735 MNOK in gross 262 194 174 165 loans, accounting for 42 % of total lending 139 123 119 141 91 65 54 37 31 19 • Business lending performed w
Slide 7: 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 2,878’’ 26,015 111’ 13.4 % Sweden Mortgages First or second priority mortgages for refinancing of 2,735’’ 3,030 903’ 9.2 % unsecured debt or hou
Slide 8: 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 % 17.7 % • Highly attractive yield for business lending at19.2 % 13.1 % 13.3 % 13.3 % 13.4 % 12.9 % • Increased yield for unsecured loans and mortgages following the 8.
Slide 9: Profitability, risk and capital
Profitability, risk and capital
Slide 10: 29 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 11: Total income | High growth in income
Total income | High growth in income TOTAL INCOME (MNOK): KEY COMMENTS: 125.1 120.9 112.4 116.5 102.8 ▪ The increase in total interest income of 38.3 MNOK from Q2-23 is due to a 12-month gross lending growth of 1,052 MNOK and an increased loan yield to 11.7 % from 11.2 % in the same quarter last yea
Slide 12: Operating expenses | Demonstrating economy of scale
Operating expenses | Demonstrating economy of scale OPERATING EXPENSES BREAKDOWN (MNOK): KEY COMMENTS: 45.7 46.0 46.0 42.3 ▪ Total operating expenses were at the same level as in the two previous quarter, 39.7 2.7 2.1 2.6 1.7 2.3 demonstrating economy of scale. 19.6 18.8 18.2 17.8 16.0 3.9 3.8 5.0 5
Slide 13: 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 % ▪ Loan losses decreased to 38.9 MNOK from 46.3 MNOK in the previous quarter 38.9 40.0 32.9 33.4 8.0 % 30.0 6.0 % 20.0 4.0 % ▪ The loan loss ratio was 2.4 %, an improvement from 2.9 % in th
Slide 14: Regulatory Capital | Solid capital adequacy
Regulatory Capital | Solid capital adequacy DEVELOPMENTS IN CAPITAL ADEQUACY RATIOS: KEY COMMENTS: 25.1 % 24.2 % 22.9 % 22.2 % 23.2 % • (CET1) ratio was 19.3 %, up 0,9 % points from the end of Q1-24 and 1.2 % points 2.5 % 2.3 % 2.1 % 2.0 % 2.2 % 2.1 % 2.1 % above the regulatory capital requirement (
Slide 15: Strategy and ambitions
Strategy and ambitions
Slide 16: 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 Security saving account Consumer loans NO/FI Consumer loans SE Sales finance FI Credit
Slide 17: Financials | Guiding as per Q2-24
Financials | Guiding as per Q2-24 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 ~ 7.1 Bn ~ 10.0 Bn Grow
Slide 18: 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 19: 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 20: 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 21: 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 22: Deposits volumes | Diversified funding
Deposits volumes | Diversified funding Volume # Customers Avg. Deposit Size Avg. deposit rate Norway 4,008’’ 15,470 259’ 4.8 % Germany 2,429’’ 15,867 153’ 3.5 % Finland 82’’ 3,264 25’ 1.1 % Sweden 13’’ 1,284 10’ 0.5 % Total 6,531’’ 35,885 182’ 4.2 %
Slide 23: The share | Euronext Growth Oslo Børs, ticker INSTA
The share | Euronext Growth Oslo Børs, ticker “ INSTA” Top 20 shareholders (Per August 13th, 2024) 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 INVESTERINGSSELSK
Slide 24: Income statement & Balance sheet | Overview
Income statement & Balance sheet | Overview INCOME STATEMENT (NOK THOUSAND) BALANCE SHEET (NOK THOUSAND) P&L Q2-24 Q1-24 FY 2023 Q4-23 Q3-23 Q2-23 Balance Sheet 30.06.24 31.03.24 31.12.23 30.09.23 30.06.23 Total income: Assets Interest Income using the effective interest method 179,267 171,166 577,5
Slide 25: Instabank is the Nordic challenger bank for corporate and private customers
Instabank is the Nordic challenger bank for corporate and private customers. Founded in 2016.