Slide 1: Interim Presentation Q3 – 2021
Instabank Interim Presentation Q3 – 2021 November 4 th, 2021 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 Q3-21
Key highlights Q3-21 Record high profit before tax of 32.6 MNOK, after tax 24.4 MNOK Profits up 85 % from the same quarter last year Strong net loans growth of 298 MNOK Net loans growth year to date of 838 MNOK Mortgages volume growth of 212 MNOK Mortgages now represents one third of total net
Slide 4: Net loan development
Net loan development Net loan balance growth Net loans to customers MNOK MNOK 3 609 4 000 356 3 312 298 3 500 242 2 955 794 212 222 2 787 2 771 582 177 3 000 184 56 115 162 340 127 140 116 109 109 106 2 500 57 57 52 45 39 38 2 000 1 143 15 1 174 1 071 1 128 10 18 13 1 500 1 100 -6 -1 -16 1 000 -30 -
Slide 5: Diversified loan portfolio
Diversified loan portfolio Net Loans # Customers* Avg Ticket Size* Yield Consumer Loans 2,528’’ 24,448 76’ 11.2 % Mortgages 794’’ 1,207 658’ 6.8 % Sales Finance 147’’ 19,041 8’ 16.5 % Credit Card 179’’ 4,126 43’ 14.9 % Total 3,609’’ 48,822 74’ 10.6 % *) Includes accounts with zero balance with an av
Slide 6: Diversified funding volume
Diversified funding volume Volume # customers Avg. deposit Deposit rates size end Q3-21 Norway 2,434’’ 6,984 349’ 1.05 %* Finland 646’’ 3,842 168’ 0.45 % Sweden 95’’ 1,696 56’ 0.55 % Germany 677’’ 3,120 217’ 0.12 %** Total 3,853’’ 15,642 246’ 0.68 % *) Up to NOK 500’, 0,90 % for deposits between NOK
Slide 7: Funding cost and yields
Funding cost and yields Development in funding cost and yields Key comments ▪ Yield for unsecured loans continude a decreasing path because of margin 13,0 % 12,8 % 11,8 % pressure in Norway and temporarily interest cap in Finland of 10 % 11,5 % 11,2 % ▪ Yield for mortgages remained stable during the
Slide 8: Total income
Total income Total income Total income detailed* MNOK MNOK 86,2 74,5 9,9 70,1 70,6 65,9 11,8 7,7 11,3 12,2 85,7 68,2 70,4 75,9 68,0 -13,6 -12,1 -9,6 -9,1 -9,5 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Key comments Total Interest income Interest expenses Net other income ▪ Total int
Slide 9: Operating expenses
Operating expenses Operating expenses breakdown Key comments MNOK 33,2 ▪ Cost to income improved significantly from the previous quarter by 4 % 31,7 31,7 31,3 29,5 1,6 points down to 38 %, demonstrating economy of scale. 1,5 1,5 1,8 1,6 11,0 13,0 12,3 12,5 13,1 ▪ The increase in operating expenses f
Slide 10: Credit risk
Credit risk Impairment losses Key comments 30,0 MNOK 10,0 %▪ Losses on loans were 2.3 % versus 2.6 % for the same quarter last year 18,8 19,3 20,3 20,5 and the share of loans past due was also considerably lower in all intervals 20,0 17,1 5,0 % ▪ The increase from the previous quarter is because of
Slide 11: Profit development
Profit development Net profit Key comments MNOK ▪ Profit after tax increased by 4.9 MNOK from the previous quarter to 24.4 MNOK because of the strong increase in Total Income ▪ Return on equity (ROE) in the quarter was 16.6 %, up from 10.1 % in 32,6 Q3-20 bringing Instabank to the top among Norwegia
Slide 12: Capital adequacy
Capital adequacy Developments in capital adequacy ratios Key comments 23,3 % • Common equity Tier 1 Capital ratio was 19.3 %, and the total capital ratio 22,2 % 23,0 % 22,8 % 22,4 % 2,0 % 2,0 % 1,9 % was 22.4 % at the end of Q3-21, 2.0 % points above the total regulatory 1,9 % 1,5 % 1,4 % 1,8 % 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 – Outlook 2021
Financials Outlook 2021 ROE 14 % (13 %) Strong improvement in profits Heading in the right direction Net loans > 3.8 Bn (3.7 Bn.) Growth is necessary to improve profits Growth shows direction Cost to income < 42 % Economies of scale reduce cost Among the better 15
Slide 16: Ambitions
Ambitions o Increased diversification - Repositioning from a typical consumer loans bank o Continued sound growth - Excess equity and generated profits enable growth o Profit growth - Volume growth, economies of scale and low risk drives growth in profits instabank.no www.instabank.no 16
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 02.11.2021 Share price development last 12 months Shareholders # of shares % Share price (NOK) KISTEFOS AS 83 126 568 24,99% HODNE INVEST AS 30 588 311 9,20% VELDE HOLDING AS 26 19
Slide 18: Financial summary
Financial summary P&L (NOK ‘000) Balance sheet (NOK ‘000) P&L Q3-21 Q2-21 Q1-21 FY 2020 Q4-20 Q3-20 Balance Sheet Q3-21 Q2-21 Q1-21 Q4-20 Q3-20 Total income: Assets Interest Income using the effective interest method 85 705 75 886 67 999 272 117 70 421 68 187 Loans and deposits with credit instituti
Slide 19: Key figures Q3-21
Key figures Q3-21 Net profit before tax of 24.4 MNOK + 85 % vs Q3-20 Total income of 86.2 MNOK + 31 % vs Q3-20 Losses on loans 2.3 % vs 2.6 % Q3-20 Outstanding net loans of 3.609 MNOK + 822 MNOK vs Q3-20 Equity per share of 1.80 NOK vs 1.59 Q3-20 Return on Equity of 16.6 % vs 10.1 % in Q
Slide 20: Thank You
Thank You instabank.no www.instabank.no