Slide 1: Interim presentation Q4-2023
Interim presentation Q4-2023 February 8th, 2024
Slide 2: Key highlights
Key highlights Profit before tax: 32.8 MNOK, +10 % vs Q4-22 Profit before tax 2023: 131 MNOK, + 28 MNOK from 2022 Growth in gross loans: 345 MNOK to 6,274 MNOK Growth 2023: +1,415 MNOK vs +852 MNOK in 2022 Mortgage gross lending: 2,524 MNOK, +766 MNOK in 2023 Mortgages represents 40 % of gross loans
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: 476 493 391 345 • Solid growth in gross loans of 345 MNOK in the quarter 270 266 262 207 194 174 139 126 123 141 37 31 • Record high yearly growth of 1,455 MNOK in 2023 19 Q4-22 Q1-23 Q2-23 Q3-23 Q4-
Slide 5: Yields and funding cost | Attractive margins
Yields and funding cost | Attractive margins LENDING AND LIQUIDITY YIELD, INTEREST RATE DEPOSITS: KEY COMMENTS: 17.7 % 18.7 % • Rate hikes for existing lending customers and new loans following the increases by the Central Bank 12.1 % 12.2 % • Deposit rates developments influenced by markets rates a
Slide 6: 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 3,109’’ 27,752 112’ 12.2 % Sweden Mortgages First or second priority mortgages for refinancing of 2,524’’ 2,627 960’ 8.9 % unsecured debt or hou
Slide 7: Deposits volumes | Diversified funding
Deposits volumes | Diversified funding Volume # Customers Avg. Deposit Size Avg. deposit rate Norway 3,461’’ 13,729 252’ 4.3 % Germany 2,517’’ 14,468 174’ 3.5 % Finland 132’’ 4,104 32’ 1.1 % Sweden 17’’ 1,760 10’ 0.5 % Total 6,127’’ 34,061 180’ 3.9 %
Slide 8: Profitability, risk and capital
Profitability, risk and capital
Slide 9: 27 consecutive quarters with profits
Profits | Long term growth in profit 27 consecutive quarters with profits PROFIT AFTER TAX (NOKM) & RETURN ON EQUITY: 16.6 %16.6 % 14.7 % 13.8 % 13.6 % 13.2 % 13.2 % 12.6 % 12.4 % 11.8 % 10.8 % 10.7 %10.2 % 10.9 % 10.1 % 36.8 9.7 % 34.9 32.8 32.6 8.4 % 31.6 30.1 29.9 7.3 % 7.5 % 7.7 % 7.2 % 26.0 25.
Slide 10: Total income | High growth in income
Total income | High growth in income TOTAL INCOME (MNOK): KEY COMMENTS: 125.1 112.4 98.0 100.8 102.8 ▪ The increase in Total interest income of 51.5 MNOK comes from a gross lending growth of 1,455 MNOK in 2023 and increased loan yield to 10.9 % from 9.5 % in the same quarter last year ▪ The increase
Slide 11: Operating expenses | Demonstrating economy of scale
Operating expenses | Demonstrating economy of scale OPERATING EXPENSES BREAKDOWN (MNOK): KEY COMMENTS: 45.7 42.3 39.7 2.7 38.4 1.7 36.1 2.3 1.8 1.9 19.6 ▪ Personnel costs increased by 1.8 MNOK because of new hires and an increase in 17.8 11.6 15.2 16.0 provisions 3.0 2.7 2.8 3.9 3.8 16.3 15.7 15.4 1
Slide 12: Credit risk | Mortgages represent low credit risk
Credit risk | Mortgages represent low credit risk IMPAIRMENT LOSSES (MNOK): 60.0 10.0 % KEY COMMENTS: 46.6 40.0 32.1 30.8 32.9 33.4 5.0 % 20.0 2.7 % 3.1 % 2.4 % 2.5 % 2.3 % ▪ The loan loss ratio increased to 3.1 % from 2.7 % in the same quarter last year 0.0 0.0 % Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Impai
Slide 13: Regulatory Capital | Solid capital adequacy
Regulatory Capital | Solid capital adequacy DEVELOPMENTS IN CAPITAL ADEQUACY RATIOS: KEY COMMENTS: 24.9 % 25.1 % • At the end of the quarter, the Common Equity Tier 1 Capital (CET1) ratio was 23.3 % 24.2 % 22.9 % 2.7 % 2.5 % 2.3 % 18.9%, 4.3 % above the regulatory capital requirement. The total capi
Slide 14: Strategy and ambitions
Strategy and ambitions
Slide 15: 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 Card FI Consumer loans NO/FI Consumer loans SE Sales finance FI Credit Cards DE
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: The share | Euronext Growth Oslo Børs, ticker INSTA
The share | Euronext Growth Oslo Børs, ticker “INSTA” Top 20 shareholders (February 6th, 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 INVESTERINGSSELSKAP A
Slide 21: Income statement & Balance sheet | Overview
Income statement & Balance sheet | Overview INCOME STATEMENT (NOK THOUSAND) BALANCE SHEET (NOK THOUSAND) P&L FY 2023 Q4-23 Q3-23 Q2-23 Q1-23 Balance Sheet 31.12.23 30.09.23 30.06.23 31.03.23 31.12.22 Total income: Assets Interest Income using the effective interest method 564,521 162,443 146,897 134
Slide 22: 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.