Slide 1: Interim Presentation Q1 – 2019
Instabank Interim Presentation Q1 – 2019 April 25 th 2019 www.instabank.no 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 figures Q1-2019
Key figures Q1-2019 Quarterly growth in net loans of 123 MNOK - 50% vs Q1-18 Outstanding net loans of 2,604 MNOK + 66 % vs Q1-18 Customer deposits of 2,751 MNOK + 49 % vs Q1-18 Total income of 58.3 MNOK + 53 % vs Q1-18 Net profit before tax of 4.4 MNOK - 18 % vs Q1-18 Total equity of 529
Slide 4: Key highlights & developments Q1-19
Key highlights & developments Q1-19 Net loan growth of 123 MNOK/ 5 %. Finland performed well with a net loan growth of 148 MNOK, while net loans in Norway decreased by 50 MNOK and net loans in Sweden grew by 25 MNOK Q1 net profit of 4.4 MNOK Weakened by administrative cost related to strategic i
Slide 5: Introducing Instapay MasterCard
Introducing Instapay MasterCard Low interest rate Distribution Setup One of the market’s lowest nominal Initially through Skeidar POS financing Instapay MasterCard is a payment interest rates at 14.9 %, but no interest from March 19, followed by direct instrument on top of the flexible loan free per
Slide 6: Net loan development
Net loan development Net loan balance growth Net loans to customers Number of loan customers MNOK MNOK 3 200 # 30 000 2 605 26 144 376 2 700 2 482 24 023 5 239 25 000 2 211 4 675 20 427 655 2 200 803 455 271 3 935 266 1 835 20 000 251 1 700 1 569 16 000 15 000 1 200 10 961 123 10 000 700 10 025 13 7
Slide 7: Funding costs and yields
Funding costs and yields Development in yields and funding costs Key comments 12,8 % 12,9 % 13,0 % 13,1 % 13,0 % Attractive interest rate, affected by mix of products, distribution channel, and risk assessment Funding cost decreased as deposit rates have been lowered 1,9 % 1,9 % 2,0 % 1,8 % and
Slide 8: Total income
Total income Total income Total income detailed MNOK MNOK 0,7 1,9 1,7 8,6 8,8 54,3 58,3 2,8 10,3 52,3 2,3 44,8 8,3 38,0 7,8 70,2 73,5 60,1 42,3 49,9 -9,7 -10,2 -11,9 -14,5 -13,5 -4,7 -6,1 -7,8 -11,0 -12,2 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Interest Income Interest expenses I
Slide 9: Operating expenses
Operating expenses Operating expenses detailed Cost/income ratio MNOK MNOK 67% 31,9 30,4 2,2 58% 58% 26,0 1,3 26,4 55% 25,4 1,1 1,5 49% 1,1 8,7 10,1 44% 6,3 42% 7,6 8,3 35% 35% 36% 6,3 10,2 12,0 6,7 9,4 11,4 7,1 6,9 7,9 6,1 1,2 1,4 1,6 1,9 2,0 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q1-18 Q2-18 Q3-18 Q4-18 Q1
Slide 10: Credit risk development
Credit risk development Impairment losses Past due days at end of quarter MNOK % of gross lending 25 45,0%% 10,0 22,0 2,6 % 2,5 % 9,0 % % 40,0 2,1 % 20 8,0 % % 1,7 % 1,7 % 1,8 % 17,5 35,0 31,4 % 31,2 % 1,5 % 7,0 % 27,9 % 30,0 % 26,3 % 15 6,0 % 6,8 % 7,7 % 0,5 % 12,6 23,7 % 6,0… 25,0 % 1,2 % 5,0 % 6,
Slide 11: Net profit
Net profit Net profit after tax Key comments MNOK Net profit weakened by one-off effects; Advisory costs of approx. 1,5 MNOK The bank entered into a forward flow agreement with 8,3 Axactor for Finland in the quarter, leading to a 6,7 7,0 reassessment of the loan loss provision ratio for non- per
Slide 12: Balance sheet structure
Balance sheet structure Assets and liabilities & equity Key financial ratios MNOK 4000 50% 140% 3 415 3 379 Other assets 3 060 45% 3000 118% 120% 2 394 Certificates and bonds 40% 115% 114% 2 229 106% 106% 2000 35% 100% Loans and deposits with 29% 30% 28% credit institutions 26% 80% 1000 25% 23% Loan
Slide 13: Product portfolio
Product portfolio Unsecured consumer loans Deposit accounts Point of sales financing Structured as either a revolving credit Offered to private individuals in Complete offering already in place: facility or an amortizing loan Norway, Finland and Sweden. − Web payment solutions Upper credit l
Slide 14: Distribution channels
Distribution channels Brand distribution Agent distribution Partner distribution + potential new partners Brand Agent Partner distribution volume as of Q1-19 29 % distribution volume as of Q1-19 61 % distribution volume as of Q1-19 10 % 14 DRAFT
Slide 15: Outlook and strategy going forward
Outlook and strategy going forward Continued focus on profitability and volume growth leveraging economy of scale of current platform Outlook for growth and net loans in MNOK Continue growth story Growth is essential because solid long term profitability will be achieved through economies of sca
Slide 16: Appendix
Appendix EE] Instabank
Slide 17: Financial summary
Financial summary P&L (NOK ‘000) Balance sheet (NOK ‘000) Items Q1-19 FY 2018 Q4-18 Q3-18 Q2-18 Q1-18 Items Q1-19 Q4-18 Q3-18 Q2-18 Q1-18 Operating income Assets Interest income 73 351 222 546 70 207 60 090 49 926 42 323 Loans and deposits with credit institutions 150 497 142 298 145 110 116 521 127
Slide 18: Share price and ownership
Share price and ownership Top 20 shareholders as of 24.04.2019 Share price development since OTC listing in October 2016 # Shareholders # of shares % Share price (NOK) 1 KISTEFOS AS 83 126 568 25,0% 2 HODNE INVEST AS 27 254 360 8,2% 3 VELDE HOLDING AS 23 270 000 7,0% 3,5 4 BIRKELUNDEN INVESTERINGSSE
Slide 19: Thank You
Thank You instabank.no www.instabank.no