Slide 1: Interim Presentation Q2 – 2022
Instabank Interim Presentation Q2 – 2022 August 11 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 Q2-22
Key highlights Q2-22 Record-high net loans growth of 398 MNOK Adjusted for positive currency effects, growth was 307 MNOK Record-high mortgages volume growth of 290 MNOK Mortgages now represents 33 % of total net loans and ss 51 % of net loans in Norway Profit before tax of 23.7 MNOK, after tax
Slide 4: Net loan development
Net loan development Net loan balance growth Net loans to customers MNOK MNOK 398 4 5 00 4 334 356 3 783 3 936 3 609 290 4 0 00 298 3 312 242 3 5 00 1 437 212 1 147 204 794 998 582 163 173 3 0 00 149 153 140 124 104 96 2 5 00 127 68 57 57 1 143 2 0 00 1 172 39 1 128 1 239 29 1 402 15 13 18 1 5 00 1
Slide 5: Diversified loan portfolio
Diversified loan portfolio Net Loans # Customers* Avg Ticket Size* Yield Consumer Loans 2,493’’ 24,682 101’ 10.6 % Mortgages 1,437’’ 1,858 773’ 6.2 % Sales Finance 172’’ 20,697 8’ 15.8 % Credit Card 233’’ 5,235 45’ 14.9 % Total 4,334’’ 52,472 83’ 9.6 % *) Includes accounts with zero balance with an
Slide 6: Diversified funding volume
Diversified funding volume Volume # customers Avg. deposit Deposit rates size end Q2-22 Norway 2,902’’ 8,713 333’ 1.32 %* Finland 489’’ 489 125’ 0.38 % Germany 1,283’’ 5,497 233’ 0.18 %** Sweden 67’’ 1,715 39’ 0.55 % Total 4,742’’ 19,849 239’ 0.88 % *) Up to NOK 1,000’, 1,20 % for deposits between N
Slide 7: Development in yields and funding cost
Development in yields and funding cost Development in yields and funding cost Key comments ▪ Pressure on margins continued in Q2-22 as yield for unsecured loans 11,5 % 11,2 % 11,2 % 10,9 % 10,6 % and mortgages continued a downward path ▪ Interest rates on deposits increased in Norway following the r
Slide 8: Total income
Total income Total income Total income detailed* MNOK 89,8 MNOK 86,2 85,4 88,0 9,8 8,4 74,5 10,0 7,1 7,7 90,4 90,3 94,8 85,7 75,9 -9,1 -9,5 -10,5 -12,2 -15,2 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Key comments Total Interest income Interest expenses Net other income ▪ Total inte
Slide 9: Operating expenses
Operating expenses Operating expenses breakdown Key comments MNOK 39,7 40,2 ▪ Personnel expenses where positively impacted by a reversal of provisions for 33,2 1,6 2,3 social security cost on warrants following the decrease in share price by the 31,3 31,9 1,6 12,6 end of the quarter 1,8 1,4 17,3 13,
Slide 10: Credit risk
Credit risk Impairment losses Key comments MNOK 30,0 10,0 %▪ Losses on loans came in at 24.0 MNOK or 2.2 % of gross loans to 23,0 24,0 20,5 20,5 customers, versus 17.1 MNOK/ 2.1 % in the same quarter last year 20,0 17,1 5,0 % ▪ Losses on loans for the mortgage product remained at the same level as 1
Slide 11: Profit development
Profit development Net profit Key comments MNOK ▪ Instabank reports a profit before tax of 23.7 MNOK, and after-tax profit of 17.8 MNOK in Q2-22, versus 20.6 MNOK after-tax profit in Q1-22 and 19.5 MNOK in the same quarter last year. ▪ A high marketing cost explains the decrease in profits in the qu
Slide 12: Capital adequacy
Capital adequacy Developments in capital adequacy ratios Key comments • Common equity Tier 1 Capital ratio was 18.9 %, and the total capital ratio 22,8 % 22,4 % 22,3 % 22,3 % 21,7 % was 21.7 % at the end of Q2-22, 1,1 % points above the total regulatory 1,9 % 1,8 % 1,7 % 1,7 % 1,6 % 1,4 % 1,3 % 1,3
Slide 13: Financial summary
Financial summary P&L (NOK ‘000) Balance sheet (NOK ‘000) P&L Q2-22 Q1-22 FY 2021 Q4-21 Q3-21 Q2-21 Balance Sheet 30.06.22 31.03.22 31.12.21 30.09.21 30.06.21 Total income: Assets Interest Income using the effective interest method 94 818 90 492 320 034 90 444 85 705 75 886 Loans and deposits with c
Slide 14: The acquisition of Instabank by Lunar
The acquisition of Instabank by Lunar Timeline Instabank’s assessment of the situation • 28th March: Lunar Bank launched an offer to acquire all shares of • Instabank notes that there are no conditions in Lunar's offer relating to Instabank under the conditions of 90 % acceptance by shareholders and
Slide 15: Thank You
Thank You instabank.no www.instabank.no