Slide 1: Interim Presentation Q4 – 2020
Instabank Interim Presentation Q4 – 2020 February 10 th, 2020 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 Q4-20
Key highlights Q4-20 Profit before tax of 19.1 MNOK, after tax 14.3 MNOK Total income increased, and loan losses were stable at a relatively low level The sale of part of the NPL portfolio confirms NPL valuation and reduces risk The NPL ratio was nearly halved and fell to 5.6 % of gross loans Ne
Slide 4: Diversified loan portfolio
Diversified loan portfolio Net Loans # Customers Avg Ticket Size Yield Consumer Loans 2 343’’ 19 930 89’ 12.8 % Mortgages 163’’ 277 587’ 7.2 % Sales Finance 137’’ 8 472 16’ 15.5 % Credit Card 128’’ 4 548 28’ 14.9 % Total 2771’’ 33 227 83’ 12.6 % 4
Slide 5: Diversified high funding volume
Diversified high funding volume Volume # customers Avg. deposit Deposit rates size end Q4-20 Norway 1 997’’ 5 631 355’ 1.15 %* Finland 897’’ 3 688 243’ 0.60 % Sweden 220’’ 1 679 131’ 0.55 % Germany 191’’ 1 119 170’ 0.20 % Total 3 304’’ 12 117 273’ 0.96 % *) Deposit rate in Norway decreased to 1.00 %
Slide 6: Net loan development
Net loan development Net loan balance growth Net loans to customers Key comments MNOK MNOK 3 200 ▪ Excluding sale of the NPL portfolio (net - 82 222 2 769 2 787 2 771 2 697 MNOK) and currency effects (- 71 MNOK), net 115 109 112 103 2 700 2 565 loans growth was 137 MNOK 106 179 2 200 ▪ In Norway, th
Slide 7: Total income
Total income Total income Total income detailed MNOK MNOK 1,9 1,1 2,3 4,4 1,0 67,0 70,1 8,4 11,2 13,1 65,9 8,6 8,4 61,7 60,1 80,0 83,4 79,9 82,5 84,1 -13,0 -12,5 -13,2 -13,6 -12,1 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 -16,2 -16,7 -16,1 -16,0 -16,1 Key comments Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 ▪ Interest income
Slide 8: Funding cost and yields
Funding cost and yields Development in funding cost and yields Key comments ▪ Loan yield decreased mainly due to increased share of mortgages at a lower 13,3 % 13,0 % 13,0 % rate 12,9 % 12,6 % ▪ The deposit interest rates continued its decreasing path following changes in rates in all three currenci
Slide 9: Operating expenses
Operating expenses Operating expenses breakdown Key comments MNOK 31,7 ▪ The increase in operating expenses from the previous quarters in 2020 was 29,5 26,7 1,5 due to an unevenly distribution of employee bonus provisions throughout the 25,0 25,2 1,6 1,5 1,7 1,1 year as well as non- recurring items
Slide 10: Credit risk
Credit risk Impairment losses Key comments 40,0 MNOK 10,0 %▪ 33,1 The relatively low loan losses provisions of 19.3 MNOK / 2.6 % is a result 30,0 of good performance in terms of loans past due 21,7 18,8 19,3 20,0 16,5 4,6 % 5,0 % ▪ The negative seasonal developments in the share of loans past due we
Slide 11: Profit development
Profit development Net profit before tax Key comments MNOK ▪ The increase in total income and relatively low losses on loans had a positive effect, while increased operating expenses partly due to non—recurring items as well as uneven distribution of 20,3 employee bonus provisions throughout 2020, h
Slide 12: Capital adequacy
Capital adequacy Developments in capital adequacy ratios Key comments 23,5 % 23,3 % 23,3 % • The NPL portfolio sale, with a risk weight of 100 %, improved capital ratios 22,1 % 22,2 % 1,5 % 2,0 % 2,0 % by approximately 0.7 % points representing an increased growth capacity 1,5 % 2,0 % 1,5 % 1,9 % 1,
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
Financials Updated outlook Outlook from Strategic ambitions Q4-20 report Q3-20 report ROE >13 % >10 % 15-20 % Strong improvement in profits Heading in the right direction Heading in the right direction Proof of success Net loans 3.7 Bn. 3.5 Bn. ~ 6.0 Bn. Growth is necessary to improve profits Growth
Slide 16: Ambitions for 2021
Ambitions for 2021 o Increased diversification - Repositioning from a typical consumer loans bank o Growth approx.1 billion NOK - Current excess equity and generated profits enable high growth o Strong profit growth - 75 % increase in result after-tax may be within reach instabank.no www.instabank.n
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 03.02.2021 Share price development last 12 months # Shareholders # of shares % Share price (NOK) 1 KISTEFOS AS 83 126 568 24,99% 2 HODNE INVEST AS 30 588 311 9,20% 3 VELDE HOLDING
Slide 18: Financial summary
Financial summary P&L (NOK ‘000) Balance sheet (NOK ‘000) FY 2020 Q4-20 Q3-20 Q2-20 Q1-20 FY 2019 Q4-19 Q4-20 Q3-20 Q2-20 Q1-20 Q4-19 Total income: Assets Interest Income using the effective interest method 329 514 84 080 82 478 79 854 83 102 305 752 79 957 Loans and deposits with credit institution
Slide 19: Key figures Q4-2020
Key figures Q4-2020 Net profit before tax of 19.1 MNOK + vs 20.3 Q4-19 Total income of 70.1 MNOK + 14 % vs Q4-19 Losses on loans 2.6 % vs 2.4 % Q4-19 Outstanding net loans of 2,771 MNOK vs 2,696 MNOK Q4-19 Equity per share of 1.63 NOK vs 1.71 Q4-19 Return on Equity of 10.7 % vs 10.8 % in
Slide 20: Thank You
Thank You instabank.no www.instabank.no