Avarda Bank AB · OMXSTO:AVARDA
Avarda Bank AB — TF Bank — Q3 2019 Earnings Presentation
22 slides from Avarda Bank AB's earnings presentation, October 2019
Slide 1: TF Bank Q3 2019 Result Presentation
it TFBank 34 Quarter 2019 RESULT PRESENTATION
Slide 2: Highlights January - September 2019
HIGHLIGHTS JANUARY - SEPTEMBER 2019 = 9 months loan book growth, +37% = Strong operating profit growth, +30% = Return on equity, 31%* = New and extended agreements within Ecommerce Solutions Subordinated Tier 2 bonds of SEK 100 milli LI uporainate 1er ondas O mittion sisi lit TFBank = New forward fl
Slide 3: Consumer Lending
CONSUMER LENDING DIVERSIFIED PORTFOLIO WITH NORDIC BASE At a glance Loan sizes (average) and customer profile . 80 % of the loan portfolio distributed over 8 countries . Product offering tailored for each market Middle income . Marketed through direct channels, own data base and external partners SE
Slide 4: Ecommerce Solutions
ECOMMERCE SOLUTIONS NEXT GENERATION PAYMENT SOLUTIONS At a glance Key metrics . Best-in-class white label checkout solution Share of the Amount outstanding with CRM functionality for online retailers - Group's loan portfolio SEK 1241 million Checkout+ (30 Sep 2019) = Checkout+ allows retailers to of
Slide 5: Loan portfolio and growth charts
+46% +10% 7 000 6 000 +45% +8% 4 858 6 099 5 000 4 423 4 010 SEK million 6 000 5 625 4 000 3 328 3 466 3 000 5 090 5 000 2 000 4 449 4 198 1 000 0 SEK million 4 000 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 3 000 +43% 2 000 +3% 1 500 1 202 1 241 1 200 1 080 1 000 983 SEK million 870 900 0 600 Q3'18 Q4'18 Q1'19
Slide 6: Growth and Diversification
GROWTH AND DIVERSIFICATION Norwa' Loan book SEK 2,037m (33%) Change 9M'19: +48 % Strong growth for consumer lending Finland Loan book SEK 1,514m (25%) Change 9M'19: +27% Profitability and steady growth in both segments Sweden Loan book SEK 692m (11%) Change 9M'19: +5% Baltics Focus on profitability
Slide 7: SEK million SEK million SEK million
196 80 60,0% 60 8,0% 200 189 25,0% 71 71 172 176 67 70 66 162 63 50,0% 50 47 46 160 20,0% 44 60 6,0% 41 40,0% 40 50 36 SEK million SEK million 120 16,7% 15,0% 39,0% 38,6% SEK million 16,3% 38,0% 37,6% 15,6% 36,5% 15,0% 14,3% 40 30,0% 30 4,0% 4,1% 3,9% 3,7% 80 10,0% 30 3,6% 3,5% 20,0% 20 20 2,0% 40 5
Slide 8: Q3'18 Q3'19 9M'18 9M'19
▪ 250 +30% ‒ 214 ‒ 200 ‒ 165 150 ▪ +24% ‒ 100 ‒ 78 63 50 ▪ 0 Q3'18 Q3'19 9M'18 9M'19 8
Slide 9: +25 MSEK Q3'18 Q3'19
+25 MSEK ▪ 200 184 ‒ 159 ‒ 160 ▪ 120 ‒ +19% ‒ 80 67 57 ▪ 40 ‒ 0 ‒ Q3'18 Q3'19 9M'18 9M'19 9
Slide 10: +24 MSEK Q3'18 Q3'19
▪ 40 ‒ +24 MSEK ‒ 30 30 ▪ ‒ 20 +65% ‒ 11 ▪ 10 6 6 ‒ 0 ‒ Q3'18 Q3'19 9M'18 9M'19 10
Slide 11: Distribution of deposits
7 000 6 000 Distribution of deposits ▪ 5 000 Germany 2 791 Sweden ‒ SEK million 20% ‒ 4 000 Germany 43% Finland ‒ 7% 3 000 Norway ‒ 22% of deposits 1 925 2 000 30% ▪ Sweden Norway ‒ 1 000 1 247 Finland 1 430 ‒ 483 0 Deposits from Liquidity reserve* ‒ the public 11
Slide 12: Capital ratios 30 September 2019
17,2% T1+T2 17,2% 13,7% ▪ Headroom 4,8% T1 13,7% 11,9% Headroom 3,4% Headroom 3,3% T1+T2 12,4% ▪ T1 10,3% T1 10,3% CET1 11,9% ▪ CET1 8,6% CET1 8,6% CET1 8,6% ▪ Capital ratios Headroom to CET1 legal capital Headroom to T1 legal capital Headroom to T1+T2 legal capital 30 September 2019 requirements (i
Slide 13: Looking Ahead
LOOKING AHEAD = The Finnish and Norwegian businesses will continue to be the major growth drivers for the group = German credit card pilot is developing well and we'll come back in the Q4 report with a more firm view on the path forward = Lithuania developing well and we expect it to play an importa
Slide 14: Q&A Session
Q&A Session 14
Slide 15: Appendix
APPENDIX 15
Slide 16: Corporate Profile
CORPORATE PROFILE Our Products Operating with modern and scalable infrastructure offering our retail customers online consumer loans, deposits and credit cards. For retailers we offer leading ecommerce and brick-and-mortar payment solutions Our DNA We aim to deliver effortless banking to our custome
Slide 17: Loan portfolio and operating income history
▪ 5 000 700 4 500 600 4 000 ▪ 3 500 500 SEK million 3 000 400 2 500 2 000 300 1 500 200 1 000 100 500 ▪ 0 1991 2000 2009 2018 0 Loan portfolio Operating income 17
Slide 18: Financial Targets
FINANCIAL TARGETS Growth Efficiency Capital structure Dividend policy ‘TF TFBank TF Bank aims to achieve earnings per share of at least 14.50 SEK in 2020 TF Bank aims to achieve a cost/income ratio of below 35% in 2020 All capital ratios shall exceed the legal requirement (including pillar 2) by at
Slide 19: Board of Directors
Mari Thjømøe Charlotta Björnberg- Tone Bjørnov Chairman of the Board Paul Board member since 2015 since 2018 Board member since Current commitments: Board member since 2017 Chairman: Filmparken AS, Storyline Studios AS, Norsk Film Kostyme AS, 2017 Current commitments: Board member: BB Bank ASA, Curr
Slide 20: Management
Mattias Carlsson Mikael Meomuttel CEO CFO, Deputy CEO and Head of Investor Education: MSc, Engineering Physics, Uppsala University. Relations Current commitments: BB Bank ASA (chairman), Avarda AB Education: MSc, Business/Economics and Finance, University (chairman), Avarda Oy (chairman), Smedslätte
Slide 21: Regional managers
▪ Vilma Sool Regional manager Juho Maanpää Head of Finland Juris Pūce Head of Latvia Björn Skytt CIO Baltics Extensive consumer Before joining TF Bank Before joining TF Bank Head of Estonia finance experience in in 2016, worked for in 2010 worked as 10 years of experience Finland within seven years
Slide 22: Contact
‘TF TFBank Contact Investor relations Mikael Meomuttel +46 706 26 95 33 ir@tfbank.se www.tfbankgroup.com