Slide 1: Instabank Interim Presentation Q1 – 2021
Instabank Interim Presentation Q1 – 2021 May 6 th, 2021 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 highlights Q1-21
Key highlights Q1-21 Strong net loans growth of 184 MNOK Growth of 244 MNOK adjusted for negative currency effects Mortgage product growth of 177 MNOK, 70 % higher than Q4-20 Mortgage volume hits 19 % of total loans in Norway Profit before tax of 18.7 MNOK, after tax 14.0 MNOK Increase in prof
Slide 4: Coop Byggekonto rollout-completed
Coop Byggekonto rollout-completed Customers at Coop Obs Bygg and Coop Byggmix can now choose between three payment methods delivered by Instabank Mastercard Coopay app QR-code 4
Slide 5: Net loan development
Net loan development Net loan balance growth Net loans to customers MNOK MNOK 3 200 2 955 222 2 769 2 787 2 771 179 177 184 2 565 109 2 700 112 115 109 116 106 106 72 2 200 52 45 38 1 071 10 1 174 1 100 5 9 1 700 1 278 1 129 340 56 162 5 -6 -6 -1 -16 1 200 -30 -43 -53 -74 700 -115 -149 200 1 379 1 3
Slide 6: Diversified loan portfolio
Diversified loan portfolio Net Loans # Customers* Avg Ticket Size* Yield Consumer Loans 2,393’’ 23,177 79’ 11.8 % Mortgages 343’’ 559 614’ 7.0 % Sales Finance 130’’ 16,732 8’ 14.2 % Credit Card 127’’ 2,821 45’ 14.9 % Total 2,995’’ 43,289 68’ 11.5 % *) Includes accounts with zero balance with an avai
Slide 7: Diversified funding volume
Diversified funding volume Volume # customers Avg. deposit Deposit rates size end Q1-21 Norway 2,045’’ 5,913 346’ 1.00 %* Finland 788’’ 3,761 209’ 0.60 % Sweden 116’’ 1,685 69’ 0.55 % Germany 392’’ 2,004 196’ 0.19 % Total 3 341’’ 13,363 250’ 0.81 % *) Currently new customers only per end of Q1-21, w
Slide 8: Total income
Total income Total income Total income detailed MNOK MNOK 1,9 1,1 1,9 4,4 1,0 67,0 70,1 70,6 8,4 11,2 13,1 13,6 65,9 8,4 60,1 83,4 79,9 82,5 84,1 80,5 -12,5 -13,2 -13,6 -12,1 -9,6 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 -15,8 -16,7 -16,1 -16,0 -16,1 Key comments Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 ▪ Interest income
Slide 9: Funding cost and yields
Funding cost and yields Development in funding cost and yields Key comments 13,0 % 12,9 % 13,0 % ▪ Loan yield decreased mainly due to increased share of mortgages at a lower 12,6 % 11,5 % loan yield as well as unsecured loans margin pressure in all three countries ▪ The deposit interest rates contin
Slide 10: Operating expenses
Operating expenses Operating expenses breakdown Key comments MNOK ▪ Total operating expenses were stable compared to the previous quarter and 31,7 31,7 29,5 came in at 31.7 MNOK. 26,7 1,5 1,5 25,2 1,6 1,7 1,1 ▪ Increased marketing expenses offset a decrease in employee bonus 11,0 13,0 12,3 8,2 9,5 p
Slide 11: Credit risk
Credit risk Impairment losses Key comments MNOK ▪ Losses on loans remained relatively low and were 20.3 MNOK or 2.7 % off 40,0 33,1 10,0 % average gross loans in the period, compared to 19,3 MNOK/ 2.6 % in the 30,0 previous quarter 21,7 20,3 18,8 19,3 20,0 4,6 % 5,0 % ▪ The share of loans past due 1
Slide 12: Profit development
Profit development Net profit Key comments MNOK ▪ An increase in Total Income was offset by a slightly increase in losses on loans, while operating cost where stable compared to the previous quarter 19,1 18,7 ▪ Net profit after tax was 14.0 MNOK, up from 5.3 MNOK in the 17,6 same quarter last year 1
Slide 13: Capital adequacy
Capital adequacy Developments in capital adequacy ratios Key comments • Common equity Tier 1 Capital ratio was 19.6 %, and the total capital ratio 22,1 % 23,3 % 22,2 % 23,3 % 23,0 % was 23.0 % at the end of Q1-21, 2.7 % points above the total regulatory 2,0 % 2,0 % 1,9 % 2,0 % 2,0 % 1,4 % 1,5 % 1,4
Slide 14: 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 15: 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 16: 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 17: 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 18: Share price and ownership
Share price and ownership Instabank is listed at Euronext Growth at Oslo Børs, ticker “INSTA” Top 20 shareholders as of 30.04.2021 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 19: Financial summary
Financial summary P&L (NOK ‘000) Balance sheet (NOK ‘000) Q1-21 FY 2020 Q4-20 Q3-20 Q2-20 Q1-20 FY 2019 Q1-21 Q4-20 Q3-20 Q2-20 Q1-20 Total income: Assets Interest Income using the effective interest method 80 501 329 514 84 080 82 478 79 854 83 102 305 752 Loans and deposits with credit institution
Slide 20: Key figures Q1-21
Key figures Q1-21 Net profit before tax of 19.0 MNOK + vs 7.1 MNOK Q1-20 Total income of 70.9 MNOK + 6 % vs Q1-20 Losses on loans 2.7 % vs 4.6 % Q1-20 Outstanding net loans of 2,955 MNOK vs 2,769 MNOK Q1-20 Equity per share of 1.67 NOK vs 1.53 Q1-20 Return on Equity of 10.2 % vs 4 % in Q
Slide 21: Thank You
Thank You instabank.no www.instabank.no