Avarda Bank AB · OMXSTO:AVARDA
Avarda Bank AB — TF Bank — Q3 2020 Earnings Presentation
24 slides from Avarda Bank AB's earnings presentation, October 2020
Slide 1: Q3 2020 Results
casts RESULT At
Slide 2: Highlights July - September 2020
HIGHLIGHTS JULY - SEPTEMBER 2020 = Back to growth in all segments, 7,5% for the Group in the third quarter = German credit card program is now a key contributor to growth = Significant development in Ecommerce Solutions — New white label and marketing solutions launched = Covid-19 update; ii- TFBank
Slide 3: Share of loan book and operating income
Share of TF Bank's loan book Share of TF Bank's operating income ▪ 75% 73% ▪ ▪ 5.7bn 18% 8 Loan book Loan book Countries growth* ▪ APR-new originations, volume weighted 25,00% 20,00% 15,00% 10,00% ▪ 5,00% 0,00% EE,LV,LT,PL FI,NO,SE 3
Slide 4: Share of loan book and operating income
▪ Share of TF Bank's loan book Share of TF Bank's operating income ▪ 17% 21% ▪ ▪ 1.3bn 23% 7 Loan book Loan book Countries growth* ▪ 4
Slide 5: Share of loan book and operating income
Share of TF Bank's loan book Share of TF Bank's operating income ▪ 8% 6% ▪ ▪ ▪ 0.6bn 165% 2 Loan book Loan book Countries growth*** ▪ ▪ ▪ 5
Slide 6: Loan book by segment
8 000 ▪ 7 000 ‒ 6 000 ▪ 5 000 ‒ 4 000 3 000 ▪ ‒ 2 000 1 000 ▪ 0 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 ‒ TF Bank Consumer Lending Ecommerce Solution Credit Cards 6
Slide 7: Country outlook and loan book
Sweden ▪ Focus on profitability and e-commerce. Loan book Norway ▪ Continued positive long term outlook on the Norwegian economy. Focus on growth and margins. Finland ▪ New rate cap of 10% until the end of the year. Sweden Norway Finland Baltics Poland Germany The Baltic states ▪ Portfolio managemen
Slide 8: Quarterly financial development
250 25,0% 90 85 60,0% 70 8,0% 218 78 80 80 61 208 213 210 80 60 60 196 71 50,0% 60 200 20,0% 70 51 6,0% 50 46 60 40,0% 15,0% SEK million SEK million SEK million 150 37,7% 37,9% 38,7% 50 36,5% 37,3% 40 14,3% 30,0% 4,0% 13,7% 13,2% 12,8% 12,4% 40 30 100 10,0% 3,5% 3,4% 3,4% 3,4% 3,4% 30 20,0% 20 2,0%
Slide 9: Credit Cards
90 Credit Cards Credit Credit ▪ Cards Cards -9,7 80 73 -9,0 73 -6,9 ‒ 70 70 ‒ 60 ▪ SEK million 50 ‒ 40 30 ▪ 20 ‒ 10 0 Q1'20 Q2'20 Q3'20 Q4'20 9
Slide 10: Segment development
80 74 ▪ 73 70 66 ‒ 60 ‒ ‒ 50 SEK million 40 ▪ 30 ‒ ‒ 20 10 0 Q1'20 Q2'20 Q3'20 Q4'20 10
Slide 11: Segment development
16 ▪ 14 14 ‒ 12 ‒ 10 ‒ 10 SEK million 8 ▪ 6 6 ‒ ‒ 4 2 0 Q1'20 Q2'20 Q3'20 Q4'20 11
Slide 12: Segment development
Q1'20 Q2'20 Q3'20 Q4'20 ▪ 0 ‒ -2 ‒ ‒ -4 ▪ SEK million -6 ‒ -8 -7 ‒ -9 -10 -10 -12 12
Slide 13: Distribution of deposits
10 000 9 000 Distribution of deposits 8 000 ▪ Sweden 7 000 ‒ Germany 12% Finland SEK million 6 000 4 663 4% ‒ 5 000 Germany 53% ‒ 4 000 31% Norway ‒ 28% of deposits 3 000 Norway ‒ 2 688 2 000 1 034 Other ▪ 1 000 Sweden 1 025 1 408 Central banks ‒ Finland 0 369 Deposits from Liquidity reserve* ‒ the
Slide 14: Capital ratios
17,0% ▪ T1+T2 17,0% 14,2% Headroom 5,2% T1 14,2% 12,8% Headroom 4,6% ▪ Headroom 4,8% T1+T2 11,8% T1 9,6% T1 9,6% CET1 12,8% ▪ CET1 CET1 CET1 8,0% 8,0% 8,0% ▪ Capital ratios Headroom to CET1 legal capital Headroom to T1 legal capital Headroom to T1+T2 legal capital 30 September 2020 requirements (inc
Slide 15: Looking Ahead
LOOKING AHEAD = Growth back on the top of the agenda — Baltic area, moderate risk appetite — Nordic, Norway leading the way — Germany, small base but the numbers show great promise Still poor visibility regarding Covid-19 impact in 2021, ert provision 30 MSEK = On-boarding major merchants within Eco
Slide 16: Q&A Session
Q&A Session 16
Slide 17: Appendix
APPENDIX 17
Slide 18: 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 hth duP DNA We aim to deliver effortless banking to our cus
Slide 19: Loan portfolio and operating income history
▪ 7 000 900 6 000 800 ▪ 700 5 000 600 SEK million 4 000 500 3 000 400 300 2 000 200 1 000 100 ▪ 0 1992 2001 2010 2019 0 Loan portfolio Operating income 19
Slide 20: Financial Targets and Dividend Policy
FINANCIAL TARGETS AND DIVIDEND POLICY The Board of Directors of TF Bank intends to establish new financial targets once the macroeconomic outlook has stabilised. Currently, TF Bank has the following targets: Efficiency TF Bank aims to achieve a cost/income ratio of below 35% in 2020 Capital structur
Slide 21: Board of Directors
John Brehmer Charlotta Björnberg- Tone Bjørnov Chariman of the Board Paul Board member since 2015 since 2020 Board member since Current commitments: Board member since 2017 Chairman: Filmparken AS, Storyline Studios AS, Hausmann AS 2010 Current commitments: Board member: Storyline Studios Current co
Slide 22: Management team
Mattias Carlsson Mikael Meomuttel CEO CFO, Deputy CEO and Head of Investor Education: MSc, Engineering Physics, Uppsala University. Relations Current commitments: Smedslättens Tennisbanor Aktiebolag Education: MSc, Business/Economics and Finance, University (chairman), Qred AB (chairman), and Tronst
Slide 23: 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 Finland within seven years in integration manager
Slide 24: Contact
‘TF TFBank Contact Investor relations Mikael Meomuttel +46 706 26 95 33 ir@tfbank.se www.tfbankgroup.com