Slide 1: Interim presentation Q3-2023
Interim presentation Q3-2023 November 2nd, 2023
Slide 2: Key highlights
Key highlights Record-high net profit after tax: 28.2 MNOK 53 % increase from the same quarter last year Record-high growth in net loans: 460 MNOK Growth year to date: 1,013 MNOK Successful launch of B2B Credit line product 37 MNOK in net lending
Slide 3: Net loans and margin developments
Net loans and margin developments
Slide 4: Net loan development | Well diversified loan book
Net loan development | Well diversified loan book NET LOAN BALANCE GROWTH (MNOK) KEY COMMENTS: 438 466 • Record-high growth in net loans of 466 MNOK, YTD 1,013 MNOK 260 232 207 195 170 191 120 116 93 109 75 37 • Mortgages lending increased by 260 MNOK, the second highest (11) quarterly growth Q3-22
Slide 5: Yields and funding cost | Attractive margins
Yields and funding cost | Attractive margins LENDING AND LIQUIDITY YIELD. INTEREST RATE DEPOSITS: KEY COMMENTS: 12.0 % 12.1 % 10.8 % 11.3 % 11.6 % • Rate hike on loans effective in August following the 0.5 % increase 8.3 % 8.5 % from the Norwegian Central Bank in June 7.1 % 7.6 % 6.4 % 5.6 % 3.9 % •
Slide 6: Diversified loan portfolio | Transparent and simple
Diversified loan portfolio| Transparent and simple Net Loans # Customers Avg Ticket Size Yield Consumer Loans Unsecured loans offered in Norway, Finland and 2,743’’ 27,528 99’ 12.1 % Sweden Mortgages First or second priority mortgages for refinancing of 2,335’’ 2,479 942’ 8.5 % unsecured debt or hou
Slide 7: Deposits volumes | Diversified funding
Deposits volumes | Diversified funding Volume # Customers Avg. Deposit Size Avg. deposit rate Norway 3,527’’ 13,001 271’ 4.0 % Finland 162’’ 4,092 40’ 1.1% Germany 1,966’’ 11,934 165’ 3.1 % Sweden 17’’ 1,760 10’ 0.5 % Total 5,672’’ 30,787 184’ 3.6 %
Slide 8: Profitability, risk and capital
Profitability, risk and capital
Slide 9: Total income | High growth in income
Total income | High growth in income TOTAL INCOME (MNOK): KEY COMMENTS: 112.4 100.8 102.8 98.0 ▪ Total interest income increased by 45.9 MNOK from the same quarter last year, 86.2 driven by a 12-month net loan growth of 1,204 MNOK and increased loan yield to 10.6 % from 8.9 % ▪ The increase in inter
Slide 10: Operating expenses | Demonstrating economy of scale
Operating expenses | Demonstrating economy of scale OPERATING EXPENSES BREAKDOWN (MNOK): KEY COMMENTS: 42.3 38.0 38.4 39.7 36.1 1.7 2.0 1.8 2.3 ▪ Increase in personnel expenses comes from full effect of annual salary increase 1.9 14.0 15.2 16.0 17.8 and new hires 11.6 3.6 3.0 2.7 2.8 3.9 15.1 16.3 1
Slide 11: Credit risk | Mortgages represent low credit risk
Credit risk | Mortgages represent low credit risk IMPAIRMENT LOSSES (MNOK): KEY COMMENTS: 40.0 32.9 33.4 10.0 % 32.1 30.8 30.0 23.7 20.0 5.0 % 2.7 % ▪ Loan loss ratio came down to 2.3 % from 2.5 % in the previous quarter 10.0 2.1 % 2.4 % 2.5 % 2.3 % 0.0 0.0 % Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Impairment
Slide 12: 26 consecutive profitable quarters
Profits | Long term growth in profit 26 consecutive profitable quarters PROFIT AFTER TAX (NOKM) & RETURN ON EQUITY: 16.6 %16.6 % 14.7 % 13.8 % 13.6 % 13.2 % 13.2 % 12.6 % 12.4 % 10.8 % 10.7 % 10.2 % 10.9 % 10.1 % 28.2 9.7 % 25.5 25.4 24.4 8.4 % 23.8 23.7 7.3 % 7.5 % 7.7 % 20.6 7.2 % 19.5 18.4 17.8 5
Slide 13: Regulatory Capital | Solid capital adequacy
Regulatory Capital | Solid capital adequacy DEVELOPMENTS IN CAPITAL ADEQUACY RATIOS: KEY COMMENTS: 24.9 % 25.1 % 24.2 % 22.5 % 23.3 % 2.7 % 2.5 % 2.3 % 1.6 % 1.2 % 2.3 % 2.5 % 2.1 % 2.1 % 2.0 % • The Common Equity Tier 1 Capital (Cet1) ratio was 19.9 % at the end of the quarter, 2.3 % points above t
Slide 14: Strategy and ambitions
Strategy and ambitions
Slide 15: Product strategy | Continued expansion and diversification
Product strategy | Continued expansion and diversification FROM a specialised consumer finance bank Diversification and scale up TO a focused commercial bank Savings NO Savings FI/SE Mortgages NO Scaling Mortgages Credit Card FI Consumer loans NO/FI Consumer loans SE Sales finance FI Credit Cards DE
Slide 16: Financials | Guiding as per Q3-23
Financials | Guiding as per Q3-23 Strategic ambition Outlook 2023 mid-term PROFIT AFTER TAX ~100 mill. > 200 mill. Strong improvement in profits Among the better Proof of Success ROE ~ 13 % > 18 % Strong improvement in performance Among the better Proof of Success GROSS LOANS > 6.0 Bn 9.0 Bn Growth
Slide 17: Key value propositions | The Nordic Challenger Bank
Key value propositions| The Nordic Challenger Bank A dynamic and innovative challenger bank with a solid Continued strong growth in net loans at attractive 1 market position, a customer-centric approach, and 4 margins significant growth potential in the fintech sector Lean operational platform and o
Slide 18: Thank you for your attention
Thank you for your attention Continue to see lists of management, board of directors, share holders, income statement and balance sheet.
Slide 19: Management | Experienced and competent
Management | Experienced and competent ROBERT BERG | CEO KJETIL KNUDSEN | CRO Berg is one of the Co-founders who established Instabank in 2016 . Prior to that he Knudsen joined the Company in 2018. He has previously held various positions in has been CEO in yA Bank, Commercial Director in Ikano Bank
Slide 20: Board of directors | Seasoned and diligent
Board of directors | Seasoned and diligent MONA CATHRINE NYLANDER | CHAIRPERSON ODD HARALD HAUGE | BOARD MEMBER Hauge is an investor, consultant and author. He is the founder of Nettavisen where Nylander is currently CFO in Kitron. Her previous experiences include positions as he also served as Chie
Slide 21: The share | Euronext Growth Oslo Børs, ticker INSTA
The share | Euronext Growth Oslo Børs, ticker “INSTA” Top 20 shareholders (October 31st, 2023) Share price development (last 12 months) # Shareholders # of shares % 1 KISTEFOS AS 94,268,606 24.9% 2 HODNE INVEST AS 37,546,909 9.9% 3 VELDE HOLDING AS 30,044,521 7.9% 4 BIRKELUNDEN INVESTERINGSSELSKAP A
Slide 22: Income statement & Balance sheet | Overview
Income statement & Balance sheet | Overview INCOME STATEMENT (NOK THOUSAND) BALANCE SHEET (NOK THOUSAND) P&L Q3-23 Q2-23 Q1-23 FY 2022 Q4-22 Q3-22 Balance Sheet 30.09.23 30.06.23 31.03.23 31.12.22 30.09.22 Total income: Assets Interest Income using the effective interest method 146,897 134,255 120,9
Slide 23: Instabank is the Nordic challenger bank. Founded in 2016.
Instabank is the Nordic challenger bank for corporate and private customers. Founded in 2016.