Morrow Bank AB · OMXSTO:MORROW
Morrow Bank AB — Q4 2024 Earnings Presentation
29 slides from Morrow Bank AB's earnings presentation, Feb 12, 2025
Slide 1: Fourth quarter and full-year 2024 results
morrowbank.com Fourth quarter and full-year 2024 results Morrow Bank ASA
Slide 2: Significant value creation delivered in 2024
Significant value creation delivered in 2024 morrowbank.com Built a scalable banking platform • Loan balance of BNOK 15.4, a growth of 38% vs. 2023 • Total income of MNOK 1,277 in 2024, up 21% • Profit before tax of MNOK 281, up 36% Delivered on structural opportunities • Acquired BNOK 2.3 loan port
Slide 3: Operational highlights and outlook
morrowbank.com Operational highlights and outlook Photo: craftedbygc
Slide 4: 2022-2024: Built a scalable banking platform
2022-2024: Built a scalable banking platform morrowbank.com Early 2022: Launched turnaround plan Result: 27% loan balance CAGR and reduced costs 84 51 -13 From Q4-21 presentation 4
Slide 5: 2025-2026: Strong value drivers in place
2025-2026: Strong value drivers in place morrowbank.com Nordic macro improving Loan loss ratio declining Increasingly generating excess capital Consuming capital 4-4.5% Generating capital Continuing to pursue structural opportunities, including Swedish redomiciliation and potential M&A Source, Nordi
Slide 6: Financial review
morrowbank.com Financial review Photo: craftedbygc
Slide 7: Built scale by growing in the most profitable markets
Built scale by growing in the most profitable markets morrowbank.com Total gross loans MNOK ▪ Gross loan balance growth of 30.5% year-on- year ▪ Acquired BNOK 2.3 of performing loans from Qliro and Lunar in H2 2024 ▪ Allocating capital to growth in the most attractive markets, Finland and Sweden ▪ F
Slide 8: Yields impacted by acquisitions, stable to positive outlook
Yields impacted by acquisitions, stable to positive morrowbank.com outlook Yields, performing loans and deposits ▪ Resilient underlying net yield in Q4 ▪ Loan yields impacted by acquired Swedish portfolios, with more attractive risk-adjusted margin ▪ Credit card yield (7% of loan balance) impacted b
Slide 9: Total income continues to grow – all-time-high
Total income continues to grow – all-time-high morrowbank.com Total income (MNOK) ▪ Total income growth of 24% year-on-year ▪ Driven by organic growth and the acquisition of performing Swedish loan portfolios ▪ Full P&L effect from Q4 2024 ▪ Loan growth to continue to drive total income Note: Exclud
Slide 10: Portfolio acquisitions demonstrating scalability
Portfolio acquisitions demonstrating scalability morrowbank.com Cost/income ▪ Cost/income ratio improved to 25.9% from 28.0% in Q4 2023 ▪ MNOK 10 one-off in Q4 2024 related to Swedish banking license application ▪ Stable underlying OPEX despite continued loan growth, including portfolio acquisitions
Slide 11: Loan loss ratio continuing to improve
Loan loss ratio continuing to improve morrowbank.com Loan losses ▪ Increase in nominal losses driven by a larger loan balance, including portfolio acquisitions ▪ Overall loan loss ratio continued to decline in the 4.0-4.5% quarter to 4.6% (Q4 2023: 5.4%) ▪ Trend expected to continue driven by tighte
Slide 12: Profitability increasing – proposed dividend
Profitability increasing – proposed dividend morrowbank.com Profit (MNOK) ▪ Q4 2024 profit before tax up 65% year-on-year ▪ Driven by increase in total income at stable costs ▪ Return on target equity improved for five consecutive quarters, ending at 10.6% ▪ Board to propose dividend of up to 50% of
Slide 13: Improving capital situation provides ample room for both growth and dividends
Improving capital situation provides ample room for both morrowbank.com growth and dividends Capital adequacy - CET1 ▪ Capital situation improved: ▪ CET1 requirement reduced by c2.4%-points following NFSA Pillar 2 adjustment, total capital requirement unchanged ▪ Q4 24 headroom to CET1 requirement/t
Slide 14: The investment case
morrowbank.com The investment case Photo: craftedbygc
Slide 15: Outperforming peers on growth and efficiency
Outperforming peers on growth and efficiency – morrowbank.com redomiciliation enabling mid-term ROE of 20% Growth last two years1 Cost/income ratio2 ROE3 Annualised per 24Q4 24Q4 24Q4 27% 26% 40% 20% 31% * 14% 18% 33% 11% 10% 37% 10% 10% * 48% 2% 1% 52% 2% * * 24Q3 (24Q4 not yet disclosed) Morrow Ba
Slide 16: Key milestones of Swedish redomiciliation
Key milestones of Swedish redomiciliation morrowbank.com - Application process progressing according to plan Q1-Q3 2024 Q4 2024 2025 Q1-2026 Establishment of Swedish Assessment of potential Start of Swedish banking legal entity (AB) Q2: SFSA decision redomiciliation options operation Niklas Midby, f
Slide 17: ~140% shareholder return in 2024 – still trading at a discount
~140% shareholder return in 2024 – still trading at a morrowbank.com discount to Swedish peers Significantly outperformed Swedish peers’ TSR in 2024... …but trading at ~3 discount to Swedish peers’ P/B Source: Company data, Bloomberg. Peer group includes TF Bank, Resurs Bank, Norion Bank, Lea Bank (
Slide 18: Scalable banking platform in place, positioned for continued growth and value creation
Scalable banking platform in place, morrowbank.com positioned for continued growth and value creation ▪ Grew loan balance by BNOK 3.6 in 2024 with no impact on cost levels Highly scalable banking platform ▪ Delivering industry leading cost-efficiency ▪ 2024 profit before tax of MNOK 281, up 36% year
Slide 19: Q&A
morrowbank.com Q&A
Slide 20: Appendix
MORROW morrowbank.com APPENDIX
Slide 21: Profit and loss
Profit and loss morrowbank.com Amounts in MNOK Q4 2024 Q3 2024 2024 2023 Net interest margin* (%) Interest income 493.8 449.5 1,762.7 1,380.0 Interest expenses -159.2 -147.5 -552.2 -359.8 Net interest income 334.7 301.9 1,210.5 1,020.2 9.1 % 8.8 % 8.7 % 8.5 % 8.5 % Commission income and fees 17.8 15
Slide 22: Balance sheet
Balance sheet morrowbank.com 31 Dec. 30 Sept. 31 Dec. 31 Dec. Amounts in MNOK 2024 2024 2023 2022 Liquidity and funding Assets Loans and deposits with credit 687% 2,084.0 671.2 1,530.0 807.8 institutions Net loans to customers 13,847.5 14,066.4 11,076.0 9,110.7 528% Certificates and bonds 2,589.4 3,
Slide 23: Shareholder overview
Shareholder overview morrowbank.com Largest 20 shareholders Management and members of the Board of Directors Shares Shares Share options* Warrants # Shareholder % Role Name (thousand) (thousand) (thousand) (thousand) 1 Kistefos AS 47,787 20.8 % CFO Eirik H 2,642 287 800 2 UBS AG 25,667 11.2 % COO
Slide 24: Offering convenient consumer financing to creditworthy individuals in the Nordics
Offering convenient consumer financing morrowbank.com to creditworthy individuals in the Nordics Flexible consumer loans Diversified Nordic loan portfolio1 • NOK 10,000-500,000 without collateral • Same day response to loan application • Annuity loans, Credit Lines and Refinancing 19% No-fees credit
Slide 25: Improving macro driving growth and reducing credit risk
Improving macro driving growth and reducing credit risk morrowbank.com GDP growth (%) Unemployment (%) Inflation (%) 3 10 NO SE FI 10 9 9 8 8 2 7 7 6 6 1 5 5 4 4 3 3 0 2 2 1 1 -1 0 0 2024 2025 2026 2024 2025 2026 2023 2024 2025 2026 2027 ▪ Continued growth set to drive ▪ Unemployment outlook remains
Slide 26: Increased headroom to capital requirements
Increased headroom to capital requirements morrowbank.com 24Q3 capital adequacy 24Q4 capital adequacy Capital ratio CET1 ratio and headroom Capital ratio CET1 ratio and headroom 26
Slide 27: Our typical customer is 30-50 years old, owns a home and earns above average
Our typical customer is 30-50 years old, morrowbank.com morrowbank.com owns a home and earns above average Male Above average annual income 69% of our loan NOK ~600k customers are men Homeowner Solid payer ✓ Zero payment remarks 59% homeownership ✓ Permanent employment Middle aged Average loan amoun
Slide 28: Responsible lending throughout the credit lifecycle
Responsible lending throughout the credit lifecycle Marketing • Guidelines for responsible sales practices and product labeling Attracting • Messaging, channels and marketing suitable for attracting creditworthy customers creditworthy • Making sure ’ customers practices Onboarding • Evaluation of cr
Slide 29: morrowbank.com
morrowbank.com