Slide 1: Interim Presentation Q2 – 2020
Instabank Interim Presentation Q2 – 2020 August 13 th 2020 instabank.no www.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 Q2-20
Key highlights Q2-20 Profit before tax of 13.1 MNOK, after tax 9.9 MNOK Interest income has decreased as volume has fallen. However, with still low costs and relatively low losses given the Covid-19 pandemic, profit after tax increased from 5.3 MNOK in the previous quarter to 9.9 MNOK this quarter
Slide 4: Key figures Q2-2020
Key figures Q2-2020 Net profit before tax of 13.1 MNOK + 3 % vs Q2-19 Total income of 60.0 MNOK + 3 % vs Q2-19 Losses on loans 3.0 % vs 2.4 % Q2-19 Quarterly decrease in net loans of -204 MNOK vs +13 MNOK Q2-19 Outstanding net loans of 2,565 MNOK vs 2,617 Q2-19 Equity per share of 1.55 N
Slide 5: Towards a paytech partner position
Towards a paytech partner position Our ambition is to establish Instabank as a paytech – Potential growth as companies switch from selling products to selling product-as-a-service partner for companies seeking to innovate and – Increase profit through long-term integration with partners and client
Slide 6: New partner agreement with Coop
New partner agreement with Coop Coop and Instabank will cooperate in developing new financing solutions for Coop Norge’s building warehouses Obs Bygg and Coop Byggmix. New sales finance products will be distributed in-store, through the payment app Coopay and as a Coop branded credit card. Coo
Slide 7: Distribution channels
Distribution channels Instabank Agents Partners Volume Volume Volume as of Q2-20 22 % as of Q2-20 66 % as of Q2-20 12 % 7 DRAFT
Slide 8: Present product portfolio
Present product portfolio Unsecured consumer loans and mortgages Sales financing Deposit accounts KEY METRICS KEY METRICS KEY METRICS KEY METRICS KEY METRICS NOK 2,461m NOK 4,5m NOK 99m NOK 36 m NOK 3,129m in net unsecured in net mortgage in net loans in invoice balance in deposits loans loans 24,18
Slide 9: Net loan development
Net loan development Net loan balance growth Net loans to customers Key comments MNOK MNOK 3 200 In mid-March, Instabank suspended all new loans sales, except for sales financing through 2 719 2 697 2 769 paytech partners, in conjunction with risk 112 2 618 2 565 103 83 179 2 700 47 106 associated
Slide 10: Total income
Total income Total income detailed Total income MNOK MNOK 63,7 67,0 58,3 61,7 60,1 2,3 4,4 1,0 3,2 6,1 8,6 8,4 8,4 7,8 8,2 74,5 78,0 80,0 83,4 79,9 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Key comments -13,4 -13,4 -13,0 -12,5 -13,2 -13,8 Interest income decreased by 3.5 MNOK from Q1-20 to 79.9 MNOK in Q2- -1
Slide 11: Funding cost and yields
Funding cost and yields Development in funding cost and yields Key comments Although loan yield vary across markets and products and the mix among 13,2 % 13,2 % 13,2 % 13,0 % 12,8 % them changes, the total yield remains relatively stable. Share of deposits outside Norway was at 45 %, down from 4
Slide 12: Operating expenses
Operating expenses Operating expenses detailed Key comments MNOK 29,8 28,9 25,0 26,7 25,2 Instabank maintain a strong focus on cost control and operational efficiency 2,7 10,3 1,5 1,7 1,1 10,2 and had lower operating expenses in Q2-20 compared to the same quarter 8,8 8,2 9,5 5,8 3,1 in both 2019 a
Slide 13: Credit risk
Credit risk Impairment losses Key comments MNOK 40,0 33,1 10,0 % Losses on loans came in at 21.7 MNOK/ 3.0 % of gross loans, down from 30,0 21,7 33.1 MNOK/ 4.6 % in the previous quarter when an extra provisions for loan 20,0 15,8 17,2 16,5 5,0 % 4,6 % losses related to Covid-19 of 5 MNOK was inclu
Slide 14: IFRS 9 volume distribution and ECL %
IFRS 9 volume distribution and ECL % IFRS 9 Impairment losses Volume distribution % Expected Credit Losses (ECL) % Stage 1: Performing loans, past due <30 days Stage 1: ECL next 12 months IFRS 9 vs IAS 39 Whereas IAS 39 is an incurred loss model based on Stage 2: Past due 30-60 days or signi
Slide 15: Profit development
Profit development Net profit before tax Key comments MNOK Net profit before tax 13.2 MNOK, up 6.1 MNOK from Q1-20 20,3 Q2-20 profit negatively affected by a reduction in interest 17,6 income as a result of the decrease in loan volume 12,8 13,2 7,1 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 15
Slide 16: Capital adequacy
Capital adequacy Developments in capital adequacy ratios Key comments 23,7 % 23,6 % 23,5 % 23,3 % 22,1 % 1,7 % 1,6 % 1,5 % • Instabank is well capitalised and has surplus capital of 83 MNOK above 1,0 % 1,0 % 1,5 % 2,0 % 2,0 % 1,4 % 1,5 % the minimum regulatory capital requirement • At the end of Q2-
Slide 17: Outlook 2020
Outlook 2020 • Growth in net loans expected to be 250-300 MNOK for the second half of 2020 • Covid-19 pandemic has increased uncertainty and risk, although recovery has been better than expected • Alongside growth from the paytech partner strategy, Instabank expects the new easy-to-use mortgag
Slide 18: Financial summary
Financial summary P&L (NOK ‘000) Balance sheet (NOK ‘000) Items Q2-20 Q1-20 FY 2019 Q4-19 Q3-19 Q2-19 Items Q2-20 Q1-20 Q4-19 Q3-19 Q2-19 Operating income Assets Interest Income using the effective interest method 79 854 83 102 305 752 79 957 77 950 74 466 Loans and deposits with credit institutions
Slide 19: Share price and ownership
Share price and ownership Top 20 shareholders as of 11.08.2020 Share price development since OTC listing in October 2016 # Shareholders # of shares % Share price (NOK) 1 KISTEFOS AS 83 126 568 24,99% 2 HODNE INVEST AS 29 588 311 8,89% 3 VELDE HOLDING AS 23 775 000 7,15% 4 BIRKELUNDEN INVESTERINGSSEL
Slide 20: Thank You
Thank You instabank.no www.instabank.no