Slide 1: Interim Presentation Q2 – 2021
Instabank Interim Presentation Q2 – 2021 August 12 th, 2021 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 Q2-21
Key highlights Q2-21 Record high profit before tax of 26.0 MNOK, after tax 19.5 MNOK Profits nearly doubled from same quarter last year Strong net loans growth of 356 MNOK Growth of 541 MNOK for the first half of 2021 Mortgages volume growth of 242 MNOK, 37 % higher than the previous quarter M
Slide 4: Net loan development
Net loan development Net loan balance growth Net loans to customers MNOK MNOK 356 3 500 3 312 2 955 127 2 787 2 771 242 3 000 222 2 565 109 115 109 177 184 2 500 106 116 1 128 106 1 071 57 52 2 000 45 39 38 1 174 1 100 582 10 18 1 129 340 5 1 500 56 162 5 -6 -6 -1 1 000 -16 -30 -43 -53 -74 500 1 326
Slide 5: Diversified loan portfolio
Diversified loan portfolio Increased diversification 3 500 3 000 2 500 2 000 1 500 1 000 500 - Q3-20 Q4-20 Q1-21 Q1-22 Consumer loans Mortgages Sales Finance Credit Card *) Includes accounts with zero balance with an available credit limit 5
Slide 6: Diversified funding volume
Diversified funding volume Volume # customers Avg. deposit Deposit rates size end Q2-21 Norway 2,162’’ 6,343 341’ 1.00 %* Finland 742’’ 3,811 197’ 0.45 % Sweden 104’’ 1,691 62’ 0.55 % Germany 525’’ 2,545 206’ 0.14 %** Total 3,540’’ 14,390 246’ 0.71 % *) Up to NOK 500’, 0,90 % for deposits between NO
Slide 7: Funding cost and yields
Funding cost and yields Development in funding cost and yields Key comments ▪ Yield for unsecured loans continue a decreasing path because of margin 13,0 % pressure in all three countries 12,9 % 12,8 % 11,8 % 11,5 % ▪ Yield for mortgages were slightly down because of increase new volume and increase
Slide 8: Total income
Total income Total income Total income detailed* MNOK 74,5 MNOK 70,1 70,6 65,9 7,7 60,1 11,3 11,8 12,2 7,9 70,4 75,9 65,3 68,2 68,0 -13,2 -13,6 -12,1 -9,6 -9,1 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Total Interest income Interest expenses Net other income Key comments ▪ Total in
Slide 9: 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 31,3 29,5 came in at 31.3 MNOK and represent a normal level as they do not include 1,5 1,5 1,8 25,2 1,6 any significant non-recurring costs 1,1 13,0
Slide 10: Credit risk
Credit risk Impairment losses Key comments MNOK 30,0 10,0 % ▪ The bank has observed stable and good payment behaviour from the 21,7 20,3 18,8 19,3 customers during the quarter resulting in a historically low share of loans 20,0 17,1 past due by the end of the quarter 5,0 % 10,0 3,0 % ▪ For Mortgages
Slide 11: Profit development
Profit development Net profit Key comments MNOK ▪ A significant increase in Total Income, decreased losses on loans and stable operating expenses, lead to an increase in net profit after tax of 5.5 MNOK from the previous quarter to record 26,0 high19.5 MNOK ▪ Return on equity (ROE) in the quarter wa
Slide 12: Capital adequacy
Capital adequacy Developments in capital adequacy ratios Key comments 23,3 % 23,3 % 23,0 % 22,8 % • Common equity Tier 1 Capital ratio was 19.5 %, and the total capital ratio 22,2 % 2,0 % 2,0 % 2,0 % 1,9 % was 22.8 % at the end of Q2-21, 2.7 % points above the total regulatory 1,5 % 1,9 % 1,5 % 1,4
Slide 13: 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 14: 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 15: Financials
Financials Outlook 2021 Strategic ambitions ROE >13 % 15-20 % Strong improvement in profits Heading in the right direction Proof of success Net loans 3.7 Bn. ~ 6.0 Bn. Growth is necessary to improve profits Growth shows direction Proof of growth capacity Cost to income < 42 % ~30 % Economies of scal
Slide 16: 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 17: Share price and ownership
Share price and ownership Instabank is listed at Euronext Growth at Oslo Børs, ticker “INSTA” Top 20 shareholders as of 10.08.2021 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 18: Financial summary
Financial summary P&L (NOK ‘000) Balance sheet (NOK ‘000) P&L Q2-21 Q1-21 FY 2020 Q4-20 Q3-20 Q2-20 Balance Sheet Q2-21 Q1-21 Q4-20 Q3-20 Q2-20 Total income: Assets Interest Income using the effective interest method 75 886 67 999 272 117 70 421 68 187 65 298 Loans and deposits with credit instituti
Slide 19: Key figures Q2-21
Key figures Q2-21 Net profit before tax of 26.0 MNOK + 98 % vs Q2-20 Total income of 74.5 MNOK + 24 % vs Q2-20 Losses on loans 2.1 % vs 3.0 % Q2-20 Outstanding net loans of 3.312 MNOK + 747 MNOK vs Q2-20 Equity per share of 1.73 NOK vs 1.55 Q2-20 Return on Equity of 13.8 % vs 7.7 % in Q2
Slide 20: Thank You
Thank You instabank.no www.instabank.no