Avarda Bank Ab · OMXSTO:AVARDA
Avarda Bank Ab — TF Bank — Q2 2025 Earnings Presentation
24 slides from Avarda Bank Ab's earnings presentation, Jul 11, 2025
Slide 1: Track Record Since IPO
TRACK RECORD SINCE IPO 210 25,000 180 20,000 150 15,000 120 SEK million 90 10,000 60 5,000 30 0 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 16 16 16 17 17 17 17 18 18 18 18 19 19 19 19 20 20 20 20 21 21 21 21 22 22 22 22 23 23 23 23 2
Slide 2: Interim Report January – June 2025
INTERIM REPORT January – June 2025
Slide 3: Highlights April–June 2025
HIGHLIGHTS APRIL– JUNE 2025 • Controlled growth during the quarter Operating profit - 5 % in local currencies +24% 195 • Operating profit SEK 195 million, +24% vs Q2-2024 158 - The Credit Cards segment drives EPS - C/I improving – the business scales well • Extraordinary dividend of SEK 5.00 per sha
Slide 4: Loan Book Growth
LOAN BOOK GROWTH 20%2) 25,000 5%1) • TF Bank: Q2 = 5%1) 20,000 – Year-on-year 20%2) • Credit Cards: Q2 = 10%1) 15,000 – Year-on-year 43%2) SEK million • Ecommerce Solutions: Q2 = 1%1) 10,000 – Year-on-year -4%2) 5,000 • Consumer Lending: Q2 = 2%1) – Year-on-year 8%2) 0 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25
Slide 5: Growth and Diversification
GROWTH AND DIVERSIFICATION Market update Loan book split by market2) Germany: Credit card product in high demand and increased profitability. Launch of credit offering in Ecommerce Solutions during Q4 2024 and Consumer Germany 38% Lending during Q2 2025 Norway 21% Norway: Increased profit in Consume
Slide 6: Credit Cards
Segment CREDIT CARDS Highlights Share of TF Bank's loan book Share of TF Bank’s operating income • Loan portfolio up 43%1) amounting to SEK 9.9 bn – German and Austrian market the main drivers 45% 51% • 355 k active cards in Germany, +41% YoY • Continued scalability in the business model Segment des
Slide 7: Ecommerce Solutions
Segment ECOMMERCE SOLUTIONS Highlights Share of TF Bank's loan book Share of TF Bank’s operating income • Partnerships initiated with new Nordic retailers Brandsdal Group and Bagaren & Kocken – Expected annual transaction volume SEK 2,700 million 12% 18% • Strong profitability despite pressure in e-
Slide 8: Consumer Lending
Segment CONSUMER LENDING Highlights • Controlled growth during the quarter with focus on Share of TF Bank's loan book Share of TF Bank's operating income protecting margins • Favourable growth opportunities identified in some markets 43% 31% • Credit offering launched in Germany • Business as usual
Slide 9: Stable Risk-Adjusted Margin
STABLE RISK-ADJUSTED MARGIN 690 657 668 595 625 • Risk-adjusted income1) – Slightly improved risk-adjusted margin2) SEK Million • Operating income 8.5% 8.5% 8.6% 8.7% 8.2% – Credit Cards the main driver • Net loan losses 202 205 224 232 235 – Driven by growth in Credit Cards Q2'24 Q3'24 Q4'24 Q1'25
Slide 10: Opex – Cost/Income Ratio by Segment
OPEX – COST/INCOME RATIO BY SEGMENT 70% 60% 61% 61% • Operating expenses Q2-25 vs. Q2-24, +10% 58% 58% 55% – Scalability in the business model 50% • Cost/income ratio per segment in Q2-25 40% – Credit Cards 32% 40% 37% 37% 37% 38% 33% 32% – Ecommerce Solutions 61% 36% 33% 34% 30% 33% 32% 33% – Consu
Slide 11: Increased Profit Year-on-Year
INCREASED PROFIT YEAR-ON-YEAR 24% 191 195 188 188 • Operating profit Q2-25 vs. Q2-24, +24% SEK million 158 – Driven by segment Credit Cards – Earnings per share, 6.72 SEK (5.43) • Strong profitability in Q2-2025 – Return on loans to the public, 2.8% (2.4) – Return on equity, 21.6% (22.5) Q2'24 Q3'24
Slide 12: Credit Cards
Segment CREDIT CARDS 85% 96 80 • Operating profit Q2-25 vs. Q2-24, +85% 75 70 – Growing operating income 52 • Return on loans to the public, 3.2% (2.3) SEK million – Higher risk-adjusted margin 8.6% 8.5% 8.8% 9.1% 8.2% – Economies of scale Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Operating profit Risk-adjusted
Slide 13: Ecommerce Solutions
Segment ECOMMERCE SOLUTIONS 3% 33 29 24 23 22 • Operating profit Q2-25 vs. Q2-24, +3% – Lower net loan losses SEK million 15.4% 15.3% 15.7% 13.7% 14.5% • Return on loans to the public, 2.9% (2.5) – Higher risk-adjusted margin Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Operating profit Risk-adjusted margin 13
Slide 14: Consumer Lending
Portfolios in run-off reports losses Segment CONSUMER LENDING -9% 100 92 83 84 80 80 76 • Operating profit Q2-25 vs. Q2-24, -9% 60 – Slightly lower risk-adjusted margin SEK million 40 6.6% 6.7% 6.6% 6.5% 6.4% • Return on loans to the public, 2.6% (2.7) 20 – Maintaining strong returns 0 Q2'24 Q3'24 Q
Slide 15: Funding and Liquidity
FUNDING AND LIQUIDITY 24,000 Deposits from the public 22,202 20,000 • Retail deposits in Europe – Germany (SEK 16.8 billion) 16,000 – Netherlands (4.2 billion) SEK million – Nordics (SEK 0.6 billion) 12,000 Germany – Other (SEK 0.6 billion) 8,000 – Fixed-term deposits: 52% • Available liquidity rese
Slide 16: Capital Situation
CAPITAL SITUATION 17.4% T1+T2 17,4% 15.5% • Strong capital ratios T1 15,5% 14.2% Headroom 4.5% Headroom 4.9% • Significant headroom to Headroom 5.3% T1+T2 12,9% regulatory requirements T1 10,6% T1 10,6% CET1 14.2% CET1 8.9% CET1 8.9% CET1 8.9% Capital ratios Headroom to CET1 Headroom to T1 regulator
Slide 17: Looking Ahead
LOOKING AHEAD • Execution on our commercial plan continues with a pan-European focus – Upgraded corporate structure including an application submitted for a UK license • Portfolio build-up with major retailers in Ecommerce Solutions segment • Building competence in our newest markets in Credit Cards
Slide 18: Q&A Session
Q&A Session 18
Slide 19: Appendix
Appendix 19
Slide 20: Corporate Profile
CORPORATE PROFILE Our Products Our Geographical footprint TF Bank is a digital bank offering consumer banking We serve customers in the Nordics, Germany, Austria, services and e-commerce solutions through a Spain, the Baltics, Poland, Ireland, the Netherlands proprietary IT platform with a high degr
Slide 21: Long Track Record of Profitable Growth
LONG TRACK RECORD OF PROFITABLE GROWTH Long experience and proven Strong track record on business model growth and profitability • 35 years+ experience from Loan portfolio consumer finance industry 25,000 2,500 • Highly profitable core markets 20,000 2,000 with proven model for SEK million 15,000 1,
Slide 22: Board of Directors
BOARD OF DIRECTORS John Brehmer Arti Zeighami Sara Mindus Chairman of the Board since 2020 Board member since 2023 Board member since 2020 Board member since 2010 Current commitments: Current commitments: Current commitments: Partner & Director, Senior advisor Board member: Besqab AB (publ), Chairma
Slide 23: Executive Directors
EXECUTIVE DIRECTORS Joakim Jansson Mikael Meomuttel CEO CFO, Deputy CEO and Head of Investor Relations Education: PhD in Economics, Uppsala University. Education: MSc, Business/Economics and Finance, University of Borås/University of Gothenburg. At TF Bank since 2023 as CEO. Has previously held lead
Slide 24: Contact
Contact Investor relations Mikael Meomuttel +46 706 26 95 33 ir@tfbank.se www.tfbankgroup.com 24