Avarda Bank AB · OMXSTO:AVARDA
Avarda Bank AB — TF Bank — Shareholder Meeting (May 2023)
20 slides from Avarda Bank AB's shareholder meeting presentation, May 2023
Slide 1: Annual General Meeting
Annual General Meeting May 2023
Slide 2: Corporate Profile
CORPORATE PROFILE Our Products Our Geographical footprint Operating with modern and scalable We serve customers in the Nordics, Germany, infrastructure offering our retail customers Austria, Spain, the Baltics and Poland. online consumer loans, deposits and credit cards. For retailers we offer leadi
Slide 3: Highlights January – December 2022
HIGHLIGHTS JANUARY – DECEMBER 2022 • Loan portfolio increased by +27%* during 2022 • Operating profit 434 MSEK, +23% • Best-in-class return on equity, 23.6% • Loan book growth of 93% within the Credit Cards segment vs 2021 • Focus on EPS-growth and capital – no dividend proposed for 2022 • Cooperati
Slide 4: Consumer Lending
CONSUMER LENDING • Diversified portfolio with Nordic base • Product offering tailored for each market Share of TF Bank's loan book Share of TF Bank's operating income - Average loan size on book of SEK – 69,000 - Tenor typically between 12 and 60 months 59% 53% • Marketed through direct channels, ow
Slide 5: Credit Cards
CREDIT CARDS • Target group is German, Austrian and Norwegian consumers Share of TF Bank's loan book Share of TF Bank’s operating income • Simple and transparent offering – gold card with no fees 22% 25% • Different income profile compared to consumer loans - ”Low and grow” strategy • Addressable ma
Slide 6: Ecommerce Solutions
ECOMMERCE SOLUTIONS • Cooperation with Jollyroom and Haypp Group Share of TF Bank's loan book Share of TF Bank’s operating income launched during the year - Expected transaction volume of more than SEK 3 billion 19% 22% • Digital payment solutions offered in the Nordic region, the Baltics and Poland
Slide 7: Loan Book Growth
LOAN BOOK GROWTH 35% 27% 15 000 14 654 13 598 13 500 12 570 • TF Bank: Growth in 2022 = 35% (+27%*) 12 000 11 518 10 872 10 500 • Consumer Lending: 2022 = 22% (15%*) SEK million 9 000 7 500 6 000 • Credit Cards: 2022 = 93% (79%*) 4 500 3 000 • Ecommerce Solutions: 2022 = 31% (24%*) 1 500 0 Q4'21 Q1'
Slide 8: Growth and Diversification
GROWTH AND DIVERSIFICATION Sweden ▪ Focus on profitability and e-commerce. Norway ▪ Continued positive long term outlook on the Norwegian economy. Focus on growth and margins. Credit card issuing at an all time high. Loan book Finland ▪ High competition in consumer lending. Low risk loan book. The B
Slide 9: Financial Targets
FINANCIAL TARGETS • Growth TF Bank’s aim is to achieve a loan portfolio of SEK 20 billion by first half of 2025. • Profitability TF Bank’s aim is to achieve a return on equity well above 20%. • Capital structure TF Bank’s aim is that all capital ratios should exceed the regulatory requirement (inclu
Slide 10: Growing Operating Profit
GROWING OPERATING PROFIT Operating profit 500 74% 23% 434 400 • Operating profit 2022 vs. 2021, +23% 353 ‒ Operating profit 2022 vs. 2018, +74% 300 289 ‒ Increased profit year-on-year SEK million 263 250 ‒ Return on assets, 2.1% 200 • Growth combined with high profitability 100 ‒ Return on equity, 2
Slide 11: Stabilised Risk-Adjusted Margin
STABILISED RISK-ADJUSTED MARGIN 450 20,0% • Operating income 397 400 359 ‒ Credit Cards the main driver 338 16,0% 350 319 ‒ New pricing improves interest income 296 300 12,0% • Net loan losses SEK million 250 8,7% 8,6% 8,5% ‒ Record volume – higher provisions 200 8,2% 7,9% 8,0% ‒ Mix effect from seg
Slide 12: Operating Profit by Segment
OPERATING PROFIT BY SEGMENT • Consumer Lending 2022 vs. 2021, +11% 100 ‒ Return on assets, 3.2% 80 ‒ Higher loan losses in 2022 60 ‒ Challenges in the Baltic countries 40 • Credit Cards 2022 vs. 2021, +425% 20 ‒ Profit turnaround in 2022 0 ‒ Return on assets, 2.2% Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22
Slide 13: Funding and Liquidity
FUNDING AND LIQUIDITY Deposits from the public 16 000 16,061 • Retail deposits in 4 markets 15 000 ‒ Germany (SEK 13.6 billion) 14 000 13 000 ‒ Norway (SEK 2.0 billion) 12 000 ‒ Sweden (SEK 0.3 billion) 11 000 10 000 ‒ Finland (SEK 0.2 billion) SEK million Germany 9 000 8 000 ‒ Fixed-term deposits:
Slide 14: Capital Situation
CAPITAL SITUATION 15.6% • Capital ratios impacted by loan T1+T2 15.6% 13.9% Headroom 3,0% book growth T1 13.9% 12.3% Headroom 3,6% T1+T2 12.6% • SFSA has given TF Bank Headroom 3,8% T1 10.3% T1 10.3% permission to use the Alternative Standardised Approach for CET1 12,3% operational risk CET1 8,5% CE
Slide 15: Why Invest in TF Bank
WHY INVEST IN TF BANK • Stable business model with 35 years Strong track record on growth of high yields and profitability • Responsible organic growth with a 16 000 Loan portfolio 1 600 diversified portfolio 14 000 1 400 12 000 1 200 • Controlled cost basis results in high SEK million 10 000 1 000
Slide 16: Q&A Session
Q&A Session 16
Slide 17: Appendix
Appendix 17
Slide 18: Board of Directors
Board of Directors John Brehmer Mari Thjømøe Sara Mindus Chairman of the Board since Board member since 2017 Board member since 2020 2020 Current commitments: Current commitments: Board member since 2010 Chairman: Seilsport Maritimt Forlag AS, Board member: K-Fast Holding AB, ThjømøeKranenAS Besqab
Slide 19: Executive management team
Executive management team Mattias Carlsson Mikael Meomuttel CEO CFO, Deputy CEO and Head of Investor Relations Education: MSc, Engineering Physics, Uppsala University. Education: MSc, Business/Economics and Finance, University of Borås/University of Gothenburg. At TF Bank since 2008 as CEO until 201
Slide 20: Contact
Contact Investor relations Mikael Meomuttel +46 706 26 95 33 ir@tfbank.se www.tfbankgroup.com 20