Slide 1: Interim Presentation – Q3/2018
Instabank Interim Presentation – Q3/2018 – October 29 th 2018 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 figures Q3-2018
Key figures Q3-2018 Quarterly growth in net loans of 376 MNOK + 23 % vs Q3-17 Outstanding net loans of 2,211 MNOK + 102 % vs Q3-17 Customer deposits of 2,547 MNOK + 140 % vs Q3-17 Total income of 52.3 MNOK + 71 % vs Q3-17 Net profit before tax of 9.3 MNOK + 225 % vs Q3-17 Total equity of
Slide 4: Key highlights & developments Q3-2018
Key highlights & developments Q3-2018 Q3 net profit of 9.3 MNOK before tax Net profit after tax of NOK 7 MNOK, up 225 % versus Q3/17 Increased net loan growth by 376 MNOK, 20 % growth in Q3/18 Finland represented 53 % of quarterly loan balance growth Deposits launched in Finland Deposits in Fi
Slide 5: Product portfolio
Product portfolio Unsecured consumer loans Deposit accounts Point of sales financing Structured as either a revolving credit Offered to private individuals in Complete offering already in place: facility or an amortizing loan Norway and Finland. − Web payment solutions Upper credit limit of
Slide 6: Distribution channels
Distribution channels Brand distribution Agent distribution Partner distribution + potential new partners Brand Agent Partner distribution volume as of Q3-18 34% distribution volume as of Q3-18 60% distribution volume as of Q3-18 6% 6 DRAFT
Slide 7: Geographical presence & potential new markets
Geographical presence & potential new markets Cross-boarder expansion strategy Illustration of geographical presence Net loans distribution (%) * Operational platform capable of fast, Focus: Northern Europe agile and cost-efficient cross-boarder CURRENT FOOTPRINT expansion already in place 20,0 %
Slide 8: Continued high loan growth
Continued high loan growth Net loans to customers Number of loan customers Key comments MNOK # 25 000 Strong emphasis on 2 500 marketing to strengthen 2 211 20 429 20 000 brand awareness and to 2 000 1 835 boost sales in Finland 16 000 1 569 Strong focus on sales 15 000 1 500 1 318 11 000 financ
Slide 9: Continued profitability
Continued profitability Total income Net result after tax MNOK MNOK 60 8 6,7 7,0 52,3 6 50 4,0 44,8 4 2,2 2,1 40 38,0 2 1,2 30,5 32,1 0 30 23,7 -2 20 -4 -3,2 15,0 -6 10 -8 -8,0 -10 0 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 9
Slide 10: Disciplined cost control
Disciplined cost control Operating expenses by category Key comments MNOK 30,4 Operating expenses developing 1,3 25,4 26,0 according to plan 1,1 1,1 8,7 Increased «Other administrative 20,0 20,5 18,8 6,3 expenses» due to investments 0,8 7,6 0,7 16,3 15,9 0,7 in marketing campaigns in 0,5 0,8 5,2
Slide 11: Well balanced credit risk management
Well balanced credit risk management Impairment losses Past due days at end of quarter MNOK 14 45,0 16,0%% 2,5 % 12,6 40,0 14,0%% 2,0 % 12 13,5 % 1,9 % 1,8 % 35,0 % 1,7 % 1,7 % 2,0 % 9,8 12,0 % 10 27,9 % 30,0 % 1,4 % 1,4 % 26,5 % 26,3 % 7,6 7,9 10,0 % 23,7 % 1,3 % 1,5 % 8 7,2 23,7 % 6,0 % 25,0 % 22,
Slide 12: Balance sheet structure
Balance sheet structure Assets and liabilities & equity Key financial ratios MNOK 80% 160% 3 060 146% Other assets 68% 2800 70% 137% 140% 2 394 2 111 2 229 60% 59% 120% Certificates and bonds 115% 118% 115% 1800 106% 1 323 50% 100% 1 011 Loans and deposits with 97% 97% 845 credit institutions 800 52
Slide 13: Funding costs and yields
Funding costs and yields Development in yields and funding costs Key comments Attractive interest rate, affected 13,6 % 13,4 % by mix of products, distribution 13,2 % 13,0 % 12,8 % 12,8 % 12,9 % 13,0 % channel, and risk assessment Stable funding cost Low yield on liquidity, reflecting risk pro
Slide 14: Outlook and strategy going forward
Outlook and strategy going forward Continued growth and profitability growth will be given priority Outlook for growth and net loans in MNOK Continue growth story Growth is essential because solid long term profitability will be achieved through economies of scale Key initiatives are product &
Slide 15: Appendix
Appendix Instabank 15
Slide 16: Financial summary
Financial summary P&L (NOK ‘000) Balance sheet (NOK ‘000) Items Q3-18 Q2-18 Q1-18 FY 2017 Q4-17 Q3-17 Items Q3-18 Q2-18 Q1-18 Q4-17 Q3-17 Operating income Assets Interest income 60 090 49 926 42 323 97 536 36 416 29 074 Loans and deposits with credit institutions 145 110 116 521 127 704 40 929 46 45
Slide 17: Share price and ownership
Share price and ownership Top 20 shareholders as of 24.10.2018 Share price development since OTC listing in October 2016 # Shareholders # of shares % Share price (NOK) 1 KISTEFOS AS 26 246 150 10,0% 2 VELDE HOLDING AS 20 200 000 7,7% 3,5 3 BIRKELUNDEN INVESTERINGSSELSKAP AS 16 667 911 6,4% 4 HODNE H
Slide 18: Thank You
Thank You instabank.no www.instabank.no