Avarda Bank Ab · OMXSTO:AVARDA
Avarda Bank Ab — TF Bank — Q3 2025 Earnings Presentation
25 slides from Avarda Bank Ab's earnings presentation, Oct 14, 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 Q2 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 2
Slide 2: Interim Report January – September 2025
INTERIM REPORT January – September 2025
Slide 3: Highlights July–September 2025
HIGHLIGHTS JULY– SEPTEMBER 2025 • 6 % growth in local currencies during the quarter Operating profit • Operating profit SEK 231 million, +21% vs Q3-2024 +21% 231 – The Credit Cards segment drives EPS 191 – Improved C/I – the business continues to scale well • Plan to change corporate name to Avarda
Slide 4: Becoming Avarda Bank
New identity, same momentum BECOMING AVARDA BANK • Leverage strategic transformation Share of loan portfolio – From Nordic niche bank at IPO to pan-European credit and payment platform • Innovation and flexibility 31% • Focus on continued profitable growth 75% • Creating long-term shareholder value
Slide 5: Loan book growth
LOAN BOOK GROWTH 25,000 20%2) 6%1) • TF Bank: Q3 = 6%1) 20,000 – Year-on-year 20%2) • Credit Cards: Q3 = 12%1) 15,000 – Year-on-year 41%2) SEK million • Ecommerce Solutions: Q3 = 1%1) 10,000 – Year-on-year 0%2) 5,000 • Consumer Lending: Q3 = 1%1) – Year-on-year 7%2) 0 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 T
Slide 6: 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 41% Lending during Q2 2025 Norway 20% Norway: Increased profit in Consume
Slide 7: Credit Cards
Segment CREDIT CARDS Highlights Share of TF Bank's loan book Share of TF Bank’s operating income • The loan portfolio has surpassed SEK 10bn – German and Austrian market the main drivers 48% 52% • 379 k active cards in Germany, +33% YoY • Continued scalability in the business model Segment descripti
Slide 8: Ecommerce Solutions
Segment ECOMMERCE SOLUTIONS Share of TF Bank's loan book Share of TF Bank’s operating income Highlights • Transaction volume growth of 51% vs Q3-2024 – Attributed to the recent addition of new major partnerships 11% 17% – Expected increased income in coming quarters • Profitable business despite pre
Slide 9: Consumer Lending
Segment CONSUMER LENDING Share of TF Bank's loan book Share of TF Bank's operating income Highlights • Focus on controlled risk levels and selective expansion • Credit offering launched in Germany 41% 31% • Operations to be consolidated into new subsidiary, TF Bank Nordic Segment description • Diver
Slide 10: Improved risk-adjusted margin
IMPROVED RISK-ADJUSTED MARGIN 748 690 625 657 668 • Risk-adjusted income1) – Improved risk-adjusted margin2) SEK Million • Operating income 8.5% 8.5% 8.6% 8.7% 8.9% – Credit Cards the main driver • Net loan losses 232 235 252 – Driven by growth in Credit Cards 205 224 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 O
Slide 11: Opex – cost/income ratio by segment
OPEX – COST/INCOME RATIO BY SEGMENT 70% 60% 61% 61% 61% • Operating expenses Q3-25 vs. Q3-24, +15% 58% 55% – Positive trend for Credit Cards 50% • Cost/income ratio per segment in Q3-25 – Credit Cards 29% 40% 37% 37% 38% 37% 33% 35% – Ecommerce Solutions 61% 33% 33% 34% 34% – Consumer Lending 34% 30
Slide 12: Increased profit year-on-year
INCREASED PROFIT YEAR-ON-YEAR 21% 231 191 188 188 195 • Operating profit Q3-25 vs. Q3-24, +21% – Driven by segment Credit Cards SEK million – Earnings per share, 2.70 SEK (2.17) • Strong profitability in Q3-2025 – Return on loans to the public, 3.1% (2.8) – Return on equity, 25.0% (25.5) Q3'24 Q4'24
Slide 13: Credit Cards
Segment CREDIT CARDS 71% 120 96 • Operating profit Q3-25 vs. Q3-24, +71% 80 75 70 – Growing operating income SEK million • Return on loans to the public, 3.6% (2.8) – Higher risk-adjusted margin 9.1% 9.2% 8.8% 8.6% 8.5% – Economies of scale Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Operating profit Risk-adjuste
Slide 14: Ecommerce Solutions
Segment ECOMMERCE SOLUTIONS -11% 33 29 26 24 23 • Operating profit Q3-25 vs. Q3-24, -11% – Lower loan portfolio SEK million • Return on loans to the public, 3.1% (3.3) – Higher cost/income ratio 15.4% 15.3% 15.7% 15.5% 14.5% Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Operating profit Risk-adjusted margin 14
Slide 15: Consumer Lending
Segment CONSUMER LENDING -7% 100 92 84 85 80 80 76 • Operating profit Q3-25 vs. Q3-24, -7% 60 – Higher cost/income ratio • Return on loans to the public, 2.8% (3.0) SEK million 40 – Maintaining strong returns 20 6.7% 6.8% 6.6% 6.6% 6.4% 0 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Operating profit Risk-adjusted
Slide 16: Funding and liquidity
FUNDING AND LIQUIDITY Deposits from the public 24,000 23,423 20,000 • Retail deposits in Europe Germany (SEK 16.4 billion) 16,000 Netherlands (5.1 billion) Nordics2) (SEK 0.6 billion) SEK million 12,000 Other3) (SEK 1.3 billion) – Fixed-term deposits: 49% 8,000 • Available liquidity reserve: 17% of
Slide 17: Capital situation
CAPITAL SITUATION 17.4% T1+T2 17.4% 15.6% 15.6% 14.3% Headroom 4.5% T1 • Strong capital ratios Headroom 5.0% Headroom 5.4% T1+T2 12.9% • Significant headroom to T1 10.6% T1 10.6% regulatory requirements CET1 14.3% • Ambition to redeem and issue new T2 instruments in Q4 CET1 8.9% CET1 8.9% CET1 8.9%
Slide 18: Looking ahead
LOOKING AHEAD • Continue with the plan of becoming Avarda Bank – Nordic Consumer Lending to be consolidated into TF Bank Nordic • Execution on our commercial plan continues with a pan-European focus • Portfolio build-up with major retailers in Ecommerce Solutions segment • Strong capital situation e
Slide 19: Q&A Session
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Slide 20: Appendix
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Slide 21: Corporate profile
CORPORATE PROFILE Our Products Our Geographical footprint We are a fast-growing digital credit and payment We serve customers in the Nordics, Germany, Austria, platform operating in 14 European countries. Through Spain, the Baltics, Poland, Ireland, the Netherlands our proprietary IT infrastructure,
Slide 22: 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 23: 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 24: 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 25: Contact
Contact Investor relations Mikael Meomuttel +46 706 26 95 33 ir@tfbank.se www.tfbankgroup.com 25