Morrow Bank (Stockholm:MORROW) Q2 2026 Earnings Call

0:00 Welcome investors out there. The Nordic consumer finance bank, Morobank, earlier this morning reported the results of the second quarter of 2026. Investors following the channel know that there has been a lot of activities and strategic deals lately. You can ask your questions for the Q&A in the live chat. I'm happy to present the Morro Bank top executives, managers, CEO Øyvind Ohanas and CFO Eirik Holtadal. Welcome. Thank you. Thank you. Öyvind, a growth of 70% in the second quarter. What's the view of the quarter in brief? It's a strong quarter underlying if we look at pretty much all the KPIs and with the growth as we will show throughout the presentation.

0:49 And there's also an exciting quarter as you alluded to with the large acquisition of Medmera Bank that was basically closed first day of the next quarter, but obviously was a key topic in Q2. With that, please go ahead and present and I'll see you for the Q&A. Thank you and welcome also from our side. We will go through a presentation here as usual and open up for questions at the end. I will start by going through some of the highlights of the quarter and we already touched upon some of these points. We've seen a very strong year-on-year loan book growth of 19%. If we're looking at the quarter isolated, that's roughly 2% growth in the quarter. And our gross lending book now stands at 18 billion Swedish kronor. As you can see on the graph on the right hand side of this slide, it's fairly evenly now distributed across the three markets on which we operate.

1:54 Looking all the way down then to profit before tax, we could report a strong quarter with profits at 100 million Swedish kronor. That's up 17% versus second quarter last year. As I said the quarter was also very much around the acquisition of Medmera Bank and we spent a lot of efforts obviously throughout the quarter and we'll talk about that in a minute of meeting all the conditions especially all the regulatory conditions to be able to close that acquisition on 1st of July and this is a very important acquisition obviously for the bank as it increases the size of the bank by around 65%.

2:40 So when we report Q3, the 18 billion number that you see on this page will be around 30 billion if we put the two banks' balance sheets together. We also worked quite hard on securing the financing of the deal and we successfully raised more than 1 billion Swedish kronor in a combination of rights issue, additional tier 1 and tier 2 that enabled us to close the acquisition by the end of the quarter. We also continue to run the underlying business obviously in the second quarter in a very strong way that included also offloading some NPLs in Sweden where we could sell off around 440 million Swedish kronor in NPLs that came out of our numbers in April.

3:41 And last but not least, if you look across the other KPIs on the bottom side of this page, you would, in addition to the strong loan book growth, see that we continue to deliver strong cost income and particularly strong development, as we will also talk about later in the presentation, on the credit quality when looking at the loan loss ratio here on this page of 3.5% reported for the quarter. That's down from 4.3% in Q2 2025. Last but not least, earnings per share came in at strong 0.31 kroner in the quarter. And as you would hear later in the quarter, we have also stated our ambition to more than double the EPS when we look into the end of 2028.

4:42 Now moving on to the next page. This is a bit of a recap potentially for those of you new to the case. Just a little bit of an overview of what Morobank does. We provide flexible consumer credit products across three markets in the Nordics, Sweden, Norway, and Finland that comprises loans, credit cards, and also various savings accounts and savings products. The target market is credit worthy consumers, individuals. We see that our typical customer would have slightly above average annual income. The average loan amount that we give out is around 160,000 kroner.

5:31 and it's very important to also say that we're looking at a near prime or a prime type of segment. So we see that 60% of our customers roughly own their own home and you can't have any sort of payment remarks and you need to be in permanent employment to qualify for a loan at Morobank. The market we address is large. When we look at unsecured credit across those three markets, Norway, Sweden and Finland, that is roughly 600 billion Swedish kronor large. As I said, with the inclusion of Medmera Bank, we're going to be at around 30 billion, which means that we have now a market share of around 5%. So there's still more room to grow, we believe, in these markets.

6:23 Now, talking about growth, just bringing back this slide as well, that sort of puts this into a longer term perspective, potentially also something for you that look at the case for the first time. I think the most important thing to talk about on this page is that we've labeled it here on the page as well. We did a bit of a restart if we look four or five years back where the bank had gone somewhat sideways through the pandemic years. we put in place a completely new management, we exited unprofitable products, we simplified our tech platform, automated a lot of processes and we've executed quite some M&A since then. And also earlier this year we re-domiciled the bank from Norway to Sweden. and obviously when you see at the growth here represented by gross loans you would see that we have more than doubled the lending book since the restart so to speak and that's important to also understand that the acquisition now of Medmera Bank is a call it a natural continuation of that strategy where we now leverage that scalable platform that we've built over the last few years to also do another large acquisition in this case. That would, as I alluded to on the previous page, increase the lending book of the bank by around 65%, taking us up to around 30 billion Swedish kronor.

7:55 Now, when we grow, we have grown obviously volume and that's good. But more importantly, we've also been able to demonstrate strong growth when we look at the earnings. Here you would see our CAGR earnings per share development over that same period. where you can see that we have delivered a 38% CAGR over the period on earnings, obviously very strong. The fact that we now deliver also a strong second quarter just continues to deliver on this trend. and as I already said is driven by strong growth in the lending book. It's driven also obviously by the fact that we have conducted now four acquisitions in the period.

8:44 Cost income ratio has been a big driver obviously taking taking the cost levels dramatically down in the bank from a cost income ratio above 40% to now below 28% as we report this morning for Q2, demonstrating again the scalability. Now comparing that to our peers, and you would see the peers at the bottom of this page, it is a significantly better performance than what we have seen in the market. So that's obviously something that we are very happy to report. Now, I think we always need to talk a little bit about the macro. environment. There's a lot going on in the world at the moment on the global scene. What we continue to see, though, is that we see a fairly robust and stable macro environment in the Nordics and the outlook for the KPIs that are more important for us to monitor is also showing a fairly positive trend.

9:51 Now, obviously, growth, when we see growth in the market, that also drives demand for our products or the products that our products finance is probably the more right thing to put it. and we continue to see a growth across the three markets also in the outlook which we obviously like interest rates ticking a little bit up in 2026 but the outlook here is that that will start to come down again the inflation is pretty much under control still across the market so we believe that the outlook here for interest rates is still that will continue to go down again past 2026. Again, an important and key driver for our type of business. But maybe the most important driver that we always look at is obviously unemployment.

10:45 and you would see from the graph on this page that we have a positive outlook on unemployment. Unemployment obviously means that the customer's payment behavior and payment capacity remains strong as that will continue to trend downward. and if I sum up this page the sort of three key KPIs when it comes to the macroeconomic environment that we monitor because they can potentially have the biggest impact on our business. They continue to perform strongly and the outlook here is stable to positive. Now, the other big thing, obviously, that happened in the quarter in addition to sort of the underlying strong performance of Morro Bank was, of course, the acquisition of Medmera Bank. And we talked quite a bit about that also at the previous report and in various investor discussions before the summer. But I think it's important for us to just recap a bit around that acquisition as well. Now, putting it a bit in the context, we have done some, this is not our first acquisition, we have done some acquisitions over the past couple of years. We have the three first ones that you see here, Clearo, Luna, and Moang.

12:14 Those were pure performing loan portfolio acquisitions, so we acquired loan portfolios. totaling around 3 billion Swedish kronor over the 18 months. And then we added now, we're adding mid-mera to that equation with a strong, actually 12 billion gross loan volume at the end of Q2. So again, acquisitions is part of our strategy, and we're continuing to execute on that strategy as we've communicated over the many last quarters. Putting that in a bit into context, and for those of you who have followed us for a while, you would know that we moved the bank from Norway to Sweden.

13:06 key driver for that was to ensure level playing field especially around the regulatory environment and that basically means again around sort of the capital requirements that the bank holds and as we move the bank from Norway to Sweden at the beginning of January we managed to free up quite some capital and hold some excess capital and we communicated that the intention with that capital was to deploy it into a creative M&A if we could find good targets. Now, the good thing is that we found a good target fairly quickly and already in March we announced the acquisition of Medmera Bank. That is a direct positive consequences of us being able to move the bank from Norway to Sweden and freeing up that capital.

13:58 and just a couple of words on that transaction as well. We believe it was a very competitive, strong price that we were able to achieve for a bank that actually performs very well. So a price book of 1.06 for a well-run and well-performing bank in the market, we believe is a strong, good price. The acquisition, as I said, successfully closed on 1st of July, so not really in the quarter, but the first day in Q3. We were able to do so based on the fact that we also ran some quite successful financing projects and processes. back in June, where we issued new shares to the seller, Coop. They now hold around 10% of our share, as you might have seen.

14:57 In addition, we also went out with a a structured rights issue where we raised close to 600 million. That was significantly oversubscribed. I believe it was 130 something percent oversubscribed. So happy with the interest in that project. And last but not least, also raised both AT1 and tier two at very attractive prices, actually the record low prices for the bank in the market. So the whole sort of financing process went very well and we're very happy that we could close all those projects and finally then take over the bank on 1st of July.

15:42 Now, basically, what are we getting now with Mimela Bank? We are getting a well-run and well-performing bank, as you would see on this page and the numbers here. We will add around 65% to our loan book size. We report now around 18 billion. Medmera stood at around 12 billion at the end of the quarter, so taking us to around 30 billion. That would position us as the third largest consumer lender niche bank in the Nordics. We will continue to run Medmera brand separately from Morro, currently also the whole bank separately in a group structure. And we believe that there are a lot of opportunities in continuing to support both brands. actually three brands with the Coop brand and build a strong multi-brand strategy as we go forward. So basically continuing Morro Bank, continue with Medmera Bank value proposition as well as Coop and building a broader reach in the market based on that.

16:50 That was also very much part of the strategy and the rationale for buying the bank in the first place. looking at cost income both banks perform well but obviously when you take two banks and two organizations and two systems and process and put that together as we communicated before we definitely will be looking at taking out some synergies over time and work that cost income ratio down towards 20 percent by the end of 2028 as communicated when we announced the the transaction Looking at the loss profile of the two banks, you would see quite a difference here, where you see that we reported for the first half year, now quarter, I alluded to that earlier, for the quarter, we reported a loan loss ratio of 3.5%.

17:38 For the first half year together, that amounts to 3.9% for Morro, and the similar number for MedMera Bank would be 2.1%. Now that also again demonstrates that we are targeting and operating in slightly different segments. We've sort of said earlier that Medmera Bank targeting potentially a more prime consumer loan segment where we are more of a near prime brand, basically positioning the two banks or the two brands slightly differently on call it the risk curve. That is something that we very much aim to continue to be a part of the the multi-brand strategy as we go forward, position the brands into slightly different segments.

18:25 Obviously, when we put these two banks together with all the data and all the customers and the analytics capacity of the two banks, we do believe that over time we will see not only mathematically when putting the two banks together, but also when operating a larger platform with more data, etc., we will see that the risk levels of the combined bank obviously will come down. Last but not least, looking at profit before tax, first half we reported 187 million. Medmera also reported equally a very strong first half year and delivered 122 million in profit before tax.

19:10 That gives us quite some confidence around the the EPS target that we communicated when we announced the transaction to more than double that EPS by end of 2028. Now over to you, Erik, to take us through some of the financials. Thank you, Eivind. Let's dig a bit deeper into Morobank, and this is Morobank only. As Eivind said, we took over MedMera Bank on the 1st of July, the third quarter. Hence, the second quarter will be Morobank on a solo basis. Now, the loan balance growth was good year on year. Actually, we increased it 19%.

19:56 This was mainly driven, as you can see here, by the growth in the Norwegian market, the lower orange part of the bar. And that is actually our refinancing product, which has been around for one year and which has proven quite successful. And that's also showing up in our loan growth. Overall, on the quarter-of-quarter basis, the development was flat, but you need to take into account we sold an NPL portfolio of 440 million kroners, which was offloaded in April, hence the underlying growth was 2% quarter-on-quarter. And as always, as we keep reiterating and also repeating and also demonstrate, we're always looking out for opportunities to buy portfolios or companies if they are interesting and accretive for us.

20:49 Going a bit further into the margin outlook, you can see that there is a small margin compression compared to one year ago. This is attributable that there is a small decrease in the yield going down from 13.5 to 13.2. and also a small increase in the deposit rates going up by 20 bps. The latter is driven by the fact that we in the quarter now or in this year, we have been increasing our deposit rates basically to increase our liquidity so that we would be in the position to take over Medimetabank and also meet the regulatory requirements. But if you look at it compared to last quarter, the figures are not here, but they're available on our IR site, you can also see that actually the NIM has increased by 0.1 percentage point quarter on quarter.

21:45 What's important here is to look also at the risk-adjusted margin. We're not seeing that in this picture, but as Eivind has shown here, we have a decrease, and we will show on later slides, we have a decrease in the loan losses, which are quite significant. By that, you can see that the risk-adjusted margin increases, be it either on quarter-to-quarter or year-on-year. Going forward, our NIM will be somewhat lower. That's also when we take in Medmera Bank. Medmera Bank has lower loan losses, but they also have a lower yield, and that will also weigh in on our blended yield when we go forward and start to consolidate. But our risk-adjusted margin are lower, both definitely in Medmera, but also we're seeing a decreasing trend, and hence our risk-adjusted margin will remain strong.

22:35 On the total income side, we're seeing a steady upward uptick. This is driven, of course, by the larger loan book, which we talked about, which I demonstrated a bit earlier. But it's not fully covered by the growth in interest income because, as I said, there's a small compression on the net interest margin. In the second quarter, we also had some additional one-offs in relation to other income. You can see that it's 36 million kroners. Those are related to some insurance and card scheme one-offs. They will not be repeated in the third quarter, but nevertheless, we'll see that we have lower commission expenses going forward.

23:22 Hence, there will be an expansion, not compared to Q2, but compared to previous quarters on our other income and of course we will be growing our loan balance now on the cost side you can see here that there is an increase and that is not to we're not trying to hide that fact we are recording at 10 million kronors one of those are chiefly related to the Minmera acquisition as such also some small leftovers to call it that from the transition to Sweden But what's also important to understand is that now we're becoming a larger bank. Yes, we have demonstrated scalability, but now we're adding 65% on our loan book. And hence, we are now starting to strengthen, let's call it the overall structure of the bank, in order to be able to service and run this considerably larger bank.

24:19 and that is also, we have already started to undertake these investments and those are contributing to the fact that the underlying cost picture is increasing. But we are, as we will be growing our loan book, we will be increasing our top line we're maintaining that we will have around a 20% cost income ratio when we have concluded the acquisition and integration of Medvera Bank. But then we're talking towards 2028 before that will fully materialize. But we are clearly on that path. On the nice side here, and that's also what Eivind spoke about, we're seeing a very nice development in our loan loss ratios.

25:05 We have previously been guiding between 4.5% to 4%. We've been then saying it probably will be closer to 4%, but the second quarter developed quite benignly, and we ended at 3.5%. That is measured in relation to the gross loan balance, to be clear about that. It's also quite interesting to see that the nominal loan loss cost is virtually flat for all these three quarters. But at the same time, as we demonstrated earlier, we have grown the loan balance by 19%. And hence, if we had maintained last year's We had maintained last year loan loss rates. At this loan balance, we would have had 36 million more in loan losses, and that more than covers the increase in cost, just to put that into perspective.

25:55 Also, just to mention, is the NPL sale here, which reduces our NPL ratio, meaning that our book is, let's say, cleaner, more healthy. and going forward when we add in Medmera Bank they have a different risk profile they have low loan losses and we will then have a broader customer base we will be with low risk and which also will be more diversified which should entail that our loan losses will be or credit risk will be lower in the time to come Finally, adding these elements together, total income growing, costs, yes, going up a little bit, but loan losses reducing much more than costs, you can see that we now landed at a profit before tax of 100 million Swedish kronors flat.

26:49 This is equivalent to a return on equity of 11.9%, but what we like to measure is the return on target equity, and which I will also come back to because we were at the end of the second quarter overcapitalized. If you remove that fact, we had actually a return on target equity of 16%, which is actually demonstrating that we are on a good path to achieve our 20% target for 2028. the profit after tax for the quarter was 78 million or an earning per share of 31. And as always here, we maintain that we expect to double our EPS and that the return on target equity will increase.

27:34 A word on the capital structure. You can see here that our overall capital ratio has decreased compared to year on year, going from 17.9 to 16.2. This is a CET1 ratio. This is because we are actually growing our loan balance faster than we have been growing our profits. But that being said, if you look at our requirements, they are decreased. The requirements on the left-hand side were those in Norway. The requirements on the right-hand side, now in the second quarter, are those that we have currently in Sweden. They are now at 9.5% before management buffers, etc. But we have a healthy 6.7% headroom towards that. And you will see now that we are utilizing this headroom in the third quarter to buy Medibank. I'm not going to go into the details of the acquisition.

28:23 I even did that, but we have the AT1 and the Tier 2. We also had the right issue at 592 million before cost, which was undertaken on the 1st of July, just after the balance sheet date. but by that with the acquisition of Menmera and these capital increases you can see that now in Q3 we are very close to achieving our target capital structure meaning that we will have not much excess capital just a comfortable buffer but not more than that. and as always we will be continuing to produce profits given that this development continues and that we will also generate capital for further expansion going forward. With that I leave the word back to you, Evin.

29:09 Thank you, Eric. Thank you. All right, so before summarizing today's presentation and opening up for questions, we always like to do a bit of peer benchmarking where competitive people Now, looking across some of the key KPIs like loan growth, cost to income ratio, and last but not least here, EPS growth, you would see that Morro Bank over the period 22 to the last quarter, we continue to deliver strong numbers and continue to to outperform the peer average. You would see the peers here at the bottom of the page. That's pretty much all the relevant niche banks that we compare ourselves to.

29:58 So continue to deliver strong KPIs at Morobank and continuing to outperform the peer average in the market. Price book and price earnings, you can read them yourselves and compare to peers. Hopefully the investors are appreciating those three performance KPIs on the top here so that the two performance KPIs on the bottom continue also to move up. We will do our best to deliver and continue to deliver strong growth and strong KPIs at the bank. Now summarizing then the quarter, as I said, there are really two things that we have focused on. Obviously not taking our eyes off the ball on the underlying business.

30:49 We have strengthened the profitability throughout the quarter with a profit before tax reported this morning of 100 million. That is 17% up year on year. When looking at return on target equity, which we believe is the most relevant number to look at, We're dramatically up from or significantly up from around 12% at this period last year to now reported 16% for the quarter. Earnings per share came in, as Erik also said, at 0.31. That's also an improvement and we continue to see that earnings per share should improve as we go forward. The MedMed acquisition was completed. We've said that a couple of times, I think, throughout the presentation.

31:37 The loan book increases by 65%, literally, than the bank size. The size of the bank increases by 65%, taking us to a combined loan book of around $30 billion and positioning ourselves as the Third largest nor the Consumer Finance Bank this was was enabled the acquisition was enabled by actually doing quite some successful rights issue and issuing of bonds in in in June as we've talked about at oversubscribed rights issue and record low pricing for both the AT1 and Tier 2. So also very successful and very happy with those processes.

32:26 taking a bit sort of outlook and view to the future. We continue to say that the return on target equity should go above 20%. We reported already 16% for this quarter, so we're confident with that target. Cost-income ratio, as Eric alluded to already, we haven't built in the synergies of Medmera Bank acquisition at all that will come obviously over the next couple of years but when we look at sort of where that cost income ratio should be beyond that we are also confident that that should come down toward 20% in the outlook which will again take us to the last but not least KPI or target here of more than doubling the EPS by end of 2028.

33:14 So with that, I would say thank you for listening to the presentation and we can open up for questions. Thank you so much, Eivind and Erik. Let me start off. We have a bunch of questions from the viewers and investors community as well. What are the key value drivers from the Medmera acquisition? I mean, as I said, Medmera is a very strong performing bank. So they pretty much have the same value drivers as we do. It is obviously growth. It is basically also the fact that they manage to have a good equation between the risk appetite and what they're looking at at margins.

34:01 so they have a good risk adjusted margin management together with the growth and for us as we've messed about this around the last few years it's all about scale in this sector and for us taking over something that not only brings scale with 65% more volume, but also comes with a solid foundation, a well-run machinery that adds a lot of value to the group now. All right, maybe this is a question for Erik. Why is the current cost-income ratio temporary rather than structural? it is as I said earlier we're investing in becoming a larger bank and that is not for free we need to have a broader platform now general platform we need to invest more in control functions also in data management and the processing of that and that does not come for free but that being said it will be a little bit more elevated but there is now a more let's say temporary cost we're not calling them one off but we are spending some more and we will over time of course work hard to not to reduce that cost base in general but basically now it's a time of investment and this of course just to repeat it we are adding 65% to our loan book And another subject that you touched upon, your net interest margin.

35:37 On performing loans improved in this quarter, is this level sustainable? Yes, largely yes. We do see, however, a little bit of pressure on the funding cost side now going into the third quarter. The competition in the euro market is actually increasing, so we also need to follow that. We need to raise more liquidity because we are growing after the Medmera acquisition. So there will be a little bit pressure going forward on the net interest margin, but we're not thinking that it will be considerable. Broadly it should be at the levels we're seeing here, give or take a little bit. Thank you. And how sustainable is the improvement in credit quality?

36:24 Credit quality is, we've been working quite hard over the last years and we've been explaining about that to the market. First we had strong growth and then we also tuned our credit models. We adopted also our processes related to credit risk management, that means both on the intake as well as how to handle delinquent accounts. and that we believe now is starting to show results there's probably some benign macro in this but from what we're seeing now this overall level should be sustainable going forward that being said they can always come surprises but we're adding a healthy Medmera portfolio and we're also seeing good results in our own so we think that the loan loss level should actually be favorable going forward.

37:23 Okay, thank you for that very enlightening answer. We have a question from a viewer here. Your average loan was 160,000 kronor. Do you know anything what the average loan is being used to buy or consume? Yeah, that's a good question. Yes, we do. I mean, most of our loans, when we sort of look at what customers report they need to take their loan for, there's a lot of home improvement. whatever, refurbishing the new bathroom, that type of thing. Our max loan amount goes all the way up to half a million Swedish kronor. So you would also see some used cars in there. But those two categories are probably dominant in what customers use the loan for. Okay, thank you.

38:14 And you talked about doubling the EPS. What will drive the ambition to more than double the EPS by 2028? It's a combination of many factors. First of all, the main driver for bank is the balance sheet. We're adding 65%. And also, EPS per shares, we have had a capital increase, but as you've seen from our figures, we acquired a bank which cost us 2 billion, but in terms of share issues, it was only 1 billion, to put it that way. so that is contributing our loan balance is contributing and we will work to maintain our margins we will work to have an efficient cost ratio we're aiming at 20% and also as we discussed keep a good loan and optimal to put it that way loan loss ratios and the combination of those factors should all together provide for a doubling of the EPS into 2028 Okay, thank you.

39:12 Another viewer asks, could you give some more color on your evaluation of strategic alternatives for certain non-core assets in Merabank that was press released in June? Any updates? Yeah, that is an ongoing process as we announced before this summer. We are we are looking at alternatives for some of the assets that let's say duplicate. We do have now two banks, we have two IT platforms, we have two bank licenses, etc. We have still a fair amount of NPLs that we continue to offload from our balance sheet. So taking that into consideration, we're looking at what are the potential opportunities to structure something around that and look at what the interest for that would be in the market. That's an ongoing process.

40:07 And we'll obviously come back and report on that when we potentially conclude or we have some update. Question around this. You guide for 115 million SEC in Medmera synergies by 2028. What is the expected annual synergy impact and integration costs? And can you maintain a 17% capital ratio without further equity issues? To start with the last part of the question, yes, we're sufficiently capitalized now, as you will see when we present our third quarter and fourth quarter figures this year, and also we'll be adding more profits. So yes, we are sufficiently capitalized. As to the synergies they are what we expect to will come out after the integration and also of course there will be some time to run in to make things processes run smoothly etc that will take some time but in 2028 we will expect that on a running basis we will see the 150 million occurring Thanks. Medmera also reported its H1 figures.

41:19 How are these tracking relative to your expectations? They are tracking on plan or even slightly better than plan. They reported 122 million profit before tax, which is a good increase from last year. We've seen that they managed to grow their their lending book. They have good control over the risk parameters. So we are very happy with the progress that Medmera also have reported for the first half of the year, the second quarter. As I said in the starter, I'm very happy that we've managed to have two thoughts in our heads at the same time, running the business, the underlying business, the core business, while doing the acquisition. And likewise for Medmera, they've obviously sold the bank, their bank, while still having a really laser focus on continuing to deliver good performance in their underlying business.

42:18 So we're happy with that. And one last question. What is your focus in H2? Yeah, well, the focus on H2, I mean, we now, we got the keys to MEDMERA on 1st of July. So the focus now and going forward will obviously be to, together with the MEDMERA organization, develop and strengthen the cooperation between the two banks that are now sort of structured in a group. and look at how we can take out synergies, as we talked about. But synergies not only on the cost side, but synergies also on the business side. They have a strong business model. They target a slightly different segment than us. They have very strong processes. They have strong analytics, strong data.

43:06 And we will be working with them, already are working with them, to see how we can sort of leverage and best practice share between the two banks. in parallel with obviously working on that longer term plan of integrating this into one bank at some stage. Thanks. By that, thank you, Oivind and Erik. And thank you, everyone that has been watching. And it's great to follow your actions corresponding to what you're communicating. We're already looking forward to the Q3 report. Good luck with that. Thank you. I look forward to being back.