Interim
presentation Q3-2023
November 2nd, 2023
Key highlights
Record-high net profit after tax: 28.2 MNOK
53 % increase from the same quarter last year
Record-high growth in net loans: 460 MNOK
Growth year to date: 1,013 MNOK
Successful launch of B2B Credit line product
37 MNOK in net lending
Net loans and margin
developments
Net loan development | Well diversified loan book
NET LOAN BALANCE GROWTH (MNOK)
KEY COMMENTS:
195
93
116 | 191 |
75 |
438 | |
207 | 232 |
120
109
466
260 170
37
• | Record-high growth in net loans of 466 MNOK, YTD 1,013 MNOK |
• | Mortgages lending increased by 260 MNOK, the second highest |
(11) | |||||
Q3-22 | Q4-22 | Q1-23 | Q2-23 | Q3-23 | |
Mortgages | Unsecured loans | B2B Credit line | Total | ||
quarterly growth |
• Mortgages represents 63% of net loans in Norway and 41 % of total net |
loans, representing lower credit risk than for unsecured loans |
NET LOANS TO CUSTOMERS (MNOK)
5,056 | 5,165 | 5,631 | |||
4,618 | |||||
4,427 | |||||
1,955 | 2,075 | 2,335 | |||
1,632 | 1,748 | ||||
37 | |||||
2,795 | 2,870 | 3,101 | 3,090 | 3,260 |
•
•
Successful launch of the new credit line product for SMEs
Well diversified loan book across products and markets reduces risk
Q3-22 | Q4-22 | Q1-23 | Q2-23 | Q3-23 |
Unsecured loans | B2B Credit line | Mortgages | Series3 | ||
Yields and funding cost | Attractive margins
LENDING AND LIQUIDITY YIELD. INTEREST RATE DEPOSITS:
KEY COMMENTS:
10.8 %
6.4 %
1.2 %
-1.5 %
11.3 %
7.1 %
- %
- %
11.6 %
7.6 %
2.5 %
12.0 %
8.3 %
- %
- %
12.1 %
- %
- %
- %
- Rate hike on loans effective in August following the 0.5 % increase from the Norwegian Central Bank in June
- Deposit rates developments influenced by markets rates as well as increased competition from saving banks
- Liquidity yield outperformed funding cost, making surplus liquidity profitable
Q3-22 | Q4-22 | Q1-23 | Q2-23 | Q3-23 | |
Liquidity yield | Interest rate deposits | ||||
Yield - consumer loans | Yield - mortgages | ||||
Diversified loan portfolio| Transparent and simple
Net Loans | # Customers | Avg Ticket Size | Yield |
Consumer Loans
Unsecured loans offered in Norway, Finland and Sweden
Mortgages
First or second priority mortgages for refinancing of unsecured debt or house improvements
2,743'' | 27,528 | 99' |
2,335'' 2,479 942'
12.1 % |
8.5 % |
Credit Card
Most attractive credit card in the market for revolving credit customers
Sales Finance
Point of sale or web payment solutions offered through retail partners like Skeidar and Coop
306'' | 6,675 | 46' |
210'' | 22,871 | 9' |
15.7 % |
13.4 %
B2B Credit Line
Credit line product for small and medium sized | 37'' | 48 | 763' |
enterprises | |||
Total | 5,631'' | 59,601 | 94' |
17.7%
10.9 %
Well diversified loan portfolio
Deposits volumes | Diversified funding
Volume | # Customers | Avg. Deposit Size | |
Norway | 3,527'' | 13,001 | 271' |
Finland | 162'' | 4,092 | 40' |
Germany | 1,966'' | 11,934 | 165' |
Sweden | 17'' | 1,760 | 10' |
Avg. deposit rate
4.0 %
1.1%
- %
- %
Total | 5,672'' | 30,787 | 184' | 3.6 % |
Profitability, risk
and capital
Total income | High growth in income
TOTAL INCOME (MNOK):
112.4
98.0 | 100.8 | 102.8 |
86.2
Q3-22 | Q4-22 | Q1-23 | Q2-23 | Q3-23 |
TOTAL INCOME DETAILED (MNOK):
22.3
17.0 | 13.6 | |||
16.6 | ||||
5.7 | ||||
120.9 | 134.3 | 146.9 | ||
109.3 | ||||
98.9 | ||||
-18.5 | -28.0 | -37.1 | -45.1 | |
-56.7 | ||||
Q3-22 | Q4-22 | Q1-23 | Q2-23 | Q3-23 |
KEY COMMENTS:
- Total interest income increased by 45.9 MNOK from the same quarter last year, driven by a 12-month net loan growth of 1,204 MNOK and increased loan yield to 10.6 % from 8.9 %
- The increase in interest expenses comes from higher deposit rates as well as an increased deposit volume of 373 MNOK in Q3-23
- Net other income was up 8.7 MNOK from Q2-23 resulting from a high yield on security holdings of 5.6% due to higher market rates and positive changes in value
Total Interest income | Interest expenses | Net other income | ||
Operating expenses | Demonstrating economy of scale
OPERATING EXPENSES BREAKDOWN (MNOK):
39.7 | 42.3 | |||||||||||||
38.0 | 36.1 | 38.4 | 1.7 | |||||||||||
2.3 | ||||||||||||||
1.8 | ||||||||||||||
2.0 | ||||||||||||||
1.9 | 17.8 | |||||||||||||
16.0 | ||||||||||||||
14.0 | 15.2 | |||||||||||||
11.6 | ||||||||||||||
3.6 | 3.0 | 2.7 | 2.8 | 3.9 | ||||||||||
15.1 | 16.3 | 15.7 | 15.4 | 15.8 | ||||||||||
3.3 | 3.3 | 2.9 | 3.1 | 3.2 | ||||||||||
Q3-22 | Q4-22 | Q1-23 | Q2-23 | Q3-23 | ||||||||||
Depreciation and amortisation | Other administrative expenses | |||||||||||||
Direct marketing costs | Salary and other personell expenses | |||||||||||||
Other expenses | ||||||||||||||
COST/INCOME RATIO:
44% | ||||||||
40% | ||||||||
39% | ||||||||
38% | 38% | |||||||
37% | ||||||||
35% | 36% | |||||||
34% | ||||||||
34% | ||||||||
KEY COMMENTS:
- Increase in personnel expenses comes from full effect of annual salary increase and new hires
- Marketing cost increase relates to marketing of the new B2B credit line product
- The cost-to-income ratio decreased to 38 % from 44 % in the same quarter last year, demonstrating economy of scale
Q3-22 | Q4-22 | Q1-23 | Q2-23 | Q3-23 |
Cost ex marketting cost/ income ratio | Cost/ income ratio | |
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Instabank ASA published this content on 02 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 November 2023 06:26:53 UTC.