Avarda Bank AB · OMXSTO:AVARDA
Avarda Bank AB — TF Bank — Q4 2018 Earnings Presentation
21 slides from Avarda Bank AB's earnings presentation, February 2019
Slide 1: Q4 2018 Result Presentation
“I TFBank 4 Quarter 2018 RESULT PRESENTATION ‘TF TFBank
Slide 2: Highlights January - December 2018
HIGHLIGHTS JANUARY - DECEMBER 2018 = Record high loan book growth, +41% = Operating profit 250 MSEK*, +30% = Best in class return on equity, 34,5%* = Proposed dividend of SEK 2.30 per share for 2018 = New tier 1 capital instrument, 100 MSEK a = Avarda rolled out its solution Checkout+ i TFBank = 300
Slide 3: Consumer Lending
CONSUMER LENDING DIVERSIFIED GRANULATED PORTFOLIO At a glance Loan sizes (average) and customer profile . 78 % of the loan portfolio a : Unsecured consumer loans Middle income . Marketed trough direct channels, own data base and external partners SEK 97,000, Employed . Tenor of loans are typically b
Slide 4: Ecommerce Solutions
ECOMMERCE SOLUTIONS NEXT GENERATION PAYMENT SOLUTIONS At a glance Key metrics . Large technology investments in recent Share of the Amount outstanding years to build a best-in-class white label Group’s loan portfolio SEK 983 million checkout solution with CRM functionality (31 Dec 2018) for online r
Slide 5: Loan portfolio and growth by segment
+35% 4 000 3 466 3 328 3 500 3 068 3 000 2 805 2 561 SEK million 5 000 +41% 2 500 4 449 2 000 4 500 4 198 1 500 3 876 1 000 4 000 500 3 519 0 3 500 3 156 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 3 000 SEK million 2 500 1 200 +65% 983 2 000 1 000 870 807 SEK million 1 500 800 714 595 600 1 000 400 500 200 0 0 Q
Slide 6: Growth and Diversification
GROWTH AND DIVERSIFICATION ACCORDING TOPLAN ai : Norwa' Loan book SEK 1,375m (31%) Change 12M'18: +53 % Finland Strong growth Loan book SEK 1,196m (27%) Change 12M'18: +31% Profitability and steady growth Sweden Loan book SEK 662m (15%) Change 12M'18: +6% Focus on profitability Baltics Loan book SEK
Slide 7: Income, margins and credit losses
80 80,0% 60 10,0% 180 172 25,0% 162 9,0% 160 153 70 66 70,0% 63 50 141 61 8,0% 140 134 20,0% 57 60 60,0% 41 7,0% 49 40 38 120 17,9% 36 36 17,6% 17,2% 50 50,0% 34 6,0% SEK million SEK million 16,7% 15,0% SEK million 16,3% 100 40 40,0% 30 5,0% 80 40,3% 40,1% 10,0% 36,9% 39,0% 38,6% 4,5% 4,5% 4,0% 30 3
Slide 8: Quarterly operating profit
85 70 65 ‒ 63 60 ‒ 52 53 50 48 50 49 43 ‒ SEK million 40 ‒ 30 ‒ 20 10 0 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 8
Slide 9: Segment profitability and cost/income
70 +9 +65 20% C/I: 39% +56 70 66 60 16% 13,4% 60 50 C/I: 32% 12,1% 12,4% 12% 50 SEK Million 40 41 SEK million 40 C/I: 57% 30 8% 30 25 20 20 4% 10 10 0 0% 0 Consumer Ecommerce Total Group Consumer Ecommerce Total Group Consumer Ecommerce Total Group Lending Solutions Lending Solutions Lending Solutio
Slide 10: Funding and liquidity
6 000 129 122 21 Shares Other liabilities Liquidity 1 149 Loans to credit institutions 5 000 reserve 1 685 Deposits Germany ‒ Cash at central banks 226 70 Treasury bills ‒ 4 000 ‒ 1 519 ‒ SEK million Deposits Sweden 3 000 4 449 Loans to the public Deposits Norway ‒ 2 000 1 306 ‒ 1 000 586 Deposi
Slide 11: Capital ratios and headroom
17,4% T1+T2 17,4% 15,2% Headroom 5,0% T1 15,2% 13,0% Headroom 5,0% 13,0% Headroom 4,5% T1+T2 12,4% T1 10,2% T1 10,2% CET1 CET1 8,5% CET1 8,5% CET1 8,5% TF Bank 31 December 2018 Headroom to CET1 legal Headroom to T1 legal Headroom to T1+T2 legal capital requirements capital requirements capital
Slide 12: Looking Ahead
LOOKING AHEAD = Continue to leverage on the platform in Consumer lending = Continued expansion in Ecommerce solutions = Norway presents an even better opportunity for increased market share in consumer loans = Protecting margins in the Swedish and Finnish market for consumer loans = — The German car
Slide 13: Q&A Session
Q&A Session 13
Slide 14: Appendix
APPENDIX 14
Slide 15: Corporate Profile
CORPORATE PROFILE Our Products Operating with modern and scalable infrastructure offering our retail customers online consumer loans, deposits and credit cards. For retailers we offer leading ecommerce and brick-and-mortar payment solutions Our DNA We aim to deliver effortless banking to our custome
Slide 16: Loan portfolio and operating income history
5 000 700 4 500 600 4 000 3 500 500 SEK million 3 000 400 2 500 2 000 300 1 500 200 1 000 100 500 0 1991 2000 2009 2018 0 Loan portfolio Operating income 16
Slide 17: Financial Targets
FINANCIAL TARGETS Growth Efficiency Capital structure Dividend policy ‘IF TFBank TF Bank aims to achieve earnings per share of at least 14.50 SEK in 2020 TF Bank aims to achieve a cost/income ratio of below 35% in 2020 All capital ratios shall exceed the legal requirement (including pillar 2) by at
Slide 18: Board of Directors
Mari Thjømøe Charlotta Björnberg- Tone Bjørnov Chairman of the Board Paul Board member since 2015 since 2018 Board member since Current commitments: Board member since 2017 Chairman: Filmparken AS, Storyline Studios AS, Norsk Film Kostyme AS, 2017 Current commitments: Board member: BB Bank ASA, Aqua
Slide 19: Group Management
Mattias Carlsson Mikael Meomuttel CEO CFO, Deputy CEO and Head of Investor Education: MSc, Engineering Physics, Uppsala University. Relations Current commitments: BB Bank ASA (chairman of the board), Education: MSc, Business/Economics and Finance, University Avarda AB (board member), Avarda Oy (boar
Slide 20: Regional managers
Vilma Sool Regional manager Juho Maanpää Head of Finland Juris Pūce Head of Latvia Björn Skytt CIO Baltics Extensive consumer Before joining TF Bank Before joining TF Bank Head of Estonia finance experience in in 2016, worked for in 2010 worked as 10 years of experience Finland within seven years
Slide 21: Contact
TF TFBank Contact Investor relations Mikael Meomuttel +46 706 26 95 33 [email protected] www.tfbankgroup.com