Avarda Bank AB · OMXSTO:AVARDA
Avarda Bank AB — TF Bank — Shareholder Meeting (May 2019)
20 slides from Avarda Bank AB's shareholder meeting presentation, May 2019
Slide 1: TF Bank AGM May 2019
TF Bank AGM May 2019
Slide 2: Corporate Profile
CORPORATE PROFILE Our Products Our Geographical footprint Operating with modern and scalable We serve customers in the Nordics and infrastructure offering our retail around the Baltic sea customers online consumer loans, deposits and credit cards. For retailers we offer leading ecommerce and brick-
Slide 3: 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 Avarda rolled out its solution Checkout+ 300,000 new cu
Slide 4: Consumer Lending: Diversified Granulated Portfolio
CONSUMER LENDING DIVERSIFIED GRANULATED PORTFOLIO At a glance Loan sizes (average) and customer profile 78 % of the loan portfolio Unsecured consumer loans Middle income Marketed trough direct channels, own data base and external partners SEK 97,000 Employed Tenor of loans are typically betw
Slide 5: Ecommerce Solutions: Next Generation Payment 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 6: Strong Loan Book Growth
STRONG LOAN BOOK GROWTH TF Bank Group Consumer Lending 3M’19 +16 % 5 000 CAGR 4 010 4 000 +28 % 3 466 SEK million 3M’19 3 000 2 561 +14 % 2 076 6 000 2 000 1 487 1 276 5 090 1 000 5 000 4 449 0 CAGR 2014 2015 2016 2017 2018 3M'19 +28 % 4 000 Ecommerce Solutions SEK million 3 156 2 000 3M’19 3 000 2
Slide 7: Growth and Diversification According to Plan
GROWTH AND DIVERSIFICATION ACCORDING TO PLAN Norway 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 806
Slide 8: Financial Targets
FINANCIAL TARGETS Growth TF Bank aims to achieve earnings per share of at least 14.50 SEK in 2020 Efficiency TF Bank aims to achieve a cost/income ratio of below 35% in 2020 Capital structure All capital ratios shall exceed the legal requirement (including pillar 2) by at least 2.5% points Dividend
Slide 9: Higher Growth for Operating Profit
HIGHER GROWTH FOR OPERATING PROFIT Operating profit 85 Operating profit Q4 2018 vs. Q4 2017 +29%* 70 65 ‒ Main drivers: Higher income and lower loss ratio 63 60 ‒ Excluding items affecting comparability, +20 MSEK 52 53 50 48 50 49 Bridge operating profit and earnings per share 43 ‒ Operating pro
Slide 10: Q4-2018: KPIs in Line with Plan
Q4-2018: KPIs IN LINE WITH PLAN Operating income Operating expenses Net loan 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 1
Slide 11: Q4 2018 - KPIs per Segment
Q4 2018 - KPIs PER SEGMENT Operating profit Risk-adjusted margin Operating expenses 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 Grou
Slide 12: Diversified Funding and Strong Liquidity Position
DIVERSIFIED FUNDING AND STRONG LIQUIDITY POSITION Assets and liabilities 6 044 6 044 6 000 129 122 Cost-efficient funding from 21 Shares Other liabilities diversified retail deposits Liquidity 1 149 Loans to credit institutions 5 000 reserve 1 685 Deposits Germany ‒ Germany (SEK 1.7 billion) ‒ Cas
Slide 13: Diversified Capital Structure
DIVERSIFIED CAPITAL STRUCTURE 17,4% T1+T2 17,4% 15,2% Significant headroom to all legal 5,0% T1 15,2% 13,0% Headroom capital requirements (incl. Pillar 2) 1) Headroom 5,0% 13,0% Headroom 4,5% T1+T2 12,4% Own funds include full year profit and T1 10,2% T1 10,2% proposed dividend payout of SEK 2.3
Slide 14: Why Invest in TF Bank
WHY INVEST IN TF BANK Resilient business model with more than 30 years of outstanding returns. The mix of consumer loans and payments makes it even stronger Profitable growth through TF Bank’s diversified high yielding assets Lean cost base leading to world class efficiency at C/I of 39 % (201
Slide 15: Q&A Session
Q&A Session
Slide 16: Appendix
APPENDIX
Slide 17: Board of Directors
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
Slide 18: Executive Management Team
EXECUTIVE MANAGEMENT TEAM 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), Avarda AB Education: MSc, Business/Economics and Finance, University (chairman), Avarda
Slide 19: Head of countries and functions
Head of countries and functions 1) Juris Pūce Vilma Sool Juho Maanpää Björn Skytt Regional manager Head of Finland Head of Latvia 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 exp
Slide 20: Contact
Contact Investor relations Mikael Meomuttel +46 706 26 95 33 [email protected] www.tfbankgroup.com 20