Avarda Bank AB · OMXSTO:AVARDA
Avarda Bank AB — TF Bank — Q2 2020 Earnings Presentation
22 slides from Avarda Bank AB's earnings presentation, July 2020
Slide 1: 2nd Quarter 2020 Result Presentation
‘IF TFBank 2"4 Quarter 2020 . | _ RESULT PRESENTATION
Slide 2: Highlights April - June 2020
HIGHLIGHTS APRIL - JUNE 2020 = Covid-19 — Gradual reopening of our offices — Unchanged provision, 30 MSEK = _ Restrictive approach chosen for Consumer Lending volumes in Q2 a = — Growth for Ecommerce Solutions and Credit Cards i TFBank = New partners signed in Ecommerce Solutions ‘IF TFBank :
Slide 3: Share of TF Bank's loan book (Consumer Lending)
▪ Share of TF Bank's loan book ▪ ▪ 77% ▪ ▪ ▪ Share of TF Bank's operating income 5.4bn 23% 8 75% Loan book Loan book Countries growth* 3
Slide 4: Share of TF Bank's loan book (Ecommerce Solutions)
▪ Share of TF Bank's loan book ▪ 17% ▪ ▪ Share of TF Bank's operating income 20% 1.2bn 19% 7 Loan book Loan book Countries growth* 4
Slide 5: Share of TF Bank's loan book (Credit Cards)
Share of TF Bank's loan book ▪ ▪ 6% ▪ ▪ ▪ Share of TF Bank's operating income 0.4bn 107% 2 5% Loan book Loan book Countries growth* 5
Slide 6: Loan book by segment, Q2'19 to Q2'20
8 000 ▪ 7 000 ‒ 6 000 ▪ 5 000 ‒ 4 000 3 000 ▪ ‒ 2 000 1 000 ▪ 0 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 ‒ TF Bank Consumer Lending Ecommerce Solution Credit Cards 6
Slide 7: Loan book and market comments by country
Sweden ▪ Focus on profitability and e-commerce. Loan book Norway ▪ Continued positive long term outlook on the Norwegian economy. Focus on growth and margins. Finland ▪ New rate cap of 10% until the end of the year. Sweden Norway Finland Baltics Poland Germany The Baltic states ▪ Portfolio managemen
Slide 8: Operating income, margins and costs by quarter
250 25,0% 90 60,0% 70 8,0% 78 80 80 208 213 210 80 60 60 196 71 71 50,0% 60 200 189 20,0% 70 51 6,0% 50 47 46 60 40,0% 15,0% SEK million SEK million SEK million 150 37,6% 50 36,5% 37,3% 37,7% 37,9% 40 15,0% 14,3% 13,7% 30,0% 4,0% 13,2% 12,8% 40 30 100 10,0% 3,6% 3,5% 3,4% 3,4% 3,4% 30 20,0% 20 2,0%
Slide 9: Profit before tax, 6M and Q2
▪ 150 144 136 ‒ 120 ‒ ▪ 90 ‒ 70,6 70,4 60 ▪ ‒ 30 0 6M'19 6M'20 Q2'19 Q2'20 9
Slide 10: Profit and return by segment
C/I: 38% 100 +73,8 +5,6 -9,0 16,0% 90 +70,4 90 80 80 80 11,8% 12,0% 70 70 9,4% 60 C/I: 26% 60 9,2% SEK Million SEK million 50 43 50 8,0% 40 C/I: 64% 40 30 27 30 3,9% 4,0% C/I: 100% 20 20 11 10 10 0 0,0% 0 Consumer Ecommerce Credit Cards TF Bank Consumer Ecommerce Credit Cards TF Bank Consumer Ecomme
Slide 11: Distribution of deposits and liquidity reserve
9 000 8 000 Distribution of deposits ▪ 7 000 Sweden ‒ 6 000 Germany 14% SEK million Finland 3 828 5% ‒ 5 000 Germany 49% ‒ 4 000 32% ‒ 25% of deposits 3 000 Norway 2 534 Norway ‒ 2 000 787 Other ▪ 1 000 Sweden 1 055 Finland 1 142 Central banks ‒ 0 377 Deposits from Liquidity reserve* ‒ the public ‒
Slide 12: Capital ratios and headroom, 30 June 2020
17,5% ▪ T1+T2 17,5% 14,5% Headroom 5,7% T1 14,5% 13,0% Headroom 4,9% ▪ Headroom 5,0% T1+T2 11,8% CET1 T1 9,6% T1 9,6% ▪ 13,0% CET1 CET1 CET1 8,0% 8,0% 8,0% ▪ Capital ratios Headroom to CET1 legal capital Headroom to T1 legal capital Headroom to T1+T2 legal capital 30 June 2020 requirements (includin
Slide 13: Looking Ahead
LOOKING AHEAD = Continued focus on portfolio management, liquidity and ROE = Back to growth in June — Baltic area, cautious approach — Nordic, back to growth — Germany, fast growth = Still poor visibility regarding Covid-19 impact in the coming quarters - unchanged provision 30 MSEK ‘TF TFBank 13
Slide 14: Q&A Session
Q&A Session 14
Slide 15: Appendix
APPENDIX 15
Slide 16: 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 17: Loan portfolio and operating income 1992-2019
▪ 7 000 900 6 000 800 ▪ 700 5 000 600 SEK million 4 000 500 3 000 400 300 2 000 200 1 000 100 ▪ 0 1992 2001 2010 2019 0 Loan portfolio Operating income 17
Slide 18: Financial Targets and Dividend Policy
FINANCIAL TARGETS AND DIVIDEND POLICY The Board of Directors of TF Bank intends to establish new financial targets once the macroeconomic outlook has stabilised. Currently, TF Bank has the following targets: Efficiency TF Bank aims to achieve a cost/income ratio of below 35% in 2020 Capital structur
Slide 19: Board of Directors
John Brehmer Charlotta Björnberg- Tone Bjørnov Chariman of the Board Paul Board member since 2015 since 2020 Board member since Current commitments: Board member since 2017 Chairman: Filmparken AS, Storyline Studios AS, Hausmann AS 2010 Current commitments: Board member: Storyline Studios Current co
Slide 20: Group management
Mattias Carlsson Mikael Meomuttel CEO CFO, Deputy CEO and Head of Investor Education: MSc, Engineering Physics, Uppsala University. Relations Current commitments: Smedslättens Tennisbanor Aktiebolag Education: MSc, Business/Economics and Finance, University (chairman), Qred AB (chairman), and Tronst
Slide 21: Regional management
▪ 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 Finland within seven years in integration manager
Slide 22: Contact
‘TF TFBank Contact Investor relations Mikael Meomuttel +46 706 26 95 33 [email protected] www.tfbankgroup.com