Morrow Bank AB · OMXSTO:MORROW
Morrow Bank AB — Debt Investor Presentation (May 2025)
40 slides from Morrow Bank AB's debt investor presentation, May 12, 2025
Slide 1: Company presentation
morrowbank.com Company presentation A scalable Nordic niche bank Morrow Bank ASA – 12 May 2025
Slide 2: Disclaimer I/II
Disclaimer I/II morrowbank.com ABOUT THIS PRESENTATION Issue, without the prior written consent of the Company or None of the Company or the Manager, or any of its conjunction with the Company's audited financial the Manager, is prohibited. This Presentation has not subsidiary undertakings or affili
Slide 3: Disclaimer II/II
Disclaimer II/II morrowbank.com This Presentation speaks as at the date set out on herein. city court (Nw.: Oslo tingrett) as exclusive venue. more) of: (i) a retail client as defined in point (11) of Article may lawfully be communicated in accordance with Article Neither the delivery of this Presen
Slide 4: Risk factor I/VI
Risk factor I/VI morrowbank.com The Company contemplates to issue subordinated tier 1 Fluctuations and/or adverse development in The Company launched a series of strategic initiatives in management of its cost base and limitations in its bonds (the "Bonds" and "Bond Issue"). Investing in the economi
Slide 5: Risk factor II/VI
Risk factor II/VI morrowbank.com The Company's business concept is critically dependent The Company's ability to conduct business may be could potentially jeopardise confidential and other identify and mitigate risks are based on historical upon an efficient and well-functioning technological advers
Slide 6: Risk factor III/VI
Risk factor III/VI morrowbank.com Continued or increased negative attention on the The Company is subject to credit risk (the risk that the business, financial condition and/or results of operations. deposits from customers may decline. Also, changes to consumer finance segment may affect the Compan
Slide 7: Risk factor IV/VI
Risk factor IV/VI morrowbank.com The Company is exposed to the risk of material Sweden. have a material adverse effect on the Company's clauses regarding changes of interest rate do not fulfill the deterioration in the quality of its loan portfolio and business, financial condition and results of op
Slide 8: Risk factor V/VI
Risk factor V/VI morrowbank.com On 29 March 2019, the CRD IV and the CRR were risk that banks will be subjected to or used for bribery or includes proposals which will entail significant reductions deposit guarantee of NOK 2 million per deposit per incorporated into the Agreement on the European mon
Slide 9: Risk factor VI/VI
Risk factor VI/VI morrowbank.com If such a market were to exist, the Bonds could trade at its existing debt, including the Bonds, or to obtain security than the Bonds. of payments for a certain period, to or the disapplication prices that may be lower than the principal amount or additional financin
Slide 10: Content
Content morrowbank.com ▪ Today’s presenting team ▪ Contemplated Tier 1 issuance ▪ A scalable banking platform ▪ Continued improved profitability ▪ Summary and outlook ▪ Appendix 10
Slide 11: Today's presenting team
Today’s presenting team morrowbank.com Øyvind Oanes | CEO Eirik Holtedahl | CFO 11
Slide 12: Content
Content morrowbank.com ▪ Today’s presenting team ▪ Contemplated Tier 1 issuance ▪ A scalable banking platform ▪ Continued improved profitability ▪ Summary and outlook ▪ Appendix 12
Slide 13: Indicative transaction term sheet
Indicative transaction term sheet morrowbank.com Item Description Issuer Morrow Bank ASA. Type FRN Hybrid Tier 1 Perpetual Non-cumulative Callable Bond Issue. Issue amount Up to NOK 250 million. Coupon 3M NIBOR + [•]% p.a. (NIBOR floor of 0%). Nominal value NOK 100,000. Issue date [•] May 2025. Matu
Slide 14: Transaction rationale
Transaction rationale “To facilitate continued profitable growth while optimising capital structure” Gross lending (NOKm)* Reported regulatory capital (%) Status regulatory capital structure (%) ** Gross lending CET1 Core capital Total capital CET1 Core capital Total capital 15,542 15,385 15,429 22.
Slide 15: Key credit highlights
Key credit highlights morrowbank.com Strong position in core • Geographical diversified loan portfolio markets • Growing portfolios in Norway, Sweden and Finland • One of the leading consumer finance providers in the Nordics • Continued growth organically and through acquisitions Solid growth • Thre
Slide 16: Content
Content morrowbank.com ▪ Today’s presenting team ▪ Contemplated Tier 1 issuance ▪ A scalable banking platform ▪ Continued improved profitability ▪ Summary and outlook ▪ Appendix 16
Slide 17: Providing financial flexibility to Nordic consumers
Providing financial flexibility to Nordic consumers morrowbank.com Offering convenient consumer financing… …to creditworthy individuals… …across the Nordics Flexible consumer loans NOK ~600k customer average annual income NOK ~160k average loan amount NOK No-fees credit cards ~600bn market ~60% home
Slide 18: Morrow Bank is in a strong position
Morrow Bank is in a strong position morrowbank.com Established Providing Developed a Diversified Nordic Strong in 2014 financial flexibility scalable platform loan portfolio capitalisation and listed on the to a NOK ~600bn positioning the NOK 15.4bn across CET1 ratio of 16.8% Oslo Stock Nordic unsec
Slide 19: A scalable and efficient banking platform
A scalable and efficient banking platform morrowbank.com Loan balance Cost/income ratio Loan loss ratio Return on target equity NOKbn % % % Loan loss ratio (LLR) 17% 15-17% 12 14% 11% 11% 10% 10% % 4-4.5% 24Q1 24Q2 24Q3 24Q4 25Q1 2 Q4E 2 Q4E 25Q1 at 24% w/o one-offs Old New Delivering growth while r
Slide 20: Highly experienced management team
Highly experienced management team morrowbank.com Øyvind Oanes | CEO Wilhelm Thomassen | COO Mr. Oanes joined Morrow Bank as CEO in October 2021. Prior to joining the bank he Mr. Thomassen served as Chief Compliance officer from May 2015 until May 2019, at was a partner at Exton Consulting, a strate
Slide 21: Nordic region remains well positioned
Nordic region remains well positioned morrowbank.com GDP growth (%) Unemployment (%) Inflation (%) 3 10 NO SE FI 10 9 9 8 8 2 7 7 6 6 1 5 5 4 4 3 3 0 2 2 1 1 -1 0 0 2024 2025 2026 2024 2025 2026 2024 2025 2026 ▪ GDP growth to support demand for ▪ Unemployment outlook remains stable, ▪ Inflation leve
Slide 22: Morrow to become a Swedish bank around year-end
Morrow to become a Swedish bank around year-end morrowbank.com - Granted banking license 1 April and initiated transfer to Nasdaq Stockholm Q1-Q3 2024 Q4 2024 2025 From 2026 Establishment of Swedish Assessment of potential Start of Swedish banking legal entity (AB) Q2: SFSA decision redomiciliation
Slide 23: Content
Content morrowbank.com ▪ Today’s presenting team ▪ Contemplated Tier 1 issuance ▪ A scalable banking platform ▪ Continued improved profitability ▪ Summary and outlook ▪ Appendix 23
Slide 24: Building scale by growing in the most profitable markets
Building scale by growing in the most profitable markets morrowbank.com Total gross loans NOKm 17,000 15,542 15,3 4 15,430 7% 7% 7% ▪ Controlled growth in Q1 impacted by seasonality, 12,243 12,475 product adjustments and FX effects (strong NOK) % % 3 % 35% 3 % – Underlying growth of NOK 274m in FI a
Slide 25: Stable net interest margins – improving end of quarter
Stable net interest margins – improving end of quarter morrowbank.com Yields, performing loans and deposits Deposits Loans and credit cards 14. % 14. % ▪ Net loan-deposit margin of 10.5% in Q1 (10.6% Q4) 14.5% 14.1% 13.5% ▪ Reference rate adjusted in Finland from 1 January impacting loan yield ▪ Mit
Slide 26: Total income continues to grow
Total income continues to grow morrowbank.com Total income (NOKm) ▪ Total income growth of 16% year-on-year ▪ Driven by organic growth and acquisition of performing Swedish loan portfolios ▪ Q1 impacted by reduced reference rate in FI and lower interest income on liquidity – partially offset by one-
Slide 27: Stable underlying cost base
Stable underlying cost base morrowbank.com Cost/income OPE (MNO ) One off Cost/income ratio (%) 2 4 ▪ Stable underlying OPEX despite continued loan 0 0 2 growth, including portfolio acquisitions. ▪ Cost/income ratio at 27.5% ▪ NOK 10m in redomiciliation related one-offs 27.1% 27.5% ▪ C/I of 24.4% ex
Slide 28: Loan loss ratio continuing to improve
Loan loss ratio continuing to improve morrowbank.com Loan losses Loan losses (MNO ) Loan loss ratio ▪ Decrease in nominal losses driven by stable balance and improving credit quality ▪ Overall loan loss ratio continued to decline in the quarter to 4.3% (Q1 2024: 5.2%) 4.0-4.5% ▪ Current level expect
Slide 29: Profitability increasing – higher ROTE target
Profitability increasing – higher ROTE target morrowbank.com Profit (NOKm) Profit after tax Profit before tax Return on Target E uity (ROTE) ▪ Q1 2025 profit before tax up 43% year-on-year 4 3 ▪ NOK 0.4 per share in dividend for 2024 paid in 72 April; 50% of 2024 profits 15-17% 7 5 ▪ Return on targe
Slide 30: Strong balance sheet
Strong balance sheet morrowbank.com Q1’24 capital adequacy Q1’25 capital adequacy CET1 requirement Additional Tier 1 (AT1) CET1 requirement Additional Tier 1 (AT1) CET1 headroom Tier 2 (T2) CET1 headroom Tier 2 (T2) ▪ CRR3 effective 1 April 2025: Common Equity Tier 1 (CET1) Common Equity Tier 1 (CET
Slide 31: Content
Content morrowbank.com ▪ Today’s presenting team ▪ Contemplated Tier 1 issuance ▪ A scalable banking platform ▪ Continued improved profitability ▪ Summary and outlook ▪ Appendix 31
Slide 32: Initiatives to drive profitability
Initiatives to drive profitability morrowbank.com Scalable New Direct Close follow-up Portfolio platform products marketing of clients acquisitions Automation and Launching in Encouraging initial CRM for activation, Growth opportunities if self-service Norway and results driven by upsell and lower c
Slide 33: Attractive value-creation potential
Attractive value-creation potential morrowbank.com Today Towards end-2026 Longer-term A scalable banking platform Excess capital growing Driving returns ▪ Proved scalability and industry ▪ Level playing field with Swedish ▪ Allocate capital to where it creates leading cost-efficiency peers to increa
Slide 34: Key credit highlights
Key credit highlights morrowbank.com Strong position in core • Geographical diversified loan portfolio markets • Growing portfolios in Norway, Sweden and Finland • One of the leading consumer finance providers in the Nordics • Continued growth organically and through acquisitions Solid growth • Thre
Slide 35: Content
Content morrowbank.com ▪ Today’s presenting team ▪ Contemplated Tier 1 issuance ▪ A scalable banking platform ▪ Continued improved profitability ▪ Summary and outlook ▪ Appendix 35
Slide 36: Profit and loss
Profit and loss morrowbank.com Amounts in NOKm Q1 2025 Q4 2024 2024 2023 Net interest margin* (%) Interest income 450.1 493.8 1,762.7 1,380.0 Interest expenses -134.4 -159.2 -552.2 -359.8 Net interest income 315.8 334.7 1,210.5 1,020.2 8.8 % 8.5 % 8.5 % 8.7 % 8.0 % Commission income and fees 25.8 17
Slide 37: Balance sheet
Balance sheet morrowbank.com 31 Mar. 31 Dec. 31 Dec. 31 Dec. Amounts in NOKm 2025 2024 2023 2022 Liquidity and funding Assets Loans and deposits with credit 687% 1,791.4 2,084.0 1,530.0 807.8 660% institutions Net loans to customers 13,768.4 13,847.5 11,076.0 9,110.7 528% Certificates and bonds 2,44
Slide 38: Board of Directors
Board of Directors morrowbank.com Niklas Midby | Chair of the board Carl-Åke Nilson | Board member Niklas Midby has extensive and relevant board experience from Norwegian and Carl-Åke Nilson has extensive experience in credit assessment across several Swedish banks, including chairman of the board o
Slide 39: Shareholder overview
Shareholder overview morrowbank.com Largest 20 shareholders Management and members of the Board of Directors Shares Shares Share options* Warrants # Shareholder % Role Name (thousand) (thousand) (thousand) (thousand) 1 Kistefos AS 47,787 20.7% CFO Eirik Holtedahl 2,642 287 800 2 UBS AG 19,807 8.6%
Slide 40: morrowbank.com
morrowbank.com