Morrow Bank AB · OMXSTO:MORROW
Morrow Bank AB — Komplett Bank — Q1 2021 Earnings Presentation
27 slides from Morrow Bank AB's earnings presentation, May 6, 2021
Slide 1: First quarter 2021
@ KOMPLETT’bank First quarter 2021
Slide 2: Disclaimer
Disclaimer This Presentation has been produced by Komplett sometimes identified by the words “believes”, expects”, performance or achievements of the company to be information, including projections, estimates, targets Bank ASA (the “Company” or “Komplett Bank”), solely “predicts”, “intends”, “proje
Slide 3: Today's presenters
Today’s presenters CEO Jan Haglund CFO Henning Fagerbakke 3
Slide 4: Stable quarter with continued improvement in credit quality
Stable quarter with continued improvement in credit quality • On track for 5-10% loan growth after good development in March and April Returning to growth • Weaker growth in initial part of quarter due to higher amortisations Improved credit • Improvement in credit quality as seen in lower volume se
Slide 5: Highlights of the quarter
Highlights of the quarter Q1 2021 Growth • Net loans decrease of NOK 62 million adjusted for FX and forward flow effects (NOK 240 NOK million Q1 2021 Q/Q Y/Y million in Q4 2020) Net loans 8,042 -3.8% -8.8% • Solid new sales in March and April, and growth in loan portfolio YTD Total income 256 0.6% -
Slide 6: Quarter impacted by currency fluctuations – net loan growth target of 5-10% for the year
Quarter impacted by currency fluctuations – net loan growth target of 5-10% for the year Growth in net loans (NOK million) Net loan growth distribution (NOK million) 186 20Q4 21Q1 61 -20 -25 -35 -23 -82 -64 -120 -178 326 271 Loans Norway Loans Finland Loans Sweden Credit cards Point-of-sales 187 fin
Slide 7: Improvement in underlying credit quality
Improvement in underlying credit quality Loans Norway Loans Finland Loans Sweden • Improved default level in March • Improved default levels in March • Improved default levels in March compared to previous quarter compared to previous quarter compared to previous quarter • Improved past due balances
Slide 8: First Quarter 2021 Financial review
First Quarter 2021 Financial review 8
Slide 9: Stable income and customer base
Stable income and customer base Total income (NOK million) Number of customers (thousands) 324 327 293 37 37 278 277 269 303 35 295 295 291 286 247 27 30 23 269 230 254 256 24 20 156 157 115 119 119 128 95 84 52 53 55 56 57 60 62 62 5 6 7 7 7 9 8 9 22 24 25 26 26 26 26 27 47 46 44 43 38 37 36 35 19Q
Slide 10: Slight reduction in opex and cost/income
Slight reduction in opex and cost/income Operational expenses (NOK million) and cost ratios (%) 140 70% 120 60% AML admin fee • OPEX NOK 98 million in Q1 2021 down from NOK 99 million Marketing 100 50% in Q4 2020 Other • Slight decrease in admin costs, and stable personell and 80 40% other costs com
Slide 11: Stable credit risk performance during the quarter
Stable credit risk performance during the quarter Break-down of Q1 2021 losses on loans (NOK million) • Decrease in stage 1 losses due to increased amortizations • Increase in stage 2 losses due to parameter changes previous quarter • Stage 3 losses including effects of NPL portfolio sales are stabl
Slide 12: Underlying loan loss ratio reflecting improved development in credit quality
Underlying loan loss ratio reflecting improved development in credit quality Coverage ratios Loan loss ratio (LLR)* (%) 2.6 % 2.3 % 2.5 % 2.5 % 2.5 % 2.3 % 5.6 % 2.1 % 17.5 % 16.2 % 16.2 % 17.4 % 16.1 % 1.6 % 1.8 % 14.6 % 17.1 % 1.8 % 11.7 % 12.2 % 3.9 % 4.0 % 4.0 % 9.3 % 3.8 % 3.8 % 3.8 % 3.8 % 38.
Slide 13: ROE impacted by high capital adequacy
ROE impacted by high capital adequacy Profit after tax (NOK million) Annualised ROE * (%) 83 79 80 77 73 18.6 % 18.3 % 17.9 % 66 17.9 % 18 63 63 38 16.1 % 13.6 % 13.9 % 13.1 % 12.0 % 77 73 63 66 63 19Q2 19Q3 19Q4 20Q1 20Q2 20Q3 20Q4 21Q1 19Q1 19Q2 * 19Q3 19Q4 * 20Q1 * 20Q2 20Q3 20Q4 21Q1 AML fee Add
Slide 14: Solid capital position provides capacity for both growth and dividends
Solid capital position provides capacity for both growth and dividends Regulatory capital structure (%) 26.1% 1.3% • CET1 ratio decreased to 22.5% (22.7%) in Q1 2021, and is still well above 2.4% 18.0% target which includes a 1.0%-point management buffer 21.5% 20.5% 2.0% 2.0% • Solid total capital r
Slide 15: Outlook and summary
Outlook and summary 15
Slide 16: Komplett Bank's long-term financial targets
Komplett Bank’s long-term financial targets Capital adequacy CET1 target of 18.0% Comprised of regulatory CET1 requirement of 17.0% + 1.0% management buffer Return on equity Above 20% return on equity Excess capital not deployed for growth purposes will Dividend Policy be distributed to shareholders
Slide 17: Summary of our priorities for 2021
Summary of our priorities for 2021 • Maintain activity levels and improve customer acquisition processes Growth • Target 5-10% loan growth in 2021 • Maintain high focus on credit risk and collection performance Credit quality • Continue to improve data and analytics capabilities • Enhance key custom
Slide 18: Q&A
Q&A
Slide 19: Appendix
APPENDIX 19
Slide 20: A Nordic specialised consumer finance company
A Nordic specialised consumer finance company • Offering flexible consumer financing solutions to customers across the Nordics • ~330,000 customers across four product areas in Norway, Sweden, Finland and Germany • Strategic partnership with Komplett Group, largest e-commerce company in the Nordics
Slide 21: Komplett Bank's strategic roadmap; growth opportunities being reviewed
Komplett Bank’s strategic roadmap; growth opportunities being reviewed Point-of- Consumer Credit Deposit sales loans cards accounts Komplett Bank follows a product- finance wise and geographical expansion strategy to ensure: Q1 Q4 Q3 Q1 2014 2015 2017 2014 • Reduced business risk • Economies of scal
Slide 22: Diversified product portfolio across the Nordics
Diversified product portfolio across the Nordics Total net loans (NOK million) Distribution of net loans end of Q1 2021 10,000 Tusener 8,821 8,496 8,403 9,000 8,361 8,341 8,361 7,903 8,094 8,042 8,000 Loans Norway 7% 7,000 9% Loans Finland 6,000 37% Loans Sweden 5,000 17% 4,000 Credit cards 3,000 Po
Slide 23: Stable yield and declining funding cost
Stable yield and declining funding cost Yields performing loans * (%) Gradual yield declines due to growth in new markets • Stable yields for loans 25% • Decrease in yield for credit cards over time due to growth in new markets 20% Funding • Positive trend due to increased diversification (NOK, 15%
Slide 24: Profit and loss
Profit and loss Amounts in NOK million Q1 2021 Q1 2020 2020 2019 Net interest margin* (%) Interest income 261.3 309.9 1,171.9 1,254.2 11.7 % 11.6 % 12.1 % 11.6 % 11.0 % 10.5 % Interest expenses -24.5 -40.5 -144.8 -167.2 9.8 % 10.1 % Net interest income 236.9 269.4 1,027.1 1,087.0 Income commissions
Slide 25: Balance sheet
Balance sheet Amounts in NOK million 31.03.2021 31.12.2020 Liquidity and funding Assets 1013% 980% Loans and deposits with credit institutions 1,141.7 1,204.2 774% Net loans to customers 8,041.8 8,361.2 716% Certificates and bonds 2,287.4 1,848.0 506% 539% 536% 525% Other intangible assets 150.9 154
Slide 26: Shareholders and Management and Board ownership
Shareholders and Management and Board ownership Top 20 shareholders Management and members of the Board of Directors ownership Shares Shares Share options # Shareholder % Role Name (thousand) (thousand) (thousand) 1 Kistefos AS* 35,747 19.1% Director Legal & HR Wilhelm B. Thomassen 2,018 330 2 UBS
Slide 27: Komplett Bank
@ KOMPLETT’ bank 27