Morrow Bank Ab · OMXSTO:MORROW
Morrow Bank Ab — Komplett Bank — Q4 2018 Earnings Presentation
25 slides from Morrow Bank Ab's earnings presentation, Feb 14, 2019
Slide 1: Fourth Quarter 2018
@ KOMPLETT bank Bank MasterCard FOURTH QUARTER 2018
Slide 2: Disclaimer
Disclaimer This Presentation has been produced by Komplett Bank ASA (the “Company” or “Komplett Bank”), solely for use at the presentation to investors and is strictly confidential and may not be reproduced or redistributed, in whole or in part, to any other person. To the best of the knowledge of t
Slide 3: Operational review
Operational review 3
Slide 4: Fourth quarter highlights
Fourth quarter highlights Q4 2018 Growth NOK million Growth Q/Q • Stable growth for loans in Sweden and Finland and Point-of-sales finance Net loan growth 389 5% • In Norway, a decline in net loans of NOK 127 million were influenced by seasonal effects, targeted credit measures and forward flow NPL
Slide 5: Delivering on the strategic roadmap
Delivering on the strategic roadmap Komplett Bank follows a Komplett Bank’s strategic roadmap product-wise and Consumer Credit Point-of-sales Deposit geographical expansion loans cards finance accounts strategy to ensure: March November September March 2014 2015 2017 2014 Reduced business risk Febru
Slide 6: Financial review
Financial review 6
Slide 7: Stable growth for loans Sweden, loans Finland and POS
Stable growth for loans Sweden, loans Finland and POS Growth in net loans (NOK million) Net loan growth distribution (NOK million) 886 18Q3 18Q4 259 IFRS 9 implementation 219 186 167 160 Sold portfolio 100 105 Growth in net loans 663 655 595 601 611 -17 -9 570 515 -127 Loans Norway Loans Finland Loa
Slide 8: Continuously improved loan portfolio diversification
Continuously improved loan portfolio diversification Total net loans (NOK million) Distribution of net loans end of Q4 2018 44% growth 9,000 Tusener Loans Sweden Point-of-sales finance 8,000 Loans Finland 6% Loans NO 7,000 4% Credit cards Loans FI 6,000 11% Loans Norway Credit cards 5,000 57% Point-
Slide 9: Increasing total income and customer base
Increasing total income and customer base Total income (NOK million) Number of customers (thousands) 43% growth 296 Loans Sweden 3 270 Point-of-sales finance 245 Loans Finland 2 220 75 208 Credit cards 1 50 181 Loans Norway 29 173 1 Deposit customers 13 17 19 148 2 14 12 130 10 110 6 8 48 48 50 2 47
Slide 10: Efficient, digital operations with a low cost base
Efficient, digital operations with a low cost base Operational expenses (NOK million) and cost ratios (%) Costs 100 70% • Q4 2018 operating costs increased due to • Costs related to new product launches 90 Marketing • Non-recurring costs related to consulting 60% support and volume threshold in supp
Slide 11: Losses on loans of NOK 73 million in the quarter
Losses on loans of NOK 73 million in the quarter Past due (days) at end of quarter Losses on loans (LTM) / Average net loans (LTM) 5% 20% 70% 18% IAS 39 IFRS 9 60% IAS 39 IFRS 9 16% 4% 3.6% 3.7% 14% 50% 12% 40% 10% 3% 30% 8% 6% 20% 2% 4% 10% 2% 0% 0% 1% 15Q1 15Q2 15Q3 15Q4 16Q1 16Q2 16Q3 16Q4 17Q1 1
Slide 12: Losses on loans elements break-down
Losses on loans elements break-down Break-down of NOK 73.0 million Q4 2018 losses on loans 3 1. Stage 1 and 2 with unchanged model parameters 2 comprise NOK 12.0 million of loan impairments ‐ Decreased impairment for loans and credit cards in Norway compared to Q3 2018 2. Stage 3 and Other* with unc
Slide 13: Increased profitability and return on equity
Increased profitability and return on equity Profit after tax (NOK million) Quarterly annualised ROE* (%) 33% growth 50.0% 96.9 NPL one-off sale 92.2 in Q3 2017 87.6 40.0% 75.1 72.9 71.5 30.0% 24.7% 56.8 52.0 44.5 20.0% 40.4 28.3 10.0% 16.0 9.9 0.0% 4.3 0.6 -3.5 -10.0% 15Q1 15Q2 15Q3 15Q4 16Q1 16Q2
Slide 14: Solid capital position
Solid capital position Regulatory capital structure (%) Base CET1 • High capital adequacy ratios compared to peers 21.4% CET1 New Bank Buffer 20.5% 0.8% • Current regulatory capital requirement CET1 of 13.6% 0.6% Additional Tier 1 2.0% 17.1% • Announced increase in the counter-cyclical buffer in Swe
Slide 15: Stable yields and funding costs
Stable yields and funding costs Yields 25% Lending Yields • Yield on loans in Sweden in line with loans in other markets 21.0% 20% • High yield for Point-of-sales finance, mainly driven by commission income, in line with expectations 15% 15.5% 14.4% • Yield for loans Norway expected to decline sligh
Slide 16: Outlook
Outlook 16
Slide 17: Outlook
Outlook • Komplett Bank will provide no guiding for 2019 • In the near- to medium term, growth will be given priority over dividends • Komplett Bank received a preliminary SREP report from the NFSA in December 2018 ‐ The bank is currently in dialogue with the NFSA and a final report including a new
Slide 18: Continuing platform expansion in attractive Nordic markets
Continuing platform expansion in attractive Nordic markets Key priorities going forward Komplett Bank’s strategic roadmap • Capitalise on and strengthen strategic Consumer Credit Point-of-sales Deposit and operational platform loans cards finance accounts • Ensure continued sustainable growth for cr
Slide 19: Positioning the company for continued value creation
Positioning the company for continued value creation Net loans (NOK million) Profit after tax (NOK million) CAGR ‘14-’18 331 105% 7,844 274 5,461 25% 30% 23% 3,322 129 1,601 4% 442 11 2014 2015 2016 2017 2018 2015 2016 2017 2018 Loans Norway Credit Cards Loans Finland POS Finance Loans Sweden Profit
Slide 20: Appendix
Appendix @ KOMPLeTT bank
Slide 21: Profit and loss
Profit and loss Full year Full year Q4 2018 Q3 2018 Q4 2017 Amounts in NOK million 2018 2017 Interest income 311.5 289.9 220.6 1,100.4 756.2 Net interest margin* (%) Interest expenses -40.4 -40.3 -24.1 -141.3 -86.5 Net interest income 271.1 249.6 196.6 959.1 669.8 13.6% 13.1% 12.9% 12.7% 12.7% Incom
Slide 22: Balance Sheet
Balance Sheet Amounts in NOK million 31.12.2018 30.09.2018 31.12.2017 Assets Liquidity and funding Loans and deposits with credit institutions 1,232.4 1,095.4 442.3 Net loans to customers 7,844.3 7,455.7 5,461.0 300% 219% Certificates and bonds 436.4 437.0 381.6 250% 170% Other intangible assets 96.
Slide 23: Stable market share in the Norwegian market
Stable market share in the Norwegian market Market share Norway* 5.0 % 5.1 % 5.0 % 4.5 % 4.4 % 4.2 % 4.2 % 4.0 % 3.7 % 3.4 % 3.0 % 2.6 % 2.0 % 1.7 % 1.4 % 1.0 % 15Q1 15Q2 15Q3 15Q4 16Q1 16Q2 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 Market shares in Finland and Sweden are still limited as pr
Slide 24: Solid investor base
Solid investor base Top 20 shareholders Management and Board of Directors ownership Shares Shares Share options # Shareholder % Role Name (million) (thousand) (thousand) 1 CANICA INVEST AS 34.157 19.8% CCO Wilhelm Thomassen 3,370 178 2 STATE STREET BANK AND TRUST COMP 13.458 7.8% CRO Tommy Österlund
Slide 25: Komplett Bank ASA contact details
Komplett Bank ASA | Pb. 448 | 1327 Lysaker | Org.nr.: 998997801 | www.komplettbank.no