Morrow Bank AB · OMXSTO:MORROW
Morrow Bank AB — Komplett Bank — Q4 2022 Earnings Presentation
22 slides from Morrow Bank AB's earnings presentation, Feb 16, 2023
Slide 1: Fourth quarter 2022
@ KOMPLETT’bank G@roWwUTT Ink Heme Reng estan Spi Fourth quarter 2022 Et lan for folk flest
Slide 2: Komplett Bank – a diversified Nordic consumer finance company
Komplett Bank – a diversified Nordic consumer finance company Key facts Gross loan balance of BNOK 10 • Established in 2014, listed in 2017 Norway Finland Sweden Loans Credit Cards POS • Norwegian banking license (EU passporting) 4% 7% • Fully centralised operations (80 FTE) 26% • Consumer loans, cr
Slide 3: Q4 2022 highlights: Strong growth and further reduction of cost base
Q4 2022 highlights: Strong growth and further reduction of cost base MNOK Q4 2022 vs Q3 22 vs Q4 21 Growth engine at cruising speed • Record sales in the quarter and 14% loan growth vs Q3 2022 • Loan book interest rates successfully increased Gross loans 9,640 +14% +17% • Total income growth of 17%
Slide 4: New strategy and ambitions set in early 2022: delivering ahead of plan
New strategy and ambitions set in early 2022: delivering ahead of plan Solid base Defined initiatives Stated ambitions Run-rate 2024 ambitions Product & process performance Loan balance increase (vs Q2 2022) • BNOK 10 loan book • Improving throughput • Diversified footprint • Focusing on risk-adjust
Slide 5: Strategic initiatives driving growth and efficiency improvements
Strategic initiatives driving growth and efficiency improvements Defined 2022 initiatives delivered Gross loans (MNOK) and cost/income (%) 14,000 60% 54% 53% Reorganisation: new management team & organisational 50% Q1 - Q2 12,000 structure in place, decision to outsource front-office 47% 50% 10,000
Slide 6: A growing and resilient BNOK 600 Nordic market
A growing and resilient BNOK 600 Nordic market • The Nordic region proven to be a stable and resilient market during times of global macro-economic uncertainty • Higher cost of living drives demand for new credit and debt consolidation across the region • Increased demand from higher-income individu
Slide 7: Fourth quarter Financial review
Fourth quarter Financial review 7
Slide 8: Diversified portfolio with growth across all markets; gross loans +14% (Q-o-Q)
Diversified portfolio with growth across all markets; gross loans +14% (Q-o-Q) Norway Total gross loans (MNOK) • Outperforming market growth • Underlying loan Q4 growth: MNOK 302 (+9%) ~12,000 Finland 9,640 • Strong new sales 8,220 7,998 8,455 7,503 • Underlying loan Q4 growth: MNOK 483 (+18%) Swede
Slide 9: Stable yield as interest increases are successfully passed on to customers
Stable yield as interest increases are successfully passed on to customers Stable net yield outlook Yield, performing loans and deposits • Stable yields for loans across geographies; set to 17.6 % 20.00% 15.1 % 15.9 % 15.8 % increase during 2023 14.6 % 14.9 % 15.00% • Increasing yields on credit car
Slide 10: Total income improved by loan growth and interest rate increases
Total income improved by loan growth and interest rate increases Q4 total income of MNOK 220, up 17% from Q3 Total income (MNOK) • Increase in interest income of MNOK 32 vs Q3, partly 260-270 offset by higher interest expenses 218 220 197 195 189 • Net commissions and fees up MNOK 3 vs Q3 • MNOK 9 i
Slide 11: Intensified efficiency measures: targeting cost/income ratio ~30% in Q4 2023
Intensified efficiency measures: targeting cost/income ratio ~30% in Q4 2023 Ahead of stated ambition <35% in Q4 2024 Opex trending down: Q4 2022 affected by large write-down Operational expenses (MNOK) and cost ratio (%) • MNOK 93 write-down of assets related to historical IT 250 60% investments (i
Slide 12: Loan loss ratio set to decline as loan balance increases at improved credit quality
Loan loss ratio set to decline as loan balance increases at improved credit quality Q4 loan loss provisions driven by strong growth Loan loss ratio (LLR) • Higher loan loss ratio in Q3 and Q4 2022 compared Strong volume growth to prior quarters, as strong loan growth prompts Normalising provision in
Slide 13: Investments to increase scale and efficiency influence Q4 2022 profitability
Investments to increase scale and efficiency influence Q4 2022 profitability Profit after tax (MNOK) Breakdown: Profit after tax, Q4 2022 vs Q4 2023 target (MNOK) 50 >40 40 30 ~6 20 34 35 36 <-40 10 18 >120 >40 0 21Q4 22Q1 22Q2 22Q3 22Q4 23Q4 E -10 >40 -89 -20 • Accelerated loan growth increases upf
Slide 14: Capital ratios not affected by write-downs in Q4 2022
Capital ratios not affected by write-downs in Q4 2022 Regulatory capital structure (%) Q-o-Q 25.4% 23.6% 0.8% 2.5% 0.7% • Capital ratios somewhat down due to strong growth in Q4. 2.3% 18.6% CET1 target • The one-off write-down of intangible assets in Q4 did not 17.6% CET1 reqm’t. affect the capital
Slide 15: Summary
Summary 15
Slide 16: Ahead of improvement schedule, accelerating growth and cost efficiency targets
Ahead of improvement schedule, accelerating growth and cost efficiency targets Gross loans (MNOK) and cost/income ratio (%) Q4 2023 estimates 14,000 60% 2023 Loan balance growth 54% 53% 50% 12,000 47% 50% ~ 20% 10,000 40% 8,000 ~30% 30% Cost/income ratio 6,000 4,000 20% ~ 30% 2,000 10% 8,220 7,998 7
Slide 17: Q&A
Q&A
Slide 18: APPENDIX
APPENDIX 18
Slide 19: Profit and loss
Profit and loss Amounts in MNOK Q4 2022 Q4 2021 2022 2021 Net interest margin* (%) Interest income 254.0 239.3 907.0 965.5 Interest expenses -45.9 -16.9 -113.7 -81.8 10.1 % 9.4 % 9.1 % 9.2 % 8.8 % Net interest income 208.1 222.4 793.3 883.7 Commission income and fees 15.7 10.9 53.0 51.6 Commission e
Slide 20: Balance sheet
Balance sheet Amounts in MNOK 31.12.2022 31.12.2021 Liquidity and funding 451% Assets 408% 386% 380% Loans and deposits with credit institutions 807.8 1,301.8 Net loans to customers 9,110.7 7,397.8 290% Certificates and bonds 1,453.5 882.2 Other intangible assets 45.3 153.5 174% 181% 160% 129% 127%
Slide 21: Shareholder overview
Shareholder overview Largest 20 shareholders Management and members of the Board of Directors Shares Shares Share options # Shareholder % Role Name (thousand) (thousand) (thousand) 1 Kistefos AS 35,747 19.1% COO Wilhelm B. Thomassen 1,882 358 2 UBS AG 17,493 9.3% CFO Eirik Holtedahl 961 110 3 Alfa
Slide 22: Komplett Bank
@ KOMPLETT’ bank 22