Morrow Bank AB · OMXSTO:MORROW
Morrow Bank AB — Komplett Bank — Q2 2018 Earnings Presentation
22 slides from Morrow Bank AB's earnings presentation, Aug 16, 2018
Slide 1: Second Quarter 2018
@ KOMPLETT’bank.no SECOND 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: Highlights
@ KOMPLETTbank.no Highlights
Slide 4: Highlights | Strong quarter with continued growth
Highlights| Strong quarter with continued growth Overview Q2 2018 LTM ▪ Growth NOK million % NOK million % • Net loan growth of NOK 886 million, 15% increase compared to Q1 Growth 886 15% 2,247 49% • Continued growth for loans in Norway and Finland as well as POS in (Net loans) Norway. Successful la
Slide 5: Roadmap | Diversification and expansion continues
Roadmap | Diversification and expansion continues Geographical overview Strategic roadmap Current footprint PRODUCTS CONSUMER CREDIT POS LOANS CARDS FINANCE March November September 2014 2015 2017 COUNTRIES February Q4 Q4 2017 2018 2018 March Q4 June 2018 2018 2018 Diversification and expansion New
Slide 6: Financials
@ KOMPLETTbank.no Financials
Slide 7: Growth | Solid growth in net loans
Growth | Solid growth in net loans Growth in net loans (NOK million) IFRS 9 886 Sold portfolio 80 Q2 2018 loan growth distribution POS Finance 13 Cards Norway 1% 663 149 Loans Sweden 611 9% Loans Norway 595 601 570 84 Loans Finland 515 136 Loans Sweden 93 5 158 15% Loans Norway 125 209 Loans Finland
Slide 8: Growth | Continued loan portfolio diversification
Growth | Continued loan portfolio diversification Total net loans (NOK million) 8,000 Tusener Loans Sweden POS Finance 7,000 Distribution of net loans end of Q2 2018 Loans Finland 6,000 Cards Norway 2 %2 % Loans NO 5,000 Loans Norway 13 % Loans FI 4,000 Credit cards 18 % 65 % 3,000 Loans SE POS Fina
Slide 9: Growth | Continued increase in market share
Growth | Continued increase in market share Number of customers Market share Norway* 1,000s 5.0 % 160 1 140 1 29 4.0 % 120 13 2 3.0 % 100 48 47 43 80 39 38 35 14 2.0 % 60 10 12 31 6 8 25 2 40 20 14 47 50 1.0 % 42 42 45 6 34 39 20 25 30 18 22 8 11 14 3 3 4 4 5 5 6 7 7 8 8 9 11 0 2 0.0 % Deposit custo
Slide 10: Cost | Efficient and scalable cross border business model enables low cost
Cost | Efficient and scalable cross border business model enables low cost Operational expenses NOK million ▪ Cost 90 70% Marketing • Efficient and scalable cross border business model 80 60% Other • Increase in costs due to build-up and launch of new expenses business lines; Loan Sweden, Launch of
Slide 11: Profitability | Increased profit and healthy ROE
Profitability | Increased profit and healthy ROE Profitability Earnings per share ** NOK million NOK 100 50% 3.00 2.48 2.50 80 40% 2.04 2.00 1.70 1.67 60 30% 1.53 1.40 1.50 40 20% 1.00 20 10% 0.50 0 0% 0.00 15Q1 15Q2 15Q3 15Q4 16Q1 16Q2 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 17Q1 17Q2 17Q3 17Q4 18Q
Slide 12: Capital | Strong capital position
Capital | Strong capital position Balance sheet ratios Regulatory capital structure (%) 24.0% 45% 140% 1.0% 0.7% 40% 20.5% 120% 35% 2.0% 17.5% 100% 1.5% 30% 2.0% 1.5% 25% 80% 2.0 % 20% 60% 22.3 % 15% 17.0% 40% 10% 12.0 % 20% 5% 0% 0% Pillar 1 KOMP Reported requirement target as of ratios as of as of
Slide 13: Losses | Continued stable loan losses
Losses | Continued stable loan losses Past due (days) at end of quarter Loan losses (LTM) / Average Net loans (LTM) 20% 70% 5% 18% 60% 16% 4% 14% 50% 12% 40% 10% 3% 30% 8% 6% 20% 2% 4% 10% 2% 0% 0% 1% PD 31-60 PD 61-90 PD 90 + Coverage Ratio • Loan losses LTM at 2.5% of average net loans LTM • Loan
Slide 14: Yields | Attractive yields and stable funding costs
Yields | Attractive yields and stable funding costs Yields ▪ Lending Yields 35% • Stable high yields for all established products 30% • Yield on loans in Sweden in line with loans in other 25% 21.4 % markets 20% • High yield for POS Finance, mainly driven by 15.9 % commission income, in line with ex
Slide 15: Outlook
@ KOMPLETTbank.no Outlook
Slide 16: Outlook | Continued diversification and expansion
Outlook | Continued diversification and expansion Operational phases since inception Strategic roadmap • Establish core capabilities PRODUCTS I 2014 - 2015 | “SET UP” • Ensure profitability • Focus on loans and cards in Norway CONSUMER CREDIT POS OTHER ? LOANS CARDS FINANCE II • Build and develop ca
Slide 17: Outlook | 2018 guiding maintained
Outlook | 2018 guiding maintained Key priorities H2 2018 Guiding 2018 • Continued sustainable growth for loans in Finland, • Guiding for 2018 volume growth maintained Norway and Sweden • Net loans end of 2018 expected at NOK 8.4-8.7 • Scale-up of POS Finance business in Norway and billion Sweden The
Slide 18: Appendix
@ KOMPLETTbank.no Appendix
Slide 19: Profit and loss | Quarterly overview
Profit and loss | Quarterly overview 2018 2018 2017 2017 2017 2017 Amounts in NOK million Q2 Q1 Q4 Q3 Q2 Q1 Net Interest Income % Interest income 265.2 233.7 220.6 199.6 182.4 153.6 20% Interest expenses -34.3 -26.2 -24.1 -25.1 -20.0 -17.3 Net interest income 230.9 207.5 196.6 174.4 162.4 136.3 12.7
Slide 20: Balance sheet | Quarterly overview
Balance sheet | Quarterly overview 2018 2018 2017 2017 2017 2017 Amounts in NOK million Q2 Q1 Q4 Q3 Q2 Q1 Liquidity and funding Assets 811.8 490.2 442.3 442.4 252.9 225.5 300% LCR % Loans and deposits with credit institutions Net loans to customers 6,801.0 5,914.6 5,461.0 4,946.2 4,553.6 3,919.0 NSF
Slide 21: The Share | Solid investor base and ~9% held by management and board
The Share | Solid investor base and ~9 % held by management and board Investors Share price development # Investor Country Type Shares # % 1 CANICA INVEST AS Norw ay Company 34,157,285 19.92 % 23 2 STATE STREET BANK AND TRUST COMP United States Nominee 10,760,485 6.28 % 3 ALFAB HOLDING AS Norw ay Co
Slide 22: Komplett Bank ASA contact details
Komplett Bank ASA | Pb. 448 | 1327 Lysaker | Org.nr.: 998997801 | www.komplettbank.no