Morrow Bank AB · OMXSTO:MORROW
Morrow Bank AB — Komplett Bank — Q3 2018 Earnings Presentation
21 slides from Morrow Bank AB's earnings presentation, Nov 8, 2018
Slide 1: Third Quarter 2018
@ KOMPLETT bank THIRD 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
@ KOMPLETT bank Highlights
Slide 4: Highlights | Contribution from POS Finance takes hold
Highlights | Contribution from POS Finance takes hold Overview ▪ Profitability Q3 2018 LTM • Total income was NOK 270 million, up 10% compared to Q2 2018 NOK million % NOK million % • Cost/income ex marketing was 20.4%, down from 23.3% in Q2. The decrease is partly due to one-off effects in Q3 and p
Slide 5: Roadmap | Focusing POS Finance resources in Norway and Sweden
Roadmap | Focusing POS Finance resources in Norway and Sweden Geographical overview Strategic roadmap Current footprint PRODUCTS CONSUMER CREDIT POS LOANS CARDS FINANCE March November September 2014 2015 2017 COUNTRIES February Q4 TBD 2017 2018 March Q4 June 2018 2018 2018 Diversification and expans
Slide 6: Financials
@ KOMPLETT bank Financials
Slide 7: Growth | Stable and diversified growth in net loans
Growth | Stable and diversified growth in net loans Growth in net loans (NOK million) Net loan growth distribution* (NOK million) IFRS 9 886 509 18Q2 18Q3 Sold portfolio Growth in net loans 663 655 595 601 611 219 570 186 149 167 515 136 80 100 403 13 360 376 328 326 -17 Loans Norway Loans Finland L
Slide 8: Growth | Improved loan portfolio diversification
Growth | Improved loan portfolio diversification Total net loans (NOK million) 8,000 Tusener Loans Sweden POS Finance 7,000 Distribution of net loans end of Q3 2018 Loans Finland 6,000 Cards Norway 4% 3% 5,000 Loans NO Loans Norway 11% Loans FI 4,000 Credit cards 20% 62% 3,000 Loans SE POS Finance 2
Slide 9: Cost | Efficient operations with stable cost base
Cost | Efficient operations with stable cost base Operational expenses NOK million ▪ Cost 100 70% Marketing • Efficient and scalable cross border business model 90 60% Other • Improvements in personnel cost in Q3 driven largely 80 expenses by positive one-off effects. The improvement is 50% exacerba
Slide 10: Losses | Increased losses on loans in the quarter
Losses | Increased losses on loans in the quarter Past due (days) at end of quarter Losses on loans (LTM) / Average Net loans (LTM) 20% 70% 5% IAS 39 IFRS 9 Loan losses (LTM) / Average IAS 39 IFRS 9 18% Net loans (LTM) 60% 16% Ratio adjusted for 17Q3 NPL 50% 4% 14% sale one-off effect 12% 40% 10% 3%
Slide 11: Profitability | Quarterly profit impacted by losses on loans
Profitability| Quarterly profit impacted by losses on loans Profitability NOK million 100 50% • Profit after tax of NOK 75 million, down 14% compared to Q2 2018, as a result of higher losses 80 40% on loans in the quarter 60 30% 40 20% 20 10% 0 0% 15Q1 15Q2 15Q3 15Q4 16Q1 16Q2 16Q3 16Q4 17Q1 17Q2 17
Slide 12: Capital | Robust capital position
Capital | Robust capital position Balance sheet ratios Regulatory capital structure (%) 45% 140% 23.2% 1.0% 40% 20.5% 0.6% 120% 35% 2.0% 17.1% 100% 1.5% 30% 2.0% 25% 80% 1.5% 2.0 % 20% 60% 21.6 % 15% 17.0% 40% 10% 11.6 % 20% 5% 0% 0% Pillar 1 KOMP Reported requirement target as of ratios as of as of
Slide 13: Yields | Attractive yields and stable funding costs
Yields | Attractive yields and stable funding costs Yields ▪ Lending Yields 35% • Yield on loans in Sweden in line with loans in other 30% markets 25% • High yield for POS Finance, mainly driven by 20% 20.7% commission income, in line with expectations 15.7% 15% 14.3% ▪ Funding 10% • Stable deposit
Slide 14: Outlook
@ KOMPLETT bank Outlook
Slide 15: Outlook | 2018 guiding maintained
Outlook | 2018 guiding maintained Key priorities H2 2018 Guiding • Continued sustainable growth for loans in Finland, • Guiding for 2018 volume growth maintained Norway and Sweden • Net loans end of 2018 expected at NOK 8.0-8.3 billion, • Scale-up of POS Finance business in Norway and Sweden net of
Slide 16: Appendix
@ KOMPLETT bank Appendix
Slide 17: Profit and loss | Quarterly overview
Profit and loss | Quarterly overview 2018 2018 2018 2017 2017 2017 2017 Amounts in NOK million Q3 Q2 Q1 Q4 Q3 Q2 Q1 Net Interest Income % Interest income 289.9 265.2 233.7 220.6 199.6 182.4 153.6 20% Interest expenses -40.3 -34.3 -26.2 -24.1 -25.1 -20.0 -17.3 Net interest income 249.6 230.9 207.5 19
Slide 18: Balance sheet | Quarterly overview
Balance sheet | Quarterly overview 2018 2018 2018 2017 2017 2017 2017 Amounts in NOK million Q3 Q2 Q1 Q4 Q3 Q2 Q1 Liquidity and funding Assets 300% LCR % Loans and deposits with credit institutions 1,095.4 811.8 490.2 442.3 442.4 252.9 225.5 NSFR % 216% Net loans to customers 7,455.7 6,801.0 5,914.6
Slide 19: Growth | Growing customer base driven by POS Finance
Growth | Growing customer base driven by POS Finance Number of customers Market share Norway* 1,000s 6.0 % 200 2 180 5.0 % 160 1 50 140 1 4.0 % 29 120 13 2 48 3.0 % 100 48 47 43 80 38 39 14 17 2.0 % 60 35 12 31 8 10 25 6 2 40 20 50 50 1.0 % 14 42 42 45 47 6 34 39 20 22 25 30 11 14 18 8 3 3 4 4 5 5 6
Slide 20: 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 10,823,211 6.31 % 3 ALFAB HOLDING AS Norw ay Co
Slide 21: Komplett Bank ASA
Komplett Bank ASA | Pb. 448 | 1327 Lysaker | Org.nr.: 998997801 | www.komplettbank.no