12 November 2020

3 rd quarter results presentation

Disclamer

This Presentation from BRAbank ASA (Former Easybank ASA) ("BRAbank" or the "Company") includes among other things forward-looking statements. Certain such forward-looking statements can be identified by the use of forward-looking terminology such as "believe", "may", "will", "should", "would be", "expect" or "anticipate" or similar expressions, or the negative thereof, or other variations thereof, or comparable terminology, or by discussions of strategy, plans or intentions. The forward-looking statements contained in this Presentation, including assumptions, opinions and views of the Company or cited from third party sources, reflect the current views with respect to future events and are subject to material risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. Neither BRAbank nor any of its officers or employees provides any assurance as to the correctness of such forward-looking information and statements. The Company does not intend, and assumes no obligation, except as required by law, to update any forward-looking statements or to conform these forward-looking statements to its actual results.

By attending or receiving this Presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of BRAbank and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of BRAbank's business and the securities issued by BRAbank.

This Presentation speaks as of 12 November 2020. Neither the delivery of this Presentation nor any further discussions of BRAbank with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of BRAbank since such date.

Highlights and development Q3 - Easybank

Financial results Q3 - Easybank

Merger update – «New BRAbank»

Highlights Q3 2020 - Easybank

1	Profit before tax NOK 22,4 million, Total income 68,2 million
2	Annualized ROE 13,8%, EPS NOK 1,42
3	CET1 Capital ratio of 19,7% (21,1% including YTD profit)
4	Improved credit quality, uncertain long-term impact Covid-19

5 Q4: BRAbank merger and Merkur Market listing completed
6 Merger: New organization model completed and first stage of IT- integration successfully implemented

Key Figures

	NGAAP	NGAAP*	NGAAP
(in MNOK)	Q3-20	Q3-19	YTD-20
Interest income	59,1	69,6	181,4
PBT	22,4	21,8	46,4
ROE	13,8%	12,1%	9,8%
EPS	1,42	1,38	0,99
Cost/Income	29,5%	25,7%	29,0%
Gross loans	2 667	2 853	2 667
Consumer loans	2 556	2 613	2 556

PBT: Profit before tax, ROE: Return On Equity (excluding tier-1 capital), EPS: Annualized Earnings per share

* IFRS9 implemented from January 2020, historical numbers have not been restated

Improved profitability & capital adequacy

Profitability restored after Q1 COVID-19 impact
ROE improved
Merger to further improve long term profitability
Economies of scale
Cost synergies
Well capitalised
CET1 well above requirement

Net interest income & margins

Net interest income and net interest margin of total assets Yields (end of quarter)

NOK million / % of total assets % of relevant balance

Stable cost base with proven scalability

NOK 2,0 million in extraordinary merger related costs
Solid cost control
Stable OPEX since 2016 in range of NOK 17-20 million each quarter
Highly competitive C/I-ratio
C/I 26,5% excluding merger related costs
Operation model with proven scalability

Operational expenses & C/I-ratio

Credit quality improved during Q3

Coverage and loan loss ratio

Forward flow agreement with Kredinor extended

Forward- flow agreement reduces downside risk as nonperforming loans late in the collection process are sold on an ongoing basis to Kredinor to a pre-defined price
Extension of existing agreement from July 2017
Agreement extended to end December 2023
Terms identical to original agreement

Creating a leading digital niche bank in B2C and SME with a Nordic footprint

Easybank and BRAbank to join forces

Aspiration to become a leading digital niche bank B2C and B2B (SME segment) with a Nordic footprint
Reaching critical volume and self-funding capability, to drive attractive return on equity and shareholder value
Substantial economy-of-scale opportunities in a combined bank due to current double banking setup and high degree of overlap in IT systems
Targeting one of the lowest cost/income ratios in the market

Gross loans – geographical mix Q3 2020

Key figures Q3* - "New BRAbank"

P&L (NOK mill)	Q3-20	Q3-20
Net interest income	59,1	71,1
OPEX (excl. extraordinary items)	18,1	39,6
Profit before tax (excl. extraordinary items)	24,4	11,4
Profit before tax (reported)	22,4	(47,0)
Balance sheet (NOK mill)	Q3-20	Q3-20
Gross lending	2 666,7	3 788,2
Equity	522,5	781,3
CET **	21,1%	19,1%

Consolidated

P&L (NOK mill)	Q3-20
Net interest income	130,1
OPEX (excl. extraordinary items)	57,7
Profit before tax (excl. extraordinary items)	35,9
Profit before tax (reported)	(24,6)

Balance sheet (NOK mill)	Q3-20
Gross lending	6 454,9
Equity	1 303,8
BVPS***	NOK 12,97

Underlying Performance «New BRAbank" Q3

Merger costs NOK 4,1 million
Merger costs (auditors, lawyers, financial support)
Listing cost Merkur Market Oslo Stock Exchange
Restructuring costs personnel NOK 15,9 million
Rightsizing organization
Resources moved to Oslo
Extraordinary loan losses in "old" BRAbank
Cross misuse in Norwegian portfolio
Alignment to Easybanks IFRS model
Updated risk model implemented in IFRS9 model for Finland
Uncertainties related to the stage 3 portfolio in Finland

Adjusted Pre-tax profit "New" BRAbank

A clear merger plan with defined targets

PHASE 1: Year 1	PHASE 2: Year 2	PHASE 3: Year 2-3
Restructure and build the combined bank	Capitalise on synergies & reprising	Further expansion and potential public listing
Establish the new organisation •	Quickly reach attractive profitability •	Deliver competitive ROE •
Create common value chain for consumer • loans in the Nordics	Capitalise on synergies to improve • profitability	Utilise B2C and B2B setup to create a • differentiated and robust business model
Simplify product portfolio to reduce • complexity and cost	Reach substantial self-funding capability • Reprising of the combined bank as a •	Potential public listing of company • Expand to more countries •
Manage IT migrations and phase-outs •	leading digital niche bank
Harmonise and utilise collection • agreements
Estimated merger & restructuring costs NOK 62 million

Phase I: Restructure and build the combined bank

Year 1	Action	Costs (NOK mill)	Status
Merger and listing	• Merger costs • Listing cost Merkur Market	4,1 in Q3	✓
Establish the new organization	• New management team and organization in place • Majority of restructuring costs taken in Q3	15,9 in Q3	✓
Create common value chain for consumer loans in the Nordics	• In process with harmonizing value chain across the Nordics		✓
Simplify product portfolio to reduce complexity and cost	• Started to evaluate product portfolio • Simplify product offering going forward		✓
Manage IT migrations and phase-outs	• No major IT integration needed, no down-time experienced • Migration of some portfolios in Q4		✓
Harmonise and utilise collection agreements	• Reuse of Easybank's approach to collection and collection processes across the Nordics • Process to harmonize and utilize collection agreements		✓ 15

Spin off technology platform – Strategic agreement with Stacc

Intellectual property rights issued to Stacc for commercialisation
Case procedure systems
Online banking
Credit card application system
Revenue split of future revenues between Stacc & BRAbank
Stacc will establish a subsidiary to ensure progress
Partnership agreement established concerning systems maintenance

Outlook

1. Execution of merger with BRAbank

Affect cost savings
Improve profitability

2. Streamline New BRAbank and improve competitive position

IT-systems and processes
Leading Cost/income ratio
3. Utilize efficient cross-border distribution model
Norway, Finland and Sweden
4. Develop new sources of income
Focus on SME segment

Appendix

Creating a leading digital niche bank in B2C and SME with a Nordic footprint

Income statement – Easybank

(Amounts in thousands)	NGAAP	NGAAP*	NGAAP	NGAAP*	NGAAP*
			YTD Q3	YTD Q3	Full year
	Q3 2020	Q3 2019	2020	2019	2019
Interest income	71 705	85 662	222 405	256 021	340 690
Interest expense	-12 618	-16 069	-40 965	-47 359	-62 396
Net interest income	59 087	69 593	181 440	208 663	278 294
Comission and fee income	7 528	8 701	20 015	32 701	42 552
Comission and fee expenses	-995	-13 387	-2 850	-42 550	-57 035
Net change in value on securities and currency	2 467	2 030	7 185	5 023	7 459
Other income	68	4	68	111	111
Net other income	9 068	-2 652	24 418	-4 715	-6 913
Total income	68 155	66 942	205 858	203 948	271 381
Salary and other personell expenses	-9 457	-8 579	-26 690	-24 208	-32 284
Other administrative expenses	-5 908	-4 858	-18 169	-21 002	-27 148
- of which marketing expences	-92	-658	-1 411	-6 188	-7 578
Depreciation	-1 821	-1 506	-5 191	-4 363	-5 940
Other expenses	-2 923	-2 267	-9 583	-6 647	-9 440
Total operating expenses	-20 109	-17 210	-59 632	-56 220	-74 812
Profit before loan losses	48 046	49 732	146 226	147 728	196 569
Loan losses	-25 688	-27 957	-99 802	-81 713	-110 390
Profit before tax	22 358	21 775	46 423	66 015	86 179
Tax	-5 476	-5 444	-11 158	-16 504	-21 571
Profit after tax	16 882	16 331	35 265	49 511	64 609

Balance sheet - Easybank

(Amounts in thousands)	NGAAP	NGAAP*	NGAAP*
	30.09.2020	30.09.2019	31.12.2019
Assets
Cash and deposits with the central bank	50 294	54 181	54 351
Loans and deposits with credit institutions	161 363	117 623	154 717
Loans to customers	2 666 704	2 852 534	2 804 258
- Loan impairment	-221 925	-93 595	-91 746
Certificates and bonds	0	0	0
Shares and other securities	749 566	554 681	457 112
Shareholding in group companies	11 192	11 148	11 192
Deferred tax asset	26 890	0	135
Other intangible assets	20 862	20 371	20 471
Fixed assets	611	917	872
Other assets	7 656	4 820	9 451
Other receivables	3 610	75 351	73 814
Total assets	3 476 823	3 598 0320	3 494 628
Equity and liabilities
Loan from central bank	135 000	0	0
Deposits from customers	2 724 533	2 909 320	2 806 011
Other liabilities	43 505	45 514	39 090
Accrued expenses and deferred revenue	11 299	19 119	10 352
Tier 2 capital	40 000	75 000	75 000
Total liabilities	2 954 336	3 048 953	2 930 452
Share capital	94 813	331 707	331 707
Share premium reserve	364 097	127 092	127 092
Tier 1 capital	25 000		0
Other paid-in equity	7 211	7 159	7 159
Other equity	31 365	83 121	98 218
Total equity	522 487	549 078	564 176
Total equity and liabilities	3 476 823	3 598 032	3 494 628