Lea Bank ASA

Investor Presentation • Feb 14, 2020

4 th quarter result presentation

Oddbjørn Berentsen (CEO) – Gard Haugen (CFO) - Christian Svendsen (COO)

| 14 February 2020 |

This Presentation from Easybank ASA ("Easybank" 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 Easybank 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 Easybank and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of Easybank's business and the securities issued by Easybank.

This Presentation speaks as of February 14th 2020. Neither the delivery of this Presentation nor any further discussions of Easybank with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of Easybank since such date.

Table of contents

Highlights and development Q4 I

II	Financial results Q4
----	----------------------

Outlook III

Easybank - Highlights Q4 2019

Key highlights and developments

		Key figures
(in MNOK)	Q4-19	Q4-18	2019	2018
Interest income	84,7	81,2	340,7	279,2
PBT*	20,2	21,7	86,2	73,4
ROE*	10,9%	14,2%	12,3%	13,5%
EPS*	1,27	1,47	1,36	1,33
Cost/Income	27,6%	29,0%	27,6%	32,4%
Gross loans	2 804	2 614	2 804	2 614
Consumer loans	2 609	2 308	2 609	2 308

Shareholders

Strong and stable shareholder base

Top 30 shareholders as of February 3 rd 2020

# Investor	Shares	Shares %
1 Skagerrak Sparebank	4 409 380	9,3%
2 Verdipapirfondet Alfred Berg	3 844 349	8,1%
3 Fondsavanse AS	3 072 986	6,5%
4 Umico - Gruppen AS	2 618 779	5,5%
5 Hjellegjerde Invest AS	2 600 000	5,5%
6 Ladegaard AS	2 406 032	5,1%
7 Lindbank AS	1 838 007	3,9%
8 Shelter AS	1 574 750	3,3%
9 MP Pensjon PK	1 458 738	3,1%
10 Jenssen & Co AS	1 287 879	2,7%
11 Krogsrud Invest AS	1 250 000	2,6%
12 Nordic Private Equity AS	1 187 768	2,5%
13 Jolly Roger AS	1 149 074	2,4%
14 Independent Oil & Resources Plc	900 000	1,9%
15 Byholt AS	767 159	1,6%
16 Whitetail Webservice Ltd	705 009	1,5%
17 Trippel-L AS	606 118	1,3%
18 Jaras Invest AS	440 909	0,9%
19 Ulltveit-Moe, Hildegunn Hodne	400 222	0,8%
20 B Finans AS	400 000	0,8%
21 Altitude Capital AS	370 736	0,8%
22 Motor Trade Eiendom og Finans AS	365 878	0,8%
23 Conta Group AS	347 368	0,7%
24 Wist Holding AS	338 000	0,7%
25 Truls AS	310 000	0,7%
26 Arild Hestås Invest AS	301 250	0,6%
27 Juul-Vadem Holding AS	300 000	0,6%
28 HHG Invest AS	300 000	0,6%
29 Autobahn AS	270 364	0,6%
30 Langsether, Skule	263 890	0,6%
Total top 30	36 084 645	76,1%
Other	11 312 545	23,9%
Grand total	47 397 190	100,0%

• 422 shareholders as of February 3rd 2020
• The EASY share was registered on NOTC on 15 November 2016.
• Management holds a total of 2,611,912 shares, corresponding to 5.5% of shares outstanding
• Members of the board represents a total of 2,728,305 shares, corresponding to 5.8% of shares outstanding
• Current market capitalization of approx. MNOK 400

Total income & profit before tax

Stable and solid profitability

Total income Profit before tax and ROE

Credit quality - Consumer loans

Challenging debt collection, forward flow agreement reduces downside risk

Coverage¹ and loan loss ratio² Comments

• The implementation of Debt register has increased NPL throughout 2019 resulting in higher loss in Q4
• We expect the Debt Register to continue producing an increase in NPL for the short term, but in turn, we expect it to have a positive impact on losses in the long-term
• Easybank's forward- flow agreement reduces downside risk as nonperforming loans are on an ongoing basis sold to Kredinor to a predefined price. Option to extend the forward flow agreement with Kredinor throughout 2023 with same conditions as the initial agreement from July 2017
• IFRS9 was implemented January 1st 2020

Loans past due

2) Loan loss ratio = Quarterly consumer loans losses / average gross consumer loans (annualized)

Net interest income & yields

Still attractive margins – trending downward

Net interest income and net interest margin of total assets

Yields (end of quarter)

NOK million / % of total assets % of relevant balance

Balance sheet structure

IFRS9 implementation

• The bank has during 2019 worked on the implementation of the accounting standard IFRS 9, which will be implemented as of January 1 st 2020.
• The transition will result in increased loan loss provisions of MNOK 128. The equity impact will be MNOK 103,7, corresponding to a CET1 impact of 3,9% when fully implemented.
• The bank will gradually phase in the effect on regulatory core equity using the transition rules, which allows for a 30% impact in 2020, 50% impact in 2021, 75% impact in 2022, and 100% impact effective January 1st 2023
• Breakdown of loan book exposure allocation, and expected credit loss as of January 1st 2020 will be:

Overview

Stable consumer loans volume and competitive cost/income ratio

Gross lending Income and interest margin OPEX and C/I ratio

All numbers in NOK million * CET-1 ratio for Q1-19 excludes YTD profit. Q2-19 includes YTD profit, Q3-19 includes profit as of 1H 2019

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Balance sheet structure

Strong funding and liquidity position

Total assets

• Deposit ratio: 102 %
• Liquidity Coverage Ratio: 525 %
• Net Stable Funding Ratio: 168 %

Equity and liabilities

• Diversified customers deposits. 52 % of deposits with 35 days+ notice period
• MNOK 666 in surplus liquidity placed in Norges Bank, other banks and positions with short duration and low risk

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Table of contents

Highlights and development Q4 I

II	Financial results Q4
----	----------------------

Outlook III

Income statement

(Amounts in thousands)	4.kv.2019	4.kv.2018	Året 2019	Året 2018
Interest income	84 669	81 225	340 690	279 244
Interest expense	-15 038	-13 840	-62 396	-49 013
Net interest income	69 631	67 385	278 294	230 231
Comission and fee income	9 851	12 121	42 552	47 879
Comission and fee expenses	-14 485	-13 476	-57 035	-44 797
Net change in value on securities and currency	2 436	305	7 459	1 002
Other income	0	4	111	39
Net other income	-2 198	-1 047	-6 913	4 123
Total income	67 433	66 338	271 381	234 354
Salary and other personell expenses	-8 075	-7 525	-32 284	-29 731
Other administrative expenses	-6 146	-8 567	-27 148	-33 055
- of which marketing expences	-1 390	-4 064	-7 578	-15 243
Depreciation	-1 577	-1 301	-5 940	-4 906
Other expenses	-2 793	-1 827	-9 440	-8 312
Total operating expenses	-18 592	-19 221	-74 812	-76 004
Profit before loan losses	48 841	47 117	196 569	158 350
Loan losses	-28 677	-25 466	-110 390	-84 982
Profit before tax	20 164	21 651	86 179	73 369
Tax	-5 067	-4 607	-21 571	-17 831
Profit after tax	15 099	17 044	64 609	55 538

Balance sheet

(Amounts in thousands)	31.12.2019	31.12.2018
Assets
Cash and deposits with the central bank	54 351	53 868
Loans and deposits with credit institutions	154 717	106 972
Loans to customers	2 804 258	2 613 783
- Loan impairment	-91 746	-67 403
Certificates and bonds	0	169 249
Shares and other securities	457 112	229 703
Shareholding in group companies	11 192	192
Deferred tax asset	135	2 165
Other intangible assets	20 471	20 549
Fixed assets	872	1 085
Other assets	9 451	523
Other receivables	73 814	77 001
- of which agent commisions	67 253	69 812
Total assets	3 494 628	3 207 686
Equity and liabilities
Deposits from customers	2 806 011	2 601 841
Other liabilities	39 090	26 881
Accrued expenses and deferred revenue	10 352	14 393
Tier 1 and tier 2 capital bond	75 000	75 000
Total liabilities	2 930 452	2 718 114
Share capital	331 707	324 326
Share premium reserve	127 092	124 510
Other paid-in equity	7 159	6 577
Other equity	98 218	34 160
Total equity	564 176	489 572
Total equity and liabilities	3 494 628	3 207 686

Table of contents

Highlights and development Q4 I

II	Financial results Q4
----	----------------------

Outlook

Focus going forward

Deliver competitive ROE

Expand the product portfolio

within the SME market and enter into agreements that strengthen the bank's distribution power

Consumer finance with favourable risk/reward

Evaluate strategic opportunities

and geographic expansion to utilize the bank's scalable operating model

Operational efficiency with low operating costs and competitive C/I

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