Lea Bank ASA

Investor Presentation • Aug 15, 2019

2 nd quarter result presentation

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

| 15 August 2019 |

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 15 August 2019. 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

Easybank - Highlights Q2 2019

Key highlights and developments

Key figures
Q2-19	Q2-18	YTD 2019
70,4	54,3	139,1
21,5	17,3	44,2
16,1	12,8	33,2
12,4 %	11,4 %	13,0 %
2 755	2 135	2 755

Gross lending & number of customers

Growth impacted by new regulation for consumer loans

Gross lending per product Customers per product

Total income & profit before tax

Profit influenced by lower growth

6

Credit quality - Consumer loans

Still satisfactory risk/reward - Forward flow agreement reduces downside risk

• Debt register expected to increase short term loan losses. However, we expect the register to have a positive impact on the long term loan losses.
• 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 (favorable) conditions as the initial agreement from July 2017.
• Long-term coverage rate decreases because of improvement of LGD values in Loss-model.
• NPL-ratio increases in Q2 because of lower than expected collection in June than normal.
• IFRS9 project in progress and IFRS9 model will be implemented January 2020 as planned.

Net interest income & yields

Increasing interest income and stabile margins

Net interest income and net interest margin of total assets

Yields (end of quarter)

Overview

Satisfying profitability and C/I despite challenging market

9

Balance sheet structure

Strong funding and liquidity position

Total assets

• Deposit ratio: 103 %
• Liquidity Coverage Ratio: 656 %
• Net Stable Funding Ratio: 161 %

Equity and liabilities

• Diversified customers deposits. 56 % of deposits with 35 days+ notice period
• MNOK 631 in surplus liquidity placed in Norges Bank, other banks and positions with short duration and low risk

10

Table of contents

Income statement

					Full year
(Amounts in thousands)	Q2 2019	Q2 2018	1H 2019	1H 2018	2018
Interest income	86 296	65 615	170 359	124 158	279 244
Interest expense	-15 870	-11 302	-31 289	-22 517	-49 013
Net interest income	70 427	54 313	139 069	101 641	230 231
Comission and fee income	11 649	11 196	24 000	24 290	47 879
Comission and fee expenses	-14 402	-9 988	-29 163	-19 025	-44 797
Net change in value on securities and currency	1 313	191	2 992	515	1 002
Other income	107	35	107	35	39
Net other income	-1 332	1 433	-2 063	5 815	4 123
Total income	69 094	55 747	137 006	107 456	234 354
Salary and other personell expenses	-7 713	-7 627	-15 630	-14 331	-29 731
Other administrative expenses	-8 643	-8 894	-16 144	-16 725	-33 055
- of which marketing expences	-2 637	-3 992	-5 531	-7 721	-15 243
Depreciation	-1 459	-1 205	-2 857	-2 369	-4 906
Other expenses	-1 952	-2 330	-4 380	-4 373	-8 312
Total operating expenses	-19 767	-20 055	-39 010	-37 797	-76 004
Profit before loan losses	49 327	35 692	97 996	69 659	158 350
Loan losses	-27 826	-18 431	-53 756	-37 381	-84 982
Profit before tax	21 501	17 261	44 240	32 278	73 369
Tax	-5 375	-4 415	-11 060	-8 267	-17 831
Profit after tax	16 126	12 846	33 180	24 012	55 538

Balance sheet

(Amounts in thousands)	30.06.2019	31.12.2018	30.06.2018
Assets
Cash and deposits with the central bank	54 039	53 868	53 733
Loans and deposits with credit institutions	223 925	106 972	160 748
Loans to customers	2 840 056	2 613 783	2 194 148
- Loan impairment	-85 233	-67 403	-58 961
Certificates and bonds	0	169 249	209 900
Shares and other securities	352 647	229 703	54 395
Shareholding in group companies	11 148	192	192
Deferred tax asset	0	2 165	11 927
Other intangible assets	20 834	20 549	20 522
Fixed assets	1 028	1 085	1 244
Other assets	2 000	523	276
Other receivables	77 884	77 001	101 646
- of which agent commisions	71 096	69 812	62 562
Total assets	3 498 330	3 207 686	2 749 768
Equity and liabilities
Deposits from customers	2 842 277	2 601 841	2 179 508
Other liabilities	30 998	26 881	21 202
Accrued expenses and deferred revenue	17 532	14 393	16 564
Tier 1 and tier 2 capital bond	75 000	75 000	75 000
Total liabilities	2 965 807	2 718 114	2 292 274
Share capital	331 663	324 326	324 326
Share premium reserve	127 080	124 510	124 510
Other paid-in equity	6 990	6 577	6 025
Other equity	66 790	34 160	2 633
Total equity	532 522	489 572	457 494
Total equity and liabilities	3 498 330	3 207 686	2 749 768

Table of contents

Expanding product mix

Strengthening digital niche bank capabilities in two segments

B2C	B2B
Current products	Current products
Consumer Car loans loans	SME Savings Loans accounts
Rental Current Savings deposit accounts accounts accounts
Future product focus	Future product focus
Automated Sales Consumer invoice finance loans purchase	Automated Sales SME invoice finance Credit purchase
Rental Current Savings deposit accounts accounts accounts	Savings SME accounts Loans

Increased diversification by targeting two strong balancing segments (B2C & B2B)

Broad partnership development

Strategic partner agreements in place to support expansion

New products and partners bring strong synergies to Easybank

Shareholders

Strong and stabile shareholder base

Top 30 shareholders as of 8 August 2019

# Investor	Shares	Shares %
1 Skagerrak Sparebank	4 409 380	9,3%
2 Verdipapirfondet Alfred Berg Norge	3 344 349	7,1%
3 Fondsavanse AS	3 072 986	6,5%
4 Umico - Gruppen AS	2 618 779	5,5%
5 Ladegaard AS	2 336 032	4,9%
6 Hjellegjerde Invest AS	1 937 544	4,1%
7 Nordic Private Equity AS	1 669 205	3,5%
8 Lindbank AS	1 655 985	3,5%
9 MP Pensjon PK	1 458 738	3,1%
10 Shelter AS	1 392 727	2,9%
11 Jenssen & Co AS	1 287 879	2,7%
12 Krogsrud Invest AS	1 250 000	2,6%
13 Jolly Roger AS	1 145 630	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 Juul-Vadem Holding AS	531 678	1,1%
19 Jaras Invest AS	440 909	0,9%
20 Hildegunn Hodne Ulltveit-Moe	400 222	0,8%
21 B Finans AS	400 000	0,8%
22 HHG Invest AS	400 000	0,8%
23 Altitude Capital AS	370 736	0,8%
24 Motor-Trade Eiendom og Finans AS	365 878	0,8%
25 Lindbak Gruppen AS	364 045	0,8%
26 Conta Group As	347 368	0,7%
27 Wist Holding AS	338 000	0,7%
28 Truls AS	310 000	0,7%
29 Arild Hestås Invest AS	301 250	0,6%
30 Autobahn AS	287 584	0,6%
Total top 30	35 415 190	74,7%
Other	11 982 000	25,3%
Grand total	47 397 190	100,0%

• 436 shareholders as of 8 August 2019
• The EASY share was registered on NOTC on 15 November 2016.
• Management holds a total of 2,589,357 shares, corresponding to 5.5% of shares outstanding
• Members of the board represents a total of 2,658,305 shares, corresponding to 5.6% of shares outstanding
• Current market capitalization of approx. MNOK 420