Lea Bank ASA

Earnings Release • May 3, 2018

1 st quarter result presentation

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 3 May 2018. 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 in brief

More than a consumer finance bank

Company history

• Based on a bank founded in 2003 rebranded to Easybank and raised new equity in March 2016 and March 2018
• New strategy from 2016 involving new management and Board of Directors in addition to significant changes in the shareholder base
• Successful turnaround completed
• Listed on NOTC 15 November 2016

Product portfolio

Key highlights and developments Q1 2018

Overview Q1

Diversified product portfolio – gross lending of NOK 2.0 billion

			Highlights Q1
SME 125 MNOK	Car loans 58 MNOK	Competitive ROE	Stable OPEX
capital 75 MNOK	Equity 444 MNOK	Successful equity transaction	Capital adequacy well above expected requirement

Gross lending & number of customers

Growth in volume and customers continues

Total income & profit before tax

Increasing total income and solid profit in Q1

Net interest income & yields

Increasing interest income and improving margins

Yields (end of quarter)

• Net interest margin slightly down due to more liquidity and T1/T2 capital

• Good margins and ROE from SME & mortgage loans

• Increased consumer loan volume without compromising on margin

• Attractive funding rate due to multiple deposit products

Credit quality - Consumer loans

Satisfactory risk reward and forward flow agreement reduces downside risk

Coverage¹ and loan loss ratio²

Comments

• Satisfactory risk reward taken into account margin level on consumer loans.
• The bank uses a rigorous model for calculating expected loss with calculated values for PD & LGD. These are based on internal history and time value of money principle.
• The forward-flow agreement, entered into with Kredinor in Q3 2017, reduces downside risk for Easybank as it transfers risk to Kredinor. The agreement is not one-time transaction, but ongoing sales of loans and receivables.
• The forward flow agreement is fully operational and coverage rate decreases as a result of improvement of LGD values in Loss-model.

1) Coverage = Consumer loans loss provisions / 90 days past due

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

Overview

Good profitability and well above capital requirements

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

Profit after tax and ROE Losses and loss ratio consumer loans Equity and CET-1 ratio

Table of contents

Income statement

Amounts in thousands	Q1-2018	Q4-2017	Q3-2017	Q2-2017	Q1-2017
Interest income	58 542	51 414	41 592	34 023	28 398
Interest expense	-11 215	-9 485	-7 583	-6 243	-5 773
Net interest income	47 327	41 929	34 009	27 780	22 625
Comission and fee income	13 094	10 321	4 733	3 254	3 384
Comission and fee expenses	-9 037	-7 660	-6 158	-5 036	-3 544
Net change in value on securities and currency	324	253	218	320	340
Other income	-	34	30	24	-
Net other income	4 382	2 949	-1 178	-1 439	180
Total income	51 709	44 878	32 831	26 341	22 805
Salary and other personell expenses	-6 704	-8 720	-7 720	-7 173	-7 029
Other administrative expenses	-7 831	-7 654	-7 893	-6 066	-5 670
- of which marketing expences	-3 729	-3 023	-4 267	-2 281	-1 894
Depreciation	-1 164	-1 164	-1 032	-978	-878
Other expenses	-2 043	-2 332	-2 367	-2 914	-2 115
Total operating expenses	-17 742	-19 869	-19 012	-17 131	-15 692
Profit before loan losses	33 967	25 009	13 819	9 210	7 113
Loan losses	-18 950	-15 543	-9 710	-6 689	-7 571
Profit before tax	15 017	9 466	4 109	2 522	-458
Tax	-3 851	-2 990	-1 027	-630	115
Profit after tax	11 166	6 476	3 082	1 891	-344

^• Increasing interest income due to good growth in consumer loans

^• ROE annualized 11,4%

Balance sheet

Amounts in thousands	31.03.2018	31.12.2017	30.09.2017	30.06.2017	31.03.2017
Assets
Cash and deposits with the central bank	53 695	53 680	53 643	53 607	53 570
Loans and deposits with credit institutions	291 578	280 309	183 039	241 178	238 873
Loans to customers		1 985 555 1 780 862 1 583 576 1 335 848 1 222 093
- Loan impairment	-53 344	-42 851	-33 737	-28 589	-27 041
Certificates and bonds	224 885	152 017	55 021	60 017	48 630
Shares and other securities	54 193	53 869	53 637	54 655	54 427
Shareholding in group companies	192	192	192	192	192
Deferred tax asset	16 242	19 996	22 986	24 014	24 644
Other intangible assets	20 966	20 398	20 176	20 610	20 170
Fixed assets	1 265	1 191	1 344	1 412	815
Other assets	1 484	1 576	1 049	950	1 286
Prepaid expenses	99 397	86 022	70 234	52 268	45 365
- of which agent commisions	56 676	50 475	43 954	35 744	30 682
Total assets		2 696 108 2 407 262 2 011 162 1 816 160 1 683 023
Equity and liabilities
Deposits from customers		2 137 697 1 967 508 1 629 868 1 455 236 1 330 641
Other liabilities	24 140	18 508	19 391	11 615	10 107
Accrued expenses and deferred revenue	15 022	10 015	25 386	15 874	10 732
Tier 1 and tier 2 capital bond	75 000	75 000	10 000	10 000	10 000
Total liabilities		2 251 859 2 071 031 1 684 645 1 492 726 1 361 480
Share capital	324 326	260 690	259 990	259 990	259 990
Share premium reserve	124 510	91 681	91 481	91 481	91 481
Other paid-in equity	5 625	5 238	2 900	2 900	2 900
Other equity	-10 212	-21 378	-27 854	-30 936	-32 827
Total equity	444 249	336 231	326 516	323 435	321 543
Total equity and liabilities		2 696 108 2 407 262 2 011 162 1 816 160 1 683 023

• Increased equity of MNOK 108
• Tier 1 capital bonds of MNOK 35 and Tier 2 capital bonds of MNOK 40
• Customer deposits increase of MNOK 170
• The bank has a strong liquidity position
• Loan impairment of MNOK 53
• CET 1 ratio 21,7%. Tier 1 capital ratio 23,2%. Total capital ratio 25,2%

13

Balance sheet structure

Strong funding and liquidity position

Total assets Equity and liabilities

• Deposit ratio: 108 %
• Liquidity Coverage Ratio: 569 %
• Net Stable Funding Ratio: 182 %

• Diversified customers deposits. 62 % of deposits with 35 days+ notice period

• MNOK 598 in surplus liquidity placed in Norges Bank, other banks and positions with short duration and low risk

Table of contents

Outlook

Significant scaling opportunities with a profitable platform

Building blocks in place for next phase

^> Initiatives to broaden distribution through new partners

Optimizing ROE and risk/reward

Shareholders & share price

Strong shareholder base

Top 30 shareholders as of 16 April 2018

# Investor	Shares	Shares %
1 SKAGERRAK SPAREBANK	4 311 980	9,3%
2 VERDIPAPIRFONDET ALFRED BERG NORGE	3 334 041	7,2%
3 FONDSAVANSE AS	2 807 330	6,1%
4 LADEGAARD AS	2 275 032	4,9%
5 LINDBANK AS	1 655 985	3,6%
6 NORDIC PRIVATE EQUITY AS	1 639 230	3,5%
7 MP PENSJON PK	1 514 738	3,3%
8 SHELTER AS	1 392 727	3,0%
9 UMICO - GRUPPEN AS	1 384 039	3,0%
10 JENSSEN & CO A/S	1 287 879	2,8%
11 KROGSRUD INVEST AS	1 250 000	2,7%
12 JOLLY ROGER AS	1 123 147	2,4%
13 GH HOLDING AS	909 090	2,0%
14 INDEPENDENT OIL & RE	900 000	1,9%
15 BYHOLT AS	787 159	1,7%
16 REMCO AS	786 115	1,7%
17 WHITETAIL WEBSERVICE	705 009	1,5%
18 MENTOR MEDIER AS	656 422	1,4%
19 HJELLEGJERDE INVEST AS	500 000	1,1%
20 VITAMAR AS	453 045	1,0%
21 JARAS INVEST AS	440 909	1,0%
22 ULLTVEIT-MOE HILDEGUNN HODNE	400 222	0,9%
23 B FINANS AS	400 000	0,9%
24 TRIPPEL-L AS	387 225	0,8%
25 HHG INVEST AS	376 000	0,8%
26 MOTOR-TRADE EIENDOM OG FINANS AS	365 878	0,8%
27 LINDBAK GRUPPEN AS	364 045	0,8%
28 WIST HOLDING AS	338 000	0,7%
29 JUUL-VADEM HOLDING AS	320 000	0,7%
30 ARILD HESTÅS INVEST AS	301 250	0,6%
Total top 30	33 366 497	71,9%
Other	13 024 342	28,1%
Grand total	46 390 839	100,0%

• 448 shareholders as of 16 April 2018
• The EASY share was registered on NOTC on 15 November 2016, following a private placement and repair offering totaling NOK 200 million
• Management holds a total of 2,395,278 shares, corresponding to 5.2% of shares outstanding
• Members of the board represents a total of 6,716,087 shares, corresponding to 14.5% of shares outstanding
• Current market capitalization of approx. NOK 510 million as of 28 April