Instabank — Earnings Release 2020

Oct 29, 2020

Instabank ASA Q3-20: Strong growth in net loans and increased profits

Instabank ASA Q3-20: Strong growth in net loans and increased profits

Instabank Q3 report shows strong increase in net loans, a decrease in loan losses and decreasing deposit rates. In total this resulted in a solid growth in profits compared to second quarter.

- We continue to see positive effects of our new strategy towards a more diversified and balanced product portfolio. It also means better capital utilization, enabling us to grow without raising more capital, says CEO of Instabank, Robert Berg.

Profit after tax of 13,2 MNOK, was almost identical to same quarter last year, but a strong increase of 33% from second quarter this year (9,9 MNOK). Return on equity went up from 7,7% in second quarter to 10,2% in third quarter. Net loans increased by 220 MNOK, one of the strongest quarters ever. Almost all growth came from the Norwegian market, a significant comeback after a continuous domestic decrease in the previous six quarters.

- We are also pleased to see a decrease in loan losses, says Berg. – Early autumn we normally experience a growth in loans past due, but now this trend has shifted. The share of loans past due 1-30 days has declined especially in Norway, from 17% end of September last year to 11% this year. We have seen this tendency over several quarters and we believe the Norwegian Debt Registry has contributed to a higher quality in our loan portfolio.

Instabank has over several quarters followed their new strategy towards a position as a pay tech partner for retail. At the same time the bank has launched strong, new products, like the best value credit card on the market and mortgage loans.

- We have a strong growth in both mortgage loans and credit cards, and we aim to be an even stronger partner for brands like Coop and Skeidar going forward, says Berg. – Through the past year we have proven what is at the heart of our culture – to grasp opportunities and quickly implement changes when conditions change. That`s why we dare to believe in a substantial growth in both net loans and profits in the years to come - and we also dare to say so.

A presentation of the report will be held as a webinar on October 29th at 10:00 facilitated by Sparebank 1 Markets.

Registration URL for the webinar: https://attendee.gotowebinar.com/register/3510890571617420301

Contact persons:

Robert Berg, CEO, robert.berg@instabank.no

Per Kristian Haug, CFO, perkristian.haug@instabank.no

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act