Instabank — Earnings Release 2021

Aug 12, 2021

Record profits for Instabank

Record profits for Instabank

Strong growth in net loans and low losses on loans contributed to a record high profit of NOK 26.0 million before tax for Instabank. Profit is near doubled compared to same quarter last year.

Instabank has increased its loan portfolio by as much as 19 per cent in the first six months of 2021. Most of the growth came from mortgages, a product launched less than a year ago. The mortgage loan portfolio is approaching NOK 600 million, and now accounts for 19 per cent of total lending, and 28 per cent of lending in Norway.

Profit growth is even stronger than lending growth. From the first to the second quarter, profit after tax increased by 40 per cent, from NOK 14 million to NOK 19.5 million. Compared to the second quarter of 2020, the growth is 97 percent.

- We are on track to reach our ambitious goal of increasing net loans by 1 billion in 2021. This implies a growth of more than 35 percent. The growth in revenues has also given us a record high profit. The strategy of developing Instabank into an increasingly more diversified bank has proven to be successful, says Robert Berg, CEO of Instabank.

Low losses on loans:

In the second quarter, losses on loans were down to NOK 17 million (2.1 per cent of net loans), which is lower than the first quarter and also lower than the same quarter last year. The positive development is largely due to the fact that growth in net loans comes from mortgages, where the level of losses is low, but there is also improvement in consumer loans. The proportion of non-performing loans is declining, and the bank is not experiencing any negative effects from the pandemic.

- We expect the positive development for Instabank to continue in the second half of 2021. The past year has proven that our organization is able to seize new opportunities and turn them into significant results, says CEO Robert Berg of Instabank.

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