Instabank — Earnings Release 2020

Feb 10, 2021

Instabank reports solid Q4-20: Strong growth expected for 2021

Instabank reports solid Q4-20: Strong growth expected for 2021

Instabank has throughout 2020 reported strong profit growth quarter-on-quarter, and this growth is expected to continue into 2021. The bank experiences positive effects of the strategy shift towards a more diversified bank.

Instabank reports profit before tax of 19,1 MNOK for Q4 2020, compared to 17,6 MNOK for Q3. Profit growth has been strong through 2020, as profit in Q1 was 7,1 MNOK.

Still the bank does not experience any negative effects from the ongoing pandemic. The quality of the loan portfolio has developed favorably through 2020. This was confirmed as Instabank towards the end of Q4 sold off 50 per cent of the non performing loans portfolio at book value. At year end the NPL ratio was down to only 5,6 %, considerably lower than industry peers.

The sale of the NPL portfolio has made further capital available for growth, and with the already strong capital ratio compared to regulatory requirements, Instabank is in a position to grow net lending by 1000 MNOK in 2021.

- Growth will be within the second priority mortgage product, which has been a success since launch at the end of Q2. This development, along with our continued focus on being the best paytech partner for retail, has changed Instabank from a consumer loans only bank, to a more diversified bank, says Instabank CEO Robert Berg,

Net loans showed a slight decrease through Q4. However, when adjusted for currency effects and the sale of the NPL portfolio, growth in the quarter was 137 MNOK. In the Norwegian market there has been a considerable shift in the product mix. At year end 2020, 25 per cent of net loans in Norway were other than unsecured consumer loans.

- We have proven our ability to quickly adapt to changes in market conditions and regulatory requirements. In 2021 we will continue our strategic shift, with growth coming from the mortgage product and the paytech sector. However, we seek to remain competitive within unsecured consumer lending, maintaining the present level of net loans in this sector. Our ambitions for 2021 is to grow net loans by 1000 MNOK and an increase of profits of 75 % may be within reach. These are aggressive targets, but we see it as being within reach, says Berg.

A presentation of the report will be held online on Teams at 13:00 on February 10th, facilitated by Sparebank 1 Markets. For registration, please send an email to corporateaccess@sb1markets.no, and a link for the presentation will be returned.

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