Instabank

Earnings Release • Apr 27, 2023

25 % profit growth for Instabank in Q1-23

25 % profit growth for Instabank in Q1-23

Instabank reports record strong first quarter. Net lending increased by MNOK 438 and exceeded for the first time NOK 5 billion. The bank will now enter the business lending market.

Strong loan growth over the last 12 months resulted in total revenues exceeding MNOK 100 for the first time in a quarter, even though mortgages - where interest rates are lower than for consumer loans - constitute an increasing share of the loan portfolio.

Although revenues grew strongly, operating expenses were slightly lower than in the corresponding quarter of 2022, resulting in a profit before tax of MNOK 31.6, an increase of 25 percent from the same quarter last year.

- We are very pleased with this record-breaking result. It shows that our organization can deliver on our ambitious strategy, says Instabank CEO Robert Berg.

Despite high loan growth, loan losses were lower than in the previous quarter, and mortgage losses are still low.

Will focus on the corporate market:

Instabank will in 2023 launch a product aimed at small and medium-sized businesses in Norway.

- This is a niche where few banks have an offer and where it`s possible to achieve high profitability for a new digital player. Our organization has previously demonstrated its ability to seize new opportunities and deliver growth and profitability quickly, says Berg.

Business market lending complements the original focus on consumer loans, which was supplemented by mortgages two years ago.

- Our geographical distribution across Norway, Finland, and Sweden, as well as new product categories such as business loans, allow us to distribute available capital and marketing to the markets that provide the best profitability at any given time, says Berg.

Growth-target realistic:

Instabank has previously announced that the target this year is to increase net loans by NOK 1 billion. The growth of 438 MNOK in the first quarter demonstrates that this is realistic. Most of the growth will come from mortgages.

- Mortgages require less than half the equity as consumer loans, which allows us to continue loan growth, says Berg.

The report and presentation for the first quarter of 2023 are attached to this message.

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