Instabank

Earnings Release • Feb 7, 2025

Instabank ASA Q4-24: Strong Profitability, Accelerating Growth, and Strategic Shift Towards Europe

Instabank ASA Q4-24: Strong Profitability, Accelerating Growth, and Strategic Shift Towards Europe

Instabank reports a profit after tax of 26.6 MNOK for Q4-24, with record growth in business lending and strategic steps to enhance its European presence. The bank will apply for a banking license in Finland, aligning with its pan-European ambitions and ensuring a level playing field within the EU regulatory framework.

Profitable Growth and Expansion:

Instabank achieved a record-high business lending growth of 168 MNOK in Q4-24, confirming the value of the bank’s focus on the SME market. With a lending increase capacity of 2 billion NOK for 2025, the bank is positioned for continued expansion.

In addition to growth in corporate loans and mortgages, Instabank is also entering new markets. After launching a credit card in Finland this spring, the bank will launch its credit card offering in Germany, marking its third product in the country. The expansion is supported by AI-driven efficiency enhancements, enabling fast, personalized services tailored to local consumer needs.

Strategic Move Towards Europe:

Instabank’s board of directors has initiated the process of applying for a banking license in Finland. The framework and business environment for niche banks in Norway is still considered more restrictive and less predictable than those in Sweden and Finland, limiting growth opportunities and long-term competitiveness. Being tied to local regulations while competing and growing on a European level is also considered a possible barrier to expansion and speed.

By applying for a banking license in Finland, Instabank hopefully will be operating within a European regulatory framework soon, fostering a more competitive and growth-oriented banking environment. Finland’s regulatory stability and alignment with EU banking standards make it a compelling choice, supporting Instabank’s strategy of scaling across European markets. With imminent product launches in Germany and business lending expansion in Finland, a presence in an EU financial hub will strengthen the bank’s operational efficiency and strategic positioning.

The application process is expected to take approximately one year, during which the bank will evaluate the move’s implications and benefits. This step underscores Instabank’s commitment to long-term competitiveness and sustainable growth.

Key Highlights for Q4-2024:

• Profit after tax: 26.6 MNOK (+1.4 MNOK vs. Q4-23)

• Return on equity: 11.3%

• Business lending and mortgages now account for 52% of total lending, up from 41% a year ago

• Regulatory relief: Revised capital composition for Pillar 2 resulting in a CET1 capital relief of 100 MNOK

For further details, please refer to the full Q4-2024 interim report attached to this message.

Contacts:

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

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

This information is subject to disclosure requirements under section 5-12 of the Norwegian Securities Trading Act.