Instabank

Investor Presentation • Feb 7, 2025

INTERIM PRESENTATION Q4-2024

Highlights

Profit after tax: 26.6 MNOK, +1.4 MNOK vs Q4-23 Return on equity: 11.3 %

Accelerating growth for business lending

Business lending grew 168 MNOK in the quarter and sustained attractive profitability

Revised decision on capital composition for Pillar 2 Common equity tier 1 (CET1) capital relief of 100 MNOK

Ready for new product launch and increased growth in 2025 Credit cards to be introduced in Germany this spring

Strategic move towards Europe Instabank to apply for a banking license in Finland

Net loans and margin developments

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000

Gross loans development | Well diversified loan book

GROSS LOANS BALANCE GROWTH (MNOK)

GROSS LOANS VOLUME (MNOK)

KEY COMMENTS:

• Continued growth for the most profitable segments, business lending and mortgages that now account for 52 % of total lending, up from 41 % one year ago
• Business lending had accelerating growth, increasing by 168 MNOK in Q4-24. Gross lending reached 462 MNOK, 7 % of total lending
• Mortgages increased by 56 MNOK to reach 3.018 MNOK in gross loans, accounting for 45 % of total lending.

GROSS LOANS DISTRIBUTION

Gross lending portfolio| Transparent and simple

	Gross Loans	# Customers	Avg Ticket Size	Yield
Mortgages First or second priority mortgages for refinancing of unsecured debt or house improvements	3,018''	3,077	981'	9.1 %
Consumer Loans Unsecured loans offered in Norway, Finland and Sweden	2,620''	24,465	107'	13.0 %
Business lending Credit line product for small and medium sized enterprises	462''	345	1,339'	18.0 %
Sales Finance Point of sale or web payment solutions offered through retail partners like Skeidar and Coop	304''	28,863	10'	12.0 %
Credit Card Most attractive credit card in the market for revolving credit customers	286''	6,478	44'	17.8 %
Total Well diversified loan portfolio	6,689''	63,228	106'	11.7 %

Yields and funding cost | Attractive margins

LENDING* AND LIQUIDITY YIELD, INTEREST RATE DEPOSITS:

KEY COMMENTS:

• Highly attractive yield for business lending at 18.0 %

• The interest rate for deposits was down from the previous quarter as interest rates for Euro deposits distributed through Raisin have declined
• Liquidity yield of 3.5 %, down from 6.0 % in Q3-24, because of shifts in market interest rate expectations

*) Non-performing loans not included

Profitability, risk and capital

31 consecutive quarters with profits

PROFIT AFTER TAX (NOKM) & RETURN ON EQUITY:

Total income | High growth in income

TOTAL INCOME (MNOK):

KEY COMMENTS:

• Total income in Q4 2024 was 126.4 MNOK, up 1.3 MNOK from the same quarter last year. An increase in net interest income of 13.4 MNOK was partly offset by a decrease in net other income of 12.1 MNOK
• Total interest income increased by 18.0 MNOK from the same quarter last year, reaching 177.5 MNOK in Q4 2024.
• This increase is due to a 12-month gross lending growth of 884 MNOK (exclusive sale of non-performing loans of 469 MNOK during the period).
• Interest expenses began to level off in the second half of 2024. In the fourth quarter, interest expenses even decreased from the previous quarter despite deposits being volume stable
• The decrease in interest expenses of 2.9 MNOK from Q3-24 was because of a decrease in funding cost of 0.2 % points.
• Net other income for the quarter was 12.2 MNOK, a decrease of 12.1 MNOK compared to the same quarter last year.
• This decline was primarily due to a reduction in liquidity yield, which fell from 7.1% to 3.5%. The change is partly attributed to fluctuations in the value of our bond placements, which typically vary according to shifts in market interest rate expectations.

TOTAL INCOME DETAILED (MNOK):

Operating expenses | Economy of scale

OPERATING EXPENSES BREAKDOWN (MNOK):

KEY COMMENTS:

• Operating expenses were impacted by non-recurring costs and reached 61.1 MNOK, representing an increase of 7.9 MNOK from the previous quarter.
• The increase in operating expenses is also attributed to costs associated with preparing for the launch of credit cards in Germany this spring and the insourcing of front-end development. There was also an increase in provisions for employee bonuses compared to the previous quarters.

COST/INCOME RATIO:

0.0 10.0 20.0 30.0 40.0 50.0

-1.0 %

1.0 %

3.0 %

5.0 %

7.0 %

Credit risk | Mortgages represent low credit risk

0.0 % 2.0 % 4.0 % 6.0 % 8.0 % 10.0 %

0.0 %

10.0 %

20.0 %

30.0 %

40.0 %

IMPAIRMENT LOSSES (MNOK):

KEY COMMENTS:

• Loan losses came in at 32.2 MNOK/ 2.0 %, down 14.4 MNOK from the same quarter last year
• Losses were positively affected by a one-off reduction of loan loss allowances following an annual validation of the loan loss models

LOAN LOSS RATIO PER TYPE OF LOAN: LOANS PAST DUE:

-30.0 %

-20.0 %

-10.0 %

0.0 %

Regulatory Capital | Solid capital adequacy

DEVELOPMENTS IN CAPITAL ADEQUACY RATIOS: KEY COMMENTS:

CET1 REQUIREMENTS PER COUNTRY AND TOTAL:

Systemic risk buffer Countercyclical buffer Capital conservation buffer Pilar 2 Minimum requirement

• (CET1) ratio was 19.4 %, down 0.1 % points from the end of Q3-24 and 1.0 % points above the regulatory capital requirement (includes the capital buffer of 2 % points)
• The total capital ratio was 23.2 %, 1.3 % points above the total capital requirement
• After the balance date, on January 21st, Instabank received an updated decision from the Norwegian FSA (NFSA) regarding the capital composition for the Pillar 2 requirement. Under the revised decision, the Pillar 2 requirement must only be covered by a minimum of 56.25 % CET1 capital and 75 % core capital, instead of 100 % CET1 capital
• This change releases 2.1 percentage points from the CET1 requirement, corresponding to 100 MNOK in CET1 capital based on the situation at the end of Q4-2024. The overall capital requirement remains unchanged.

Strategy and ambitions

Strategic move towards a Europe

Instabank to apply for a Banking License in Finland

• 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 stable 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 for 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.

Product strategy | Continued expansion and diversification

▪ Instabank is committed to further geographical expansion expects to launch a competitive credit card product in the first half of 2025

▪ A new security deposit account product will be launched in Germany, leading to reduced funding costs

Financials | Guiding as per Q4-24

Key value propositions| The Nordic Challenger Bank

A dynamic and innovative challenger bank with a solid market position, a customer-centric approach, and significant growth potential in the fintech sector

Lean operational platform and organisation with significant scalability enabling cross border operations from one location.

Well diversified loan portfolio across markets, products and customers segments

Continued strong growth in net loans at attractive margins

Proven track record delivering profits 30 consecutive quarters

Experienced team with significant track record within consumer and business lending

Thank you for your attention

Continue to see lists of management, board of directors, share holders, income statement and balance sheet.

Management | Experienced and competent

ROBERT BERG | CHIEF EXECUTIVE OFFICER

Berg is one of the Co-founders who established Instabank in 2016 . Prior to that he has been CEO in yA Bank, Commercial Director in Ikano Bank and has held various positions in Gjensidige, Santander Consumer Bank, SEB and Europay et al. Berg holds a BSc in Marketing from the Norwegian Business School.

PER KRISTIAN HAUG | CHIEF FINANCIAL OFFICER

Haug was recruited to the Instabank team in 2018. He has previously held positions as CFO in yA Bank, Navigea Securities and LUUP. Haug has also been a board member in Kredinor. He holds an MSc in Management from the Norwegian Business School

Knudsen joined the Company in 2018. He has previously held various positions in Santander Consumer Finance, including Risk Manager for Analytics & Controlling and Risk Manager for Cards, and has also worked as a senior analyst for Lindorff. Holds an MSc in Finance and Investments from The University of Edinburgh.

ANNE JØRGENSEN | CHIEF OPERATING OFFICER

Jørgensen has been with Instabank since 2019. Prior to joining the Company, she held the position as Head of Contracts in Waterlogic. She has also been Service Delivery Manager and Head of Operations in Ikano Bank. Jørgensen is educated at the Norwegian School of Sport Sciences.

Edelberg joined the Instabank team in 2025. With more than 20 years of experience, she has held various roles within Governance, Risk & Compliance across banks, financial institutions, and startups. Additionally, she has managed her own consultancy firm specializing in Governance, Risk & Compliance. Edelberg holds a law degree (cand.jur.) from the University of Oslo."

JØRGEN RUI | CHIEF MARKETING OFFICER

Rui was recruited to the Instabank team in 2020. He has previously served as Director for Consumer Loans in Resurs Bank, been CMO in yA Bank and held various positions in Santander Consumer Bank. Rui holds an MSc in Marketing from the Norwegian Business School.

FARZAD JALILY | CHIEF TECHNOLOGY OFFICER

Jalily has been with the Company since 2016. Prior to joining the Instabank team, he held the position as Enterprise Architect in SpareBank 1. Jailiy holds an MSc in Computer Science from the Norwegian School of IT.

ROBERT LEINDERS-KROG| CHIEF COMMERCIAL OFFICER

Leinders-Krog joined Instabank in August 2024. He has more than 20 years of strategic brand and commercialization advisory experience. As a sought-after advisor for boards and management teams across Europe he has helped both national and international scaleups and corporates find new growth, develop new verticals and claim a more competitive position in their market.

KAREN THERESE EDELBERG | CHIEF COMPLIANCE & RISK OFFICER

Board of directors | Seasoned and diligent

MONA CATHRINE NYLANDER | CHAIRPERSON

Nylander is currently CFO in Kitron. Her previous experiences include positions as CFO in Diplom-Is, CFO in SEB Kort (Norway), CFO in Ementor Norway (Atea), CFO in Draka Norsk Kabel and Group Controller in ABB. Nylander holds a BSc in Business Administration from Lund University.

SIV FELLING GALLIGANI | BOARD MEMBER

Galligani is the owner and chairman in Engø Gård (hotel and restaurant). Her previous experiences include positions as Head of Treasury and Deputy CEO in Kommunalbanken. Furthermore, she served as a board member in yA Bank from 2015 to 2018. Galligani holds an MSc in Business Administration from the Norwegian Business School.

GUNN ISABEL WESTERLUND INGEMUNDSEN | BOARD MEMBER

Ingemundsen is Head of Compliance & Risk at Hafslund Oslo Celsio AS. Her previous experience includes positions as CRO at Danske Bank Norway and VP Head of Risk Management, Financial Services at Telenor. Board experience from various companies incl. listed. Ingemundsen holds a Master in Shipping, Trade and Finance from City, University of London

ALEXANDER FAROOQ | DEPUTY BOARD MEMBER

Farooq is currently Partner at Norselab. His previous experience includes four years as Investment Manager at Instabank's main shareholder, Kistefos ASA. Board experience from various companies. Farooq holds a Master in Finance & Private Equity from The London School of Economics

ODD HARALD HAUGE | BOARD MEMBER

Hauge is an investor, consultant and author. He is the founder of Nettavisen where he also served as Chief Editor. Furthermore, he has served as Business Editor in Aftenposten, Director Corporate Finance in ABG Sundal Collier and Chief Editor in Kapital. Hauge holds an MSc in Business Administration from the Norwegian School of Economics.

THOMAS BERNTSEN | BOARD MEMBER

Berntsen is the owner, chairman and managing partner in F2 Management.

Furthermore, he is the chairman of the board in Skeidarliving Group and a board member in Birkelunden Investeringsselskap (which owns 5.5% of the outstanding shares in Instabank). Berntsen holds an MSc in Business Administration from the Norwegian Business School.

ANNE JØRGENSEN | EMPLOYEE REPRESENTATIVE

Jørgensen holds the position as COO in Instabank

Jørgensen has been with Instabank since 2019. Prior to joining the Company, she held the position as Head of Contracts in Waterlogic. She has also been Service Delivery Manager and Head of Operations in Ikano Bank. Jørgensen is educated at the Norwegian School of Sport Sciences.

Deposits volumes | Diversified funding

	Volume	# Customers	Avg. Deposit Size	Avg. deposit rate
Norway	3,639''	19,509	187'	4.5 %
Germany	3,020''	18,037	167'	3.3 %
Finland	76''	3,232	23'	1.1 %
Sweden	12''	1,275	9'	0.5 %
Total	6,747''	42,053	160'	3.9 %

The share | Oslo Euronext Growth, ticker "INSTA"

Top 20 shareholders (Per February 6th, 2025) Share price development (last 12 months)

#	Shareholders	# of shares	%
1	KISTEFOS AS	94,268,606	24.9%
2	HODNE INVEST AS	37,546,909	9.9%
3	VELDE HOLDING AS	30,044,521	7.9%
4	BIRKELUNDEN INVESTERINGSSELSKAP AS	20,758,140	5.5%
5	BJELLA INVESTMENTS AS	13,112,021	3.5%
6	APOLLO ASSET LIMITED	13,000,000	3.4%
7	HJELLEGJERDE INVEST AS	10,193,220	2.7%
8	TORSTEIN TVENGE	10,000,000	2.6%
9	GOLDMAN SACHS BANK EUROPE SE	9,652,522	2.6%
10	KRISTIAN FALNES AS	9,500,000	2.5%
11	LEIKVOLLBAKKEN AS	8,500,000	2.2%
12	MOROAND AS	8,500,000	2.2%
13	NORDNET LIVSFORSIKRING AS	6,412,532	1.7%
14	ALTO HOLDING AS	6,100,000	1.6%
15	SONSINVEST AS	5,108,195	1.4%
16	LEIRIN HOLDING AS	4,333,333	1.1%
17	UCVO AS	3,335,786	0.9%
18	KAARE BERNTSEN AS	3,184,713	0.8%
19	VESLESMEDEN HOLDING AS	2,400,000	0.6%
20	NORLINK EIENDOM AS	2,191,415	0.6%
	Sum Top 20	298,141,913	78.8%
	Other shareholders	80,119,599	21.2%
	Total	378,261,512	100.0%

Position	Name	# of shares	% of total
CEO	Robert Berg (Sonsinvest AS)	5,841,195	1.5 %
CTO	Jørgen Rui	1,407,864	0.4 %
CMO	Farzad Jalily	1,000,000	0.3 %
CFO	Per Kristian Haug	154,935	0.0 %
CRO	Kjetil Andre Welde Knudsen	123,028	0.0 %
COO	Anne Jørgensen	99,625	0.0 %
	Sum management	8,626,647	2.3 %
	Other employees	2,541,325	0.7 %
	Board members	5,479,200	1.4 %
	Total	16,647,172	4.4 %

Share price (NOK) and volume

Income statement & Balance sheet | Overview

INCOME STATEMENT (NOK THOUSAND) BALANCE SHEET (NOK THOUSAND)

P&L	FY 2024	Q4-24	Q3-24	Q2-24	Q1-24	FY 2023
Total income:
Interest Income		722,350 187,135 184,782 179,267 171,166 577,555
Interest expenses	295,495	72,964	75,885	75,332		71,314 204,694
Net interest income		426,855 114,172 108,897 103,935				99,851 372,861
Net other income	65,325	12,237	19,495	16,916	16,676	68,222
Total income		492,179 126,409 128,392 120,851 116,528 441,083
Operating expenses:
Salary and other personnel expenses	86,533	25,901	23,609	18,215	18,807	68,644
Other administrative expenses, of which	96,932	28,859	24,181	22,030	21,863	76,556
- direct marketing cost	21,617	6,041	5,240	5,342	4,993	13,244
Other expenses	11,056	3,037	3,303	2,570	2,146	8,475
Depreciation and amortisation	11,896	3,359	2,197	3,199	3,141	12,440
Total operating expenses	206,416	61,157	53,289	46,014		45,956 166,114
Losses on loans	157,315	32,212	39,868	38,903		46,332 143,740
Operating profit before tax	128,448	33,040	35,235	35,934		24,239 131,229
Tax	30,325	6,472	8,809	8,984	6,060	30,357
Profit and other comprehensive income	98,124	26,568	26,426	26,951		18,179 100,872

Balance Sheet	31.12.24	30.09.24	30.06.24	31.03.24	31.12.23
Assets
Loans and deposits with credit institutions		438,305 422,913 260,637 226,433 264,224
Loans to customers		6,500,203 6,353,508 6,219,526 6,260,957 5,993,508
Certificates and bonds		1,002,496 1,102,220 1,163,257 1,013,267 943,254
Derivatives	2,326	3,243	567	13,166	1,273
Shares and other equity instruments	6,000	6,000	6,000	6,000
Other intangible assets	30,668	28,631	29,196	27,451	26,923
Fixed assets	12,539	13,204	13,912	14,393	15,094
Deferred tax assets	-	1,883	1,883	1,883	1,883
Other receivables	15,917	40,607	13,198	27,003	31,124
Total assets		8,008,454 7,972,209 7,708,176 7,590,552 7,277,283
Liabilities
Deposits from and debt to customers		6,746,553 6,768,449 6,531,455 6,409,638 6,126,572
Other debts	55,039	28,464	39,610	65,965	19,648
Accrued expenses and liabilities	37,790	29,901	24,757	25,947	31,127
Derivatives	3,029	4,712	4,968	2,842	22,824
Deferred tax	8,256	-	-	-	-
Tax payable	20,186	31,761	22,953	26,501	32,974
Subordinated loan capital	96,000	96,000	96,000	96,000	96,000
Total liabilities		6,966,852 6,959,287 6,719,742 6,626,893 6,329,145
Equity
Share capital	378,262	378,262	378,262	378,262	378,262
Share premium reserve	200,430	200,430	200,430	200,430	200,430
Retained earnings	377,911	353,330	328,842	304,068	288,547
Additional tier capital 1	85,000	80,900	80,900	80,900	80,900
Total equity		1,041,603 1,012,921 988,433 963,659 948,139
Total liabilities and equity		8,008,454 7,972,209 7,708,176 7,590,552 7,277,283

Instabank is the Nordic challenger bank for corporate and private customers. Founded in 2016.