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Instabank
Quarterly Report • May 9, 2025
3636_rns_2025-05-09_e624c44b-bac6-457e-b062-538a1bb50326.pdf
Quarterly Report
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INTERIM REPORT Q1 2025
Instabank ASA
Key highlights Q1-25
Profit before tax 30.8 MNOK, +6.6 MNOK/ +27 % vs Q1-24 Driven by increased total income and decreased loan losses
Growth in gross lending of 334 MNOK Continued growth for most profitable segments: mortgages and business lending
Well diversified loan book across geographics, customers and product segments
Strategic milestone: Credit Card in Germany launched
Gross loans to customers reach 7,024 MNOK
Marking a major step in the bank's European growth strategy
The Nordic challenger
About Instabank ASA
Founded in 2016, Instabank is a fully digital, Nordic challenger bank committed to transforming traditional banking. With a focus on simplicity, accessibility, and innovation, we deliver tailored financial solutions to private and corporate customers. From flexible loans and savings products to user-friendly credit cards and insurance offerings, our mission is to remove barriers and redefine the banking experience.
Instabank operates in Norway, Finland, Germany and Sweden, offering competitive savings, insurance, credit cards, mortgages, and unsecured loan products to consumers and small and medium-sized businesses.
The bank's products and services are distributed primarily through agents, various retail partners, and its website and mobile app.
Instabank is a proud sponsor of the Norwegian Athletics Federation.
At the end of Q1-25, Instabank had 52 fulltime and 13 part-time employees.
Instabank is admitted to trading at Euronext Growth at Oslo Børs, ticker INSTA.
At the end of Q1-25, the bank had 108,115 customers, of which 63,545 were loan customers and 44,570 were deposit customers.
Operational Developments
In the first quarter, Instabank successfully enhanced the operations of its three main segments: mortgages, business lending, and unsecured consumer loans. To drive lending growth, the focus was on expanding the most profitable segments, specifically mortgages and business lending. After three consecutive quarters of decreased volume, we also adjusted our strategy by allocating excess capital to promote growth in the unsecured consumer loans segment
Growth total gross loans (MNOK):
Instabank has successfully launched its fully digital credit card in Germany, achieving a significant strategic milestone. This is the fourth country where we offer lending services. The launch enhances Instabank's unsecured consumer lending options and marks a shift from consumer loans to credit cards, with the Instabank Visa card now available in three countries: Norway, Finland, and Germany. By entering Germany, the largest banking market in Europe, Instabank establishes itself as a leading Nordic challenger bank, providing German customers with a modern, transparent, and fully digital credit card experience.
The credit card is built on a scalable technology platform, providing customers with an entirely innovative digital application process uncommon in Germany. In addition, Germany is the first market where we have implemented the newly developed AI customer service, which will serve our customers in both verbal and written communication. The digital application process, together with the AI-enabled customer service, will ensure a highly scalable operation of the German market.
In addition, Instabank has expanded its product offerings in Germany by introducing a rental deposit account in strategic cooperation with smartmiete.de, a subsidiary of Husleie.no. This deposit product will complement the bank's current funding sources in Euros, positively impacting its net interest margins.
44 %
Mortgages share of total lending
Demand for mortgages increased compared to the previous quarter, leading to a growth in lending of 107 MNOK, bringing the total to 3,125 MNOK in gross loans. Although there was an increase in new mortgages issued, there was also a rise in churn.
Business lending has continued a strong growth trajectory, increasing by 125 MNOK in the quarter to reach a total of 587 MNOK, which accounts for 8% of our total gross loans. Our business lending solutions for small and medium-sized enterprises have proven to be successful. In an underserved market, we provide dedicated support throughout the application process, making it simpler and faster than experiences elsewhere.
8 %
Business lending share of
total lending
Our business customers seek working capital to either expand their operations or address short-term funding needs. Profitability remains robust, with an average loan yield of 17.9% and a loan loss ratio of 2.5% for the quarter. Given that the market is underserved, we anticipate significant growth in the future.
Profit and Loss
Instabank reported a profit before tax of 30.8 MNOK in the first quarter, an increase of 6.6 MNOK compared to the same quarter last year. This growth was driven by an increase in total income and decreased loan losses, although it was partly offset by higher operating expenses.
Total interest income increased by 17.0 MNOK from the same quarter last year, reaching 179.0 MNOK in Q1 2025. This increase resulted from a 12-month gross lending growth of 897 MNOK, which excludes the sale of non-performing loans amounting to 469 MNOK during the period.
Interest expenses continued to level off in the first quarter, following decreased deposit rates for EUR deposits. Interest expenses only increased by 0.7 MNOK from the same quarter last year, despite an increase in deposit volume of 521 MNOK
Growth in net interest income
The net other income for the quarter was 19.4 MNOK, an increase of 0.8 MNOK compared to the same quarter last year.
Total income in Q1 2025 amounted to 134.5 MNOK, up by 18.0 MNOK from the same quarter last year.
Operating expenses reached 62.1 MNOK, representing an increase of 0.9 MNOK from the previous quarter. These expenses were impacted by costs associated with the Finnish banking license application process and the launch of a new credit card offering in the German market.
Loan losses amounted to 41.7 MNOK or 2.4%, down by 4.7 million NOK from the same quarter last year. This decrease is attributed to a shift in lending towards lower-risk segments in the period, such as mortgages and business lending, as opposed to unsecured consumer loans.
Profit before tax Q1-25
Profit before tax was 30.8 MNOK, and profit after tax was 23.1 MNOK, representing a return on equity of 9.7 %.
Balance Sheet
Gross loans to customers increased by 334 MNOK in the quarter to 7,024 MNOK at the end of the quarter.
Deposits from customers decreased by 184 MNOK in the quarter to 6,930 MNOK at the end of the quarter.
Total assets at the end of Q1 2025 were 8,225 MNOK.
In January this year, Instabank received an updated decision from the Norwegian FSA (NFSA) regarding the capital composition for the Pillar 2 requirement. Previously, the Bank's Pillar 2 requirement of 4.8 % had to be fully covered by 100 % common equity tier 1 (CET1) capital. Under the revised decision, the Pillar 2 requirement must only be covered by a minimum of 56.25 % CET1 capital and 75 % core capital.
This change released 2.1 percentage points from the CET1 requirement, corresponding to about 100 MNOK in CET1 capital. The overall capital requirement remained unchanged.
At the end of the quarter, the Common Equity Tier 1 Capital (CET1) ratio was 18.3 %, down 1.1 % points from the previous quarter and 2.0 % points above the regulatory capital requirement including the expected capital buffer (P2G) of 2 %. The total capital ratio was 22.3 %, 0.4 % points above the total regulatory capital requirement including P2G buffer.
18.3 %
CET1 ratio
Dividend for the financial year 2024 of 30.2 MNOK, to be paid in April this year, and expected dividend for 2025 were deducted in the calculation of the CET1 capital.
After the balance date, on April 1st, CRR3 took effect and introduced changes to risk weights and a new calculation method for operational risk. This results in an overall reduction of approximately 120 MNOK on the calculation basis. Based on the situation at the end of Q1 2025, the following one-time effects are expected:
-
CET1 capital ratio: an increase of 0.45 percentage points
-
Total capital ratio: an increase of 0.55 percentage points
Strategic Move Towards Europe
As communicated in the report for the Q4-2024, Instabank's board of directors has initiated the process of applying for a banking license in Finland.
By applying for a banking license in Finland, Instabank will have the opportunity be operate within a European regulatory framework, 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.
Instabank plans to submit its banking license application to the Finnish Financial Supervisory Authority (FSA) during the second quarter. The application process is expected to take approximately one year, during which time the bank will assess the implications and benefits of this move. This step highlights Instabank's commitment to long-term competitiveness and sustainable growth.
Outlook
Thanks to a well-diversified product range and robust capital situation, Instabank is very well-positioned for growth and increased returns in 2025. Our strategic focus on expanding business lending, mortgages, and the new credit card in Germany will drive our growth in this year.
Instabank is taking a significant step towards becoming a leading challenger bank in Northern Europe by applying for a banking license in Finland. This move will allow us to operate within a European regulatory framework, supporting our strategy to scale across European markets. Our ambition to grow and lead in the banking industry is evident through this strategic decision.
We are committed to technological innovation and modernization. Our recent implementation of AI-enabled customer service in Germany is a testament to our focus on providing cutting-edge solutions to our customers
The board of directors of Instabank have decided on a new dividend policy allowing for capital that is not allocated for growth to be distributed as dividends. This policy ensures a balanced return on equity for our shareholders, combining both dividends and long-term value creation.
For 2025, we anticipate growth in gross loans to exceed 1.7 billion NOK and profit after tax of about 125 MNOK.
Other information
Regarding capital requirement, there has been a limited review of the accounts in accordance with ISRE 2410 as of 31.03.2025 by the bank's auditors and the result after tax for the quarter is added to retained earnings, net expected dividend for 2025.
Oslo, May 8th, 2025
Board of Directors, Instabank ASA
Condensed statements of profit or loss and other comprehensive income:
| NOK 1000 | Note | Q1-2025 | Q1-2024 | YTD 2025 | YTD 2024 | Year 2024 |
|---|---|---|---|---|---|---|
| Interest Income effective interest method | 3 | 179 044 | 162 012 | 179 044 | 162 012 | 686 833 |
| Other interest income | 6 | 8 164 | 7 301 | 8 164 | 7 301 | 35 516 |
| Interest expenses | 3 | 72 039 | 71 314 | 72 039 | 71 314 | 295 495 |
| Net interest income | 115 169 | 97 999 | 115 169 | 97 999 | 426 855 | |
| Income commissions and fees | 12 633 | 15 894 | 12 633 | 15 894 | 52 428 | |
| Expenses commissions and fees | 821 | 1 096 | 821 | 1 096 | 5 463 | |
| Net gains/loss on foreign exchange and securities | ||||||
| classified as current assets | 6 | 7 546 | 3 730 | 7 546 | 3 730 | 18 360 |
| Net other income | 19 359 | 18 529 | 19 359 | 18 529 | 65 325 | |
| Total income | 134 527 | 116 528 | 134 527 | 116 528 | 492 179 | |
| Salary and other personnel expenses | 25 042 | 18 807 | 25 042 | 18 807 | 86 533 | |
| Other administrative expenses, of which: | 29 890 | 21 863 | 29 890 | 21 863 | 96 932 | |
| - direct marketing cost | 6 979 | 4 993 | 6 979 | 4 993 | 21 617 | |
| Other expenses | 3 602 | 2 146 | 3 602 | 2 146 | 9 949 | |
| Depreciation and amortisation | 3 539 | 3 141 | 3 539 | 3 141 | 13 002 | |
| Total operating expenses | 62 073 | 45 956 | 62 073 | 45 956 | 206 416 | |
| Losses on loans | 2, 3 | 41 648 | 46 332 | 41 648 | 46 332 | 157 315 |
| Profit before tax | 30 807 | 24 239 | 30 807 | 24 239 | 128 448 | |
| Tax expenses | 7 702 | 6 060 | 7 702 | 6 060 | 30 325 | |
| Profit and other comprehensive income for the period | 23 105 | 18 179 | 23 105 | 18 179 | 98 124 | |
| Earnings per share (NOK) | 0,06 | 0,05 | 0,06 | 0,05 | 0,26 | |
| Diluted earnings per share (NOK) | 0,06 | 0,05 | 0,06 | 0,05 | 0,25 |
Condensed statement of financial position:
| NOK 1000 | Note | 31.03.2025 | 31.03.2024 | 31.12.2024 |
|---|---|---|---|---|
| Loans and deposits with credit institutions | 5 | 198 524 | 226 433 | 438 305 |
| Loans to customers | 2, 3, 5 | 6 807 588 | 6 260 957 | 6 500 203 |
| Certificates and bonds | 5 | 1 100 694 | 1 013 267 | 1 002 496 |
| Derivatives | 342 | 13 166 | 2 326 | |
| Shares and other equity instruments | 6 000 | 6 000 | 6 000 | |
| Other intangible assets | 32 237 | 27 451 | 30 668 | |
| Fixed assets | 11 828 | 14 393 | 12 539 | |
| Deferred tax assets | 0 | 1 883 | 0 | |
| Other receivables | 5 | 67 330 | 27 003 | 15 917 |
| Total assets | 8 224 543 | 7 590 552 | 8 008 454 | |
| Deposit from and debt to customers | 5 | 6 930 660 | 6 409 638 | 6 746 553 |
| Other debts | 64 217 | 65 965 | 55 039 | |
| Accrued expenses and liabilities | 25 488 | 25 947 | 37 790 | |
| Derivatives | 15 974 | 2 842 | 3 029 | |
| Deferred tax | 8 256 | 0 | 8 256 | |
| Tax payable | 7 702 | 26 501 | 20 186 | |
| Subordinated loan capital | 4, 5 | 110 000 | 96 000 | 96 000 |
| Total liabilities | 7 162 296 | 6 626 893 | 6 966 852 | |
| Share capital | 4 | 378 262 | 378 262 | 378 262 |
| Share premium reserve | 4 | 200 430 | 200 430 | 200 430 |
| Retained earnings | 4 | 398 555 | 304 068 | 85 000 |
| Additional Tier 1 capital | 4 | 85 000 | 80 900 | 377 911 |
| Total equity | 1 062 247 | 963 659 | 1 041 603 | |
| Total liabilities and equity | 8 224 543 | 7 590 552 | 8 008 454 |
Statement of changes in equity:
| Retained | |||||
|---|---|---|---|---|---|
| Share | Share | Tier 1 | earnings and other |
Total | |
| NOK 1000 | capital | premium | capital | reserves | equity |
| Equity per 01.01.2024 | 378 262 | 200 430 | 80 900 | 288 547 | 948 139 |
| Capital issuanse | - | ||||
| Tier 1 capital issued | 20 000 | 20 000 | |||
| Tier 1 capital settled | -15 900 | -15 900 | |||
| Profit for the period | 98 124 | 98 124 | |||
| Changes in equity due to share option programs | 1 985 | 1 985 | |||
| Paid interest on Tier 1 Capital | -10 745 | -10 745 | |||
| Equity per 31.12.2024 | 378 262 | 200 430 | 85 000 | 377 911 | 1 041 603 |
| Equity per 01.01.2025 | 378 262 | 200 430 | 85 000 | 377 911 | 1 041 603 |
| Profit for the period | 23 105 | 23 105 | |||
| Changes in equity due to share option programs | 178 | 178 | |||
| Paid interest on Tier 1 Capital | -2 639 | -2 639 | |||
| Equity per 31.03.2025 | 378 262 | 200 430 | 85 000 | 398 555 | 1 062 247 |
Notes
Note 1: General accounting principles
The interim report is prepared in accordance with chapter 8 in regulations for annual accounts of banks, credit companies and financial institutions, which means interim financial statement in accordance with IAS 34 and those exceptions included in the regulations for annual accounts of banks, credit companies and financial institutions, as presentation of statement of cashflows. For further information, see note 1 accounting principles in the annual report of 2024. In the second quarter of 2024, the bank revised its accounting practices for interest income on securities. Previously, interest income on securities was recorded under "Net gains/loss on foreign exchange and securities classified as current assets". However, starting from Q2 2024, interest income on securities was recorded under "other interest income". Positive and negative changes in the value of securities are still recorded under "Net gains/loss on foreign exchange and securities classified as current assets". Please see note 6 for more details regarding these changes. Note that these changes have no impact on the Total Income. The interim report was approved by the board of directors on May 8th, 2025.
Note 2: Loans to customers
GROSS AND NET LENDING;
| NOK 1000 | 31.03.2025 | 31.03.2024 | 31.12.2024 |
|---|---|---|---|
| Unsecured consumer loans | 3 311 896 | 3 846 357 | 3 209 173 |
| Mortgages | 3 124 683 | 2 615 233 | 3 018 148 |
| Business loans | 587 028 | 133 610 | 462 009 |
| Prepaid agent commission | 145 563 | 146 560 | 135 603 |
| Establishment fees | -90 418 | -86 096 | -88 291 |
| Gross lending | 7 078 752 | 6 655 664 | 6 736 643 |
| Impairment of loans | -271 163 | -394 707 | -236 440 |
| Net loans to customers | 6 807 588 | 6 260 957 | 6 500 203 |
CREDIT IMPAIRED AND LOSSES:
| NOK 1000 | 31.03.2025 | 31.03.2024 | 31.12.2024 |
|---|---|---|---|
| Gross credit impaired loans (stage 3) | 620 991 | 794 575 | 540 754 |
| Impairment of credit impaired loans (stage 3) | -202 239 | -326 710 | -167 003 |
| Net credit impaired loans | 418 752 | 467 865 | 373 752 |
Gross credit impaired loans are loans which are more than 90 days in arrear in relation to the agreed payment schedule.
AGEING OF LOANS:
| NOK 1000 | 31.03.2025 | 31.03.2024 | 31.12.2024 |
|---|---|---|---|
| Loans not past due | 5 267 636 | 4 693 279 | 4 891 903 |
| Past due 1-30 days | 821 402 | 761 331 | 891 014 |
| Past due 31-60 days | 252 328 | 264 174 | 322 679 |
| Past due 61-90 days | 72 236 | 81 841 | 53 274 |
| Past due 91+ days | 610 004 | 794 575 | 530 461 |
| Total | 7 023 607 | 6 595 200 | 6 689 330 |
| 31.03.2025 | 31.03.2024 | 31.12.2024 | |
| Loans not past due | 75,0 % | 71,2 % | 73,1 % |
| Past due 1-30 days | 11,7 % | 11,5 % | 13,3 % |
| Past due 31-60 days | 3,6 % | 4,0 % | 4,8 % |
| Past due 61-90 days | 1,0 % | 1,2 % | 0,8 % |
| Past due 91+ days | 8,7 % | 12,0 % | 7,9 % |
| Total | 100,0 % | 100,0 % | 100,0 % |
GEOGRAPHIC DISTRIBUTION:
| NOK 1000 | 31.03.2025 | 31.03.2024 | 31.12.2024 |
|---|---|---|---|
| Norway | 5 030 158 | 4 410 922 | 4 820 592 |
| Finland | 1 913 821 | 2 100 492 | 1 789 237 |
| Sweden | 79 627 | 83 786 | 79 501 |
| Gross lending excl. prepaid agent provisions and establishment fees | 7 023 606 | 6 595 200 | 6 689 330 |
LOAN LOSS PROVISIONS IN THE PERIOD:
| NOK 1000 | Q1-2025 | Q1-2024 | YTD 2025 | YTD 2024 | Year 2024 |
|---|---|---|---|---|---|
| Loan loss provisions stage 1 | -2 823 | 213 | -2 823 | 213 | 2 536 |
| Loan loss provisions stage 2 | 2 011 | 197 | 2 011 | 197 | -3 128 |
| Loan loss provisions stage 3 | -36 736 | -44 396 | -36 736 | -44 396 | 85 099 |
| Total loan loss provisions in the period | -37 549 | -43 985 | -37 549 | -43 985 | 84 507 |
| Realised losses in the period | -4 098 | -2 346 | -4 098 | -2 346 | -241 822 |
| Losses on loans in the period | -41 648 | -46 332 | -41 648 | -46 332 | -157 315 |
RECONCILIATION OF GROSS LENDING TO CUSTOMERS, TOTAL LOANS
| Q1 2025: |
|---|
| ---------- |
| NOK 1000 | Stage 1 | Stage 2 | Stage 3 | Total |
|---|---|---|---|---|
| Gross carrying amount as at 01.01.25 | 5 039 324 | 1 109 222 | 540 784 | 6 689 330 |
| Transfers in Q1 2025: | ||||
| Transfer from stage 1 to stage 2 | -350 133 | 349 954 | - | -179 |
| Transfer from stage 1 to stage 3 | -10 747 | - | 10 930 | 183 |
| Transfer from stage 2 to stage 1 | 192 344 | -202 732 | - | -10 388 |
| Transfer from stage 2 to stage 3 | - | -107 296 | 106 376 | -919 |
| Transfer from stage 3 to stage 1 | 589 | - | -564 | 25 |
| Transfer from stage 3 to stage 2 | - | 3 725 | -3 708 | 17 |
| New assets | 1 053 883 | 95 116 | 46 | 1 149 045 |
| Assets derecognised | -629 315 | -112 990 | -37 916 | -780 221 |
| Changes in foreign exchange and other changes | -18 682 | -9 646 | 5 041 | -23 287 |
| Gross carrying amount as at 31.03.25 | 5 277 264 | 1 125 352 | 620 991 | 7 023 607 |
Q1 2024:
| Gross carrying amount as at 01.01.24 | 4 770 460 | 839 793 | 663 605 | 6 273 858 |
|---|---|---|---|---|
| Transfers in Q1 2024: | - | - | - | - |
| Transfer from stage 1 to stage 2 | -333 437 | 335 517 | - | 2 080 |
| Transfer from stage 1 to stage 3 | -21 022 | - | 21 378 | 356 |
| Transfer from stage 2 to stage 1 | 154 827 | -166 720 | - | -11 893 |
| Transfer from stage 2 to stage 3 | - | -126 845 | 126 724 | -120 |
| Transfer from stage 3 to stage 1 | 108 | - | -101 | 7 |
| Transfer from stage 3 to stage 2 | - | 4 726 | -4 832 | -106 |
| New assets | 822 481 | 19 882 | 226 | 842 589 |
| Assets derecognised | -508 658 | -58 363 | -29 491 | -596 512 |
| Changes in foreign exchange and other changes | 58 926 | 8 949 | 17 066 | 84 941 |
| Gross carrying amount as at 31.03.24 | 4 943 685 | 856 939 | 794 575 | 6 595 200 |
| Gross carrying amount as at 01.01.24 | 4 770 460 | 839 793 | 663 605 | 6 273 858 |
|---|---|---|---|---|
| Transfers in 2024: | ||||
| Transfer from stage 1 to stage 2 | -509 820 | 495 079 | - | -14 742 |
| Transfer from stage 1 to stage 3 | -178 416 | - | 178 837 | 421 |
| Transfer from stage 2 to stage 1 | 129 093 | -149 420 | - | -20 326 |
| Transfer from stage 2 to stage 3 | - | -178 654 | 169 045 | -9 609 |
| Transfer from stage 3 to stage 1 | - | - | - | - |
| Transfer from stage 3 to stage 2 | - | 1 466 | -1 387 | 78 |
| New assets | 2 374 673 | 333 816 | 39 437 | 2 747 925 |
| Assets derecognised | -1 584 405 | -244 120 | -514 601 | -2 343 126 |
| Changes in foreign exchange and other changes | 37 769 | 11 262 | 5 819 | 54 850 |
| Gross carrying amount as at 31.12.24 | 5 039 353 | 1 109 222 | 540 754 | 6 689 330 |
RECONCILIATION OF LOAN LOSS ALLOWANCES, TOTAL LOANS
Q1 2025:
| NOK 1000 | Stage 1 | Stage 2 | Stage 3 | Total |
|---|---|---|---|---|
| Expected credit losses as at 01.01.25 | 27 940 | 41 497 | 167 003 | 236 440 |
| Transfers in Q1 2025: | ||||
| Transfer from stage 1 to stage 2 | -2 983 | 11 285 | - | 8 303 |
| Transfer from stage 1 to stage 3 | -223 | - | 1 808 | 1 586 |
| Transfer from stage 2 to stage 1 | 1 603 | -6 553 | - | -4 950 |
| Transfer from stage 2 to stage 3 | - | -6 400 | 14 304 | 7 905 |
| Transfer from stage 3 to stage 1 | 3 | - | -70 | -67 |
| Transfer from stage 3 to stage 2 | - | 469 | -1 077 | -608 |
| New assets originated or change in provisions | 6 441 | 1 622 | 14 | 8 077 |
| Assets derecognised or change in provisions | -3 715 | -2 160 | 12 436 | 6 561 |
| Changes in foreign exchange and other changes | 1 201 | -1 103 | 7 820 | 7 918 |
| Expected credit losses as at 31.03.25 | 30 266 | 38 659 | 202 239 | 271 163 |
| Q1 2024: | ||||
| Expected credit losses as at 01.01.24 | 29 577 | 37 170 | 277 168 | 343 915 |
| Transfers in Q1 2024: | ||||
| Transfer from stage 1 to stage 2 | -3 851 | 15 628 | - | 11 777 |
| Transfer from stage 1 to stage 3 | -405 | - | 4 198 | 3 793 |
| Transfer from stage 2 to stage 1 | 2 172 | -6 789 | - | -4 617 |
| Transfer from stage 2 to stage 3 | - | -8 884 | 22 049 | 13 165 |
| Transfer from stage 3 to stage 1 | 5 | - | -53 | -48 |
| Transfer from stage 3 to stage 2 | - | 75 | -553 | -478 |
| New assets originated or change in provisions | 4 028 | 861 | 97 | 4 987 |
| Assets derecognised or change in provisions | -2 161 | -1 107 | 13 013 | 9 745 |
| Changes in foreign exchange and other changes | 758 | 920 | 10 790 | 12 468 |
| Expected credit losses as at 31.03.24 | 30 123 | 37 874 | 326 710 | 394 707 |
| 2024: | ||||
| Expected credit losses as at 01.01.24 | 29 577 | 37 170 | 277 168 | 343 915 |
| Transfers in 2024: | ||||
| Transfer from stage 1 to stage 2 | -4 969 | 22 692 | - | 17 723 |
| Transfer from stage 1 to stage 3 | -2 551 | - | 43 057 | 40 506 |
| Transfer from stage 2 to stage 1 | 1 404 | -5 892 | - | -4 488 |
| Transfer from stage 2 to stage 3 | - | -10 590 | 40 011 | 29 420 |
| Transfer from stage 3 to stage 1 | - | - | - | - |
| Transfer from stage 3 to stage 2 | - | 115 | -636 | -521 |
| New assets originated or change in provisions | 11 124 | 8 074 | 7 427 | 26 626 |
| Assets derecognised or change in provisions | -6 981 | -11 244 | -198 502 | -216 727 |
| Changes in foreign exchange and other changes | 336 | 1 172 | -1 522 | -14 |
Expected credit losses as at 31.12.24 27 940 41 497 167 003 236 440
RECONCILIATION OF GROSS LENDING TO CUSTOMERS, UNSECURED CONSUMER LOANS
Q1 2025:
| NOK 1000 | Stage 1 | Stage 2 | Stage 3 | Total |
|---|---|---|---|---|
| Gross carrying amount as at 01.01.25 | 2 442 478 | 420 696 | 345 999 | 3 209 173 |
| Transfers in Q1 2025: | ||||
| Transfer from stage 1 to stage 2 | -121 430 | 120 846 | - | -584 |
| Transfer from stage 1 to stage 3 | -7 484 | - | 7 648 | 164 |
| Transfer from stage 2 to stage 1 | 72 174 | -77 772 | - | -5 598 |
| Transfer from stage 2 to stage 3 | - | -57 982 | 58 119 | 137 |
| Transfer from stage 3 to stage 1 | - | - | - | - |
| Transfer from stage 3 to stage 2 | - | 3 074 | -2 965 | 109 |
| New assets | 445 489 | 16 034 | 46 | 461 569 |
| Assets derecognised | -275 928 | -21 866 | -16 053 | -313 847 |
| Changes in foreign exchange and other changes | -31 918 | -9 625 | 2 314 | -39 228 |
| Gross carrying amount as at 31.03.25 | 2 523 382 | 393 405 | 395 109 | 3 311 896 |
Q1 2024:
| Gross carrying amount as at 01.01.24 | 2 755 348 | 364 469 | 561 521 | 3 681 338 |
|---|---|---|---|---|
| Transfers in Q1 2024: | - | - | - | - |
| Transfer from stage 1 to stage 2 | -161 393 | 163 260 | - | 1 867 |
| Transfer from stage 1 to stage 3 | -14 847 | - | 15 210 | 364 |
| Transfer from stage 2 to stage 1 | 77 348 | -83 118 | - | -5 770 |
| Transfer from stage 2 to stage 3 | - | -76 182 | 76 065 | -117 |
| Transfer from stage 3 to stage 1 | 108 | - | -101 | 7 |
| Transfer from stage 3 to stage 2 | - | 1 411 | -1 403 | 8 |
| New assets | 393 991 | 8 828 | 226 | 403 044 |
| Assets derecognised | -279 026 | -18 502 | -19 815 | -317 343 |
| Changes in foreign exchange and other changes | 58 169 | 8 949 | 15 841 | 82 958 |
| Gross carrying amount as at 31.03.24 | 2 829 698 | 369 115 | 647 544 | 3 846 357 |
| Gross carrying amount as at 01.01.24 | 2 755 348 | 364 469 | 561 522 | 3 681 338 |
|---|---|---|---|---|
| Transfers in 2024: | ||||
| Transfer from stage 1 to stage 2 | -250 709 | 241 691 | - | -9 018 |
| Transfer from stage 1 to stage 3 | -131 229 | - | 131 887 | 658 |
| Transfer from stage 2 to stage 1 | 63 422 | -72 754 | - | -9 331 |
| Transfer from stage 2 to stage 3 | - | -100 900 | 97 688 | -3 212 |
| Transfer from stage 3 to stage 1 | - | - | - | - |
| Transfer from stage 3 to stage 2 | - | 1 466 | -1 387 | 78 |
| New assets | 833 292 | 78 833 | 28 248 | 940 373 |
| Assets derecognised | -854 803 | -103 371 | -470 804 | -1 428 978 |
| Changes in foreign exchange and other changes | 27 186 | 11 262 | -1 183 | 37 265 |
| Gross carrying amount as at 31.12.24 | 2 442 508 | 420 696 | 345 970 | 3 209 173 |
RECONCILIATION OF LOAN LOSS ALLOWANCES, UNSECURED CONSUMER LOANS
Q1 2025:
| NOK 1000 | Stage 1 | Stage 2 | Stage 3 | Total |
|---|---|---|---|---|
| Expected credit losses as at 01.01.25 | 21 352 | 36 232 | 136 591 | 194 175 |
| Transfers in Q1 2025: | ||||
| Transfer from stage 1 to stage 2 | -2 101 | 9 163 | - | 7 063 |
| Transfer from stage 1 to stage 3 | -214 | - | 1 694 | 1 480 |
| Transfer from stage 2 to stage 1 | 1 397 | -5 481 | - | -4 083 |
| Transfer from stage 2 to stage 3 | - | -5 938 | 13 069 | 7 131 |
| Transfer from stage 3 to stage 1 | 2 | - | -57 | -55 |
| Transfer from stage 3 to stage 2 | - | 465 | -1 034 | -569 |
| New assets originated or change in provisions | 3 861 | 1 175 | 14 | 5 050 |
| Assets derecognised or change in provisions | -2 342 | -1 365 | 10 304 | 6 596 |
| Changes in foreign exchange and other changes | -492 | -874 | 4 471 | 3 105 |
| Expected credit losses as at 31.03.25 | 21 464 | 33 377 | 165 051 | 219 893 |
| Q1 2024: | ||||
| Expected credit losses as at 01.01.24 | 27 271 | 33 526 | 265 396 | 326 193 |
| Transfers in Q1 2024: | ||||
| Transfer from stage 1 to stage 2 | -3 572 | 14 314 | - | 10 741 |
| Transfer from stage 1 to stage 3 | -397 | - | 4 034 | 3 637 |
| Transfer from stage 2 to stage 1 | 2 079 | -6 271 | - | -4 192 |
| Transfer from stage 2 to stage 3 | - | -8 419 | 19 957 | 11 539 |
| Transfer from stage 3 to stage 1 | 5 | - | -53 | -48 |
| Transfer from stage 3 to stage 2 | - | 75 | -489 | -414 |
| New assets originated or change in provisions | 2 660 | 748 | 97 | 3 505 |
| Assets derecognised or change in provisions | -1 920 | -1 083 | 9 986 | 6 983 |
| Changes in foreign exchange and other changes | 752 | 917 | 9 565 | 11 234 |
| Expected credit losses as at 31.03.24 | 26 877 | 33 806 | 308 493 | 369 177 |
| 2024: | ||||
| Expected credit losses as at 01.01.24 | 27 271 | 33 526 | 265 396 | 326 193 |
| Transfers in 2024: | ||||
| Transfer from stage 1 to stage 2 | -4 693 | 20 661 | - | 15 968 |
| Transfer from stage 1 to stage 3 | -2 466 | - | 39 518 | 37 052 |
| Transfer from stage 2 to stage 1 | 1 311 | -5 420 | - | -4 110 |
| Transfer from stage 2 to stage 3 | - | -9 874 | 33 179 | 23 305 |
| Transfer from stage 3 to stage 1 | - | - | - | - |
| Transfer from stage 3 to stage 2 | - | 115 | -636 | -521 |
| New assets originated or change in provisions | 6 081 | 6 066 | 6 909 | 19 057 |
| Assets derecognised or change in provisions | -6 607 | -10 014 | -199 251 | -215 872 |
Changes in foreign exchange and other changes 455 1 173 -8 524 -6 897 Expected credit losses as at 31.12.24 21 352 36 232 136 591 194 175
RECONCILIATION OF GROSS LENDING TO CUSTOMERS, MORTGAGES
Q1 2025:
| NOK 1000 | Stage 1 | Stage 2 | Stage 3 | Total |
|---|---|---|---|---|
| Gross carrying amount as at 01.01.25 | 2 151 960 | 676 788 | 189 399 | 3 018 148 |
| Transfers in Q1 2025: | ||||
| Transfer from stage 1 to stage 2 | -186 855 | 186 720 | - | -134 |
| Transfer from stage 1 to stage 3 | -2 754 | - | 2 752 | - 1 |
| Transfer from stage 2 to stage 1 | 116 817 | -121 806 | - | -4 990 |
| Transfer from stage 2 to stage 3 | - | -47 191 | 47 164 | -26 |
| Transfer from stage 3 to stage 1 | 589 | - | -564 | 25 |
| Transfer from stage 3 to stage 2 | - | 651 | -742 | -91 |
| New assets | 461 874 | 49 550 | - | 511 424 |
| Assets derecognised | -289 463 | -91 123 | -21 559 | -402 145 |
| Changes in foreign exchange and other changes | -88 | - | 2 562 | 2 474 |
| Gross carrying amount as at 31.03.25 | 2 252 080 | 653 589 | 219 013 | 3 124 683 |
Q1 2024:
| Gross carrying amount as at 01.01.24 | 1 949 833 | 472 222 | 102 084 | 2 524 138 |
|---|---|---|---|---|
| Transfers in Q1 2024: | ||||
| Transfer from stage 1 to stage 2 | -166 869 | 166 917 | - | 48 |
| Transfer from stage 1 to stage 3 | -6 172 | - | 6 163 | - 8 |
| Transfer from stage 2 to stage 1 | 74 284 | -80 527 | - | -6 243 |
| Transfer from stage 2 to stage 3 | - | -50 663 | 50 659 | - 3 |
| Transfer from stage 3 to stage 1 | - | - | - | - |
| Transfer from stage 3 to stage 2 | - | 3 315 | -3 429 | -114 |
| New assets | 365 704 | 10 164 | - | 375 868 |
| Assets derecognised | -231 623 | -39 862 | -9 676 | -281 161 |
| Changes in foreign exchange and other changes | 1 483 | - | 1 225 | 2 709 |
| Gross carrying amount as at 31.03.24 | 1 986 641 | 481 565 | 147 026 | 2 615 233 |
| Gross carrying amount as at 01.01.24 | 1 949 833 | 472 222 | 102 084 | 2 524 138 |
|---|---|---|---|---|
| Transfers in 2024: | ||||
| Transfer from stage 1 to stage 2 | -255 162 | 248 600 | - | -6 562 |
| Transfer from stage 1 to stage 3 | -43 546 | - | 43 173 | -372 |
| Transfer from stage 2 to stage 1 | 62 696 | -73 875 | - | -11 180 |
| Transfer from stage 2 to stage 3 | - | -77 754 | 71 357 | -6 397 |
| Transfer from stage 3 to stage 1 | - | - | - | - |
| Transfer from stage 3 to stage 2 | - | - | - | - |
| New assets | 1 149 744 | 248 033 | 9 921 | 1 407 697 |
| Assets derecognised | -715 262 | -140 436 | -43 797 | -899 495 |
| Changes in foreign exchange and other changes | 3 657 | - | 6 662 | 10 319 |
| Gross carrying amount as at 31.12.24 | 2 151 960 | 676 788 | 189 399 | 3 018 148 |
RECONCILIATION OF LOAN LOSS ALLOWANCES, MORTGAGES
Q1 2025:
| NOK 1000 | Stage 1 | Stage 2 | Stage 3 | Total |
|---|---|---|---|---|
| Expected credit losses as at 01.01.25 | 1 592 | 4 117 | 28 996 | 34 704 |
| Transfers in Q1 2025: | ||||
| Transfer from stage 1 to stage 2 | -169 | 1 045 | - | 876 |
| Transfer from stage 1 to stage 3 | - 3 | - | 52 | 49 |
| Transfer from stage 2 to stage 1 | 124 | -752 | - | -628 |
| Transfer from stage 2 to stage 3 | - | -289 | 1 080 | 790 |
| Transfer from stage 3 to stage 1 | 0 | - | -13 | -12 |
| Transfer from stage 3 to stage 2 | - | 4 | -43 | -39 |
| New assets originated or change in provisions | 286 | 223 | - | 508 |
| Assets derecognised or change in provisions | -301 | -676 | 2 198 | 1 221 |
| Changes in foreign exchange and other changes | 0 | 0 | 2 562 | 2 562 |
| Expected credit losses as at 31.03.25 | 1 528 | 3 671 | 34 832 | 40 031 |
| Q1 2024: | ||||
| Expected credit losses as at 01.01.24 | 957 | 3 586 | 11 772 | 16 314 |
| Transfers in Q1 2024: | ||||
| Transfer from stage 1 to stage 2 | -194 | 1 148 | - | 954 |
| Transfer from stage 1 to stage 3 | - 7 | - | 164 | 157 |
| Transfer from stage 2 to stage 1 | 48 | -463 | - | -415 |
| Transfer from stage 2 to stage 3 | - | -461 | 2 091 | 1 630 |
| Transfer from stage 3 to stage 1 | - | - | - | - |
| Transfer from stage 3 to stage 2 | - | 1 | -64 | -64 |
| New assets originated or change in provisions | 116 | 82 | - | 198 |
| Assets derecognised or change in provisions | -29 | -27 | 3 028 | 2 972 |
| Changes in foreign exchange and other changes | - | - | 1 225 | 1 225 |
| Expected credit losses as at 31.03.24 | 891 | 3 864 | 18 216 | 22 971 |
| 2024: | ||||
| Expected credit losses as at 01.01.24 | 957 | 3 586 | 11 772 | 16 314 |
| Transfers in 2024: | ||||
| Transfer from stage 1 to stage 2 | -190 | 1 569 | - | 1 379 |
| Transfer from stage 1 to stage 3 | -24 | - | 2 762 | 2 738 |
| Transfer from stage 2 to stage 1 | 58 | -422 | - | -364 |
| Transfer from stage 2 to stage 3 | - | -716 | 6 831 | 6 115 |
| Transfer from stage 3 to stage 1 | - | - | - | - |
| Transfer from stage 3 to stage 2 | - | - | - | - |
| New assets originated or change in provisions | 832 | 1 321 | 220 | 2 374 |
| Assets derecognised or change in provisions | -41 | -1 222 | 748 | -514 |
| Changes in foreign exchange and other changes | - | - | 6 662 | 6 662 |
| Expected credit losses as at 31.12.24 | 1 592 | 4 117 | 28 996 | 34 704 |
RECONCILIATION OF GROSS LENDING TO CUSTOMERS, BUSINESS LOANS
Q1 2025:
| NOK 1000 | Stage 1 | Stage 2 | Stage 3 | Total |
|---|---|---|---|---|
| Gross carrying amount as at 01.01.25 | 444 886 | 11 738 | 5 385 | 462 009 |
| Transfers in Q1 2025: | ||||
| Transfer from stage 1 to stage 2 | -41 848 | 42 387 | - | 539 |
| Transfer from stage 1 to stage 3 | -510 | - | 530 | 20 |
| Transfer from stage 2 to stage 1 | 3 354 | -3 154 | - | 200 |
| Transfer from stage 2 to stage 3 | - | -2 122 | 1 092 | -1 030 |
| Transfer from stage 3 to stage 1 | - | - | - | - |
| Transfer from stage 3 to stage 2 | - | - | - | - |
| New assets | 146 519 | 29 532 | - | 176 051 |
| Assets derecognised | -63 924 | - 1 | -304 | -64 229 |
| Changes in foreign exchange and other changes | 13 324 | -22 | 165 | 13 467 |
| Gross carrying amount as at 31.03.25 | 501 801 | 78 358 | 6 869 | 587 028 |
| Q1 2024: | ||||
|---|---|---|---|---|
| Stage 1 | Stage 2 | Stage 3 | Total | |
| Gross carrying amount as at 01.01.24 | 65 279 | 3 102 | - | 68 382 |
| Transfers in Q1 2024: | ||||
| Transfer from stage 1 to stage 2 | -5 175 | 5 340 | - | 165 |
| Transfer from stage 1 to stage 3 | - 4 | - | 5 | 1 |
| Transfer from stage 2 to stage 1 | 3 195 | -3 075 | - | 120 |
| Transfer from stage 2 to stage 3 | - | - | - | - |
| Transfer from stage 3 to stage 1 | - | - | - | - |
| Transfer from stage 3 to stage 2 | - | - | - | - |
| New assets | 62 786 | 891 | - | 63 677 |
| Assets derecognised | 1 991 | 1 | - | 1 992 |
| Changes in foreign exchange and other changes | -726 | - | - | -726 |
| Gross carrying amount as at 31.03.24 | 127 346 | 6 259 | 5 | 133 610 |
| Stage 1 | Stage 2 | Stage 3 | Total | |
|---|---|---|---|---|
| Gross carrying amount as at 01.01.24 | 65 279 | 3 102 | - | 68 382 |
| Transfers in 2024: | ||||
| Transfer from stage 1 to stage 2 | -3 949 | 4 788 | - | 838 |
| Transfer from stage 1 to stage 3 | -3 641 | - | 3 777 | 136 |
| Transfer from stage 2 to stage 1 | 2 975 | -2 790 | - | 185 |
| Transfer from stage 2 to stage 3 | - | - | - | - |
| Transfer from stage 3 to stage 1 | - | - | - | - |
| Transfer from stage 3 to stage 2 | - | - | - | - |
| New assets | 391 637 | 6 950 | 1 268 | 399 856 |
| Assets derecognised | -14 341 | -312 | - | -14 653 |
| Changes in foreign exchange and other changes | 6 925 | - 0 | 340 | 7 266 |
| Gross carrying amount as at 31.12.24 | 444 886 | 11 738 | 5 385 | 462 009 |
RECONCILIATION OF LOAN LOSS ALLOWANCES, BUSINESS LOANS
Q1 2025:
| NOK 1000 | Stage 1 | Stage 2 | Stage 3 | Total |
|---|---|---|---|---|
| Expected credit losses as at 01.01.25 | 4 997 | 1 148 | 1 415 | 7 561 |
| Transfers in Q1 2025: | ||||
| Transfer from stage 1 to stage 2 | -713 | 1 077 | - | 364 |
| Transfer from stage 1 to stage 3 | - 6 | - | 63 | 57 |
| Transfer from stage 2 to stage 1 | 81 | -320 | - | -239 |
| Transfer from stage 2 to stage 3 | - | -172 | 155 | -16 |
| Transfer from stage 3 to stage 1 | - | - | - | - |
| Transfer from stage 3 to stage 2 | - | - | - | - |
| New assets originated or change in provisions | 2 293 | 225 | - | 2 518 |
| Assets derecognised or change in provisions | -1 072 | -118 | -65 | -1 256 |
| Changes in foreign exchange and other changes | 1 693 | -229 | 787 | 2 251 |
| Expected credit losses as at 31.03.25 | 7 273 | 1 611 | 2 355 | 11 240 |
| Q1 2024: | ||||
|---|---|---|---|---|
| Stage 1 | Stage 2 | Stage 3 | Total | |
| Expected credit losses as at 01.01.24 | 1 349 | 58 | - | 1 408 |
| Transfers in Q1 2024: | ||||
| Transfer from stage 1 to stage 2 | -84 | 167 | - | 82 |
| Transfer from stage 1 to stage 3 | - 1 | - | 1 | - |
| Transfer from stage 2 to stage 1 | 44 | -54 | - | -10 |
| Transfer from stage 2 to stage 3 | - | - 3 | - | - 3 |
| Transfer from stage 3 to stage 1 | - | - | - | - |
| Transfer from stage 3 to stage 2 | - | - | - | - |
| New assets originated or change in provisions | 1 253 | 31 | - | 1 283 |
| Assets derecognised or change in provisions | -212 | 3 | - | -209 |
| Changes in foreign exchange and other changes | 6 | 3 | - | 8 |
| Expected credit losses as at 31.03.24 | 2 355 | 204 | 1 | 2 559 |
| Expected credit losses as at 01.01.24 | 1 349 | 58 | - | 1 408 |
|---|---|---|---|---|
| Transfers in 2024: | - | - | - | - |
| Transfer from stage 1 to stage 2 | -85 | 461 | - | 376 |
| Transfer from stage 1 to stage 3 | -62 | - | 777 | 716 |
| Transfer from stage 2 to stage 1 | 35 | -50 | - | -15 |
| Transfer from stage 2 to stage 3 | - | - | - | - |
| Transfer from stage 3 to stage 1 | - | - | - | - |
| Transfer from stage 3 to stage 2 | - | - | - | - |
| New assets originated or change in provisions | 4 211 | 687 | 298 | 5 196 |
| Assets derecognised or change in provisions | -333 | - 8 | - | -341 |
| Changes in foreign exchange and other changes | -118 | - 1 | 340 | 221 |
| Expected credit losses as at 31.12.24 | 4 997 | 1 148 | 1 415 | 7 561 |
EXPECTED CREDIT LOSS
Instabank apply the IFRS9 framework and methodology consisting of three stages of impairment when calculating Expected Credit Loss (ECL). The three stages include Stage 1 which consist of nonimpaired exposure, Stage 2 which consist of exposure where credit risk has significantly increased since origination and Stage 3 which consist of observed impairment exposure following a 90 days past due definition. The overall stageing criteria is based on a combination of observed events, past due observations and submodels predicting the probability of default (PD), exposure at default (EAD) and loss given default (LGD). Predictions follow a 12-month accumulation in Stage 1, while Stage 2 and 3 follow a lifetime approach.
SIGNIFICANT INCREASE IN CREDIT RISK
Stage 2 consist of exposure where credit risk has significantly increased since origination following several different criteria's, including early past due observations (30 - 90 days), current forbearance history and increase in probability of default (PD) between origination and the reporting date. The latter predictive model employs historical behavior data in order to predict the probability of default in the next 12 months, where default is defined as 90 days past due. Loans that are more than 90 days past due transfer from Stage 2 to Stage 3. The below table show the trigger thresholds that define a significant increase in PD origination and the reporting date. The thresholds for high and low risk at origination are 4% for Norway Unsecured, 3% for Norway Secured and 7 % for Sweden. In Finland there are three groups with thresholds <5%, >=5% to <12% and >=12% for low, medium and high PD at origination. The thresholds were updated in 2024 due to a new behavior model for secured loans, as well as a recalibration of all of the subgroups. For B2B there is for now one group.
| Mortgages | |||||
|---|---|---|---|---|---|
| Norway | Norway | Finland | Sweden | B2B | |
| Low Risk at origination | 400% and 6pp increase | 650% and 15pp increase | 450% and 15pp increase | 500% and 23pp increase | |
| Medium Risk at origination | 350% and 20pp increase | 200% or 7pp increase | |||
| High Risk at origination | 300% and 8pp increase | 400% and 28pp increase | 250% and 25pp increase | 275% and 30pp increase |
MACROECONOMIC INPUT TO ECL MODEL
Instabank conducts a quarterly expert assessment of how macroeconomic effects impact the bank's loan loss provisions. This assessment uses data from Moody's Analytics Global Macroeconomic Model (GMM) and takes into account indicators such as the "Unemployment Rate" (Labor Force Survey, %), "Interest Rate" (three-month money market rate), and "House Price Index" (nominal index, 2010 = 100). These indicators are used as inputs for the Loss Committee to determine a macro factor for each product area, which is applied to the calculated loan loss provisions. Climate risk is not considered in this assessment.
These indicators have been used as input for determining the macro factor.
| Pessimistic scenario Baseline scenario |
Optimistic scenario | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| NORWAY | 31.12.25 | 31.12.26 | 31.12.27 | 31.12.25 | 31.12.26 | 31.12.27 | 31.12.25 | 31.12.26 | 31.12.27 |
| Unemployment Rate | 3,9 | 4,3 | 4,0 | 3,6 | 3,4 | 3,3 | 3,5 | 3,3 | 3,3 |
| Interest Rate | 1,0 | 1,6 | 2,1 | 4,3 | 3,6 | 3,2 | 4,4 | 3,4 | 3,2 |
| House Price Index | 176,8 | 186,6 | 199,9 | 190,0 | 201,0 | 215,2 | 192,5 | 206,8 | 221,8 |
| Pessimistic scenario | Baseline scenario | Optimistic scenario | |||||||
| FINLAND | 31.12.25 | 31.12.26 | 31.12.27 | 31.12.25 | 31.12.26 | 31.12.27 | 31.12.25 | 31.12.26 | 31.12.27 |
| Unemployment Rate | 8,6 | 8,3 | 7,8 | 7,7 | 7,3 | 6,8 | 6,6 | 6,5 | 6,7 |
| Interest Rate | 0,9 | 0,9 | 0,9 | 2,4 | 2,4 | 2,4 | 2,7 | 2,4 | 2,4 |
| House Price Index | 98,1 | 100,8 | 105,9 | 105,6 | 107,1 | 109,1 | 103,3 | 105,7 | 108,7 |
| Pessimistic scenario | Baseline scenario | Optimistic scenario | |||||||
| SWEDEN | 31.12.25 | 31.12.26 | 31.12.27 | 31.12.25 | 31.12.26 | 31.12.27 | 31.12.25 | 31.12.26 | 31.12.27 |
| Unemployment Rate | 8,9 | 8,6 | 7,7 | 7,7 | 7,3 | 7,0 | 7,5 | 7,0 | 6,8 |
| Interest Rate | 0,7 | 1,6 | 1,6 | 2,4 | 2,5 | 2,5 | 2,7 | 2,5 | 2,5 |
| House Price Index | 181,4 | 189,5 | 198,6 | 194,5 | 204,4 | 214,7 | 197,8 | 210,0 | 220,7 |
The determined macro factor is then multiplied by the calculated loan loss provision. The following macro factors have been applied as of the balance sheet date.
| Mortgages | Business | Unsecured consumer loans | ||||
|---|---|---|---|---|---|---|
| Factors pr. 31.12.2024 | Norway | loans | Norway | Finland | Sweden | |
| Pessimistic Scenario | 1,194 | 1,161 | 1,161 | 1,232 | 1,288 | |
| Baseline Scenario | 1,053 | 1,044 | 1,044 | 1,067 | 1,093 | |
| Optimistic Scenario | 1,026 | 1,013 | 1,013 | 1,031 | 1,084 |
ECL SENSITIVITY BETWEEN MACRO SCENARIOS
The weighting of the scenarios is set at [30 % pessimistic - 40 % baseline - 30 % optimistic] for all portfolios. The indicators from the scenarios reflect the probability of the economy performing worse or better than the projection. For the baseline scenario, the probability that the economy performing better or worse than the projection is both equal at 50 % and is thereby the most likely outcome. For the optimistic scenario, there is a 10 % probability that the economy will perform better than projections and 90 % probability that it will perform worse and vice versa for the pessimistic scenario.
| Mortgages | Business | Unsecured consumer loans | ||||
|---|---|---|---|---|---|---|
| NOK 1000 | Norway | loans | Norway | Finland | Sweden | Total |
| Pessimistic scenario | 42 780 | 12 146 | 85 704 | 122 187 | 32 399 | 295 217 |
| Baseline scenario | 39 151 | 10 983 | 78 754 | 106 381 | 28 327 | 263 597 |
| Optimistic scenario | 38 456 | 10 675 | 76 913 | 102 932 | 28 223 | 257 199 |
| Final ECL | 40 031 | 11 240 | 80 287 | 110 088 | 29 517 | 271 163 |
Note 3: Operating segments
Instabank categorizes the lending portfolio into three segments, unsecured consumer loans, mortgages in Norway and business lending in Norway. Unsecured consumer loans consist of five lending products: Credit cards and sales financing in Norway and consumer loans in Norway, Finland and Sweden. The three segments represent the Bank's focus and are included in reporting to management and the board. There is no significant differentiation in ongoing monitoring, management, and control within the various business segments. The presentations below are based on internal financial reporting. Segment results show revenues and costs that are directly attributable to the segments. Interest costs are calculated based on the gross loan volume for each segment and the bank's deposit rates.
Q1 2025:
| Unsecured | |||||
|---|---|---|---|---|---|
| NOK 1000 | consumer loans | Mortgages Business lending | Not allocated | Total | |
| Interest Income effective interest method | 83 914 | 67 996 | 24 334 | 2 800 | 179 044 |
| Other interest income | - | - | - | 8 164 | 8 164 |
| Interest expenses | 27 005 | 34 143 | 5 870 | 5 021 | 72 039 |
| Net interest income | 56 909 | 33 852 | 18 464 | 5 943 | 115 169 |
| Income commissions and fees | 10 589 | 1 242 | 775 | 27 | 12 633 |
| Expenses commissions and fees | 821 | - | - | - | 821 |
| Net commissions & fees | 9 768 | 1 242 | 775 | 27 | 11 812 |
| Net gains/loss on foreign exchange and securities | |||||
| classified as current assets | - | - | - | 7 546 | 7 546 |
| Total income | 66 677 | 35 095 | 19 239 | 13 516 | 134 527 |
| Salary and other personnel expenses | 1 060 | 2 802 | 1 039 | 20 141 | 25 042 |
| Other administrative expenses, of which: | 11 440 | 2 509 | 3 506 | 12 435 | 29 890 |
| Other expenses | 243 | - | - | 3 359 | 3 602 |
| Depreciation and amortisation | - | - | - | 3 539 | 3 539 |
| Total operating expenses | 12 743 | 5 311 | 4 545 | 39 474 | 62 073 |
| Losses on loans | 32 642 | 5 327 | 3 679 | - | 41 648 |
| Profit before tax | 21 292 | 24 457 | 11 015 | -25 957 | 30 807 |
| Gross loans to customers | 3 311 896 | 3 124 683 | 587 028 | - | 7 023 607 |
| Impairment of loans | -219 893 | -40 031 | -11 240 | - | -271 163 |
| Net loans to customers | 3 092 003 | 3 084 652 | 575 788 | - | 6 752 443 |
Q1 2024
| Unsecured | |||||
|---|---|---|---|---|---|
| NOK 1000 | consumer loans | Mortgages Business lending | Not allocated | Total | |
| Interest Income effective interest method | 99 433 | 57 538 | 5 041 | - | 162 012 |
| Other interest income | - | - | - | 7 301 | 7 301 |
| Interest expenses | 35 870 | 29 373 | 1 136 | 4 935 | 71 314 |
| Net interest income | 63 563 | 28 165 | 3 905 | 2 366 | 97 999 |
| Income commissions and fees | 12 155 | 831 | 165 | 2 743 | 15 894 |
| Expenses commissions and fees | 1 095 | - | - | 0 | 1 096 |
| Net commissions & fees | 11 060 | 831 | 165 | 2 743 | 14 799 |
| Net gains/loss on foreign exchange and securities | |||||
| classified as current assets | - | - | - | 3 730 | 3 730 |
| Total income | 74 623 | 28 996 | 4 070 | 8 839 | 116 528 |
| Salary and other personnel expenses | 1 380 | 2 613 | 966 | 13 848 | 18 807 |
| Other administrative expenses | 9 181 | 1 657 | 1 436 | 9 589 | 21 863 |
| Other expenses | 244 | - | - | 1 902 | 2 146 |
| Depreciation and amortisation | - | - | - | 3 141 | 3 141 |
| Total operating expenses | 10 805 | 4 269 | 2 401 | 28 480 | 45 956 |
| Losses on loans | 38 521 | 6 659 | 1 152 | - | 46 332 |
| Profit before tax | 25 296 | 18 068 | 517 | -19 642 | 24 239 |
| Gross loans to customers | 3 846 357 | 2 615 233 | 133 610 | - | 6 595 200 |
| Impairment of loans | -369 177 | -22 971 | -2 559 | - | -394 707 |
| Net loans to customers | 3 477 180 | 2 592 262 | 131 051 | - | 6 200 493 |
| Unsecured | |||||
|---|---|---|---|---|---|
| NOK 1000 | consumer loans | Mortgages Business lending | Not allocated | Total | |
| Interest Income effective interest method | 390 885 | 251 767 | 44 182 | - | 686 833 |
| Other interest income | 35 516 | 35 516 | |||
| Interest expenses | 134 543 | 126 225 | 9 744 | 24 982 | 295 495 |
| Net interest income | 256 342 | 125 541 | 34 438 | 10 534 | 426 855 |
| Income commissions and fees | 42 642 | 4 605 | 1 211 | 3 970 | 52 428 |
| Expenses commissions and fees | 5 463 | - | - | - | 5 463 |
| Net commissions & fees | 37 180 | 4 605 | 1 211 | 3 970 | 46 965 |
| Net gains/loss on foreign exchange and securities | |||||
| classified as current assets | - | - | - | 18 360 | 18 360 |
| Total income | 293 521 | 130 146 | 35 649 | 32 864 | 492 179 |
| Salary and other personnel expenses | 5 478 | 10 786 | 3 952 | 66 316 | 86 533 |
| Other administrative expenses, of which: | 37 990 | 7 799 | 9 624 | 41 519 | 96 932 |
| Other expenses | 1 071 | - | - | 8 878 | 9 949 |
| Depreciation and amortisation | - | - | - | 13 002 | 13 002 |
| Total operating expenses | 44 539 | 18 585 | 13 576 | 129 716 | 206 416 |
| Losses on loans | 132 513 | 18 489 | 6 313 | - | 157 315 |
| Profit before tax | 116 469 | 93 072 | 15 759 | -96 852 | 128 448 |
| Gross loans to customers | 3 209 173 | 3 018 148 | 462 009 | - | 6 689 330 |
| Impairment of loans | -194 175 | -34 704 | -7 561 | - | -236 440 |
| Net loans to customers | 3 014 998 | 2 983 443 | 454 448 | - | 6 452 890 |
Note 4: Regulatory capital and LCR
| NOK 1000 | 31.03.2025 | 31.03.2024 | 31.12.2024 |
|---|---|---|---|
| Share capital | 378 262 | 378 262 | 378 262 |
| Share premium | 200 430 | 200 430 | 200 430 |
| Other equity | 391 393 | 304 068 | 377 911 |
| Deferred tax asset/intangible assets/other deductions | -67 074 | -32 496 | -34 094 |
| Common equity tier 1 capital | 903 010 | 850 263 | 922 509 |
| Additional tier 1 capital | 85 000 | 80 900 | 85 000 |
| Core capital | 988 010 | 931 163 | 1 007 509 |
| Subordinated loan | 110 000 | 96 000 | 96 000 |
| Total capital | 1 098 010 | 1 027 163 | 1 103 509 |
| Calculation basis: | |||
| Credit risk: | |||
| Institutions | 40 405 | 46 423 | 88 020 |
| Corporates | 436 956 | 98 377 | 344 001 |
| Retail | 2 199 595 | 2 410 280 | 2 150 115 |
| Exposures secured by mortgages | 1 051 602 | 909 071 | 1 043 619 |
| Exposures in default | 407 136 | 455 842 | 364 172 |
| Collective investments undertakings (CIU) | 77 581 | 76 479 | 84 937 |
| Other items | 85 500 | 60 562 | 36 782 |
| Calculation basis credit risk | 4 298 774 | 4 057 033 | 4 111 646 |
| Calculation basis operational risk | 645 423 | 559 889 | 645 423 |
| Calculation basis cva risk | 3 731 | 4 175 | 4 253 |
| Total calculation basis | 4 947 929 | 4 621 097 | 4 761 322 |
| Capital ratios: | |||
| Common equity Tier 1 Capital ratio | 18,3 % | 18,4 % | 19,4 % |
| Tier 1 capital ratio | 20,0 % | 20,2 % | 21,2 % |
| Total capital ratio | 22,2 % | 22,2 % | 23,2 % |
| Regulatory capital requirements: | |||
| Common equity Tier 1 Capital ratio | 16,4 % | 14,7 % | 16,4 % |
| Tier 1 capital ratio | 17,9 % | 17,4 % | 17,9 % |
| Total capital ratio | 19,9 % | 20,9 % | 19,9 % |
| Leverage ratio | 11,9 % | 12,1 % | 12,4 % |
| LCR Total | 242 % | 239 % | 320 % |
| LCR NOK | 320 % | 309 % | 362 % |
| LCR EUR | 170 % | 166 % | 298 % |
Note 5: Financial instruments
FINANCIAL INSTRUMENTS AT FAIR VALUE
Level 1: Valuation based on quoted prices in an active market.
Level 2: Valuation is based on observable market data, other than quoted prices. For derivatives the fair value is determined by using valuation models where the price of underlying factors, such as currencies.
Level 3: Valuation based on unobservable market data when valuation cannot be determined in level 1 or 2.
Assets
| NOK 1000 | 31.03.2025 | 31.03.2024 31.12.2024 | |
|---|---|---|---|
| Certificates and bonds - level 1 | 1 100 694 | 1 013 267 | 1 002 496 |
| Derivatives- level 2 | 342 | 13 166 | 2 326 |
| Shares and other equity instruments - level 3 | 6 000 | 6 000 | 6 000 |
| Liabilities | |||
| NOK 1000 | 31.03.2025 | 31.03.2024 31.12.2024 | |
| Derivatives - level 2 | 15 974 | 2 842 | 3 029 |
FINANCIAL INSTRUMENTS AT AMORTIZED COST
Financial instruments at amortized cost are valued at originally determined cash flows, adjusted for any impairment losses.
| NOK 1000 | 31.03.2025 | 31.03.2024 31.12.2024 | |
|---|---|---|---|
| Loans and deposits with credit institutions | 198 524 | 226 433 | 438 305 |
| Net loans to customers | 6 807 588 | 6 260 957 | 6 500 203 |
| Other receivables | 67 330 | 27 003 | 15 917 |
| Total financial assets at amortised cost | 7 073 442 | 6 514 392 | 6 954 425 |
| Deposits from and debt to customers | 6 930 660 | 6 409 638 | 6 746 553 |
| Other debt | 71 919 | 92 466 | 75 224 |
| Subordinated loans | 110 000 | 96 000 | 96 000 |
| Total financial liabilitiies at amortised cost | 7 112 579 | 6 598 104 | 6 917 777 |
Note 6: Restated financial figures for comparison purposes
In the second quarter of 2024, the bank revised its accounting practices for interest income on securities. Previously, interest income on securities was recorded under "Net gains/loss on foreign exchange and securities classified as current assets". However, starting from Q2 2024, interest income on securities is now recorded under "other interest income". Positive and negative changes in the value of securities are still recorded under "Net gains/loss on foreign exchange and securities classified as current assets". Note that these changes have no impact on the Total Income.
After reclassification:
| NOK 1000 | Q1-2025 | Q1-2024 | YTD 2025 | YTD 2024 | Year 2024 |
|---|---|---|---|---|---|
| Interest Income effective interest method | 179 044 | 162 012 | 179 044 | 162 012 | 686 833 |
| Other interest income | 8 164 | 7 301 | 8 164 | 7 301 | 35 516 |
| Interest expenses | 72 039 | 71 314 | 72 039 | 71 314 | 295 495 |
| Net interest income | 115 169 | 97 999 | 115 169 | 97 999 | 426 855 |
| Income commissions and fees | 12 633 | 15 894 | 12 633 | 15 894 | 52 428 |
| Expenses commissions and fees | 821 | 1 096 | 821 | 1 096 | 5 463 |
| Net gains/loss on foreign exchange and securities | |||||
| classified as current assets | 7 546 | 3 730 | 7 546 | 3 730 | 18 360 |
| Net other income | 19 359 | 18 529 | 19 359 | 18 529 | 65 325 |
| Total income | 134 527 | 116 528 | 134 527 | 116 528 | 492 179 |
Before reclassification:
| NOK 1000 | Q1-2025 | Q1-2024 | YTD 2025 | YTD 2024 | Year 2024 |
|---|---|---|---|---|---|
| Interest Income effective interest method | 179 044 | 162 012 | 179 044 | 162 012 | 686 833 |
| Other interest income | 8 164 | 2 912 | 8 164 | 2 912 | 35 516 |
| Interest expenses | 72 039 | 71 314 | 72 039 | 71 314 | 295 495 |
| Net interest income | 115 169 | 93 610 | 115 169 | 93 610 | 426 855 |
| Income commissions and fees | 12 633 | 15 894 | 12 633 | 15 894 | 52 428 |
| Expenses commissions and fees | 821 | 1 096 | 821 | 1 096 | 5 463 |
| Net gains/loss on foreign exchange and securities | |||||
| classified as current assets | 7 546 | 8 119 | 7 546 | 8 119 | 18 360 |
| Net other income | 19 359 | 22 918 | 19 359 | 22 918 | 65 325 |
| Total income | 134 527 | 116 528 | 134 527 | 116 528 | 492 179 |
Change:
| NOK 1000 | Q1-2025 | Q1-2024 | YTD 2025 | YTD 2024 | Year 2024 |
|---|---|---|---|---|---|
| Interest Income effective interest method | 0 | 0 | 0 | 0 | 0 |
| Other interest income | 0 | 4 389 | 0 | 4 389 | 0 |
| Interest expenses | 0 | 0 | 0 | 0 | 0 |
| Net interest income | 0 | 4 389 | 0 | 4 389 | 0 |
| Income commissions and fees | 0 | 0 | 0 | 0 | 0 |
| Expenses commissions and fees | 0 | 0 | 0 | 0 | 0 |
| Net gains/loss on foreign exchange and securities | |||||
| classified as current assets | 0 | -4 389 | 0 | -4 389 | 0 |
| Net other income | 0 | -4 389 | 0 | -4 389 | 0 |
| Total income | 0 | 0 | 0 | 0 | 0 |
KPMG AS Dronning Eufemias gate 6A 0191 Oslo Postboks 7000 Majorstuen
Telephone +47 45 40 40 63 Fax Internet www.kpmg.no Enterprise 935 174 627 MVA
To the Board of Directors of Instabank ASA
Report on Review of Interim Financial Information
Introduction
We have reviewed the accompanying interim condensed statement of financial position of Instabank ASA as of 31 March 2025, the condensed statements of profit or loss and other comprehensive income and the statement of changes in equity for the three-month period then ended, and a summary of significant accounting policies and other explanatory notes. Management is responsible for the preparation of this interim financial information in accordance with the accounting policies described in note 1. Our responsibility is to express a conclusion on this interim financial information based on our review.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (ISAs), and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial information is not prepared, in all material respects, in accordance with the accounting policies described in note 1.
Oslo, May 8th, 2025
KPMG AS
Anders Sjöström
State Authorized Public Accountant
(This document is signed electronically)
| Oslo | Elverum | Mo i Rana | Stord |
|---|---|---|---|
| Alta | Finnsnes | Molde | Straume |
| Arendal | Hamar | Skien | Tromsø |
| Bergen | Haugesund | Sandefjord | Trondhei |
| Bodø | Knarvik | Sandnessjøen | Tynset |
| Trammen | Kristiansann | Stavannar | Alesund |
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