Morrow Bank ASA

Earnings Release • May 8, 2025

Morrow Bank ASA: Profit up 43% YoY – Raising return target following Swedish banking license – new products to drive growth

Morrow Bank ASA: Profit up 43% YoY – Raising return target following Swedish banking license – new products to drive growth

Morrow Bank, a leading Nordic digital niche bank, delivered another solid quarter with profit before tax of NOK 83.1 million in Q1 2025, up 43% from NOK 58.2 million in Q1 2024.

CEO Øyvind Oanes commented:

“Morrow Bank will become a Swedish bank around year-end, following the granting of our banking license by the Swedish FSA on 1 April 2025. This reflects our Nordic footprint, aligns us with peers and unlocks significant value creation potential. We are raising our mid-term return on target equity (ROTE) target from 12–14% to 15–17% by the end of 2026. Longer term, we see potential for ROTE to exceed 20% as the platform scales.”

Highlights of the quarter:

Solid operational performance

• Gross loans at NOK 15.4 billion, up 26% year-on-year

• Total income increased by 16% to NOK 344 million, with improving net interest margin on performing loans

• Highly competitive cost/income ratio of 27.5% (24.4% excluding redomiciliation-related items)

Improved credit quality and increased profitability

• Loan loss ratio improved for the fifth consecutive quarter, to 4.3% (Q1 2024: 5.2%)

• Profit before tax up 43% to NOK 83.1 million

• Return on equity (ROE) at 10% (7.4%), return on target equity (ROTE) at 10.7% (8.4%)

Strategic progress

• Swedish banking license granted on 1 April 2025

• Redomiciliation and listing on Nasdaq Stockholm around year-end

• Mid-term ROTE target raised to 15–17% by end-2026, driven by lower capital requirements and improved returns

Growth outlook

• Following a stable Q1 after portfolio acquisitions in 2024, new product launches to accelerate organic growth from H2

• Targeting ~5% annualised loan growth and ~23% cost/income ratio by end-2026

Øyvind Oanes added:

“We’re preparing to launch a refinancing product in Norway and an upsell solution in Sweden during Q2, enabling existing customers to increase their loan limits through a simplified process. Further growth, combined with a stable cost base, improved credit metrics, and increased capital generation will position us to deliver higher returns.”

The Q1 2025 report and presentation are attached and available at ir.morrowbank.com.

Investor presentation and Q&A:

CEO Øyvind Oanes and CFO Eirik Holtedahl will present the results today at 08:30 CEST.

Join via Microsoft Teams: https://tinyurl.com/MorrowBankQ12025

For further information, please contact:

Eirik Holtedahl, CFO

tel: +47 96912291

email: ir@morrowbank.com

About Morrow Bank ASA

Morrow Bank is a Nordic niche bank offering personal loans, credit cards and deposit accounts to consumers. The target group is creditworthy individuals with stable personal finances and no payment remarks. Credit risk is managed largely by automated processes for credit assessment and underwriting. The Bank has a diversified and balanced distribution model utilizing both public and proprietary channels. Operational efficiency and low cost are a foundation for Morrow Bank, enabled by centralized operations, modern systems and digital set-up. To learn more, visit ir.morrowbank.com

This information is considered to be inside information pursuant to the EU Market Abuse Regulation article 7 and is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act. This stock exchange announcement was published by Henning Fagerbakke, Head of Finance, Morrow Bank ASA, on Thursday 8 May 2025 at 07:00 CEST.