Qliro

Interim / Quarterly Report • Jul 17, 2024

INTERIM REPORT JANUARY - JUNE 2024

THE QUARTER IN BRIEF APRIL-JUNE 2024 (APRIL-JUNE 2023)

• Total operating income increased by 4 percent to SEK 117.1 million (112.6)
  • Payment Solutions' operating income increased by 8 percent to SEK 101.2 million (93.6)

Year-end Report 2023 |

• Total operating expenses amounted to SEK -82.4 million (-82.5)
• Net credit losses amounted to SEK -29.7 million (-27.3)
• Operating profit increased to SEK 5.0 million (2.8)
  • Payment Solutions' operating profit (pro forma) increased to SEK 0.3 million (-6.0)
• Profit/loss for the period was SEK 3.4 million (0.8)
• Earnings per share before and after dilution amounted to SEK 0.18 (0.04)

THE PERIOD IN BRIEF JANUARY-JUNE 2024 (JANUARY-JUNE 2023)

• Total operating income increased by 6 percent to SEK 233.0 million (219.5)
• Payment Solutions' operating income increased by 10 percent to SEK 200.5 million (182.1)
• Total operating expenses amounted to SEK -161.9 million (-162.5)
• Net credit losses amounted to SEK -60.8 million (-53.1)
• Operating profit increased to SEK 10.3 million (3.9)
• Payment Solutions' operating profit (pro forma) increased to SEK 0.3 million (-12.9)
• Profit/loss for the period was SEK 6.8 million (1.9)
• Earnings per share before and after dilution amounted to SEK 0.35 (0.10)

SIGNIFICANT EVENTS IN THE SECOND QUARTER 2024

• Qliro signed a framework agreement with international enterprise merchant Make Webo with Pay Now volumes of approximately SEK 500 million, and with existing partner iPiccolo regarding the inclusion of more merchants and processing of existing Pay Now volumes within Unified Payments.
• In May, Qliro announced that it had signed over 100 new agreements in 2024, mainly within SME.
• Qliro extended its collaboration with CDON AB through an agreement with CDON's wholly-owned subsidiary Fyndiq AB with volumes of approximately SEK 600 million, as well as extending the agreement with CDON.
• Qliro's CFO Robert Stambro decided to leave his position to accept new challenges outside the company. Mikael Rahm, former CFO of PayEx and others, was appointed Interim CFO.

SIGNIFICANT EVENTS AFTER THE END OF THE PERIOD

• Qliro signed agreements with several new e-merchants expected to process joint total payment volume of more than SEK 500 million annually.
• Qliro signed an agreement relating to the divestment of the company's personal loans portfolio for a purchase consideration of SEK 714 million. According to the contact, the transaction is due to be completed in August. The profit effect of the transaction totals SEK 0-5 million.
• Qliro launched a new app for the leading global e-commerce platform Shopify. The new app enables Nordic merchants to use Qliro's checkout on Shopify's platform in close to 60 countries.

,

"IN TOTAL, WE SIGNED AGREEMENTS WITH MORE THAN 100 NEW MERCHANTS IN THE FIRST HALF OF THE YEAR."

+8% Total Payment Volume growth 1)

+6% Lending growth, Payment Solutions 1)

1) Refers to the second quarter 2024 in comparison with the second quarter 2023

2) Refers to unique consumers that have used Qliro's checkout through the company's merchants in the last 12 months

3) Total payment volume processed in Qliro's checkout, including VAT on direct payments and Qliro's payment products in the second quarter 2024.

COMMERCIAL ACCELERATION AND STREAMLINED CORE OPERATIONS

Qliro continues to strengthen its market position, with clear evidence that our previous commercial efforts are yielding long-term results. Total Payment Volume increased by 8 percent and the number of connected merchants more than doubled in the quarter. The divestment of the consumer loan portfolio within Digital Banking Services improves our capital structure and enables accelerated expansion within Payment Solutions.

Total income increased by 4 percent to SEK 117.1 million, and operating profit improved by SEK 2.2 million year-on-year, to SEK 5.0 million. The Payment Solutions business segment, which reached break-even in Q1 2024, increased operating income by 8 percent to SEK 101.2 million with operating profit of SEK 0.3 million. Progress in the quarter was due to increased interest in our checkout and Pay Later products.

LEADING E-MERCHANTS JOIN QLIRO

In the second quarter 2024 we extended the collaboration with iPiccolo and CDON, which resulted in new agreements with e-merchants Fyndiq and Make Webo. In the quarter we also signed agreements with several well-known brands such as Penstore and C'est Normal. In total, we signed agreements with over 100 new merchants in the quarter. Signed, but not yet onboarded merchants, are expected to increase total payment volume by over 20 percent. The number of connected merchants more than doubled in the quarter, contributing to the increased total payments volume of 8 percent. In addition, our pipeline of new e-merchants continued to grow. At present, we are in talks with several merchants with the potential to significantly contribute to increased total payment volume.

NEW PRODUCT STRATEGY – COMPOSABLE PAYMENTS

For some time now, we have followed a new product strategy based on Composable Payments for increased flexibility and scalability. This involves remodeling Qliro's infrastructure to include modular components that can be combined and integrated according to needs, which improves adaptability. The goal is to optimize e-merchants' ecosystems, which vary depending on the customer, sector and product, in order to offer a world-class experience. To achieve this, we need a modular platform with increased flexibility across all areas, from payment methods and supplier modules to platforms and data flows. During the fall, we look forward to a major product launch based on the new technology.

NEW PLATFORM INTEGRATIONS

As a step towards strengthening our ecosystem, we continue to establish strategic partnerships with relevant e-commerce operators. In the last quarter, we successfully implemented several important integrations with leading e-merchant platforms and services in line with our strategy for Composable Payments. We are pleased to announce that we now collaborate with Shopify, Brink Commerce, NyEhandel and the shipping service Ingrid. In addition to payment cards, Swish, Vipps, Mobilepay and Trustly etc., we also added Apple Pay as a new payment method in the quarter. These partnerships and services enable us to offer our merchants an even more streamlined and efficient payment experience.

IMPROVED CUSTOMER EXPERIENCE

In the quarter, we improved our rating on Trustpilot to 3.8 of 5. In recent years, a number of new initiatives have been introduced aimed at improving the consumer experience, including new functionality that makes it easier to shop online, digitalized communication, personalized product recommendations and improved customer support. However, we are not satisfied and actively work to continue to increase customer satisfaction and exceed our customers' expectations.

DIVESTMENT OF PERSONAL LOAN PORTFOLIO IMPROVES OUTLOOK

After the end of the period, we announced an agreement to divest our personal loan portfolio in Digital Banking Services to Morrow Bank ASA at a premium of 2 percent on lending volumes. The transaction is in line with our strategy of focusing on Payment Solutions, and delivering the market's best experience for merchants and their customer journey. The divestment also strengthens our capital structure and enables accelerated expansion within Payment Solutions.

Over the last 24 months, Qliro has undergone a significant transformation – commercially, technically, organizationally, and financially. This transformation has had a positive impact on both income and expenses, mainly within Payment Solutions, which resulted in the business segment achieving break-even in the first and second quarter of 2024. These developments allow us to concentrate operations and focus on payment solutions that offer a significantly higher return on equity.

According to contract, the transaction is due to be completed in August 2024, which means that we will be winding down the Digital Banking Services segment from the third quarter onwards. We will continue to offer our savings products, which also constitute an important financing source for Payment Solutions. The profit effect from the transaction, after winding down Digital Banking Services, is expected to amount to SEK 0-5 million.

RECRUITMENT PROCESS FOR NEW CFO INITIATED

During the period, Qliro's CFO Robert Stambro decided to leave his position to accept new challenges outside of the company. During his five years as CFO of Qliro, Robert has played a key role in the company's success and made a significant contribution to our current market position. Mikael Rahm, former CFO of PayEx and others, has been appointed Interim CFO from July 20, 2024. The recruitment process to find a permanent replacement has started.

OUTLOOK

The second quarter saw commercial progress and new strategic advances in line with our vision. Looking ahead, we eagerly anticipate the launch in Norway and foresee increased growth through the onboarding of a large number of new merchants in the second half of the year. Given the focus on capitalizing on our positive commercial momentum, we plan to intensify the expansion, which will impact operating profit in the short term. However, we are convinced that this is the right opportunity to increase the pace towards creating long-term growth and profitability.

To conclude, I would like to extend my heartfelt thanks to our merchants, consumers, employees and collaboration partners, who all contribute to Qliro's success in different ways. I wish you all a great summer.

Stockholm, Sweden, July 17, 2024

Christoffer Rutgersson, CEO, Qliro

QLIRO IN BRIEF

Founded in 2014, Qliro is a fintech company that provides online payment solutions to leading e-merchants and their consumers. The offering includes a complete checkout solution optimized for increased sales and profitability. The operations are divided into two complementary business segments: Payment Solutions and Digital Banking Services, where the latter is being wound down after the company signed an agreement relating to the divestment of the personal loan portfolio.

Qliro provides all relevant payment methods and follows the e-merchants on their international expansion journey. Qliro focuses primarily on e-merchants based in the Nordic region where Qliro also offers its own payment methods to consumers: invoicing, part payment and direct payment. Qliro also offers other digital financial services to individuals in Sweden, such as savings accounts and personal loans.

Qliro is a credit market company under the supervision of the Swedish Financial Supervisory Authority. Qliro's registered office is located in Stockholm, Sweden. Qliro's shares are listed on Nasdaq Stockholm under the ticker "Qliro".

QLIRO'S BUSINESS SEGMENTS IN BRIEF

PAYMENT SOLUTIONS

Payment Solutions are offered to e-merchants in the Nordics. The payment solutions include Qliro's Pay Later and Pay Now products for consumers when they buy goods and services online. The offering included in Pay Later comprises invoices, buy-now-pay-later (BNPL) products and various types of part payments. Qliro's payment solution Pay Now includes a range of payment methods offered through partnerships, such as card payments, direct bank transfers, Swish, Apple Pay, Vipps, Mobilpay, iDeal and Paypal. Qliro has the capacity to handle payments on more than 30 markets and the checkout solution is available in eight languages.

The number of unique consumers that used Qliro's checkout through the company's merchants in the last 12 months was 5.7 million.

Qliro's income is mainly generated through interest and fees associated with Pay Later products. The average credit is low and the maturity is short.

DIGITAL BANKING SERVICES

Digital Banking Services comprise the services offered on Qliro's digital platforms in addition to the payment products from Payment Solutions. The business area is being wound down after Qliro signed an agreement with Morrow Bank on July 4 relating to the divestment of the company's personal loan portfolio. The transaction is due to be completed in August 2024.

KEY PERFORMANCE MEASURES

SEK million unless otherwise stated	2024 Apr-Jun	2023 Apr-Jun	% ∆	2024 Jan–Jun	2023 Jan–Jun	% ∆	2023 Jan-Dec
Income statement
Total operating income 1) 5)	117.1	112.6	4%	233.0	219.5	6%	448.5
Total expenses before credit losses 1)	–82.4	–82.5	0%	–161.9	–162.5	0%	–318.6
of which depreciation	–17.3	–17.6	–2%	–34.4	–35.5	–3%	–73.1
Total expenses before credit losses adjusted for items affecting comparability	–82.4	–82.5	0%	–161.9	–162.5	0%	–316.4
Net credit losses5)	–29.7	–27.3	9%	–60.8	–53.1	15%	–121.7
Operating profit1)	5.0	2.8	79%	10.3	3.9	165%	8.2
Operating profit/loss adjusted for items affecting com parability1)	5.0	2.8	79%	10.3	3.9	165%	10.4
Profit/loss for the period	3.4	0.8	310%	6.8	1.9	257%	4.1
Profit/loss for the period adjusted for items affecting comparability	3.4	0.8	310%	6.8	1.9	257%	5.9
Earnings per share before dilution, SEK	0.18	0.04	310%	0.35	0.10	257%	0.22
Earnings per share after dilution, SEK	0.18	0.04	310%	0.35	0.10	257%	0.22
Balance Sheet
Lending to the public 1)	2,507	2,475	1%	2,507	2,475	1%	2,612
of which Payment Solutions4)	1,767	1,660	6%	1,767	1,660	6%	1,839
of which Digital Banking Services4)	740	816	–9%	740	816	–9%	774
Deposits from the public	2,709	2,772	–2%	2,709	2,772	–2%	2,951
Key performance measures
Payments Take-Rate (% Total operating income in rela tion to total payment volume)1)5)	3.3%	3.3%	0%	3.5%	3.3%	6%	3.2%
Total operating income margin, %1) 5)	18.6%	18.2%	2%	18.2%	17.0%	7%	16.9%
Credit loss level, (%)1)5)	4.7%	4.4%	7%	4.8%	4.1%	16%	4.6%
Cost/income ratio, %1) 5)	70.4%	73.3%	–4%	69.5%	74.0%	–6%	71.0%
Return on equity (%)1)	2.8%	0.7%	298%	2.8%	0.8%	248%	0.9%
CET 1 capital ratio, %3)	15.6%	13.9%	12%	15.6%	13.9%	12%	15.6%
Total capital Ratio, %3)	19.8%	18.2%	9%	19.8%	18.2%	9%	19.7%
Liquidity coverage ratio (LCR), % 3)	223%	228%	–2%	223%	228%	–2%	508%
Total payment volume2)	3,030	2,799	8%	5,767	5,535	4%	11,868
of which Pay Now volume 2)	1,706	1,351	26%	3,131	2,677	17%	5,831
of which Pay Later volume 2)	1,324	1,448	–9%	2,636	2,858	–8%	6,037
BNPL volume2)	578	563	3%	1,152	1,112	4%	2,436
Invoice volume2)	745	885	–16%	1,484	1,746	–15%	3,601
Pay Now transactions2)	2,364	1,954	21%	4,484	3,947	14%	8,585
Pay Later transactions2)	1,252	1,438	–13%	2,585	2,918	–11%	6,112
Average order value2)	838	825	2%	816	806	1%	808
Average order value, Pay Now 2)	722	691	4%	698	678	3%	679
Average order value, Pay Later 2)	1,057	1,007	5%	1,020	979	4%	988
Number of connected merchants2)	139	65	114%	139	65	114%	75
Average number of employees2)	218	186	17%	211	180	17%	188

1) Alternative performance measures that management and analysts use to evaluate the company's development, which are not specified or defined in IFRS or other applicable regulations. For definition and reconciliation tables see pages 27–30.

2) Operating performance measures. For definitions see page 28.

3) Other key performance measures. For definitions see page 28.

4) When preparing the Annual Report, it was noted that volumes of lending to the public had been incorrectly allocated between two segments since Q2 2023. This related to a total amount of SEK 13.5 million. As the change only represents an adjustment between segments, the amount has been adjusted in the Annual Report but no correction has been made to previously published quarterly reports as the difference is not material and only affects KPIs in the segments marginally.

FINANCIAL PERFORMANCE

THE SECOND QUARTER 2024 COMPARED WITH THE SECOND QUARTER 2023

OPERATING INCOME

Total operating income increased by 4 percent to SEK 117.1 million (112.6). The increase was driven by growing interest in Qliro's payment products and increased lending to the public.

Net interest income decreased by 4 percent to SEK 65.7 million (68.1), where interest income increased to SEK 98.3 million (91.3) and interest expenses to SEK -32.6 million (-23.2). Interest income increased due to growing interest in the company's BNPL products. Interest expenses increased as a result of higher funding costs on the market.

Net commission income increased by 13 percent to SEK 50.5 million (44.5), driven by growing interest in Unified Payments in combination with more consumers using Qliro's Pay Later products.

Net gains and losses on financial transactions amounted to SEK -0.1 million (–0.2).

OPERATING EXPENSES

Operating expenses remained essentially unchanged, amounting to SEK -82.4 million (-82.5).

General administrative expenses, comprising consultancy and IT expenses, increased to -60.4 million (–57.9), mainly due to increased personnel and licensing costs.

Other operating expenses decreased to SEK –4.7 million (–7.0) due to VAT correction and lower marketing costs.

Depreciation, amortization and impairment fell by 2 percent to SEK -17.3 million (-17.6) and primarily related to amortization of previously capitalized development expenses for e-merchant payment solutions, as well as consumer products, website and app solutions.

CREDIT LOSSES

Net credit losses amounted to SEK –29.7 million (–27.3) due to a changed customer and product mix. It is worth noting that credit losses in nominal terms returned slower growth than the company's income. Credit losses in Digital Banking Services decreased as a result of reduced inflow of new loan volumes and an improved lending process.

PROFIT/LOSS FOR THE PERIOD

Operating profit amounted to SEK 5.0 million (2.8), driven by increased income, primarily in Payment Solutions.

Income tax expense for the period of SEK -1.7 million in relation to operating profit of SEK 5.0 million, was due to interest on subordinated debt of SEK 2.7 million not being tax-deductible, which had a tax impact of SEK 0.6 million.

Profit/loss for the period amounted to SEK 3.4 million (0.8).

FINANCIAL PERFORMANCE

FIRST HALF-YEAR 2024 COMPARED TO FIRST HALF-YEAR 2023

OPERATING INCOME

Total operating income increased by 6 percent to SEK 233.0 million (219.5). The increase was driven by growing interest in Qliro's payment products and increased lending to the public.

Net interest income decreased by 1 percent to SEK 131.0 million (131.8), where interest income increased to SEK 194.7 million (174.0) and interest expenses to SEK -63.7 million (-42.3). Interest income increased as a result of growing interest in the company's BNPL products, which benefits invoicing, and due to an earlier interest adjustment to customers. Interest expenses increased as a result of higher funding costs on the market.

Net commission income increased by 14 percent to SEK 101.3 million (89.1), driven by growing interest in Unified Payments in combination with more consumers using Qliro's Pay Later products.

Net gains and losses on financial transactions amounted to SEK -0.5 million (–1.6).

OPERATING EXPENSES

Operating expenses decreased to SEK -161.9 million (-162.5). General administrative expenses, comprising consultancy and IT expenses, increased to -116.2 million (–114.5), mainly due to higher licensing and personnel costs.

Other operating expenses decreased to SEK –11.3 million (–12.5) due to VAT correction and lower marketing costs. Depreciation, amortization and impairment fell by 3 percent to SEK -34.4 million (-35.5) and primarily related to amortization of previously capitalized development expenses for e-merchant payment solutions, as well as consumer products, website and app solutions.

CREDIT LOSSES

Net credit losses amounted to SEK –60.8 million (–53.1) due to a changed customer and product mix. It is worth noting that credit losses in nominal terms returned slower growth than the company's income. Credit losses in Digital Banking Services decreased as a result of reduced inflow of new loan volumes. In the first half-year, the company reduced its loss provisions by SEK 2.3 million in accordance with IFRS 9 as a result of the improved macroeconomic outlook.

PROFIT/LOSS FOR THE PERIOD

Operating profit amounted to SEK 10.3 million (3.9) as a result of increased income in combination with higher capitalized development costs. In addition to direct costs for employees and consultants, from the first quarter 2024 the company also includes direct costs for IT systems and rent related to development projects in the calculations of capitalized expenses. This change had a positive impact on operating profit of SEK 3.4 million in the first half-year.

Income tax expense for the period of SEK -3.5 million in relation to operating profit of SEK 10.3 million, was due to interest on subordinated debt of SEK 5.4 million not being tax-deductible, which had a tax impact of SEK 1.1 million. Profit/loss for the period amounted to SEK 6.8 million (1.9).

BUSINESS SEGMENT

PAYMENT SOLUTIONS

Comparisons with the second quarter 2023 unless otherwise indicated.

ABOUT THE BUSINESS AREA

Qliro offers digital payment solutions to e-merchants in the Nordics. Qliro's checkout is provided both for web and app use, and includes relevant payment methods for direct payments through Pay Now as well as Qliro's own payment methods through Pay Later functionality. Income is mainly generated by offering deferred payment for online purchases (Pay Later), e.g. via invoice, "buy now pay in x months", and various forms of partial payments. When new merchants join the platform, Qliro's total payment volumes increase, which gradually drives growth in the loan portfolio and generates interest income over time.

Qliro's payment solution includes all relevant payment methods for direct payments, referred to as Pay Now. Other payment methods offered in Pay Now include card payment, direct bank transfer, mobile payment through Swish, Apple Pay, Vipps and Mobilpay, and payment via PayPal and iDeal.

At the end of the second quarter, the number of connected e-merchants on Qliro's platform was 139 (65), an increase of 114 percent year-on-year.

UNIFIED PAYMENTS

Unified Payments is Qliro's complete offering in payment solutions for e-merchants. The service collates different payment methods and involves Qliro acting as an intermediary between e-merchants and payment solution providers, handling payment flows and related processes. This means that Unified Payments simplifies administration and reporting, as well as ensuring a faster onboarding process for new merchants.

Unified Payments supports Apple Pay since the second quarter of 2024, as well as card payments, Swish, Trustly and MobilePay and all Nordic currencies. At the end of the quarter, over 30 percent of Pay Now volumes were processed in Unified Payments.

PAYMENT SOLUTIONS

SEK million unless otherwise stated	2024 Apr-Jun	2023 Apr-Jun	% ∆	2024 Jan–Jun	2023 Jan–Jun	% ∆	2023 Jan-Dec
Net interest income	50.1	49.1	2%	98.9	94.5	5%	198.5
Net commission income1)	50.2	44.3	13%	100.8	88.8	13%	176.3
Operating income	101.2	93.6	8%	200.5	182.1	10%	374.6
Credit losses1)	–24.4	–20.1	22%	–48.3	–38.4	26%	–92.6
Operating income after credit losses1)	76.8	73.5	5%	152.2	143.7	6%	282.0
Lending to the public 2)	1,767	1,660	6%	1,767	1,660	6%	1,839
Total payment volume	3,030	2,799	8%	5,767	5,535	4%	11,868
of which Pay Now, volume	1,706	1,351	26%	3,131	2,677	17%	5,831
of which Pay Later, volume	1,324	1,448	–9%	2,636	2,858	–8%	6,037
BNPL volume	578	563	3%	1,152	1,112	4%	2,436
Invoice volume	745	885	–16%	1,484	1,746	–15%	3,601
Payments Take-Rate (%Total income in relation to total payment volume)1)	3.3%	3.3%	0%	3.5%	3.3%	6%	3.2%
Credit losses, %, in relation to Pay Later volume1)	1.8%	1.4%	33%	1.8%	1.3%	36%	1.5%
Average order value, Pay Now 2)	722	691	4%	698	678	3%	679
Average order value, Pay Later1,2)	1,057	1,007	5%	1,020	979	4%	988
Number of connected merchants	139	65	114%	139	65	114%	75

1) Key figures from the previous year have been recalculated, see Note 1, p.18.

2) When preparing the Annual Report, it was noted that volumes of lending to the public had been incorrectly allocated between two segments since Q2 2023. This related to a total amount of SEK 13.5 million. As the change only represents an adjustment between segments, the amount has been adjusted in the Annual Report but no correction has been made to previously published quarterly reports as the difference is not material and only affects KPIs in the segments marginally.

INCREASED OPERATING INCOME

Payment Solutions' operating income increased by 8 percent to SEK 101.2 million (93.6) following growing interest in Qliro's flexible payment products. Net interest income increased by 2 percent to SEK 50.1 million (49.1). Net commission income increased by 13 percent to SEK 50.2 million (44.3) driven by higher total payment volume. Credit losses amounted to SEK –24.4 million (–20.1) due to a changed product and customer mix. For Pay Later volumes, credit losses amounted to 1.8 percent (1.3), in line with the trend in the previous two quarters.

BNPL VOLUME GROWTH AND INCREASED LENDING DRIVE INCOME

Qliro's total payment volume in the quarter increased by 8 percent year-on-year, and totaled SEK 3,030 million (2,799). Qliro's Pay Now volume increased by 26 percent to SEK 1,706 million. BNPL volumes increased by 3 percent, while total Pay Later volumes decreased by 9 percent to SEK 1,324 million due to lower invoice volumes. The loan book grew by 6 percent during the quarter to SEK 1,767 million.

BUSINESS SEGMENT

DIGITAL BANKING SERVICES

Comparisons with the second quarter 2023 unless otherwise indicated.

DIGITAL OFFERING FOR EXISTING CUSTOMERS

Within Digital Banking Services, Qliro offers personal loans and savings accounts to individuals. Qliro's app makes it easy to manage payments, loans and savings.

On July 4, 2024, Qliro signed an agreement relating to the divestment of the company's personal loan portfolio. According to contract, the transaction is due to be completed in August 2024, when Digital Banking Services will be wound down as a business segment. The company's savings products will remain part of Qliro's product offering after the transaction.

LENDING DECREASES AFTER REDUCED MARKETING INITIATIVES

Lending in the business segment decreased by 9 percent to SEK 740 million (816) while net interest income decreased by 17 percent to SEK 15.6 million (18.9). This was due to less intensive marketing of the business segment's digital banking services. The income margin decreased to 8.5 percent (9.1) in the quarter.

LOWER CREDIT LOSSES IN THE QUARTER

Credit losses were SEK -5.3 million (-7.2) in the quarter, a decrease of 27 percent year-on-year as a result of reduced inflow of new loan volumes and an improved lending process. Credit losses in relation to average lending amounted to 2.8 percent (3.5), a reduction of 19 percent year-on-year.

DIGITAL BANKING SERVICES

SEK million unless otherwise stated	2024 Apr-Jun	2023 Apr-Jun	% ∆	2024 Jan–Jun	2023 Jan–Jun	% ∆	2023 Jan-Dec
Net interest income	15.6	18.9	–17%	32.1	37.3	–14%	73.5
Operating income	15.9	19.0	–16%	32.5	37.5	–13%	73.9
Credit losses	–5.3	–7.2	–27%	–12.5	–14.7	–15%	–29.0
Operating income after credit losses	10.6	11.8	–10%	20.0	22.8	–12%	44.8
Lending to the public 1)	740	816	–9%	740	816	–9%	787
Credit loss level,%, in relation to average lending	2.8%	3.5%	–19%	3.3%	3.5%	–5%	3.5%

1) When preparing the Annual Report, it was noted that volumes of lending to the public had been incorrectly allocated between two segments since Q2 2023. This related to a total amount of SEK 13.5 million. As the change only represents an adjustment between segments, the amount has been adjusted in the Annual Report but no correction has been made to previously published quarterly reports as the difference is not material and only affects KPIs in the segments marginally.

CAPITAL, FUNDING AND LIQUIDITY

QLIRO IS WELL-CAPITALIZED

Qliro AB's own funds (see Note 9 Capital adequacy) increased to SEK 471 million (423). In addition to Common Equity Tier 1 capital, own funds comprise SEK 100 million in subordinated Tier 2 capital in the form of a subordinated bond issued in 2019.

The risk exposure amount increased slightly to SEK 2,375 million (2,324) due to marginally lower lending in year-onyear terms.

Qliro is well-capitalized and the total capital ratio was 19.8 percent (18.2), compared with the regulatory requirement of 13.7 percent, and the Common Equity Tier 1 capital ratio was 15.6 percent (13.9), compared with the regulatory requirement of 9.6 percent.

Qliro's leverage ratio was 11.7 percent.

DIVERSIFIED FUNDING PLATFORM

In addition to equity, lending to the public was funded by SEK 2,709 million (2,772) in deposits from the public (savings accounts) in Sweden and Germany. Deposits from the public are a flexible and functional form of funding given Qliro's lending, which largely comprises small loans of short duration.

Qliro offers savings accounts to consumers in Sweden and a deposit offering in EUR in Germany in partnership with the open banking platform Raisin.

At the end of the quarter, deposits in Sweden amounted to SEK 2,353 million (2,230) and deposits in Germany to SEK 356 million (543).

QLIRO HAS SOLID LIQUIDITY

Qliro has solid liquidity and as of June 30, 2024 Qliro's cash and cash equivalents amounted to SEK 550 million (686).

The liquidity portfolio is invested with Nordic banks and other liquid investments such as Swedish municipal bonds and commercial paper with a minimum rating of AA.

The Liquidity Coverage Ratio (LCR) as of June 30, 2024 was 223 percent, compared with the legal requirement of 100 percent.

The net stable funding ratio (NSFR) was 126 percent.

OTHER INFORMATION

EMPLOYEES

The average number of employees was 218 in the second quarter 2024.

SEASONAL EFFECTS

Qliro's Pay Later volumes have historically fluctuated between quarters. For example, Qliro has experienced higher volumes in the fourth quarter due to Black Friday and Christmas shopping through Qliro's merchants' web stores. Conversely, volumes are normally lower in the first and third quarter compared to the fourth quarter. The seasonally strong volumes in the fourth quarter usually result in increased income at the beginning of the year when invoices, to some extent, are converted to flexible part payments and BNPL campaigns, to some extent, are converted to interest-bearing credits.

QLIRO'S TOP 10 SHAREHOLDERS AS OF JUNE 30, 2024 Proportion of capital

• 1. Rite Ventures 25.5%
• 1. Avanza Pension 9.7%
• 1. Mandatum Life Insurance Company 9.2%
• 1. Nordnet pensionsförsäkring 4.5%
• 1. Staffan Persson 4.4%
• 1. Christoffer Rutgersson 4.2 %
• 1. Patrik Enblad 3.1%
• 1. Thomas Krishan 3.1%
• 1. Peter Lindell 2.4%
• 1. Mikael Kjellman 1.6%

Source: Monitor by Modular Finance. Compiled and processed data from Euroclear, Morningstar and the Swedish FSA, among others.

QLIRO'S SHARES AND SHARE CAPITAL

The company's registered share capital as of June 30, 2024 was SEK 53,608,702 distributed over 19,145,965 shares with a quotient value of SEK 2.8 per share.

The share price as of June 28, 2024 was SEK 24.85.

TRANSACTIONS WITH RELATED PARTIES

Transactions with related parties are of the same character as described in the Annual Report for 2023, which was published on April 19, 2024.

SIGNIFICANT RISKS AND UNCERTAINTIES

Qliro's operations entail daily risks that are measured, controlled and, when necessary, mitigated to protect the company's capital and reputation. The most prominent risks are credit risk, business risk/strategic risk, operational risk, currency risk, interest rate risk and liquidity risk. Qliro's annual report for 2023, published on April 19, 2024, and Qliro's prospectus, dated September 28, 2020, which was released prior to the listing of Qliro's shares for trading on Nasdaq Stockholm, contain a detailed description of the company's risk exposures and risk management.

The last few years' challenging macroeconomic conditions in the form of higher interest rates, rising inflation and increased energy prices, could have a negative impact on consumer demand and consumers' ability to pay their debts. Qliro cannot currently see any discernible effect on the company's income or underlying credit losses.

DIVESTMENT OF THE PRIVATE LOANS PORTFOLIO

On July 4, 2024, Qliro signed an agreement relating to the divestment of the company's personal loans portfolio. According to contract, the transaction is due to be completed in August 2024. The press release announcing the transaction, presented illustrative proforma figures for the financial years 2022 and 2023, and for the first quarter 2024, that indicate the Income Statement for the divested operations (Digital Banking Services) and the remaining operations (Payment Solutions) had they been reported as separate entities. An updated table including proforma figures for the second quarter 2024 follows.

Q2 2024

SEK m	Remaining part, Payment Solutions	Divested part, Digital Banking Services	Qliro
Interest income	72.9	25.5	98.3
Interest expenses	–22.8	–9.8	–32.6
Net commission income	50.2	0.3	50.5
Net profit/loss from financial transactions	–0.1	–	–0.1
Other operating income	1.1	–	1.1
Total operating income	101.2	15.9	117.1
Net credit losses	–24.4	–5.3	–29.7
Total operating income less credit losses	76.8	10.6	87.5
Operating expenses	–76.6	–5.9	–82.4
Operating expenses excl. items affecting comparability	0.3	4.8	5.0

FINANCIAL STATEMENTS

CONSOLIDATED INCOME STATEMENT

SEK million	Note	2024 Apr-Jun	2023 Apr-Jun	2024 Jan–Jun	2023 Jan–Jun
Interest income		98.3	91.3	194.7	174.0
Interest expenses		–32.6	–23.2	–63.7	–42.3
Net interest income	2	65.7	68.1	131.0	131.8
Commission income1)	3	53.1	46.5	105.5	93.2
Commission expenses	3	–2.6	–2.0	–4.2	–4.1
Net profit/loss from financial transactions		–0.1	–0.2	–0.5	–1.6
Other operating income		1.1	0.2	1.2	0.2
Total operating income		117.1	112.6	233.0	219.5
General administrative expenses		–60.4	–57.9	–116.2	–114.5
Depreciation/amortization and impairment of property, plant and equipment and intangible assets		–17.3	–17.6	–34.4	–35.5
Other operating expenses		–4.7	–7.0	–11.3	–12.5
Total expenses before credit losses		–82.4	–82.5	–161.9	–162.5
Profit/loss before credit losses		34.7	30.1	71.1	57.0
Net credit losses1)	4	–29.7	–27.3	–60.8	–53.1
Operating profit		5.0	2.8	10.3	3.9
Income tax expense		–1.7	–2.0	–3.5	–2.0
Profit/loss for the period		3.4	0.8	6.8	1.9
Earnings per share before dilution		0.18	0.04	0.35	0.10
Earnings per share after dilution		0.18	0.04	0.35	0.10
Average number of shares before dilution, thousands		19,073	19,073	19,073	19,073
Average number of shares after dilution, thousands		19,080	19,073	19,080	19,073

1) In Q3 2023, debt collection commission was reclassified from commission income to credit loss, which means that comparable figures have been adjusted. For Jan-Jun 2023 the amount was SEK 11.9 million and for Q2 2023 SEK 5.2 million. See Note 1, page 19.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

SEK million	2024 Apr-Jun	2023 Apr-Jun	2024 Jan–Jun	2023 Jan–Jun
Profit/loss for the period	3.4	0.8	6.8	1.9
Other comprehensive income
Items that can be reversed to the income statement
Financial assets recognized at fair value through other comprehensive income (net of tax)	–0.2	0.2	–0.2	–0.4
Other comprehensive income for the period	–0.2	0.2	–0.2	–0.4
Comprehensive income for the period1)	3.2	1.0	6.6	1.5

1) The full amount is due to Parent Company shareholders.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

SEK million	Note	06/30/2024	06/30/2023	12/31/2023
Assets
Lending to credit institutions		119.3	477.9	101.0
Lending to the public	5	2,506.9	2,475.4	2,612.5
Bonds and other fixed-income securities		434.3	211.2	616.1
Intangible assets		235.1	184.8	198.7
Property, plant and equipment		13.1	26.3	16.8
Deferred tax assets		52.5	58.3	56.0
Other assets		69.4	60.1	61.7
Derivatives		0.4	–	–
Prepaid expenses and accrued income		28.0	19.0	32.1
Total assets		3,459.2	3,512.8	3,694.9
Liabilities and Equity
Liabilities
Deposits and borrowing from the public	6	2,709.1	2,772.0	2,950.9
Other liabilities		105.7	97.0	106.0
Derivatives		–	2.1	0.4
Accrued expenses and deferred income		57.0	69.4	57.4
Subordinated liabilities		100.0	100.0	100.0
Total liabilities		2,971.8	3,040.4	3,214.7
Equity
Share capital		53.6	53.4	53.4
Reserves		–4.2	–4.2	–4.0
Retained profit or loss		431.2	421.4	426.7
Profit/loss for the year		6.8	1.9	4.1
Total equity		487.4	472.5	480.2
Total liabilities and equity		3,459.2	3,512.8	3,694.9

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

SEK million	2024 Apr-Jun	2023 Apr-Jun	2024 Jan–Jun	2023 Jan–Jun
Opening balance	484.3	471.4	480.2	470.5
Profit/loss for the period	3.4	0.8	6.8	1.9
Other comprehensive income for the period	–0.2	0.2	–0.2	–0.4
New issue of shares	1.7	–	1.7	–
Issue of warrants	0.5	–	0.5	0.4
Share-based remuneration	–2.3	–	–1.6	–
Closing balance	487.4	472.5	487.4	472.5

CONSOLIDATED CASH FLOW STATEMENT

SEK million	2024 Apr-Jun	2023 Apr-Jun	2024 Jan–Jun	2023 Jan–Jun
Operating activities
Operating profit	5.0	2.8	10.3	3.9
Adjustments	37.5	35.5	87.3	78.5
Changes in the assets and liabilities of operating activities	–62.4	119.5	–12.3	–453.6
Cash flow from operating activities	–19.9	157.7	85.3	–371.2
Investing activities
Acquisition of property, plant and equipment	–0.7	–0.3	–0.8	–0.8
Acquisition of intangible assets	–34.2	–25.7	–66.3	–47.1
Cash flow from investing activities	–34.8	–26.0	–67.1	–47.9
Financing activities
Amortization lease	–1.4	–2.3	–2.8	–2.8
Issue of warrants	0.5	–	0.5	0.4
New issue of shares	1.7	–	1.7	–
Cash flow from financing activities	0.8	–2.3	–0.6	–2.4
Cash flow for the period	–54.0	129.4	17.6	–421.5
Cash and cash equivalents at the beginning of the period	173.5	349.6	101.0	900.6
Exchange rate differences in cash and cash equivalents	–0.2	–1.1	0.7	–1.2
Cash flow for the period	–54.0	129.4	17.6	–421.5
Cash and cash equivalents at the end of the period	119.3	477.9	119.3	477.9

PARENT COMPANY INCOME STATEMENT

SEK million Note	2024 Apr-Jun	2023 Apr-Jun	2024 Jan–Jun	2023 Jan–Jun
Interest income	98.3	91.3	194.7	174.0
Interest expenses	–32.5	–23.1	–63.6	–42.1
Net interest income 2	65.8	68.2	131.1	132.0
Commission income1)	53.1 3	46.5	105.5	93.2
Commission expenses	–2.6 3	–2.0	–4.2	–4.1
Net profit/loss from financial transactions	–0.1	–0.2	–0.5	–1.6
Other operating income	1.1	0.2	1.2	0.2
Total operating income	117.2	112.7	233.1	219.7
General administrative expenses	–61.8	–59.3	–119.0	–117.3
Depreciation/amortization and impairment of property, plant and equipment and intangible assets	–16.0	–16.3	–31.7	–32.8
Other operating expenses	–4.7	–7.0	–11.3	–12.5
Total expenses before credit losses	–82.5	–82.5	–162.0	–162.6
Profit/loss before credit losses	34.7	30.1	71.2	57.1
Net credit losses1)	–29.7 4	–27.3	–60.8	–53.1
Operating profit	5.0	2.9	10.3	4.0
Income tax expense	–1.7	–2.0	–3.5	–2.0
Profit/loss for the period	3.4	0.9	6.8	2.0

1) In Q3 2023, debt collection commission was reclassified from commission income to credit loss, which means that comparable figures have been adjusted. For Jan-Jun 2023 the amount was SEK 11.9 million and for Q2 2023 SEK 5.2 million. See Note 1, page 19.

PARENT COMPANY STATEMENT OF COMPREHENSIVE INCOME

SEK million	2024 Apr-Jun	2023 Apr-Jun	2024 Jan–Jun	2023 Jan–Jun
Profit/loss for the period	3.4	0.9	6.8	2.0
Other comprehensive income
Items that can be reversed to the income statement
Financial assets recognized at fair value through other comprehensive income (net of tax)	–0.2	0.2	–0.2	–0.4
Other comprehensive income for the period	–0.2	0.2	–0.2	–0.4
Comprehensive income for the period	3.2	1.0	6.6	1.6

PARENT COMPANY STATEMENT OF FINANCIAL POSITION

SEK million	Note	06/30/2024	06/30/2023	12/31/2023
Assets
Lending to credit institutions		115.9	474.9	98.0
Lending to the public	5	2,506.9	2,475.4	2,612.5
Bonds and other fixed-income securities		434.3	211.2	616.1
Shares and units		0.1	0.1	0.1
Intangible assets		235.1	184.8	198.7
Property, plant and equipment		5.1	6.9	6.1
Deferred tax assets		52.7	58.3	56.2
Other assets		72.8	63.0	64.6
Derivatives		0.4	–	–
Prepaid expenses and accrued income		29.4	20.4	33.5
Total assets		3,452.7	3,494.9	3,685.8
Liabilities and equity
Liabilities
Deposits and borrowing from the public	6	2,709.1	2,772.0	2,950.9
Other liabilities		99.0	78.1	96.5
Derivatives		–	2.1	0.4
Accrued expenses and deferred income		57.0	69.4	57.4
Subordinated liabilities		100.0	100.0	100.0
Total liabilities		2,965.0	3,021.6	3,205.3
Equity
Restricted equity
Share capital		53.6	53.4	53.4
Reserve for development costs		235.1	144.8	164.1
Total restricted equity		288.7	198.2	217.5
Non-restricted equity
Reserves		–4.2	–4.2	–4.0
Share premium reserve		23.7	19.6	21.7
Retained profit or loss		172.7	257.8	241.8
Profit/loss for the year		6.8	2.0	3.5
Total non-restricted equity		199.0	275.1	263.1
Total equity		487.7	473.3	480.6
Total liabilities and equity		3,452.7	3,494.9	3,685.8

PARENT COMPANY STATEMENT OF CHANGES IN EQUITY

SEK million	2024 Apr-Jun	2023 Apr-Jun	2024 Jan–Jun	2023 Jan–Jun
Opening balance	484.7	472.3	480.6	471.3
Profit/loss for the period	3.4	0.9	6.8	2.0
Other comprehensive income for the period	–0.2	0.2	–0.2	–0.4
New issue of shares	1.7	–	1.7	–
Issue of warrants	0.5	–	0.5	0.4
Share-based remuneration	–2.3	–	–1.6	–
Closing balance	487.7	473.3	487.7	473.3

PARENT COMPANY CASH FLOW STATEMENT

SEK million	2024 Apr-Jun	2023 Apr-Jun	2024 Jan–Jun	2023 Jan–Jun
Operating activities
Operating profit	5.0	2.9	10.3	4.0
Adjustments	36.1	33.1	84.5	75.7
Changes in the assets and liabilities of operating activities	–62.9	119.1	–12.8	–454.0
Cash flow from operating activities	–21.7	155.0	82.1	–374.4
Investing activities
Acquisition of property, plant and equipment	–0.7	–0.3	–0.8	–0.8
Acquisition of intangible assets	–34.2	–25.7	–66.3	–47.1
Cash flow from investing activities	–34.8	–26.0	–67.1	–47.9
Financing activities
New issue of shares	0.5	–	0.5	–
Issue of warrants	1.7	–	1.7	0.4
Cash flow from financing activities	2.1	–	2.1	0.4
Cash flow for the period	–54.4	129.0	17.1	–421.9
Cash and cash equivalents at the beginning of the period	170.5	347.0	98.0	898.1
Exchange rate differences in cash and cash equivalents	–0.2	–1.1	0.7	–1.2
Cash flow for the period	–54.4	129.0	17.1	–421.9
Cash and cash equivalents at the end of the period	115.9	474.9	115.9	474.9

Note 1. Accounting policies

The Interim Report for Qliro AB covers the period January 1 to June 30, 2024. Qliro's registered office is in Stockholm and the corporate ID no. is 556962-2441.

The Interim Report has been prepared in accordance with IAS 34 Interim Financial Reporting. The consolidated accounts are prepared in accordance with the International Financial Reporting Standards (IFRS) and interpretive statements on these standards as approved for application within the EU. Supplementary information ensuing from the Annual Accounts Act for Credit Institutions and Securities Companies (1995:1559), as well as the Swedish Financial Supervisory Authority's regulations and general advice on annual accounts for credit institutions and securities companies (FFFS 2008:25), have been applied.

RFR 1 Complementary Accounting Rules for Groups and the statement from the Swedish Financial Reporting Board have also been applied in the Consolidated Accounts.

The Parent Company has prepared the interim report in accordance with ÅRKL and the regulations and general advice of the Swedish Financial Supervisory Authority. The Parent Company also applies RFR 2 Accounting for Legal Entities and statements by the Swedish Financial Reporting Board. In accordance with the Swedish Financial Supervisory Authority's general

advice, the Parent Company has applied international financial reporting standards as approved by the EU in the preparation of the financial reports.

Qliro's Year-End Report has been prepared in accordance with the accounting policies and calculation methods applied in the Annual Report for 2023.

Reclassification of debt collection commission

Qliro considers that it is more relevant for amounts recovered through third parties relating to overdue receivables previously presented as commission income to be included in the calculation and presentation of credit loss. This change is being made proactively henceforth, and has been applied retroactively in this Interim Report. The change does not impact total operating profit or profit for the year, nor does it affect primary financial reporting other than the Income Statement. The following amounts have retroactively reduced commission income and credit loss:

SEK million	2023 Apr-Jun	2023 Jan-Jun
	5.2	11.9

Note 2. Net interest income

	Group
	2024	2023	2024	2023
SEK million	Apr-Jun	Apr-Jun	Jan–Jun	Jan–Jun
Interest income
Lending to credit institutions	1.1	2.3	2.6	4.7
Lending to the public	92.0	86.7	183.1	165.4
Interest-bearing securities etc.	5.1	2.3	9.1	4.0
Total interest income	98.3	91.3	194.7	174.0
Interest expenses
Liabilities to credit institutions	–	–	–	–0.2
Deposit guarantee	–1.7	–2.1	–3.4	–4.1
Deposits from the public	–28.1	–18.5	–54.7	–33.0
Interest-bearing government securities etc.	–	–	–	0.1
Subordinated liabilities	–2.7	–2.6	–5.4	–4.8
Lease liabilities	–0.1	–0.1	–0.1	–0.2
Total interest expenses	–32.6	–23.2	–63.7	–42.3
Net interest income	65.7	68.1	131.0	131.8

	Parent Company
SEK million	2024 Apr-Jun	2023 Apr-Jun	2024 Jan–Jun	2023 Jan–Jun
Interest income
Lending to credit institutions	1.1	2.3	2.6	4.7
Lending to the public	92.0	86.7	183.1	165.4
Interest-bearing securities etc.	5.1	2.3	9.1	4.0
Total interest income	98.3	91.3	194.7	174.0
Interest expenses
Liabilities to credit institutions	–	–	–	–0.2
Deposit guarantee	–1.7	–2.1	–3.4	–4.1
Deposits from the public	–28.1	–18.5	–54.7	–33.0
Interest-bearing government securities etc.	–	–	–	0.1
Subordinated liabilities	–2.7	–2.6	–5.4	–4.8
Total interest expenses	–32.5	–23.1	–63.6	–42.1
Net interest income	65.8	68.2	131.1	132.0

Note 3. Net commission income

	Group and Parent Company
	2024	2023	2024	2023
SEK million	Apr-Jun	Apr-Jun	Jan–Jun	Jan–Jun
Commission income
Lending commission	44.0	39.0	89.1	82.1
Other commission income1)	9.1	7.5	16.4	11.2
Total commission income	53.1	46.5	105.5	93.2
Commission expenses
Other commission expenses	–2.6	–2.0	–4.2	–4.1
Total commission expenses	–2.6	–2.0	–4.2	–4.1
Net commission income	50.5	44.5	101.3	89.1

1) In Q3 2023, debt collection commission was reclassified from commission income to credit loss, which means that comparable figures have been adjusted. For Jan-Jun 2023 the amount was SEK 11.9 million and for Q2 2023 SEK 5.2 million. See Note 1, page 18.

Note 4. Net credit losses

	Group and Parent Company
	2024	2023	2024	2023
SEK million	Apr-Jun	Apr-Jun	Jan–Jun	Jan–Jun
Expected credit losses on Balance Sheet items
Net loss provision for the period, Stage 1	1.8	–6.0	3.4	–5.2
Net loss provision for the period, Stage 2	1.2	5.4	1.2	5.1
Total credit losses, net of non credit-impaired lending	3.0	–0.5	4.6	–0.1
Net loss provision for the period, Stage 3	–14.9	–6.8	–31.1	–15.2
Realized net credit losses for the period1)	–17.7	–19.9	–34.4	–37.8
Total credit losses, net of non credit-impaired lending	–32.7	–26.8	–65.5	–53.0
Total net credit losses	–29.7	–27.3	–60.8	–53.1
Loss provisions on loans measured at amortized cost	–161.3	–159.7	–161.3	–159.7

1) In Q3 2023, debt collection commission was reclassified from commission income to credit loss, which means that comparable figures have been adjusted. For Jan-Jun 2023 the amount is SEK 11.9 million and for Q2 2023 SEK 5.2 million. See Note 1, page 18.

Note 5. Lending to the public

06/30/2024, SEK million	Group and Parent Company
	Stage 1	Stage 2	Stage 3	Total
Loans receivable	2,142.8	291.7	233.7	2,668.2
Provisions for expected credit losses	–17.6	–31.5	–112.2	–161.3
Net lending to the public	2,125.2	260.2	121.5	2,506.9

06/30/2023, SEK million		Group and Parent Company
	Stage 1	Stage 2	Stage 3	Total
Loans receivable	2,187.0	258.7	189.5	2,635.1
Provisions for expected credit losses	–23.1	–34.4	–102.3	–159.7
Net lending to the public	2,163.9	224.3	87.2	2,475.4

12/31/2023, SEK million	Group and Parent Company
	Stage 1	Stage 2	Stage 3	Total
Loans receivable	2,296.9	276.4	173.5	2,746.8
Provisions for expected credit losses	–21.0	–32.6	–80.8	–134.3
Net lending to the public	2,275.9	243.8	92.8	2,612.5

Loans with modified conditions, where the loan is not derecognized from the Balance Sheet and replaced with new borrowing, amounted to SEK 80.7 million (42.8) on June 30, 2024.

Note 6. Deposits and borrowing from the public

	Group and Parent Company
SEK million	06/30/2024	06/30/2023	12/31/2023
Deposits from the public	2,709.1	2,772.0	2,950.9
By category
Individuals	2,709.1	2,772.0	2,950.9
Companies	–	–	–
Total	2,709.1	2,772.0	2,950.9
By currency
SEK	2,352.8	2,229.5	2,480.8
Foreign currency	356.3	542.5	470.0
Total	2,709.1	2,772.0	2,950.9

Note 7. Financial instruments

Classification of financial instruments

		Group
06/30/2024, SEK million	Fair value through other comprehensive income	Fair value through the Income Statement	Amortized cost	Total carrying amount
Assets
Bonds and other fixed-income securities	434.3	–	–	434.3
Lending to credit institutions	–	–	119.3	119.3
Lending to the public	–	–	2,506.9	2,506.9
Derivatives	–	0.4	–	0.4
Other assets	–	–	61.2	61.2
Accrued income	–	–	4.1	4.1
Total financial instruments	434.3	0.4	2,691.5	3,126.3
Other non-financial instruments				332.8
Total assets				3,459.2
Liabilities
Deposits and borrowing from the public	–	–	2,709.1	2,709.1
Other liabilities	–	–	97.8	97.8
Accrued expenses	–	–	51.6	51.6
Subordinated liabilities	–	–	100.0	100.0
Total financial instruments	–	–	2,958.5	2,958.5
Other non-financial instruments				13.3
Total liabilities				2,971.8

	Group
06/30/2023, SEK million	Fair value through other comprehensive income	Fair value through the Income Statement	Amortized cost	Total carrying amount
Assets
Bonds and other fixed-income securities	211.2	–	0	211.2
Lending to credit institutions	–	–	477.9	477.9
Lending to the public	–	–	2,475.4	2,475.4
Derivatives	–	–	–	–
Other assets	–	–	52.8	52.8
Accrued income	–	–	1.8	1.8
Total financial instruments	211.2	–	3,007.9	3,219.1
Other non-financial instruments	–	–	–	293.8
Total assets				3,512.8
Liabilities
Deposits and borrowing from the public	–	–	2,772.0	2,772.0
Derivatives	–	2.1		2.1
Other liabilities	–	–	90.4	90.4
Accrued expenses	–	–	64.3	64.3
Subordinated liabilities	–	–	100.0	100.0
Total financial instruments	–	2.1	3,026.8	3,028.9
Other non-financial instruments		–	–	11.5
Total liabilities				3,040.4

Note 7. Financial instruments cont.

Classification of financial instruments

	Group
12/31/2023, SEK million	Fair value through other comprehensive income	Fair value through the Income Statement	Amortized cost	Total carrying amount
Assets
Bonds and other fixed-income securities	616.1	–	–	616.1
Lending to credit institutions	–	–	101.0	101.0
Lending to the public	–	–	2,612.5	2,612.5
Other assets	–	–	56.3	56.3
Accrued income	–	–	9.7	9.7
Total financial instruments	616.1	–	2,779.5	3,395.5
Other non-financial instruments				299.3
Total assets				3,694.9
Liabilities
Deposits and borrowing from the public	–	–	2,950.9	2,950.9
Other liabilities	–	–	101.0	101.0
Derivatives	–	0.4	–	0.4
Accrued expenses	–	–	54.0	54.0
Subordinated liabilities	–	–	100.0	100.0

Classification of financial instrument to fair value in the Balance Sheet

The fair value of financial instruments traded in an active markets (financial assets at fair value through other comprehensive income) is based on quoted market prices on the closing day. The quoted market price used for Qliro's financial assets is the official bid rate. Disclosure of the fair value of items measured at fair value can be found below. The levels in the disclosure according to the fair value hierarchy below are defined as follows:

Total financial instruments – 0.4 3,205.9 3,206.3 Other non-financial instruments 8.4 Total liabilities 3,214.7

• Quoted prices (unadjusted) on active markets for identical assets or liabilities (Level 1) • Observable data for assets or liabilities other than quoted prices included in Level 1, either directly (i.e. through price quotes) or indirectly (i.e. extrapolated from price quotes) (Level 2)

• Input data for assets or liabilities that are not based on observable market data, i.e. non-observable input data (Level 3)

	Group
06/30/2024, SEK million	Level 1	Level 2	Level 3	Total
Assets
Bonds and other fixed-income securities	434.3	–	–	434.3
Derivatives	–	0.4	–	0.4
Total assets	434.3	0.4	–	434.8
Liabilities
Total liabilities	–	–	–	–
		Group
06/30/2023, SEK million	Level 1	Level 2	Level 3	Total
Assets
Bonds and other fixed-income securities	211.2	–	–	211.2
Total assets	211.2	–	–	211.2
Liabilities
Derivatives	–	2.1	–	2.1
Total liabilities	–	2.1	–	2.1
		Group
12/31/2023, SEK million	Level 1	Level 2	Level 3	Total
Assets
Bonds and other fixed-income securities	616.1	–	–	616.1
Total assets	616.1	–	–	616.1
Liabilities
Derivatives	–	0.4	–	0.4
Total liabilities	–	0.4	–	0.4

Note 8. Operating segments

The CEO of Qliro AB is the company's chief operating decision maker. Management has determined the segments based on the information addressed by the CEO and used for the purposes of allocating resources and evaluating results. The CEO evaluates the results for Payment Solutions and Digital Banking Services. The CEO evaluates segment progress based on total operating income less net credit losses. Segment reporting is based on the same principles as the Parent Company's external accounting.

	Group
SEK million	2024 Apr–Jun				2023 Apr–Jun
	Payment Solutions	Digital Banking Services	Total	Payment Solutions	Digital Banking Services	Total
Interest income	72.9	25.5	98.3	64.7	26.6	91.3
Interest expenses	–22.8	–9.8	–32.6	–15.6	–7.6	–23.2
Net commission income1)	50.2	0.3	50.5	44.3	0.1	44.5
Net profit/loss from financial transactions	–0.1	–	–0.1	–0.1	–0.1	–0.2
Other operating income	1.1	–	1.1	0.2	–	0.2
Total operating income	101.2	15.9	117.1	93.6	19.0	112.6
Net credit losses	–24.4	–5.3	–29.7	–20.1	–7.2	–27.3
Total operating income less credit losses	76.8	10.6	87.5	73.5	11.8	85.3

SEK million	2024 Jan-Jun			2023 Jan-Jun
	Payment Solutions	Digital Banking Services	Total	Payment Solutions	Digital Banking Services	Total
Interest income	143.3	51.4	194.7	122.7	51.3	174.0
Interest expenses	–44.4	–19.4	–63.7	–28.3	–14.0	–42.3
Net commission income1)	100.8	0.5	101.3	88.8	0.2	89.1
Net profit/loss from financial transactions	–0.4	–0.1	–0.5	–1.5	–0.1	–1.6
Other operating income	1.2	–	1.2	0.2	–	0.2
Total operating income	200.5	32.5	233.0	182.1	37.5	219.5
Net credit losses	–48.3	–12.5	–60.8	–38.4	–14.7	–53.1
Total operating income less credit losses	152.2	20.0	172.2	143.7	22.7	166.4

Of lending to the public totaling SEK 2,507 million (SEK 2,475 million as of June 30, 2023, and SEK 2,612 million as of December 31, 2023), SEK 1,767 million (SEK 1,660 million as of June 30, 2023, and SEK 1,839 million as of December 31, 2023) was attributable to Payment Solutions and SEK 740 million (SEK 816 million as of June 30, 2023 and SEK 774 million as of December 31, 2023) to Digital Banking Services.

Commission income1) by geographical market and segment

		Group and Parent Company
	2024	2023	2024	2023
SEK million	Apr-Jun	Apr-Jun	Jan–Jun	Jan–Jun
Payment Solutions
Lending commission
Sweden	34.7	30.0	70.0	63.1
Finland	2.6	2.5	5.2	4.7
Denmark	0.7	0.9	1.6	2.0
Norway	5.7	5.5	11.7	12.0
Total	43.7	38.9	88.6	81.8
Other commission income
Sweden1)	5.5	5.5	9.1	9.0
Finland	0.7	0.4	1.7	0.4
Denmark	0.4	0.3	0.9	0.3
Norway	2.4	1.3	4.7	1.5
Total	9.1	7.4	16.4	11.2
Total commission income, Payment Solutions	52.8	46.3	104.9	93.0
Digital Banking Services
Lending commission
Sweden	0.3	0.1	0.5	0.2
Total commission income, Digital Banking Services	0.3	0.1	0.5	0.2
Total commission income	53.1	46.5	105.5	93.2

1)I In Q3 2023, debt collection commission was reclassified from commission income to credit loss, which means that the comparable figures have been adjusted. For Jan-Jun 2023 the amount was SEK 11.9 million and for Q2 2023 SEK 5.2 million. See Note 1, page 18.

Note 9. Capital adequacy analysis

In accordance with Regulation (EU) no. 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions and investment firms ("CRR"), and the Financial Supervisory Authority's regulations regarding prudential requirements and capital buffers (FFFS 2014:12), Qliro AB ("Qliro") hereby discloses information about capital adequacy and other information in accordance with the above regulations.

Qliro's internal procedures for reporting and disclosure of information are included in the Financial Handbook, owned by the Chief Financial Officer and approved annually by the CEO. The procedures include roles and responsibilities as well as Qliro's framework for internal control of financial reporting.

Performance measures

Template "EU KM1 – Key metrics template" is disclosed below as stipulated by the Commission's implementing regulation 2021/637.

		06/30/2024	03/31/2024	12/31/2023	09/30/2023	06/30/2023
	Available own funds (SEK m)
1	Common Equity Tier 1 (CET1) capital	371.3	373.3	379.7	328.4	323.6
2	Tier 1 capital	371.3	373.3	379.7	328.4	323.6
3	Total capital	471.3	473.3	479.7	428.4	423.6
	Risk-weighted exposure (SEK m)
4	Total risk-weighted exposure	2,374.8	2,395.7	2,445.9	2,289.9	2,323.8
	Capital ratios (as a percentage of risk-weighted exposure)
5	Common Equity Tier 1 ratio (%)	15.6	15.6	15.5	14.3	13.9
6	Tier 1 ratio (%)	15.6	15.6	15.5	14.3	13.9
7	Total capital ratio (%)	19.8	19.8	19.6	18.7	18.2
	Additional own funds requirement to manage other risks than the risk of excessive leverage (as a percentage of risk-weighted exposure)
EU 7a	Additional own funds requirement to manage risks other than the risk of excessive leverage (%)	1.2	1.2	0	0	0
EU 7b	of which: to comprise CET1 capital (%)	0.7	0.7	0	0	0
EU 7c	of which: to comprise Tier 1 capital (%)	0.9	0.9	0	0	0
EU 7d	Total SREP own funds requirement (%)	9.2	9.2	8.0	8.0	8.0
	Combined buffer and overall capital requirement (as a percentage of risk-weighted exposure)
8	Capital conservation buffer (%)	2.5	2.5	2.5	2.5	2.5
EU 8a	Conservation buffer due to macro-prudential or systemic risk identified at the level of a Member State (%)	0	0	0	0	0
9	Institution-specific countercyclical capital buffer (%)	2.0	2.0	2.0	2.0	1.9
EU 9a	Systemic risk buffer (%)	0	0	0	0	0
10	Global Systemically Important Institution buffer (%)	0	0	0	0	0
EU 10a	Other Systemically Important Institution buffer (%)	0	0	0	0	0
11	Combined buffer requirement (%)	4.5	4.5	4.5	4.5	4.4
EU 11a	Overall capital requirements (%)	13.7	13.7	12.5	12.5	12.4
12	CET1 available after meeting total SREP own funds require ment (%)	6.2	6.1	7.5	6.3	5.9
	Leverage ratio
13	Total exposure (SEK m)	3,178.5	3,482.7	3,482.2	3,274.8	3,347.8
14	Leverage ratio (%)	11.7	10.7	10.9	10.0	9.7
	Additional own funds requirement to manage risk of excessive leverage (as a percentage of total exposure measure)
EU 14a	Additional own funds requirement to manage risk of exces sive leverage (%)	0	0	0	0	0
EU 14b	of which: to comprise CET1 capital (%)	0	0	0	0	0
EU 14c	Total SREP leverage ratio requirements (%)	3.0	3.0	3.0	3.0	3.0
	Leverage ratio buffer and overall leverage ratio require ment (as a percentage of total exposure measure)
EU 14d	Total SREP leverage ratio requirements (%)	0	0	0	0	0
EU 14e	Overall leverage ratio requirements (%)	3.0	3.0	3.0	3.0	3.0
	Liquidity coverage ratio
15	Total high-quality liquid assets (HQLA)
	(weighted value – average, SEK m)	434.3	636.0	576.1	365.8	211.2
16a	Cash outflows – total weighted value (SEK m)	344.7	347.0	327.7	333.1	370.6
16b	Cash inflows – total weighted value (SEK m)	150.3	216.9	214.4	302.1	514.2
16	Total net cash outflows (adjusted value) (SEK m)	194.4	130.1	113.3	83.3	92.7
17	Liquidity coverage ratio (%)	223.4	488.9	508.5	439.3	227.9
	Net stable funding ratio (NSFR)
18	Total available stable funding (SEK m)	2,909.5	3,168.2	3,137.1	3,094.6	3,161.5
19	Total required stable funding (SEK m)	2,313.0	2,247.4	2,493.1	2,460.3	2,417.6
20	NSFR ratio (%)	125.8	141.0	125.8	125.8	130.8

Statement of total capital requirements and own funds

Risk-weighted own funds requirements and own funds requirements in relation to gross leverage

	06/30/2024		03/31/2024		12/31/2023		09/30/2023		06/30/2023
Risk-weighted own funds requirements	SEK m	%	SEK m	%	SEK m	%	SEK m	%	SEK m	%
Risk-weighted exposure
Total risk-weighted exposure	2,374.8	–	2,395.7	–	2,445.9	–	2,289.9	–	2,323.8	–
Own funds requirement (Pillar 1 requirement)1)
Common Equity Tier 1 (CET1) capital	106.9	4.5	107.8	4.5	110.1	4.5	103.0	4.5	104.6	4.5
Tier 1 capital	142.5	6	143.7	6.0	146.8	6.0	137.4	6.0	139.4	6.0
Total capital	190.0	8	191.7	8.0	195.7	8.0	183.2	8.0	185.9	8.0
Additional own funds requirement (Pillar 2 requirement)2)
Common Equity Tier 1 (CET1) capital	16.2	0.7	16.3	0.7	0	0	0	0	0	0
Tier 1 capital	21.6	0.9	21.7	0.9	0	0	0	0	0	0
Total Pillar 2 requirement	28.7	1.2	29.0	1.2	0	0	0	0	0	0
Combined buffer requirement 3)
Capital conservation buffer	59.4	2.5	59.9	2.5	61.1	2.5	57.2	2.5	58.1	2.5
Institution-specific countercyclical capital buffer	46.5	2.0	46.8	2.0	47.8	2.0	44.8	2.0	44.7	1.9
Combined buffer requirement	105.9	4.5	106.7	4.5	109.0	4.5	102.0	4.5	102.8	4.4
Notification (Pillar 2-guidance)4)
Common Equity Tier 1 (CET1) capital	83.1	3.5	83.8	3.5	0	0	0	0	0	0
Tier 1 capital	83.1	3.5	83.8	3.5	0	0	0	0	0	0
Total Pillar 2 guidance	83.1	3.5	83.8	3.5	0	0	0	0	0	0
Overall adequate level of own funds
Common Equity Tier 1 (CET1) capital	312.0	13.1	314.6	13.1	219.0	9.0	205.1	9.0	207.3	8.9
Tier 1 capital	353.0	14.9	356.0	14.9	255.7	10.5	239.4	10.5	242.2	10.4
Total overall own funds requirements	407.7	17.2	411.2	17.2	304.6	12.5	285.2	12.5	288.7	12.4
Available own funds (capital base)
Common Equity Tier 1 (CET1) capital	371.3	15.6	373.3	15.6	379.7	15.5	328.4	14.3	323.6	13.9
Tier 1 capital	371.3	15.6	373.3	15.6	379.7	15.5	328.4	14.3	323.6	13.9
Total available own funds	471.3	19.8	473.3	19.8	479.7	19.6	428.4	18.7	423.6	18.2

1) Capital requirements according to article 92.1 a–c, Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions and investment firms

2) Special capital requirement according to chapter 2, 1 2, Act (2014: 968) on special supervision of credit institutions and securities companies (Pillar 2-requirement) 3) Combined buffer requirement according to chapter 2, 2, Act (2014:966) on capital buffers

4) Notification according to chapter 2, 1 c, Act (2014: 968) on special supervision of credit institutions and securities companies (Pillar 2-guidance)

Note 9. Capital adequacy analysis cont.

Statement of total capital requirements and own funds

Risk-weighted own funds requirements and own funds requirements in relation to gross leverage

	06/30/2024		03/31/2024		12/31/2023		09/30/2023		06/30/2023
Leverage ratio – own funds requirement	SEK m	%	SEK m	%	SEK m	%	SEK m	%	SEK m	%
Total exposure
Total exposure	3,178.5	–	3,482.7	–	3,482.2	–	3,274.8	–	3,347.8	–
Own funds requirement (Pillar 1 requirement)1)
Common Equity Tier 1 (CET1) capital	0	0	0	0	0	0	0	0	0	0
Tier 1 capital	95.4	3.0	104.5	3.0	104.5	3.0	98.2	3.0	100.4	3.0
Leverage requirement (Pillar 2 requirement)2)
Common Equity Tier 1 (CET1) capital	0	0	0	0	0	0	0	0	0	0
Tier 1 capital	0	0	0	0	0	0	0	0	0	0
Notification (Pillar 2 guidance)3)
Common Equity Tier 1 (CET1) capital	95.4	3.0	104.5	3.0	0	0	0	0	0	0
Tier 1 capital	95.4	3.0	104.5	3.0	0	0	0	0	0	0
Overall adequate level of own funds
Common Equity Tier 1 (CET1) capital	95.4	3.0	104.5	3.0	0	0	0	0	0	0
Tier 1 capital	190.7	6.0	209.0	6.0	104.5	3.0	98.2	3.0	100.4	3.0
Available own funds (capital base)
Common Equity Tier 1 4)	371.3	11.7	373.3	10.7	379.7	10.9	328.4	10.0	323.6	9.7
Tier 1 capital4)	371.3	11.7	373.3	10.7	379.7	10.9	328.4	10.0	323.6	9.7

1) Capital requirements according to article 92.1 d, Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions and investment firms

2) Special capital requirement according to chapter 2, 1 1, Act (2014: 968) on special supervision of credit institutions and securities companies (Pillar 2-requirement)

3) Notification according to chapter 2, 1 c, Act (2014: 968) on special supervision of credit institutions and securities companies (Pillar 2-guidance)

4) Relates to capital ration in relation to total exposure. Diverges from previously reported figures relating to capital ratio as a percentage of risk-weighted exposure.

Internally assessed capital requirement

As of June 30, 2024 the internal assessed capital requirement, as per the minimum capital requirement according to Pillar 1, additional capital requirement as per the company's internal capital adequacy assessment process to cover for risks within Pillar 2, and the combined buffer requirement, including pillar 2 guidance, amounted to SEK 408 million, or 17.2% of the risk-weighted exposure.

Note 10. Disclosure of liquidity risks

The disclosure below refers to Qliro AB and includes information in accordance with the Financial Supervisory Authority's regulations regarding management of liquidity risks in credit institutions and investment firms (FFFS 2010:7). The information is disclosed at least four times annually.

Sources of funding

Qliro AB's net lending to the public amounted to SEK 2,507 million (2,475) at the end of the quarter. SEK 2,709 (2,772) million of the lending was financed by deposits from the public (savings accounts) in Sweden and Germany, of which 99.4 percent are protected by the deposit insurance scheme in Sweden. Deposits from the public were divided into 38 percent at variable rate and 62 percent fixed interest with an average term of 80 days (initially 3-month fixed, 6-month fixed and 1-year fixed) as of June 30, 2024. 20 percent of deposits from the public are invested in liquid interest-bearing securities and deposits with Nordic banks.

Liquidity

• Qliro AB: s total liquidity reserve as of June 30, 2024 amounted to SEK 550 million, consisting of:
• Liquid investments: SEK 434 million
• Bank balances with Nordic Banks: SEK 116 million
• The liquidity buffer consists of the following high-quality liquid assets:
• The total investment portfolio comprises liquid investments, of which SEK 423 million is denominated in SEK and SEK 11 million denominated in EUR.

• All bonds and certificates in the portfolio have a minimum credit rating of AA+ with an average maturity of 543 days at the end of the quarter.

As of June 30, 2024 the liquidity coverage ratio amounted to 223 percent for Qliro AB, to be compared with the regulatory requirement of 100 percent. The liquidity coverage ratio measures a liquidity buffer of SEK 434 million, related to net outflows of SEK 194 million over a thirty-day period under stressed market conditions.

Note 11. Events after the end of the period

Qliro signed an agreement relating to the divestment of the company's personal loans for a purchase consideration of SEK 714 million.

ALTERNATIVE PERFORMANCE MEASURES

Alternative performance measures used by management and analysts to evaluate the company's progress, which are not specified or defined in IFRS or other applicable regulations.

Performance measures	Definition	Purpose
Return on equity, (%)	Net income for the year/period, restated as a full year value, as a percentage of average equity for two measurement periods (opening and closing balance for the period).	The measure is used to analyze profitability in relation to equity.
Deposits and borrowing from the public	The period's closing balance for deposits and funding from the public in the Balance Sheet.	The purpose is to monitor the level and growth of the deposit business, and to track the scope of external funding derived from deposits from the public.
Items affecting comparability	Income and expenses that significantly affect comparability over time because they do not by nature or size recur with the same regularity as other items.	The company's management separates out items affecting comparability in order to explain variations over time. Separation of the items makes it easier for readers of the financial reports to understand and evaluate what management is doing when certain items, subtotals and totals from the Income Statement are presented or used in other performance measures.
C/I ratio, %	Total expenses before credit losses as a percentage of total operating income.	The purpose is to provide an indication of the company's cost effectiveness in relation to total operating income. Also used in benchmark comparisons.
Net credit losses	The period's expected credit losses on Balance Sheet items as well as the period's established credit losses, net.	The purpose is to track the scale and trend for credit risks in lending, and to explicitly do so for the scale of forecast-based credit losses reducing net income for the period.
Credit loss level, % in relation to average lending	The period's credit losses, restated as a full-year value, net in relation to average net lending to the public for two measurement periods (opening and closing balance for the period).	The purpose is to provide a measure of credit losses in relation to net lending to the public. The measure is critical to the analysis of credit risk between periods and versus the competition.
Credit loss level Digital Banking Services, % in relation to average lending Digital Banking Services	The period's credit losses in Digital Banking Services, restated as a full-year value, net in relation to average net lending to the public in Digital Banking Services for two measurement periods (opening and closing balance for the period).	The purpose is to provide a measure of credit losses in relation to net lending to the public. The measure is critical to the analysis of credit risk between periods and versus the competition.
Credit loss level, % in relation to processed Pay Later volume	The period's credit losses for Pay Later, restated as a full year value, net in relation to total capitalized volume.	The purpose is to provide a measure of credit losses in relation to processed Pay Later volumes. The measure is critical to the analysis of credit risk between periods and versus the competition.
Profit/loss for the period adjusted for items affecting comparability	Net income for the period after tax adjusted for items affecting comparability.	Net income for the period is tracked to monitor total return, after total expenses and tax. Adjustment for items affecting comparability improves the opportunity for evaluation and making comparisons over time.
Net commission income	Total commission income less commission expenses.	Net commission income is monitored to track the progress of the core business not attributable to lending and deposits. Largely reflects the scope and profitability of lending commission related to Payment Solutions' products and other payment services.
Net interest income	Total interest income less interest expenses.	Net interest income is monitored to track the progress of the core business related to lending and deposits.
Net interest income adjusted for items affecting comparability	Total interest income less interest expenses adjusted for items affecting comparability.	Net interest income adjusted for items affecting comparability improves the opportunity for evaluation and making comparisons over time.
Operating profit	The sum of operating income less administrative expenses, depreciation, amortization and impairment of property, plant and equipment and intangible assets, other operating expenses and credit losses, net.	Operating profit is monitored to track the profitability of overall operations, taking into account credit losses and all other expenses except tax.
Operating profit adjusted for items affecting comparability	Total operating income less administrative expenses, depreciation, amortization and impairment, other operating expenses and credit losses adjusted for items affecting comparability.	Operating profit adjusted for items affecting comparability improves the opportunity for evaluation and making comparisons over time.
Operating profit less depreciation, amortization and impairment	Total operating profit less depreciation, amortization and impairment of property, plant and equipment and intangible assets	The purpose is to evaluate operating activities.
Total expenses before credit losses	Total operating expenses, representing total administrative expenses, depreciation, amortization and impairment of property, plant and equipment and intangible assets, and other expenses, in the period.	The purpose is to monitor the size of central expenses not directly related to lending and commissions.
Total operating income	Total net interest income, net commission income, net profit/loss on financial transactions, and other operating income.	Total operating income is monitored to track progress of the core business before employee benefits, depreciation and amortization, credit losses and other central expenses. The measure depends primarily on the overall trend in net interest income and net commission income.
Total expenses before credit losses adjusted for items affecting comparability	Total operating expenses, representing total administrative expenses, depreciation, amortization and impairment of property, plant and equipment and intangible assets, and other operating expenses, in the period adjusted for items affecting comparability.	The purpose is to monitor the size of central expenses not directly related to lending and commissions.

ALTERNATIVE PERFORMANCE MEASURES cont.

Performance measures	Definition	Purpose
Total operating income margin, %	Total operating income restated as a full-year value, in relation to average net lending to the public for two measurement periods (opening and closing balance for the period).	The measure is used to analyze value creation and profitability in relation to net lending to the public.
Lending to the public	Loans receivable less provision for expected credit losses.	Net lending to the public is a central driver of total operating income.

OPERATING PERFORMANCE MEASURES

Performance measures	Definition	Purpose
Number of connected merchants	Number of brands using Qliro as a payment provider.	Number of connected merchants is a central measure in the analysis of the growth forecast for Pay Later volumes.
Payment volumes	The total payment volume processed in Qliro's checkout, including VAT for direct payments and Qliro's payment products. Pay Now volumes + Pay Later volumes.	The total payment volume for all payment methods offered through the Payment Solutions segment. This volume plays a key role in Qliro's earnings and the dynamics of the earnings structure, as well as for the structure of the loan portfolio.
Pay Now volumes	Total volume, including VAT, for direct payments (card, bank transfer, Swish, Paypal, MobilePay, etc.).	The Pay Now volume is an important part of the business model, enabling us to offer our customers an integrated solution in Qliro's checkout, and is also a driver of the total operating income.
Pay Later volumes	Total volume of Qliro's payment products (invoice, BNPL or part payment), including VAT.	Pay Later volumes are a central driver of the sum of operating income. The measure is used as a complement to lending to the public in order to capture the high turnover in the loan portfolio of the Payment Solutions segment.
BNPL volumes	Total purchases completed using different Pay Later products, such as "buy now, pay later"," "flexible part payments" and "fixed part payments". Invoicing is not included in this performance measure.	BNPL volume is an important performance measure as it provides insight into growth, credit risk, income and profitability.
Invoice volumes	Total purchases completed using the invoicing product.	Invoiced volume is an important performance measure as it provides insight into growth, credit risk, income and profitability.
Pay Now transactions	Number of transactions for direct payments (card, bank transfer, Swish, Paypal, MobilePay, etc.).	The Pay Now volume is an important part of the business model, enabling us to offer our customers an integrated solution in Qliro's checkout, and is also a driver of total operating income.
Pay Later transactions	The number of transactions using Qliro's payment products (invoice, BNPL or part payment).	Pay Later transactions are a central driver of the total operating income. The measure is used as a complement to lending to the public in order to capture the high turnover in the loan portfolio of the Payment Solutions segment.
Average order value	Total Pay Later volumes and Pay Now volumes in relation to Pay Now transactions and Pay Later transactions.	The average value of an order is an important performance measure, which can be combined with other performance measures to improve the understanding of the progress and dynamics of earnings and the structure of the loan portfolio.
Average order value, Pay Now	Total Pay Now volumes in relation to Pay Now transactions.	The average value of an order is an important performance measure, which can be combined with other performance measures to improve the understanding of the progress and dynamics of earnings.
Average order value, Pay Later	Total Pay Later volumes in relation to Pay Later transactions.	The average value of an order is an important performance measure, which can be combined with other performance measures to improve the understanding of the progress and dynamics of earnings and the structure of the loan portfolio.
Payments Take Rate (% Total operating income in relation to total payment volume)	Total operating income/Payment volume.	This metric is used to analyze value creation and profitability in relation to total volumes processed in Qliro's checkout.

OTHER PERFORMANCE MEASURES

Performance measures	Definition	Purpose
Common Equity Tier 1 capital ratio, %	Regulation (EU) No. 575/2013. The institution's Tier 1 capital level expressed as a percentage of the risk exposure amount.	Regulatory requirement – A regulatory floor applies to the total capital ratio to ensure that the institution has sufficient capital.
Liquidity Coverage Ratio (LCR) %	Regulation (EU) No. 575/2013 and Regulation (EU) No. 2015/61. The Liquidity Coverage Ratio comprises the high-quality liquid assets that the institution holds divided by net liquidity outflows during a 30 calendar day stress period.	Regulatory requirement - Legislators require the institution to hold high-quality liquid assets to cover net liquidity outflows during a 30 calendar day stress period to ensure that the institution has sufficient capital.
Total capital ratio, %	Regulation (EU) No. 575/2013. The total capital ratio is the institution's own funds expressed as a percentage of the total risk amount.	Regulatory requirement – A regulatory floor applies to the total capital ratio to ensure that the institution has sufficient capital.

RECONCILIATION TABLES

for derivation of alternative performance measures

SEK million (unless otherwise stated)	2024 Apr-Jun	2023 Apr-Jun	2024 Jan–Jun	2023 Jan–Jun
Payment volumes
Pay Now volumes	1,706	1,351	3,131	2,677
Pay Later volume	1,324	1,448	2,636	2,858
Payment volume	3,030	2,799	5,767	5,535
Return on equity, (%)
Total equity, opening balance	484	471	480	471
Total equity, closing balance	487	472	487	472
Average equity (OB+CB)/2	486	472	484	471
Profit/loss for the period	3.4	0.8	6.8	1.9
Average profit/loss for the period 12 month	13.5	3.3	13.5	3.8
Return on equity, (%)	2.8%	0.7%	2.8%	0.8%
C/I ratio, %
Total expenses before credit losses	–82.4	–82.5	–161.9	–162.5
Total operating income1)	117.1	112.6	233.0	219.5
C/I ratio, %	70.4%	73.3%	69.5%	74.0%
Credit loss level,%)1)
Lending to the public, opening balance	2,536	2,477	2,612	2,687
Lending to the public, closing balance	2,507	2,475	2,507	2,475
Average lending to the public (OB+CB)/2	2,522	2,476	2,560	2,581
Net credit losses1)	–29.7	–27.3	–60.8	–53.1
Average net credit losses 12 month	–118.7	–109.1	–121.7	–106.2
Credit loss level, %	4.7%	4.4%	4.8%	4.1%
Credit loss level, Digital Banking Services, %
Lending to the public, Digital Banking Services, opening balance	760	855	774	879
Lending to the public, Digital Banking Services, opening balance	740	816	740	816
Average lending to the public, Digital Banking Services (OB+CB)/2	750	835	757	847
Net credit losses	–5.3	–7.2	–12.5	–14.7
Average net credit losses 12 month	–21.1	–28.9	–25.1	–29.4
Credit loss level, Digital Banking Services, %	2.8%	3.5%	3.3%	3.5%
Credit loss level, % in relation to processed Pay Later volumes 1)
Net credit losses Pay Later1)	–24.4	–20.1	–48.3	–38.4
Processed Pay Later volumes	1,324	1,448	2,636	2,858
Credit loss level, % in relation to processed Pay Later volumes 1)	1.8%	1.4%	1.8%	1.3%

RECONCILIATION TABLEScont.

SEK million (unless otherwise stated)	2024 Apr-Jun	2023 Apr-Jun	2024 Jan–Jun	2023 Jan–Jun
Payments Take-Rate (% Total operating income Payment Solu tions in relation to total payment volume)1)
Total operating income Payment Solutions 1)	101.2	93.6	200.5	182.1
Payment volume	3,030	2,799	5,767	5,535
Payments Take-Rate (% Total operating income Payment Solu tions in relation to total payment volume)	3.3%	3.3%	3.5%	3.3%
Net commission income
Commission income1)	53.1	46.5	105.5	93.2
Commission expenses	–2.6	–2.0	–4.2	–4.1
Net commission income	50.5	44.5	101.3	89.1
Operating profit less depreciation, amortization and impairment
Operating profit	5.0	2.8	10.3	3.9
Depreciation/amortization and impairment of property, plant and equipment and intangible assets	17.3	17.6	34.4	35.5
Operating profit less depreciation, amortization and impairment	22.4	20.4	44.7	39.4
Total operating income1)	117.1	112.6	233.0	219.5
of which Payment Solutions1)	101.2	93.6	200.5	182.1
of which Digital Banking Services	15.9	19.0	32.5	37.5
Total operating income margin, % 1)
Lending to the public, opening balance	2,536	2,477	2,612	2,687
Lending to the public, closing balance	2,507	2,475	2,507	2,475
Average lending to the public (OB+CB)/2	2,522	2,476	2,560	2,581
Total operating income	117.1	112.6	233.0	219.5
Average income 12 months	468.6	450.3	466.0	439.0
Total operating income margin, %	18.6%	18.2%	18.2%	17.0%
Lending to the public	2,507	2,475	2,507	2,475
of which Payment Solutions	1,767	1,660	1,767	1,660
of which Digital Banking Services	740	816	740	816

THE BOARD'S ASSURANCE

The Board of Directors and the CEO give their assurance that the interim report provides a fair summary of the operations, position, and earnings of Qliro AB and describes the material risks and uncertainties faced by the company and it's subsidiaries.

The Board of Directors and the CEO attest that Qliro AB has made the disclosures required in accordance with Regulation (EU) No 575/2013 of the European Parliament

and of the Council on prudential requirements for credit institutions and investment firms, Part Eight, in accordance with Qliro's formal policies and internal processes, systems and controls.

This report has not been subject to review by the company's Auditors.

Stockholm, July 17, 2024

Patrik Enblad Chairman

Alexander Antas Board member

Mikael Kjellman Board member

Lennart Francke Board member

Helena Nelson Board member

Christoffer Rutgersson CEO

TELEPHONE CONFERENCE

Media, analysts and investors are invited to a conference call on July 17, 2024 at 10 am CEST when CEO Christoffer Rutgersson and CFO Robert Stambro will present the results.

It will be possible to ask questions in connection with the presentation.

PARTICIPATE VIA TELEPHONE CONFERENCE:

https://conference.financialhearings.com/teleconference/?id=50048610

PARTICIPATE VIA WEBCAST:

https://ir.financialhearings.com/qliro-q2-report-2024

The presentation and webcast will be published at: https://www.qliro.com/sv-se/investor-relations/presentations/

Financial calendar 2024

October 29, 2024 Interim Report Q3

For more information, please contact:

ir@qliro.com

The financial reports are also published at: www.qliro.com/en-se/investor-relations

Qliro AB Registered Office: Stockholm Corporate ID no. 556962-2441 Postal address: Box 195 25, SE-104 32 Stockholm Visiting address: Sveavägen 151, SE-113 46 Stockholm