25 % profit growth for Instabank in Q1-23

27 Apr 2023 07:00 CEST

Instabank reports record strong first quarter. Net lending increased by MNOK 438
and exceeded for the first time NOK 5 billion. The bank will now enter the
business lending market.

Strong loan growth over the last 12 months resulted in total revenues exceeding
MNOK 100 for the first time in a quarter, even though mortgages - where interest
rates are lower than for consumer loans - constitute an increasing share of the
loan portfolio.

Although revenues grew strongly, operating expenses were slightly lower than in
the corresponding quarter of 2022, resulting in a profit before tax of MNOK
31.6, an increase of 25 percent from the same quarter last year.

- We are very pleased with this record-breaking result. It shows that our
organization can deliver on our ambitious strategy, says Instabank CEO Robert
Berg.

Despite high loan growth, loan losses were lower than in the previous quarter,
and mortgage losses are still low.

Will focus on the corporate market:
Instabank will in 2023 launch a product aimed at small and medium-sized
businesses in Norway.

- This is a niche where few banks have an offer and where it`s possible to
achieve high profitability for a new digital player. Our organization has
previously demonstrated its ability to seize new opportunities and deliver
growth and profitability quickly, says Berg.

Business market lending complements the original focus on consumer loans, which
was supplemented by mortgages two years ago.

- Our geographical distribution across Norway, Finland, and Sweden, as well as
new product categories such as business loans, allow us to distribute available
capital and marketing to the markets that provide the best profitability at any
given time, says Berg.

Growth-target realistic:
Instabank has previously announced that the target this year is to increase net
loans by NOK 1 billion. The growth of 438 MNOK in the first quarter demonstrates
that this is realistic. Most of the growth will come from mortgages.

- Mortgages require less than half the equity as consumer loans, which allows us
to continue loan growth, says Berg.

The report and presentation for the first quarter of 2023 are attached to this
message.

Contact persons:
Robert Berg, CEO, robert.berg@instabank.no
Per Kristian Haug, CFO, perkristian.haug@instabank.no

This information is subject to the disclosure requirements pursuant to Section
5-12 the Norwegian Securities Trading Act

More information:
Access the news on Oslo Bors NewsWeb site

588692_Instabank_Q1-2023_Presentation.pdf
588692_Instabank_Interim_Report_Q1-23.pdf