4 rd quarter result presentation Oddbjrn Berentsen (CEO) and Marius - PowerPoint PPT Presentation

4 rd quarter result presentation Oddbjørn Berentsen (CEO) and Marius Fjellheim (CFO) | 16 February 2018 |

Disclaimer This Presentation from Easybank ASA ("Easybank" or the "Company") includes among other things forward-looking statements. Certain such forward-looking statements can be identified by the use of forward- looking terminology such as “believe”, “may”, “will”, “should”, “would be”, “expect” or “anticipate” or similar expressions, or the negative thereof, or other variations thereof, or comparable terminology, or by discussions of strategy, plans or intentions. The forward-looking statements contained in this Presentation, including assumptions, opinions and views of the Company or cited from third party sources, reflect the current views with respect to future events and are subject to material risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. Neither Easybank nor any of its officers or employees provides any assurance as to the correctness of such forward-looking information and statements. The Company does not intend, and assumes no obligation, except as required by law, to update any forward-looking statements or to conform these forward-looking statements to its actual results. By attending or receiving this Presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of Easybank and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of Easybank’s business and the securities issued by Easybank. This Presentation speaks as of 16 February 2018. Neither the delivery of this Presentation nor any further discussions of Easybank with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of Easybank since such date . 2

Easybank in brief More than a consumer finance bank Company history Key highlights and developments full year 2017 and Q4 2017 • Based on a bank founded in 2003 – rebranded to Easybank and raised new equity in March 2016 Solid growth in loan volumes with gross growth in consumer loans for the 1 • New strategy from 2016 involving new management and Board of Directors in full year and 4 th quarter of 927 million and NOK 245 million respectively addition to significant changes in the shareholder base • Successful turnaround completed Strong growth in net interest income with net interest income for the 2 full year and 4 th quarter of 126 million and NOK 42 million respectively • Listed on OTC on 15 November 2016 Product portfolio Reached profitability – break even reached 3 quarters after launch of new strategy with profit before tax for the full year and 4 th quarter of 3 15.6 million and NOK 9.5 million respectively Increasing yields and margins – satisfactory development in yields on 4 all products Stable OPEX development despite strong growth due to a flexible and 5 scalable organization and IT systems Consumer loans Car loans 6 Forward flow agreement with Kredinor in place from Q3-2017 7 Insurance products successfully launched SME and mortgages Deposits 3

Table of contents I Highlights and development Q4 II Financial results Q4 III Outlook 4

Overview Q4 Diversified product portfolio – gross lending of NOK 1.8 billion Highlights Product mix Strong revenue MNOK 245 growth in Consumer loans Mortgages SME Car loans development consumer loans 1 374 MNOK 193 152 62 MNOK MNOK MNOK T1 and T2 Equity Customer deposits Good profitability in Successful T1 and T2 capital SME & mortgage transaction 1 967 MNOK 75 336 MNOK MNOK 5

Gross lending & number of customers Strong growth in volume and customers Gross lending per product Customer accounts per product NOK million 1 374 1 129 873 715 447 11 849 9 611 7 330 5 618 42 48 3 525 50 59 62 5 009 4 699 4 530 4 349 4 077 515 459 413 395 346 200 233 332 376 252 331 287 246 232 205 Q4-2016 Q1-2017 Q2-2017 Q3-2017 Q4-2017 Deposits SME and mortgage Car loans Consumer loans SME and mortgage Car loans Consumer loans 6

Net interest income & yields Increasing interest income and improving margins Net interest income and net interest margin Yields NOK million / % of total assets % of relevant balance 7.6% 15.2% 15.1% 14.9% 14.4% 14.4% 7.1% 13.9% 41.9 6.4% 5.4% 34.0 10.0% 9.8% 9.3% 8.7% 8.6% 8.6% 27.8 3.8% 22.6 5.1% 4.9% 4.9% 4.7% 4.7% 4.7% 14.2 1.8% 6.4 1.9% 1.8% 1.8% 1.6% 1.6% 1.3% 3Q- 16 4Q- 16 1Q- 17 2Q- 17 3Q- 17 4Q- 17 3Q- 16 4Q- 16 1Q- 17 2Q- 17 3Q- 17 4Q- 17 Nom. rate cons. loans Nom. rate car loans Net interest income Net interest margin Nom. rate SME and mortg. loans Nom. Deposit rate • Increase in net interest income an effect of increasing loan volumes, but also • Increased consumer loan volume without compromising on margin of increasing margins • Attractive funding rate due to multiple deposit products • Good margins from SME & mortgage loans 7

Total income & profit before tax Increasing total income and solid profit in Q4 Total income Profit before tax NOK million NOK million 44,9 32,8 9,5 26,3 4,1 2,5 22,8 -0,5 17,2 -10,2 4Q-16 1Q-17 2Q-17 3Q-17 4Q-17 4Q-16 1Q-17 2Q-17 3Q-17 4Q-17 Profit before tax Total income 8

Credit quality - Consumer loans Satisfactory risk reward and forward flow agreement reduces downside risk Coverage 1 and loan loss ratio 2 Comments 5.7 % The forward-flow agreement, entered into with Kredinor in Q3 2017, reduces • downside risk for Easybank as it transfers risk to Kredinor. The agreement is not 4.6 % 73.9 % 4.0 % one-time transaction, but ongoing sales of loans and receivables 3.5 % 52.4 % 41.3 % The forward flow agreement was fully operational in Q4 2017 • 35.5 % The bank use a rigorous model for calculating expected loss with calculated • values for PD & LGD based on internal history and time value of money. As the portfolio matures the PD values will be more precise, and in combination with Q1 - 2017 Q2 - 2017 Q3 - 2017 Q4 - 2017 the forward flow agreement with Kredinor will be important factors for loan loss Coverage ratio Loan loss ratio provisions going forward Loans past due Satisfactory risk reward taken into account margin level on consumer loans • 6.1 % 2.1 % 4.4 % 2.5 % 3.5 % 4.1 % 2.1 % 1.7 % 1.6 % 2.4 % 4.1 % 2.5 % 14.1 % 11.3 % 10.4 % 9.7 % Q1 - 2017 Q2 - 2017 Q3 - 2017 Q4 - 2017 0-29 PD 30-59 PD 60-89 PD 90+ PD 9 1) Coverage = Consumer loans loss provisions / 90 days past due 2) Loan loss ratio = Quarterly consumer loans losses / average gross consumer loans (annualized)

Overview Strong growth and improving profitability Gross lending Income and interest margin OPEX and C/I ratio 1 781 7,6 % 1 584 345 7,1 % 99,8 % 1 336 6,4 % 62 395 1 222 5,4 % 59 413 1 004 459 60,5 % 50 3,8 % 56,4 % 44,9 17 15 41,9 17 515 48 1 374 15 34,0 32,8 14 44,9 % 1 129 37,5 % 27,8 26,3 42 873 22,8 22,6 715 17,2 14,2 447 4Q-16 1Q-17 2Q-17 3Q-17 4Q-17 4Q-16 1Q-17 2Q-17 3Q-17 4Q-17 4Q-16 1Q-17 2Q-17 3Q-17 4Q-17 Consumer loans Car loans SME and mortgages Total income Net interest income Net interest margin OPEX ex. marketing C/I ex. marketing Profit after tax and ROE Losses and loss ratio Equity and CET-1 ratio 27,5 % 26,1 % 24,4 % 4,3 % 7.8% 21,0 % 18,7 % 3.8% 3,5 % 6.5 2.3% 3.1 - 0.4% 2,7 % 1.9 2,5 % 336 15,5 2,1 % 327 323 - 0.3 322 322 9,7 9,4 - 9.1% 7,6 6,7 - 7.4 4Q- 16 1Q- 17 2Q- 17 3Q- 17 4Q- 17 4Q-16 1Q-17 2Q-17 3Q-17 4Q-17 4Q-16 1Q-17 2Q-17 3Q-17 4Q-17 Profit after tax ROE (annualized) Loan losses Loss ratio Equity CET-1 ratio 10

Table of contents I Highlights and development Q4 II Financial results Q4 III Outlook 11

Income statement Amounts in thousands Q4-2017 Q3-2017 Q2-2017 Q1-2017 Q4-2016 Increasing interest income due to • Interest income 51 414 41 592 34 023 28 398 18 578 good growth in consumer loans Interest expense -9 485 -7 583 -6 243 -5 773 -4 364 Interest income from SME and • Net interest income 41 929 34 009 27 780 22 625 14 214 mortgage MNOK 4,5 Comission and fee income 10 321 4 733 3 254 3 384 3 726 Comission and fee expenses -7 660 -6 158 -5 036 -3 544 -1 996 ROE annualized 7,8% • Net change in value on securities and currency 253 218 320 340 1 168 Other income 34 30 24 - 68 Net other income 2 949 -1 178 -1 439 180 2 967 Total income 44 878 32 831 26 341 22 805 17 181 Salary and other personell expenses -8 720 -7 720 -7 173 -7 029 -7 223 Other administrative expenses -7 654 -7 893 -6 066 -5 670 -6 753 - of which marketing expences -3 023 -4 267 -2 281 -1 894 -867 Depreciation -1 164 -1 032 -978 -878 -830 Other expenses -2 332 -2 367 -2 914 -2 115 -3 211 Total operating expenses -19 869 -19 012 -17 131 -15 692 -18 017 Profit before loan losses 25 009 13 819 9 210 7 113 -836 Loan losses -15 543 -9 710 -6 689 -7 571 -9 384 Profit before tax 9 466 4 109 2 522 -458 -10 221 Tax -2 990 -1 027 -630 115 2 844 Profit after tax 6 476 3 082 1 891 -344 -7 377 12