Interim Presentation | 1 st quarter 2017 | 26 April 2017
Important Information Disclaimer This presentation (the “Presentation”) has been produced by Monobank ASA (the “Company”, “MONOBANK” or “MONO”), solely for use at the presentation to investors and is strictly confidential and may not be reproduced or redistributed, in whole or in part, to any other person. To the best of the knowledge of the Company and its board of directors, the information contained in this Presentation is in all material respect in accordance with the facts as of the date hereof, and contains no material omissions likely to affect its import. This Presentation contains information obtained from third parties. Such information has been accurately reproduced and, as far as the Company is aware and able to ascertain from the information published by that third party, no facts have been omitted that would render the reproduced information to be inaccurate or misleading. This Presentation contains certain forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which it operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words “believes”, expects”, “predicts”, “intends”, “pro jec ts”, “plans”, “estimates”, “aims”, “foresees”, “anticipates”, “targets”, and similar expressions. The forward-looking statements contained in this Presentation, including assumptions, opinions and views of the Company or cited from third party sources are solely opinions and forecasts which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. None of the Company or any of their parent or subsidiary undertakings or any such person’s officers or employees provides any assurance that the assumptions underlying such forward-looking statements are free from errors nor does any of them accept any responsibility for the future accuracy of the opinions expressed in this Presentation or the actual occurrence of the forecasted developments. The Company assumes no obligation, except as required by law, to update any forward-looking statements or to conform these forward-looking statements to our actual results. AN INVESTMENT IN THE COMPANY INVOLVES RISK, AND SEVERAL FACTORS COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS THAT MAY BE EXPRESSED OR IMPLIED BY STATEMENTS AND INFORMATION IN THIS PRESENTATION, INCLUDING, AMONG OTHERS, RISKS OR UNCERTAINTIES ASSOCIATED WITH THE COMPANY’S BUSINESS, SEGMENTS, DEVELOPMENT, GROWTH MANAGEMENT, FINANCING, MARKET ACCEPTANCE AND RELATIONS WITH CUSTOMERS, AND, MORE GENERALLY, GENERAL ECONOMIC AND BUSINESS CONDITIONS, CHANGES IN DOMESTIC AND FOREIGN LAWSAND REGULATIONS, TAXES, CHANGES IN COMPETITION AND PRICING ENVIRONMENTS, FLUCTUATIONS IN CURRENCY EXCHANGE RATES AND INTEREST RATES AND OTHER FACTORS. SHOULD ONE OR MORE OF THESE RISKS OR UNCERTAINTIES MATERIALISE, OR SHOULD UNDERLYING ASSUMPTIONS PROVE INCORRECT, ACTUAL RESULTS MAY VARY MATERIALLY FROM THOSE DESCRIBED IN THIS PRESENTATION. THE COMPANY DOES NOT INTEND, AND DOES NOT ASSUME ANY OBLIGATION, TO UPDATE OR CORRECT THE INFORMATION INCLUDED IN THIS PRESENTATION. No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, none of the Company or any of their parent or subsidiary undertakings or any such person’s officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document. 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 the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Company’s business. This Presentation speaks as of 26 April 2017. Neither the delivery of this Presentation nor any further discussions of the Company with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date. 2 2
Highlights Q1 2017 Ahead of plan ✓ 1 Continued high demand and attractive growth opportunities within unsecured consumer credit ✓ 2 Solid loan growth of NOK 322 million resulting in a net loan balance of NOK 1 162 million ✓ 3 Total income amounted to NOK 28.2 million – a 30% increase compared to Q4 2016 ✓ Operating expenses and loan losses developing in line with expectations 4 ✓ Net profit after tax of NOK 1.8 million – continuing into profitability 5 ✓ Credit quality improving in line with projections after introducing internally generated score card 6 ✓ Monobank listed on Oslo Børs ’ Merkur Market on 16 th February 2017 (ticker: MONO-ME) 7 ✓ 75% risk weight when calculating the bank ´ s capital ratio going forward 8 3
High lending activity continues Confirms business model Net loans and advances to customers Number of customers NOK (million) (#) 5,244 1,162 3,807 840 2,808 624 2,063 445 1,423 1,270 1,164 836 709 259 335 157 36 36 Q4 Q1 Q2 Q3 Q4 Q1 2015 2016 2017 Q4 Q1 Q2 Q3 Q4 Q1 Deposit customers Loan customers 2015 2016 2017 4
Customer segmentation According to underlying strategy Age Income Education Housing Location 43 years NOK 623k Higher education Home owner Urban Finnmark 1.2 % 5% Sogn og Fjordane 1.4 % 5% 3% Nord-Trøndelag 1.7 % 24% 15% 30% Aust-Agder 2.1 % 22% 38% 31% Oppland 2.2 % Hedmark 2.7 % Vest-Agder 2.9 % Telemark 3.1 % 27% 66% 70% Troms 29% 3.6 % 35% Nordland 4.1 % Vestfold 4.1 % Møre og Romsdal 4.5 % Sør-Trøndelag 4.7 % NOK 250k-349k Østfold 5.4 % 25-34 years 35-44 years Primary school Buskerud 6.4 % Home owner NOK 350k-499k Rogaland 8.9 % 45-54 years 55-64 years Secondary school Hordaland NOK 500k-749k Tenant 12.6 % 65 years + Higher education Oslo 14.0 % NOK 750k + Akershus 14.6 % 5
Income generation gains momentum Continued loan growth together with satisfying yields and margins drives increasing top-line Key yields and margins Total income NOK (million) 28.2 YIELD NET 14.6% LOAN TO 21.7 CUSTOMER 14.5 29.9 INTEREST RATE 11.1 1.9% DEPOSITS 22.7 (END OF QUARTER) 15.2 5.3 11.7 4.7 0.5 0.4 0.1 0.5 -0.6 -0.8 -1.0 -1.7 0.8% LIQUIDITY Q4 Q1 Q2 Q3 Q4 Q1 YIELD 2015 2016 2017 Net comission and fee income Net interest income 6
Efficient operations Operating expenses and loan losses are under control through strict internal supervision Operating expenses Impairment losses * 4.9 NOK (million) NOK (million) 22.3 0.9 4.2 20.3 1.3 1.1 3.7 15.8 0.3 3.1 9.0 8.1 12.9 12.0 4.6 0.6 0.6 9.7 4.2 0.5 4.2 4.3 1.9 5.6 3.6 4.5 11.1 3.6 3.4 6.5 5.5 3.6 3.5 2.2 0.7 Q4 Q1 Q2 Q3 Q4 Q1 2015 2016 2017 Q4 Q1 Q2 Q3 Q4 Q1 Depreciation and amortisation Marketing expenses Other administrative expenses Staff costs 2015 2016 2017 Note(*): impairment losses are mainly provisions since actual losses are negligible 7
Continues into profitability Achieved break-even after only 3 quarters of operation Net profit after tax NOK (million) 2015 2016 2017 Q4 Q1 Q2 Q3 Q4 Q1 1.8 1.7 0.5 -3.9 -6.5 -16.5 8
High loan growth demands available regulatory capital Well-capitalized and ready for continued growth, cross-border expansion and credit card launch Growth in gross loans Regulatory capital (CET1 ratio) 327 NOK (million) (%) 54.1 % 225 219 189 183 31.8 % 27.8 % 21.5 % 20.5 % 17.7 % 36 Q4 Q1 Q2 Q3 Q4 * Q1 Q4 Q1 Q2 Q3 Q4 Q1 2015 2016 2017 2015 2016 2017 Note(*): in Q4 2016 Monobank completed a NOK 175 million Private Placement of Equity Capital followed by a NOK 3 million Subsequent Repair Offering 9
Satisfactory credit quality Portfolio risk under control through diligent credit risk management and solid operational model Past due days (end of quarter) in % of gross loans to customers Collective loan loss provisions 18.4 (%) NOK (million) 14.3 % 13.5 % 4.8 % 11.0 % 4.9 % 13.5 9.2 % 3.7 % 1.5 % 2.4 % 9.9 2.0 % 1.7 % 1.3 % 3.2 % 5.7 7.2 % 6.5 % 0.2 % 6.0 % 6.1 % 3.0 % 2.6 n.a. 0.7 Q4 Q1 Q2 Q3 Q4 Q1 2015 2016 2017 Q4 Q1 Q2 Q3 Q4 Q1 31-60 days 61-90 days 90 + days 2015 2016 2017 10
Balance sheet structure Important ratios: | LCR: 168% | NSFR: 153% | Deposits constitute 98% of net loans | Assets Liabilities and equity 1,492 1,492 NOK (million) NOK (million) 75 20 35 1,249 1,249 220 334 57 15 51 331 301 808 808 690 690 46 13 28 110 157 38 11 49 1,162 156 1,138 158 417 417 903 840 12 29 28 624 638 186 186 101 159 524 445 17 19 8 259 246 165 115 36 14 Q4 Q1 Q2 Q3 Q4 Q1 Q4 Q1 Q2 Q3 Q4 Q1 2015 2016 2017 2015 2016 2017 Other assets Loans and advances to banks Deposits by customers Total equity Other debt Debt securities Net loans to customers 11
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