Interim Presentation | 4 th quarter 2017 | 15 February 2018 - PowerPoint PPT Presentation

Interim Presentation | 4 th quarter 2017 | 15 February 2018

Table of contents Overview 1 2017 Highlights 2 4th quarter 3 Outlook and priorities 2

Highlights 2017 NOK 2.35 bn in consumer loans and implemented cross boarder expansion strategy Monobank listed on Oslo Børs’ Merkur Market on 16 th February 2017 – initiated  process towards Oslo Børs’ Main Market in 2018  Awarded “A great place to work 2017”  Monobank has delighted loan customers, customer satisfaction index on 81 Successful launch in Finland, NOK 407 million loans year end – proof of  scalable and agile distribution platform Cooperation with European deposit distribution partner Raisin– executing on  cross-border expansion strategy Strong loan growth of NOK 1.5 bn in 2017. Above target of NOK 2.3bn in consumer  loans FY 2017 3

High and profitable growth Still strong demand in Norway… in addition to inflow from Finland Net loans and advances to customers Net profit after tax NOK (million) NOK (million) 2 352 17,8 840 (8,0) 2016 2017 2016 2017 4

Multi-country operational platform Solid foundation already in place Cross-border expansion Current market exposure Q4 2017 distribution of gross loans Solid multi-country operational platform • per cent (%) already established - Fast and agile roll-out process with very efficient time to market 17% Continuous and ongoing exploration • of potential foreign markets to enter Norway The cross-border launches are expected to • achieve considerable operational synergies, Finland further strengthen the growth platform and contribute to diversify the business model 83% Successful launch in Finland Unsecured consumer finance loans • rolled out in Finland on 29 May 2017 Q4 2017 distribution of growth in gross loans Positive first reaction – Gross loan balance of • NOK 407m has been built since initiation per cent (%) Operational team based in Bergen – • no feet on the ground in Finland Strategic cooperation agreement with Raisin 44% Norway Leading deposit product provider to privat • Finland individuals in the European Economic Area 56% More than 100,000 customers - mainly in • Germany (but also France, Austria & Spain) Allows Monobank to raise funding in the EEA • as well as in other currencies at attractive levels 5

Cooperation with European deposit distribution partner A strong partner with large potential – first step into the European Fin Tech space Leading deposit provider to privat individuals in the • European Economic Area • Operating in more than 30 countries More than 100,000 customers, mainly in Germany, France, • Austria and Spain • Allow to introduce Monobank to the European market and raise funding in other currencies Provide first experience with European market and fin tech • projects Main markets 6

Table of contents Overview 1 2017 Highlights 2 4th quarter 3 Outlook and priorities 7

High and profitable organic growth Confirms business model Number of loan customers Net loans Profit after tax 7,4 number (#) NOK (million) 2 352 NOK (million) 11 484 5,7 3,0 1 867 1,8 1,7 8 955 0,5 1 446 6 667 1 162 5 244 -3,9 3 807 840 -6,5 2 808 624 2 063 445 1 270 259 157 36 -16,5 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 '15 2016 2017 '15 2016 2017 '15 2016 2017 Growth in number of loan customers Growth in net loans Annualized return on equity * number (#) NOK (million) 485 per cent (%) 6,7 % 6,8 % 2 529 3,6 % 421 2 288 2,7 % 2,2 % 1,3 % 322 284 1 437 1 423 223 216 1 113 186 179 999 -9,9 % 793 745 n.a. -16,1 % 157 36 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 '15 2016 2017 '15 2016 2017 '15 2016 2017 Note(*): ROE = 4x profit after tax in quarter / average total equity in quarter 8

Increasing top-line Satisfying yields and margins – stabilizing yields in Norway Key yields and margins Total income NOK (million) 53,2 per cent (%) 15,7 % 15,2 % 15,1 % 14,9 % 14,8 % 14,6 % 14,3 % 14,2 % 14,3 % 41,5 34,5 12,7 % 12,7 % 12,3 % 28,2 8,8 % 8,7 % 8,7 % 8,5 % 8,1 % 8,0 % 7,7 % 55,9 21,7 6,3 % 44,6 37,1 14,5 n.a. 29,9 11,1 2,1 % 2,0 % 2,0 % 2,0 % 22,7 1,9 % 1,9 % 1,8 % 1,8 % 1,8 % 5,3 15,2 11,7 0,5 1,3 % 1,3 % 4,7 1,2 % 1,1 % 0,9 % 0,8 % 0,8 % 0,8 % 0,7 % 0,4 0,1 0,5 -0,6 -0,8 -1,0 -1,7 -2,6 -2,7 -3,1 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 '15 2016 2017 '15 2016 2017 Annualized loan yield (Norway) * Annualized loan yield (Finland) * Annual deposit rate ** Annualized liquidity yield * Net comission and fee income Net interest income Annualized NIM *** Note(*): yield = weighted average effective annual yield || Note(**): actual end of quarter annual rate || Note(***): NIM = 4x NII in quarter / average total assets in quarter 9

Efficient and scalable operations – short time to market Multi-country platform after only 2.5 years of operations Cost / Income ratio * Operational expenses per cent (%) NOK (million) 29,2 1,4 n.a. 228% 22,3 22,7 21,9 0,9 11,3 20,3 2,0 1,5 1,3 1,1 15,8 7,7 8,0 n.a. 9,0 0,3 8,1 147% 12,9 116% 12,0 4,6 0,6 8,6 0,6 9,7 4,2 6,1 73% 0,5 72% 67% 6,3 4,2 4,3 64% 5,6 55% 55% 3,6 78% 4,5 11,1 3,6 51% 8,0 3,4 43% 6,9 42% 6,5 40% 6,2 5,5 36% 34% 3,5 3,6 2,2 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 '15 2016 2017 '15 2016 2017 Staff costs Other administrative expenses Cost / Income Ratio Cost (excl. marketing) / Income Ratio Marketing expenses Depreciation and amortisation Note(*): cost / income ratio = operating expenses (incl. or excl. marketing) / total income 10

Customer segmentation Continuous development and tuning of scorecards to navigate the portfolio Age Income Education Housing Average customer 4% 43 years 5% 3% 15% 25% 30% 22% 39% 31% NOK 631k 29% 65% Norway 70% 27% 35% Higher education NOK 250k-349k <= 34 years 35-44 years Primary school Home owner NOK 350k-499k 45-54 years 55-64 years Secondary school NOK 500k-749k Tenant Home owner >= 65 years Higher education >= NOK 750k 4% 45 years 11% 19% 17% 19% 20% 18% 8% NOK 485k 28% 31% Finland 32% 32% 82% 81% Higher education NOK 250k-349k <= 34 years 35-44 years Primary school Home owner NOK 350k-499k 45-54 years 55-64 years Secondary school NOK 500k-749k Tenant Home owner >= 65 years Higher education >= NOK 750k 11

Satisfactory loan losses and credit quality Portfolio risk under control through diligent credit risk management and fine-tuning of scorecards Loan losses Gross loans past due (# of days) Provisions 13,8 NOK (million) NOK (million) NOK (million) 50,7 10,9 189,1 37,3 58,7 135,7 8,3 40,7 26,3 94,7 23,5 4,9 18,4 6,8 4,2 3,7 13,5 3,1 9,9 1,9 5,7 0,7 2,6 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 0,7 '15 2016 2017 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 31-60 PD 61-90 PD > 90 PD '15 2016 2017 '15 2016 2017 Loan loss ratio * Non-performing loan ratio ** Total provision ratio *** per cent (%) per cent (%) 7,9 % per cent (%) 7,1 % n.a. n.a. n.a. 6,4 % 3,17% n.a. n.a. n.a. 42,1 % 2,94% 4,8 % 4,9 % 33,2 % 27,8 % 26,8 % 3,7 % 31,4 % 2,38% 27,5 % n.a. 1,5 % n.a. 2,24% 2,23% 2,23% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 '15 2016 2017 '15 2016 2017 '15 2016 2017 Note(*): loan loss ratio = LTM loan losses / average LTM net loans / 2) || Note(**): non-performing loan ratio = >PD90 / gross loans || Note(***): provision ratio = total provisions / >PD90 12

Robust regulatory capital structure Important to plan ahead to position the company for continued profitable organic growth Regulatory capital Risk-weighted assets Reported capital adequacy ** 564 NOK (million) NOK (million) per cent (%) 2 333 54,1 % 47 35 1 819 363 1 423 1 401 31,8 % 36 309 306 302 27 27,8 % 1 107 24,2 % 21,5 % 21,6 % 20,5 % 20,0 % 483 17,7 % 785 Total Capital 683 Req. = 17.2 % 150 144 140 139 301 453 20,7 % CET1 Capital 16,5 % 277 Req. = 13.7 % Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 '15 2016 2017 '15 2016 2017 '15 2016 2017 CET1 T1 * T2 * 75% loans 100% loans Other RWA CET1 T1 * T2 * Note(*): As of Q4 2017 NOK 35m Tier 1 (1.5% of RWA) and NOK 47m Tier 2 (2.0% of RWA) capital counts towards MONO’s capital adequacy ratios || Note(**): capital requirements (Pillar I) are weighted between Norway and Finland 13