Morrow Bank (MOBA) investor relations material

Executive summary

• Q2 2025 profit before tax rose 35% year-over-year to NOK 91 million, with profit after tax at NOK 70.3 million, driven by strong loan growth and improved margins.

• Gross loans increased 28% year-over-year to NOK 16 billion, including 4% organic growth in the quarter and portfolio acquisitions, mainly in Finland.

• Cost/income ratio improved to 25.8%, with underlying cost base reduced and further efficiency gains targeted.

• Return on target equity (ROTE) reached 12.2%, up for seven consecutive quarters, and return on equity improved to 11.3%.

• Redomiciliation to Sweden and Nasdaq Stockholm listing on track for early 2026, following Swedish banking license approval.

Financial highlights

• Total income for Q2 2025 was NOK 350–354 million, up 15% year-over-year.

• Net interest margin increased to 10.9% in Q2, with lending rates stable and funding rates decreasing.

• Loan loss ratio declined to 4.3% from 5.1% in Q2 2024, in line with guidance.

• Operating expenses remained stable, with NOK 6 million in one-off redomiciliation costs.

• Earnings per share for Q2 2025 was NOK 0.28, up from NOK 0.20 in Q2 2024.

Outlook and guidance

• Raised 2026 targets: annual organic loan growth of 5–10%, cost/income ratio of ~23%, and ROTE of ~17%, with long-term ambition above 20%.

• Redomiciliation to Sweden expected to reduce capital requirements and improve ROTE (Q2 ROTE would have been 15.5% under new rules).

• Loan loss ratio guidance maintained at 4%–4.5%.

• New product launches anticipated to accelerate organic growth in H2 2025.

• Positive macroeconomic outlook in the Nordics, with GDP growth and stable unemployment supporting loan demand.