Morrow Bank (MORROW) investor relations material

Executive summary

• Q3 profit before tax reached a record SEK 200.2m, up 123% YoY; continuing-operations EPS rose 65% to SEK 0.45.

• MedMera was consolidated from 1 July; gross loans reached SEK 31.0bn, including ~SEK 12bn acquired, with 3% organic Q3 growth including FX effects.

• Integration was progressing to plan, with ~half of estimated SEK 150m annual synergies realised on a run-rate basis; 2028 ambition is EPS above SEK 2.0.

Financial highlights

• Q3 total income rose 59% YoY to SEK 531.0m; net interest income was SEK 487.2m, up 53.9%.

• Q3 profit before tax was SEK 200.2m; continuing-operations profit after tax was SEK 156.6m, while discontinued operations recorded a SEK 14.4m loss.

• Continuing-operations EPS was SEK 0.45, up 65% YoY; total after-tax profit was SEK 142.2m.

• Jan-Sep income rose 28.1% to SEK 1,273.1m; profit before tax increased 51.8% to SEK 387.5m and continuing-operations EPS was SEK 1.05 versus SEK 0.80.

• Q3 operating expenses were SEK 136.9m; cost/income was 25.8%, down from 30.4% in Q2. Jan-Sep cost/income was 26.2% excluding one-off costs.

Outlook and guidance

• End-2028 ambitions: annual loan growth ~10%, loan balance ~SEK 37bn, cost/income ~20%, loan loss ratio ~3.0%, ROTE >20% and EPS >SEK 2.0.

• EPS ambition is more than double the 2025 level, supported by organic growth, operating leverage and synergies.

• Remaining synergies and a single bank and technology platform from 2028 are expected to lower cost/income; growth is planned on a largely fixed cost base.

• Excess capital is expected to approach SEK 1bn by year-end 2026; overall margin outlook was described as stable.