Instabank (INSTA) Q1 2025 earnings summary

Executive summary

• Profit before tax reached 30.8 MNOK in Q1-25, up 27% year-over-year, driven by higher total income and lower loan losses.

• Gross loans grew by 334 MNOK, with strong performance in mortgages and business lending.

• Strategic milestone achieved with the launch of a digital credit card in Germany, supporting European expansion.

• Customer base at quarter-end: 108,115, with 63,545 loan customers and 44,570 deposit customers.

Financial highlights

• Total income was 134.5 MNOK, up 18.0 MNOK from Q1-24, with interest income rising by 16.1 MNOK year-over-year.

• Net interest income increased by 15% year-over-year to 115.2 MNOK.

• Operating expenses were 62.1 MNOK, a 0.9 MNOK increase sequentially, impacted by costs for the Finnish license application and German credit card launch.

• Loan losses decreased to 41.7 MNOK (2.4%), down 4.7 MNOK from Q1-24, reflecting a shift to lower-risk lending.

• Profit after tax was 23.1 MNOK, with a return on equity of 11.3% for Q1-25.

Outlook and guidance

• 2025 profit after tax is guided at 125 MNOK, with a mid-term ambition of over 200 MNOK.

• ROE target for 2025 is over 12%, with a mid-term ambition of over 15%.

• Gross loans expected to reach 8.5 Bn NOK in 2025, with a mid-term goal of over 10.0 Bn NOK.

• Strategic focus on expanding business lending, mortgages, and German credit card offering.

• New dividend policy allows for distribution of capital not allocated for growth.