Instabank (INSTA) Q2 2025 earnings summary

Executive summary

• Achieved record-high gross lending growth of 835 MNOK in Q2 2025, driven by organic growth and a mortgage portfolio acquisition.

• Launched a credit card in Germany, marking a significant step in European expansion.

• Profit before tax was 28.9 MNOK, impacted by extraordinary items related to strategic investments; adjusted profit before tax was 36.7 MNOK.

• Strategic investments included higher loss provisions for German credit cards and costs for the Finnish banking license application.

• Ongoing application for a Finnish banking license and planned redomiciliation/merger with Instabank Finland to support European growth.

Financial highlights

• Total income rose to 144.1 MNOK in Q2-25, up 9.6 MNOK from the previous quarter.

• Net interest income increased to 125.0 MNOK, up 7% from the previous quarter.

• Operating expenses reached 64.2 MNOK, mainly due to German market entry and Finnish license costs.

• Profit after tax was 21.7 MNOK in Q2-25.

• Loan losses increased to 51.0 MNOK (2.7%), mainly from new German credit card and Finnish consumer loans.

Outlook and guidance

• 2025 profit after tax outlook is 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 Bn NOK.

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

• New dividend policy allows for distribution of excess capital as dividends.