Instabank (INSTA) Q3 2025 earnings summary

Executive summary

• Profit before tax reached a record NOK 40.5 million in Q3 2025, up NOK 11.6 million from the previous quarter, driven by strong lending growth and cost control.

• Gross lending expanded by NOK 368 million, marking the second consecutive quarter of all-time-high growth.

• Business lending rose to NOK 858 million, now 10% of total lending, with a 17.7% yield.

• German credit card portfolio gained traction, supported by the launch of AI-driven customer service.

• Successful private placement of NOK 186.6 million after the balance date, providing capital for growth.

Financial highlights

• Total income for Q3 2025 was NOK 156.3 million, up NOK 12.2 million from the previous quarter.

• Net interest income rose to NOK 144.1 million, up 15% sequentially, with interest income at NOK 223.5 million.

• Operating expenses were NOK 66.1 million, mainly from German credit card growth and advisory costs, with a cost/income ratio of 42%.

• Profit after tax for Q3-25 was NOK 30.4 million, with 34 consecutive profitable quarters and a return on equity of 12.3%.

• Loan losses at NOK 49.7 million (2.5% of gross loans), down NOK 1.3 million from previous quarter.

Outlook and guidance

• Gross lending guidance for year-end 2025 is NOK 8.7 billion.

• Lending growth target for 2025 is NOK 1.8–2.0 billion, with continued expansion in consumer finance, business lending, and German credit cards.

• Return on equity outlook for 2025 is ~12%.

• Profit after tax outlook for 2025 is NOK 117–120 million.

• Ongoing Finnish banking license process aims to establish a pan-Nordic platform under EU regulation.