Instabank (INSTA) Q4 2023 earnings summary

Executive summary

• Q4 profit before tax was NOK 32.8m, up 10% YoY; FY profit before tax was NOK 131.2m and net profit after tax NOK 100.9m, versus NOK 82.2m in 2022.

• Gross loans reached NOK 6,274m after NOK 345m growth in Q4 and NOK 1,455m growth in FY 2023; mortgages were 40% of the portfolio.

Financial highlights

• Q4 total income was NOK 125.1m, up 28% YoY; net interest income was NOK 96.7m and net other income NOK 28.4m.

• Q4 operating expenses were NOK 45.7m and loan losses NOK 46.6m; FY total income was NOK 441.1m, operating expenses NOK 166.1m and loan losses NOK 143.7m.

• FY basic EPS was NOK 0.27 versus NOK 0.25 in 2022; diluted EPS was NOK 0.25 versus NOK 0.23.

Outlook and guidance

• 2024 priorities include growth in mortgages, business lending and consumer loans in Finland, where capital requirements for exposures were reduced significantly.

• Continued high demand for lending products was expected; a final decision on the new Pillar 2 requirement was expected by end-Q1 2024.

• International expansion is an ambition for 2024–2025, including credit cards and consumer loans in Germany, mortgages in Finland and B2B products in Norway.

• Strategy targets convenient, high-yield B2B and B2C products across Northern Europe.