Instabank (INSTA) Q4 2025 earnings summary

Executive summary

• Achieved record profit after tax of 47.8 MNOK in Q4 2025, up 17.2 MNOK from Q3, aided by year-end tax adjustments and NPL sales.

• Strong lending growth and disciplined cost control led to a cost-to-income ratio of 38%.

• Completed a capital raise of 205 MNOK, enhancing growth capacity and capital ratios.

• 35 consecutive profitable quarters, with a pan-Nordic digital platform supporting scalable growth.

• Ongoing application for a Finnish banking license and planned merger with Instabank Finland to support EU expansion.

Financial highlights

• Total income rose to 175.5 MNOK in Q4 2025, up 19.2 MNOK from Q3, driven by organic lending growth and higher yields.

• Net interest income increased due to a 20.1 MNOK rise in total interest income, while interest expenses declined slightly.

• Operating expenses were 67.3 MNOK, with a 4 percentage point drop in cost-to-income ratio.

• Loan loss ratio was 2.6% in Q4 2025, with impairment losses of 54.7 MNOK.

• Gross loans to customers grew by 271 MNOK to 8,496 MNOK; deposits decreased by 101 MNOK to 8,162 MNOK.

Outlook and guidance

• Targeting gross lending growth of 3,000–3,500 MNOK and profit after tax of 160–185 MNOK in 2026.

• Ambition to exceed 11.5 Bn NOK in gross loans and maintain ROE around 15% in 2026.

• Well positioned for >40% lending growth in 2026, driven by business lending and credit cards.

• Continued investment in AI and automation to drive efficiency and customer experience.