4 Jul 2024
Morrow Bank today agreed to acquire a SEK ~700 million portfolio of performing loans from Qliro AB, in line with its communicated strategy to pursue structural opportunities to accelerate value creation.Agreement to acquire Swedish performing loan portfolio, driving growth and profitability
The acquisition is at a premium of 2% compared to the loan value, making it a cost-effective way for the Bank to grow its loan balance and leverage its scalable banking platform. Due to a high degree of automation and self-service across Morrow Bank’s processes, the loan balance growth will have no impact on the Bank’s cost level. Preliminary estimates indicate that the transaction will have a neutral impact on 2024 results and a positive effect from 2025 and onwards, demonstrating the scalability of the Bank. The transaction with Qliro AB is expected to close before the end of August 2024 with a settlement in cash. The acquisition will be fully covered by the Bank’s available liquidity and capital. Following the transaction, Morrow Bank’s Swedish gross loan book will be around SEK 3.7 billion, accounting for ~28% of the Bank’s overall loan volume. Morrow Bank maintains its target of growing its loan balance organically by ~10% annually towards the end of 2025 and the Bank considers its business plan to be fully funded.