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12 May 2023

Q1 Results 2023

Solid income growth enabled by improved throughput and stable net yield.


Solid income growth enabled by improved throughput and stable net yield

  • 12% loan balance growth vs. Q4 2022, 7% growth when adjusting for currency effects
  • Increase of loan book interest rates continued, stable net yield
  • Total income growth of 6% vs. Q4 2022 driven by net loan growth

Initiatives to reduce cost base continued to materialise

  • Number of full-time employees (FTEs) reduced by 43% year-on-year
  • Total operating expenses before depreciation and write-offs down by 18% vs. Q4 2022
  • Cost/income ratio of 35% vs. 44% (adjusted) in the previous quarter

Stable credit quality development and material ROE improvement

  • Loan loss ratio of 3.9%, down from 5.4% (adjusted) in Q4 2022, driven by lower loan growth and stable underlying credit quality
  • Profit after tax of NOK 40 million vs. NOK -89 million in the previous quarter
  • Return on equity (ROE) was 8%, the highest level since Q2 2021

Outlook for further growth and cost/income reduction

  • Strategic initiatives focusing on simplifying IT in 2023; first product successfully transferred to the new IT platform during the quarter, enabling increased efficiency
  • Growth to continue, albeit at an adjusted pace due to some tightening of credit models
  • 100 MNOK equity issue successfully completed in Q1 to support growth.
    Additional 100 MNOK Tier 2 subordinated loan successfully placed in May

Commenting on the results, CEO Øyvind Oanes said:

“Since the current management team was introduced in January 2022, our focus has been on building a bank that is competitive and positioned for long-term growth and value creation. For three consecutive quarters, we have delivered strong growth while significantly reducing the cost base. A 20%-points reduction in the cost/income ratio since Q1 2022 is illustrative of the progress we have made on efficiency. Going forward, we plan for continued growth and further cost reductions. I am pleased to have a highly motivated team and we now look forward to continuing building a bank for the future under the new brand Morrow Bank.”

The interim report and presentation are available on