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7 May 2024

Q1 Results 2024

Higher revenues while keeping costs stable, and a declining loan loss ratio, resulting in improved returns.
Morrow Bank delivered another solid quarter with profit before tax of NOK 58 million, its highest profit since Q2 2021. Commenting on the results, Morrow Bank’s CEO Øyvind Oanes said: “At the beginning of this year, we set new and more ambitious medium-term targets and the performance this quarter demonstrates that we are on track. In Q1 2024, we delivered higher revenues while keeping costs stable, and a declining loan loss ratio, resulting in improved returns.”

Highlights of the quarter:

Solid income growth

• Continued strong Nordic consumer financing demand, gross loans above NOK 12 billion • Net interest margin stable around 9%, in line with the four previous quarters • Total income of NOK 296 million in Q1, up 3.4% vs Q4 2023

Improved cost efficiency

• Operating expenses remaining stable at NOK 80 million • Cost/income ratio at industry-leading 27% (28%) driven by continued cost focus Credit risk control • Loan loss ratio at 5.2% (5.4%) as growth is stabilizing and tightened credit policies since Q2 2023 are starting to weigh in.

Higher returns

• Profit before tax of NOK 58 million (NOK 51 million) and profit after tax of NOK 44 million (NOK 35 million) • ROE (return on equity) of 7.4% (6.1%) On track for 2025 targets • Year-end 2025 targets of ~10% annualized loan growth, cost/income ratio of ~26% and ROTE (return on target equity) of 10-12%
Øyvind Oanes commented further: “Over the past two years, Morrow Bank has optimized its product portfolio, improved customer processes, increased automation and right sized the organization. With a scalable and robust banking platform established, and a positive medium to long-term macro-outlook in the Nordics, we will focus on continuous organic improvements while pursuing opportunities that can drive further value creation.” The Q1 2024 report and presentation are available here.