Q3 Results 2023
returns.
Commenting on the results, Morrow Bank’s CEO Øyvind Oanes said:
“In the third quarter of 2023, we delivered a solid result with an underlying loan balance growth of 5% while maintaining margins and controlling cost and credit risk.”
Highlights of the quarter:
Controlled loan growth
• Underlying loan balance growth of 5% vs. Q2 2023 (4%) a mid prudent risk management
• 34% growth y-o-y supported by better customer processes and automation (throughput)
Stable margins
• Net interest margin stable at 9%, in line with the four previous quarters
• 2%p increase in borrowing cost y-o-y compensated by growth and loan repricing
Continued cost reductions
• Operating expenses reduced to NOK 77 million, down 7% vs Q2
• 19% cost reduction y-o-y driven by successful initiatives to improve cost efficiency
Solid credit risk control
• Loan loss ratio at 5%, up 0.2%p in Q3 driven by macroeconomic and other provisions
• Improved credit risk and pricing capabilities to build a more robust and scalable platform
Profitability maintained
Profit after tax of NOK 36 million, vs. NOK 41 million in Q2 for which total income was positively impacted by a NOK 5 million one-off
• Increased loan loss provisions offset by further cost improvements
• Return on equity of 6.1% vs 7.5% in Q2
“Since the beginning of 2022, we have focused on continuously improving efficiency. As a result, our operational cost base has been reduced by more than 20% in a period where the Bank’s loan balance has grown by more than 40%.
Importantly, we have built a robust bank that is competitive and well-positioned for delivering growth and value creation.”
The interim report and presentation are available on