Morrow Bank (MORROW) investor relations material

Acquisition overview

• Announced acquisition of 100% of MedMera Bank, a Swedish consumer finance bank, for SEK 1,960m, with closing expected in early Q3 2026.

• Financing includes new share issuance, equity issue, bond issuance, and use of existing capital.

• MedMera Bank brings a SEK 11.3bn loan book, 65,700 loans, and 72,200 savings accounts as of December 2025.

• The acquisition will increase the loan portfolio by approximately 65%.

• Integration is planned for H2 2026 following regulatory approval.

Strategic rationale and synergies

• The deal solidifies the acquirer's Swedish presence, with ~60% of gross consumer loans to be Swedish post-acquisition.

• MedMera Bank's customer base and product offering are highly complementary, with lower credit losses and higher average loan amounts.

• Exclusive partnership with Coop provides access to over 4 million members and a strong distribution channel.

• Significant cost and income synergies expected, with a long-term reduction in cost-to-income ratio.

• The acquisition is expected to create tangible value for shareholders, with EPS more than doubling by 2028 and potential for increased dividends.

Financial and shareholder support

• The transaction is primarily financed through equity (including SEK 600m new issue), bonds (SEK 500m), and existing funds.

• Strong shareholder support, with SEK 410m committed by the largest shareholder and additional commitments from management and other investors.

• The acquisition aligns with long-term financial targets and the ambition to become a top 3 Nordic consumer finance bank.