Morrow Bank (MORROW) DNB Markets’ SME Conference Presentation summary

Strategic positioning and growth

• Revamped as a scalable Nordic niche bank focused on growth and value creation.

• Provides flexible consumer loans, no-fee credit cards, and guaranteed savings accounts to creditworthy individuals across the Nordics.

• Successfully completed a turnaround, now operating a scalable and efficient consumer banking platform.

• Diversified loan book across Norway, Finland, and Sweden, with a proposed dividend for 2024.

• Swedish banking license granted in April 2025, with redomiciliation and Stockholm listing planned by January 2026.

Financial performance and efficiency

• Achieved a best-in-class cost/income ratio of 26% in Q4 2024, outperforming key Nordic peers.

• Loan loss ratio at 4.6% and return on target equity (ROTE) at 10.6% for Q4 2024.

• Pre-tax profit margin around 3%, supported by a 12% loan yield and low funding costs.

• Sustained growth in loan balances, with gross loans reaching BNOK 15.4 and projected to exceed BNOK 17.

• Declining loan loss ratio and improving operational KPIs expected to further boost profitability.

Value creation and future outlook

• Macro tailwinds such as increased consumer spending and improved credit quality support profitable growth.

• Expanding net interest margins as deposit rates fall in SEK and EUR.

• Trading at a ~30% price/book discount to Swedish peers, with significant rerating potential post-redomiciliation.

• Mid-term ROE ambition set to double after moving to Sweden, targeting >20% ROE in the longer term.

• Focus on allocating capital for highest long-term shareholder returns, with further growth, dividends, and M&A opportunities.