Morrow Bank (MORROW) Investor Update summary

Strategic Positioning and Growth

• Operates as a Nordic niche bank in unsecured consumer finance, holding a 2.5% market share and NOK 15.4 billion in loans, mainly outside Norway.

• Achieved a scalable platform, doubling bank size in three years and enabling efficient growth and value creation.

• Delivered strong 2024 results: net profit up 637% year-on-year, Q4 pre-tax profit up 65% from previous quarter.

• Total shareholder return reached ~140% in 2024, significantly outperforming Swedish peers, but shares trade at a ~35% discount on P/B basis.

• Diversified loan portfolio: 45% in Norway, 36% in Finland, 19% in Sweden.

Operational Efficiency and Profitability

• Cost/income ratio reduced from 54% to 25.9% over three years, now industry-leading.

• Loan loss ratio improved to 4.6% in Q4 2024 from 5.4% in Q4 2023, with further improvement expected.

• Loan book growth averaged 27% annually over three years, with 31% growth in 2024 and stable cost base.

• Funding costs have declined, with weighted average at 2.65%, supporting margin expansion.

• Return on target equity (ROTE) improved for five consecutive quarters, reaching 10.6% in Q4 2024.

Capital, Dividends, and Regulatory Developments

• Capital headroom increased to 5.4% due to lower regulatory requirements; CET1 ratio stable at 17.5%.

• First dividend proposed since turnaround: 40 øre per share, up to 50% payout of 2024 profit.

• Redomiciliation to Sweden progressing, with license application submitted and share listing transfer to Nasdaq Stockholm expected within 12 months of approval.

• Swedish move expected to lift return on equity from 11% to up to 20%.

• Continuing to pursue M&A and structural opportunities to enhance shareholder value.