Morrow Bank (MORROW) Investor Update summary

Business Overview and Strategy

• Operates as a fully digital, scalable Nordic consumer finance bank offering consumer loans, credit cards, and savings products, with over 95% of origination through distribution partners and 98% automation in applications.

• Serves Norway, Sweden, and Finland, targeting a SEK 600 billion unsecured credit market and a resilient population of 22 million; typical customers are 30–50 years old, predominantly male, homeowners, with above-average income and strong credit profiles.

• Requires customers to have no payment remarks and permanent employment; average loan size is SEK 150,000–160,000.

• Offers high-yield deposit accounts and no-fee credit cards, focusing on a cost-efficient B2B2C model.

Operational and Financial Performance

• Lending book reached SEK 15.6 billion at end of Q3 2025, with 80% outside Norway: 45% in Finland, 35% in Sweden, 20% in Norway.

• Net interest margin stable at 8.5% in Q3 2025, profit after tax of NOK 73m, and return on target equity at 13%.

• Maintains high liquidity and funding ratios, with deposit coverage at 102% and liquidity coverage ratio at 687%.

• Transitioned headquarters to Sweden, now operating as a Swedish bank, improving competitiveness and freeing up capital due to lower Swedish capital requirements.

• Demonstrated ability to acquire and integrate loan portfolios, adding SEK 3 billion through recent M&A activity without increasing costs, supporting scalability.

Track Record and Growth

• Doubled loan book and halved cost/income ratio since 2022, with a 55% CAGR in profit after tax from Q3 2022 to Q3 2025, outperforming Nordic peers.

• Increased market share from 1.5% in 2022 to 3% in 2025, supported by a scalable tech platform and streamlined operations.

• Initiated a strategic restart in late 2021, bringing in new management, exiting unprofitable products, and streamlining operations.