In the 3rd quarter,Instabank ASA had a net profit after tax ofNOK 28.2 million , a 53 % increase from the same quarter last year. The bank is now entering the corporate market and is thus taking up the fight against the big banks. Growth in net lending is record high, with an increase ofNOK 466 million .Instabank is one ofNorway's fastest growing banks and has so far in 2023 increased net lending by more thanone billion NOK . - We offer products that customers want at competitive terms. We believe this is the main reason why we are now amongNorway's fastest-growing banks. At the same time, we keep costs down, and a cost-effective bank is good for both customers and shareholders, says CEORobert Berg . Entering the corporate market: In the 3rd quarter,Instabank launched corporate loans. At the end of the quarter, the bank had granted loans to 48 small and medium-sized companies with a total lending volume ofNOK 37 million . - Smaller companies may find that they do not get enough attention from the big banks and we see corporate loans as a large market going forward. The response so far has been good, and we therefore have great faith that the corporate market will be an important growth driver for us in the coming quarters, continues Berg. Strong cost improvement and moderate loan losses: Operating costs in the quarter accounted for 37.6 % of revenues. This is a sharp drop from 44.1 % in the same quarter last year. Losses as a percentage of lending also decreased compared to the third quarter of 2022, falling 0.2 percentage points to 2.3 %. - We now see that we are taking advantage of economies of scale and can grow significantly without increasing the cost base. At the same time, the development in losses on loans shows that we have good control over the loan portfolio, says Berg. Well-prepared for tougher times: By being cost-efficient,Instabank can offer competitive terms to clients, and the bank is able to compete for the best loan customers. This helps to mitigate the risk in the loan portfolio and therefore makes the bank better prepared for demanding market conditions. - Good credit craftsmanship will always be the core of a good bank. Our good cost position and competitive pricing provide a strong influx of attractive customers, while maintaining good credit quality in the portfolio. Together with solid capital coverage, this makes us well prepared at a time when many borrowers see tighter finances, explains Berg. For further information, please contact:Robert Berg , CEO +47 974 85 610Per Kristian Haug , CFO +47 952 38 717 This information is subject to the disclosure requirements of section 5-12 the Norwegian Securities Trading Act
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