Instabank increased profit after tax by 34 % in the second quarter compared to
the same quarter last year and expects continued growth in the second half of
2023. A credit line product for small and medium-sized businesses will be
launched in August. 

Instabank's profit after tax in the second quarter was 23.8 MNOK compared to
17.8 MNOK in the same quarter last year. The bank continues to develop an
ever-broadening product range across several geographical markets. By the end of
the second quarter, mortgages account for about 40 % of total loans, and in
Norway, mortgages will soon be twice the size of consumer loans. Instabank will
launch new products in the Norwegian, Finnish, and German markets over the next
two years.

- Capital constraints hampered loan growth in the second quarter, but after a
successful capital raise of NOK 70 million, we are now well financed for growth
in the second half of the year, says the CEO of Instabank, Robert Berg. -Despite
somewhat limited lending growth in the second quarter, there was solid profit
growth, which shows we have an efficient organization. We are therefore
confident that the expected lending growth in the following quarters will boost
profits.

Stable loan losses:
Loan losses have been stable over the last three quarters, with losses on
consumer loans showing a decline, while losses on residential mortgages are
slightly increasing.

- We are monitoring the development in credit losses closely, and we are pleased
to see that our customers can service their loans to the same extent as before
despite higher interest rates and inflation, says Berg.

New lending product for the corporate market:
In August, Instabank will launch a credit line for small and medium-sized
businesses in Norway after conducting a pilot in July. The bank regards this as
a market with limited competition and solid profitability.

- The product is developed in the Instabank way; It`s intuitive, digital, and
cost-effective for customers and the bank. This is a large segment with few
providers, says Berg. He announces several more product launches over the next
12 months, both in the Norwegian, Finnish, and German markets.

- We are positioning ourselves as a Nordic challenger bank. We are already well
diversified in products and geographical markets, and our plans for the next
year include several new initiatives. The organization's ability to rapidly
develop and launch new profitable products is one of the bank's competitive
advantages, says Berg.
 

For further information, please contact: 
Robert Berg, CEO +47 974 85 610 
Per 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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