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 inNorway , 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 ofNOK 70 million , we are now well financed for growth in the second half of the year, says the CEO ofInstabank ,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 inNorway after conducting a pilot in July. The bank regards this as a market with limited competition and solid profitability. - The product is developed in theInstabank 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 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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