Morrow Bank delivered another good quarter with loan balance growth and stable returns. Commenting on the results,Morrow Bank's CEO Øyvind Oanes said: "In the third quarter of 2023, we delivered a solid result with an underlying loan balance growth of 5% while maintaining margins and controlling cost and credit risk." Highlights of the quarter: Controlled loan growth o Underlying loan balance growth of 5% vs. Q2 2023 (4%) amid prudent risk management o 34% growth y-o-y supported by better customer processes and automation (throughput) Stable margins o Net interest margin stable at 9%, in line with the four previous quarters o 2%p increase in borrowing cost y-o-y compensated by growth and loan repricing Continued cost reductions o Operating expenses reduced toNOK 77 million , down 7% vs Q2 o 19% cost reduction y-o-y driven by successful initiatives to improve cost efficiency Solid credit risk control o Loan loss ratio at 5%, up 0.2%p in Q3 driven by macroeconomic and other provisions o Enhanced credit risk and pricing analytics enabling growth and control Profitability maintained o Profit after tax ofNOK 36 million , vs.NOK 41 million in Q2 which included aNOK 5 million one-off income Øyvind Oanes commented further: "Since the beginning of 2022, we have focused on continuously improving efficiency. As a result, our operational cost base has been reduced by more than 20% in a period where the Bank's loan balance has grown by more than 40%. Importantly, we have built a robust bank that is competitive and well-positioned for delivering growth and value creation." The Q3 2023 report and presentation are attached to this release and available at ir.morrowbank.com. CEO Øyvind Oanes and CFOEirik Holtedahl will present the Bank's results today at08:30 CEST . The presentation and the Q&A session will be conducted via Microsoft Teams. Registration form for the presentation: https://tinyurl.com/morrowbankQ3 For further information, please contact: Eirik Holtedahl, CFO tel: +47 96912291 email: ir@morrowbank.com AboutMorrow Bank ASA Morrow Bank (former nameKomplett Bank ) is a focused Nordic digital niche bank offering personal loans, credit cards, deposit accounts and online point-of-sales finance products to consumers. The target group is creditworthy customers with stable personal finances and no payment remarks. Credit risk is managed largely by automated processes for credit assessment and underwriting. The Bank has a diversified and balanced distribution model utilizing both public and proprietary channels. Operational efficiency and low cost are a foundation forMorrow Bank and are enabled by centralized operations, modern systems and digital set-up. To learn more, visit ir.morrowbank.com This information is considered to be inside information pursuant to the EU Market Abuse Regulation article 7 and is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act. Thisstock exchange announcement was published byHenning Fagerbakke , Head of Finance, Morrow Bank ASA, on25 October 2023 at07:00 CEST .
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