Morrow Bank delivered another quarter with growth and operational improvements in Q4 2023. Commenting on the results,Morrow Bank's CEO Øyvind Oanes said: "Q4 2023 marked another quarter with healthy growth and improved efficiency. We are pleased to see that a large portion of new loans now have both higher yield and lower risk than older loans. As we conclude 2023, we have delivered on the roadmap and ambitions we set in Q1 2022. We've grown the loan book by more than 50%, reduced the cost/income ratio to highly competitive levels below 30% and we've managed to keep the net interest margin stable amid a challenging macro backdrop." Highlights of the quarter: Solid loan growth o Underlying loan balance growth of 4% (5% in Q3), year-end balance at NOK ~12 billion o 22% growth y-o-y as better customer processes and automation have driven throughput Improved margins o Net interest margin up 0.2%p in Q4 driven by extensive pricing measures o Total income surpassedNOK 1 billion in 2023, up 30% y-o-y Improved cost efficiency o Operating expenses remained stable at NOK ~80 million in Q4 (NOK 78 million in Q3) o ~20% normalised cost reduction y-o-y driven by cost efficiency initiatives: C/I at 28% in Q4 Credit risk control o Loan loss ratio at 5.4%, up 0.4%p in Q4 driven by macro and growth o Increase more than offset by income growth both in quarter and y-o-y Profitability maintained o Profit after tax ofNOK 35 million (NOK 36 ), impacted byNOK 4 million higher tax expense; pre-tax profits ofNOK 51 million (NOK 48 ) o ROE (return on equity) of 6.1%, equal to the level in Q3 o Full-year 2023 profit before tax ofNOK 206 million vsNOK 2 million in 2022 Commenting on the outlook, Oanes furthermore said: "With a loan book of close toNOK 12 billion and a scalable banking platform now in place, our ambition is to deliver steady growth around 10% annually while generating attractive returns. Growing the loan book while keeping costs stable, combined with higher risk-adjusted margins, should take us to 10-12% ROE by the end of 2025." The Q4 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 CET . The presentation and the Q&A session will be conducted via Microsoft Teams. Registration form for the presentation: http://tinyurl.com/morrowbankQ42023 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, on14 February 2024 at07:00 CET .
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