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 surpassed NOK 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 of NOK 35 million (NOK 36), impacted by NOK 4 million higher
tax expense; 
pre-tax profits of NOK 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 of NOK 206 million vs NOK 2 million in 2022

Commenting on the outlook, Oanes furthermore said:
"With a loan book of close to NOK 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 CFO Eirik Holtedahl will present the Bank's results today
at 08:30 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


About Morrow Bank ASA
Morrow Bank (former name Komplett 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
for Morrow 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. This stock
exchange announcement was published by Henning Fagerbakke, Head of Finance,
Morrow Bank ASA, on 14 February 2024 at 07:00 CET.

Click here for more information

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