Morrow Bank : presentation June 2024

morrowbank.com

Company presentation

MORROW BANK ASA - 17 JUNE 2024

Disclaimer

morrowbank.com

ABOUT THIS PRESENTATION

This company presentation (the "Presentation") has been prepared by Morrow Bank ASA ("Morrow Bank" or the "Company") and relates to Morrow Bank. This Presentation speaks as of 17 June, 2024, and there

may have been changes in matters which affect the Company subsequent to the date of this Presentation. The Company does not intend, and assumes no obligation, to update or correct any information included in this Presentation. Recipients are advised, however, to inform themselves about any further public disclosures made by the Company. The Presentation has not been reviewed or approved by, any public authority, stock exchange or regulated marketplace. No representation or warranty (whether express or implied) as to the correctness or completeness of the information contained herein is given, and neither the Company nor any of its subsidiaries, directors, officers, employees or advisors assume any liability connected to the Presentation and/or the statements set out herein.

The information included in this Presentation may contain certain forward-looking statements relating to the business, financial performance of and results of the Company and/or the industry in which it operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words "expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. The forward-looking statements contained in this Presentation, including assumptions, opinions and views of the Company or cited from third party sources are solely opinions and forecasts which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. There is no assurance that the assumptions underlying such forward-looking statements are free from errors. This Presentation is intended to present background information on the Company and its business and is not intended to provide complete disclosure upon which an investment decision could be made. The merit and suitability of an investment in the Company should be independently evaluated. Any person considering an investment in the Company is advised to obtain independent legal, tax, accounting, financial, credit and other related advice prior to making an investment. This Presentation has been prepared for information purposes only. This Presentation does not constitute any solicitation for any offer to purchase or subscribe any securities and is not an offer or invitation to sell or issue securities for sale in any jurisdiction, including the United States. Distribution of the Presentation in or into any jurisdiction where such distribution may be unlawful, is prohibited. An investment in the Company involves risk, and several factors could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by statements and information in this Presentation, including, among others, risks or uncertainties associated with the Company's business, segments, development, growth management, financing, market acceptance and relations with customers, and, more generally, general economic and business conditions.

This Presentation is directed at persons in member states of the European Economic Area ("EEA") who are "qualified investors" as defined in Article 2(e) of Regulation (EU) 2017/1129 ("Qualified Investors"). In addition, in the United Kingdom, this Presentation is addressed to and directed only at, "qualified investors" as defined in section 86(7) of the Financial Services and Markets Act 2000 who are also (i) investment

professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order"); or (ii) high net worth entities falling within Article49(2)(a) to (d) of the Order (all such persons together being referred to as "Relevant Persons"). This Presentation must not be acted on or relied on (i) in the United Kingdom, by persons who are not Relevant Persons, and (ii) in any member state of the EEA other than Norway, by persons who are not Qualified Investors. Any investment or investment activity to which this Presentation relates is available in the United Kingdom only to persons that are both Relevant Persons and Qualified Investors, and in member states of the EEA other than Norway and the United Kingdom only to persons that are Qualified Investors and will be engaged in only with such persons. This Presentation and the information contained herein is not intended for publication or distribution, directly or indirectly, in whole or in part, in, and does not constitute an offer of securities in, the United States (as defined in Regulation S under the U.S. Securities Act of 1933, as amended (the "Securities Act")), Canada, Australia, Japan or any other jurisdiction where such distribution or offer is unlawful. The securities of the Company have not been and will not be registered under the Securities Act or with the securities regulatory authority of any state or other jurisdiction of the United States and may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. By accepting the delivery of this Presentation, the recipient warrants and acknowledges that it is outside the United States. Neither this Presentation nor any copy of it may be taken, transmitted or distributed, directly or indirectly, in whole or in part, into the United States. Any failure to comply with the foregoing restrictions may constitute a violation of U.S. securities laws. This Presentation is subject to Norwegian law, and any dispute arising in respect of this Presentation is subject to the exclusive jurisdiction of Norwegian courts with Oslo District Court (Oslo tingrett) as exclusive venue. By receiving this Presentation, you accept to be bound by the terms above.

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Today's agenda

morrowbank.com

• Highly scalable banking platform
• Strong value drivers in place
• Attractive value creation potential
• Summary and Q&A

CEO Øyvind Oanes

CFO Eirik Holtedahl

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morrowbank.com

Morrow Bank is a scalable Nordic niche player

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Positioned for significant value creation

morrowbank.com

• Established in 2014 and listed on the Oslo Stock Exchange in 2017
• Providing financial flexibility to creditworthy Nordic consumers, a historically resilient BNOK ~600 market
• Developed a new and more scalable banking platform over the past two years, positioning the bank for significant value creation

Oslo,

Norway

Loan balance	LTM revenue	LTM pre-tax profit	Market cap
BNOK 12.2	BNOK 1.1	MNOK 212	BNOK 1.1
+13% y-o-y	+33% y-o-y	+114% y-o-y1	Price/book (P/B) of 0.5x

1. Adjusted for a MNOK 91 write-down in Q4 2022.

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morrowbank.com

Highly scalable banking platform

2024 targets exceeded following a successful turnaround morrowbank.com

Target of >50% loan balance growth achieved

BNOK 12.2

Achieved cost/income ratio below 35% in Q1´23

22Q1

Ambition: grow loan balance by more than 50% by year-end 2024

BNOK 8.0

23Q4	24Q1
Ambition achieved	Positive trend
	continuing

22Q1	23Q1	24Q1
Ambition: C/I ratio	Ambition	Positive trend
below 35% in Q4	achieved	continuing
2024

• Optimised product portfolio
• Enhanced credit scoring and pricing
• Simplified customer onboarding

• Simplified IT platform
• Increased process automation
• Right-sizedorganization

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Offering convenient consumer financing

to creditworthy individuals in the Nordics	morrowbank.com

Flexible consumer loans

• NOK 10,000-500,000 without collateral
• Same day response to loan application
• Annuity loans, Credit Lines and Refinancing

No-fees credit cards

• 1-4%bonus on all transactions
• Apple, Google, Samsung and Garmin Pay
• No fees, and insurances included

Guaranteed deposit accounts

• Competitive interest rate
• Deposit guarantee up to NOK 2,000,000
• Unlimited withdrawals, free of charges

1. Per Q1 2024.

Diversified Nordic loan portfolio1

24%26%

NOK 12

billion

50%

	Norway		Finland		Sweden

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Our typical customer is 40-50 years old,

owns a home and earns above average	morrowbank.com

Male

63% of our loan customers are men

Homeowner

58% homeownership

Middle aged

23%

30-4040-5050-60 >60

Above average annual income

NOK ~600k

Solid payer

• Zero payment remarks
• Permanent employment

Average loan amount

NOK 167k

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Optimising core banking processes and partnering

with distribution, servicing and collection specialists	morrowbank.com

Origination

• Targeting creditworthy and profitable client segments
• Risk-basedpricing

95% distribution partners

Onboarding

• Proprietary scorecard and machine learning
• Using both internal and external credit data
• Know your customer and credit underwriting
• Payment/card issuance

~90% automated

Servicing

• Self-servicethrough web and app
• Outsourced customer support
• Behavioural scoring to optimise credit limit and terms
• Cross-selland up-sell
• Automated invoicing, reminders and follow-ups

>70% self-service

Debt collection

• Defaulted loans sold or sent to debt collection agencies:
• • Forward flow sales
  • Portfolio sales
  • Outsourced collection
• Continuous benchmarking of agency performance
• Close monitoring of recovery

>50% recovered

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