interim presentation | rd quarter 2017 18 october …...planned equity issue of nok 175 to 225...
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Interim Presentation | 3rd quarter 2017 | 18 October 2017
2
Important Information Disclaimer
2
This presentation (the “Presentation”) has been produced by Monobank ASA (the “Company”, “MONOBANK” or “MONO”), solely for use at the presentation to investors and is strictly confidential and
may not be reproduced or redistributed, in whole or in part, to any other person. To the best of the knowledge of the Company and its board of directors, the information contained in this Presentation
is in all material respect in accordance with the facts as of the date hereof, and contains no material omissions likely to affect its import.
This Presentation contains information obtained from third parties. Such information has been accurately reproduced and, as far as the Company is aware and able to ascertain from the information
published by that third party, no facts have been omitted that would render the reproduced information to be inaccurate or misleading. This Presentation contains certain forward-looking statements
relating to the business, financial performance 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 “believes”, 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. None of the Company or any of their parent
or subsidiary undertakings or any such person’s officers or employees provides any assurance that the assumptions underlying such forward-looking statements are free from errors nor does any of
them accept any responsibility for the future accuracy of the opinions expressed in this Presentation or the actual occurrence of the forecasted developments. The Company assumes no obligation,
except as required by law, to update any forward-looking statements or to conform these forward-looking statements to our actual results.
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, CHANGES IN DOMESTIC
AND FOREIGN LAWSAND REGULATIONS, TAXES, CHANGES IN COMPETITION AND PRICING ENVIRONMENTS, FLUCTUATIONS IN CURRENCY EXCHANGE RATES AND INTEREST
RATES AND OTHER FACTORS. SHOULD ONE OR MORE OF THESE RISKS OR UNCERTAINTIES MATERIALISE, OR SHOULD UNDERLYING ASSUMPTIONS PROVE INCORRECT,
ACTUAL RESULTS MAY VARY MATERIALLY FROM THOSE DESCRIBED IN THIS PRESENTATION. THE COMPANY DOES NOT INTEND, AND DOES NOT ASSUME ANY OBLIGATION, TO
UPDATE OR CORRECT THE INFORMATION INCLUDED IN THIS PRESENTATION.
No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and
no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, none of the Company or any of their parent or subsidiary undertakings or any such
person’s officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document. By attending or receiving this Presentation you acknowledge that you will be
solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of
the potential future performance of the Company’s business.
This Presentation speaks as of 18 October 2017. Neither the delivery of this Presentation nor any further discussions of the Company with any of the recipients shall, under any circumstances, create
any implication that there has been no change in the affairs of the Company since such date.
3
Key highlights and developments Q3 2017 Overview
1
2
3
4
5
6
Record-high loan growth of NOK 421 million – net loan balance of NOK 1,867 million
Successful start of the consumer loan business in Finland with outstanding net loans of NOK 186 million
Planned equity issue of NOK 175 to 225 million to fund further profitable growth
Net interest income of NOK 44.6 million – up from NOK 37.1 million in the previous quarter
Net profit after tax reached NOK 5.7 million – up from NOK 3.0 million in the previous quarter
Credit quality develops in line with projections after introducing internally developed scorecard
Successful placement of NOK 50 million hybrid Tier 1 and NOK 50 million subordinated Tier 2 capital 7
4
Key figures Q3 2017 Stable underlying performance
Note(*): Extension of credit in Finland has been restricted to low risk customers until local business volume allowed MONO access to the Finnish debt registry (achieved in September). This has temporarily affected the total loan yield negatively.
1 NET LOANS
MARGINS AND YIELDS 2
3
4
5
6
7
8
9
10
Growth in net loans of NOK 421 million – total outstanding net loans of NOK 1,867 million
Net loan yield of 14.0 % * vs. deposit interest rate of 2.1 %
COST LEVEL Cost / income ratio of 55 % (36 % excluding marketing) – gradually gaining economies of scale
LOAN LOSSES Annualized loan losses of 2.2 % – stable credit quality in line with underlying credit strategy
RETURN ON EQUITY Annualized ROE of 6.7 % – profitable operations after only 3 quarters of operation
CAPITAL ADEQUACY CET1 ratio of 16.5 % and total capital ratio of 20.0 % – well within capital requirements
DEPOSITS Deposit ratio of 109 % – NOK deposits represent the Bank’s main source of funding
LIQUIDITY LCR of 133 % (total) – NFSR of 153 % – satisfactory liquidity
NON-PERFORMING LOANS (>90PD) Non-performing loans of NOK 135.7 million – 7.1 % of gross outstanding loans
TOTAL PROVISIONS 27.5 % of non-performing loans are covered by provisions
5
157
1,270
2,063 2,808
3,807
5,244
6,349
7,529
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
'15 2016 2017
36
259 445
624
840
1,162
1,446
1,867
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
'15 2016 2017
-16.5
-6.5 -3.9
0.5 1.7 1.8
3.0 5.7
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
'15 2016 2017
High and profitable organic growth
Net loans
NOK (million) NOK (million)
Confirms business model
Number of loan customers
number (#)
Profit after tax
Annualized return on equity
n.a. -16.1 %
-9.9 %
1.3 % 2.7 % 2.2 %
3.6 %
6.7 %
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
'15 2016 2017
per cent (%)
Growth in net loans Growth in number of loan customers
36
223 186 179
216
322 284
421
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
'15 2016 2017
NOK (million)
157
1,113
793 745
999
1,437
1,105 1,180
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
'15 2016 2017
number (#)
6
Initiation of cross-border expansion First step Finland
• Solid multi-country operational platform
already established
• Fast and agile roll-out process with very
efficient time to market
• Continuous and ongoing exploration
of potential foreign markets to enter
• The cross-border launches are expected to
achieve considerable operational synergies,
further strengthen the growth platform and
contribute to diversify the business model
Cross-border expansion Q3 2017 distribution of net loans Current market exposure
Successful launch in Finland
• Unsecured consumer finance loans
rolled out in Finland on 29 May 2017
• Positive first reaction – lending volume
NOK 186m since initiation in Finland
• Extension of credit in Finland has been
restricted to low risk customers until local
business volume allowed access to the local
debt registry (achieved in Sept. 2017).
• Operational team based in Bergen –
no feet on the ground in Finland
• Deposit accounts, credit cards and
other opportunities will be considered
Q3 2017 distribution of growth in net loans
90%
10%
Norway
Finland
65%
35%
Norway
Finland
per cent (%)
per cent (%)
7
Launch of mutual credit card partnership Credit card agreement with Widerøe and SAS EuroBonus - Planned launch around March 2018
Source: Widerøe, SAS EuroBonus, BRREG
Key comments Selected facts
Widerøe 1 SAS EuroBonus 2
Largest regional airline in the Nordics servicing more than
twice as many airports in Norway than any other airline.
Accumulate points on flights, hotel stays, car rentals and
even on everyday purchases. The points can be redeemed
at either SAS or at numerous other partners. Such partners
range from other star alliance airlines, car rental chains,
hotels to restaurants, resorts and much much more.
46
destinations
Norwegian and
international destinations
Average number
of flight per day
Average number
of passengers per year
Flight network
composition
Turnover
2016
Current number
of personnel
450
daily flights
2.8 million
passengers
60% commercial and
40% PSO routes
3,000
employees
NOK
4,560 million
Premier loyalty & frequent flyer program in the Nordic region.
Selected EuroBonus partners:
• Widerøe, SAS EuroBonus and
MONOBANK have over the past two years
negotiated a mutual agreement regarding
a potential credit card partnership
• The parties have, as of 20 October 2016,
agreed on main terms and the agreement
have both been signed and approved by the
respective BoDs in all involved companies
• Future active credit card customers will be
awarded EuroBonus points in addition to
potential benefits from Widerøe
• Widerøe will contribute with marketing
through all available channels towards their
considerable customer portfolio
• The cooperation will also enable sale of
consumer loans to customers of Widerøe
• Technical partners are Visa and Evry
• Planned launch around March 2018
• A final launch plan will be developed based
on the overall project progress and other
commercial initiatives
EuroBonus
8
Customer segmentation * Continuous development and tuning of scorecards to navigate the portfolio
Note(*): represents the customer segmentation in the Norwegian outstanding loan portfolio
Housing Education Age
3%
32%
65%
Primary school
Secondary school
Higher education
25%
28% 28%
15%
4%
25-34 years 35-44 years
45-54 years 55-64 years
65 years +
70%
30%
Home owner
Tenant
14.9 %
13.6 %
11.6 %
8.9 %
6.9 %
5.7 %
5.0 %
4.3 %
4.3 %
4.0 %
3.5 %
3.2 %
2.7 %
2.5 %
2.4 %
2.1 %
1.7 %
1.3 %
1.4 %
Akershus
Oslo
Hordaland
Rogaland
Buskerud
Østfold
Sør-Trøndelag
Nordland
Møre og Romsdal
Vestfold
Troms
Telemark
Hedmark
Vest-Agder
Oppland
Aust-Agder
Nord-Trøndelag
Sogn og Fjordane
Finnmark
Income Location
43 years NOK 629k Higher education Home owner Urban
5%
21%
34%
39%
NOK 250k-349k
NOK 350k-499k
NOK 500k-749k
NOK 750k +
9
Increasing top-line Driven by continued loan growth and satisfying yields and margins
Note(*): Extension of credit in Finland has been restricted to low risk customers until local business volume allowed MONO access to the Finnish debt registry (achieved in September). This has temporarily affected the total loan yield negatively.
Total income Key yields and margins
NOK (million) per cent (%)
0.1 0.5 -0.6 -0.8 -1.0 -1.7 -2.6 -3.1
0.4
4.7
11.7 15.2
22.7
29.9
37.1
44.6
0.5
5.3
11.1
14.5
21.7
28.2
34.5
41.5
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
'15 2016 2017
Net comission and fee income Net interest income
n.a. 15.7 % 15.2 % 14.9 % 14.8 % 14.6 % 14.3 %
14.0 %
n.a. 2.0 % 1.8 % 1.8 % 1.9 % 1.9 % 2.0 % 2.1 %
n.a. 1.3 % 1.1 % 1.2 % 0.9 % 0.8 % 0.7 % 0.8 %
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
'15 2016 2017
Loan yield (avg.) * Deposit rate (EoQ) Liquidity yield (avg.)
10
Efficient and scalable operations
Note(*): cost / income ratio = operating expenses (incl. or excl. marketing) / total income
per cent (%)
Expenses under control through strict internal supervision – gradually gaining economies of scale
Operational expenses
NOK (million)
Cost / Income ratio *
11.1
3.5 3.6 2.2
6.5 5.5 6.2 6.9
9.0
3.6 4.5
3.4
4.3 5.6 6.3
6.1
1.3
4.2 4.2
3.6
4.6
8.1
8.0 7.7
0.9
0.6 0.6
0.5
0.3
1.1
1.5 2.0
22.3
12.0 12.9
9.7
15.8
20.3
21.9 22.7
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
'15 2016 2017
Staff costs Other administrative expenses
Marketing expenses Depreciation and amortisation
240%
228%
116%
67% 73% 72% 64%
55%
155%
147%
78%
42% 51%
43% 40% 36%
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
'15 2016 2017
Cost / Income Ratio Cost (excl. marketing) / Income Ratio
11
Satisfactory loan losses and credit quality Portfolio risk under control through diligent credit risk management and fine-tuning of scorecards
Note(*): loan loss ratio = LTM loan losses / avg. net loans ((starting balance + ending balance) / 2) || Note(**): non-performing loan ratio = >PD90 / gross loans || Note(***): provision ratio = total provisions / >PD90
Gross loans past due (# of days)
NOK (million) NOK (million)
Provisions Loan losses
NOK (million)
Total provision ratio *** Loan loss ratio * Non-performing loan ratio **
per cent (%) per cent (%) per cent (%)
0.7
1.9
3.1
4.2 3.7
4.9
8.3
10.9
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
'15 2016 2017
n.a. n.a. n.a. 3.2 %
2.9 %
2.2 % 2.2 % 2.2 %
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
'15 2016 2017
0.7 2.6
5.7
9.9 13.5
18.4
26.3
37.3
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
'15 2016 2017
n.a. n.a. 1.5 %
3.7 % 4.8 % 4.9 %
6.4 % 7.1 %
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
'15 2016 2017
6.8 23
.5
40.7
58.7
94.7
135.
7
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
'15 2016 2017
31-60 PD 61-90 PD > 90 PD
n.a. n.a. n.a. 42.1 %
33.2 %
31.4 %
27.8 %
27.5 %
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
'15 2016 2017
12
Robust regulatory capital structure Important to plan ahead to position the company for continued profitable organic growth
Note(*): MONO issued NOK 50m Tier 1 and NOK 50m Tier 2 Capital 29 August 2017. As of Q3 2017 NOK 27m Tier 1 (1.5% of RWA) and NOK 36m Tier 2 (2.0% of RWA) Capital counts towards MONO’s regulatory capital requirements.
Risk-weighted assets Regulatory capital Reported capital adequacy
16.5
%
54.1
%
31.8
%
20.5
%
17.7
%
27.8
%
21.5
%
21.6
%
20.0
%
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
'15 2016 2017
CET1 T1 * T2 *
CET1 Capital
Req. = 13.5 %
Total Capital
Req. = 17.0 %
per cent (%)
301
27
36
150 144 140 139
309 306 302
363
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
'15 2016 2017
CET1 T1 * T2 *
1,042
1,354
42
297
485
641
844
1,177
74
106
235
156
199
143
263
246 285
359
277
453
683
785
1,107
1,423 1,401
1,819
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
'15 2016 2017
75% loans 100% loans Other RWA
NOK (million) NOK (million)
13
Transparent balance sheet
Note(*): deposit ratio = deposits / net loans
Liabilities and equity Assets
NOK (million)
Consumer loans, liquidity and funding makes up the majority of the structure
NOK (million)
LCR: 133 % (total) NSFR: 153 % Deposit Ratio *: 109 %
36 259
445 624
840
1,162
1,446
1,867
186
417
690 808
1,249
1,492
1,915
2,527
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
'15 2016 2017
Net loans to customers Debt securities Loans and advances to banks Other assets
14 246
524 638
903 1,138
1,556
2,043
186
417
690 808
1,249
1,492
1,915
2,527
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
'15 2016 2017
Deposits by customers Total equity Other debt Subordinated loan
14
Detailed financial figures Quarterly income statement and balance sheet
Balance Sheet Income Statement
2015
Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4
Interest income 53,535 43,218 34,174 26,679 17,815 13,875 5,175 509
Interest expenses 8,953 6,110 4,305 3,944 2,597 2,151 446 83
Net interest income 44,581 37,108 29,869 22,735 15,218 11,723 4,730 427
Income comissions and fees 4,076 2,931 2,641 2,040 1,286 1,124 1,137 127
Expenses comissions and fees 7,201 5,533 4,350 3,037 2,048 1,737 612 82
Net comissions and fees -3,125 -2,603 -1,709 -997 -762 -613 525 45
Total income 41,457 34,505 28,160 21,738 14,456 11,110 5,254 472
Income / (loss) from trading activities -279 -246 -472 -124 191 -257 -69 39
Staff costs 6,862 6,162 5,514 6,491 2,203 3,581 3,460 11,088
Other administrative expenses 13,806 14,284 13,736 8,957 6,999 8,709 7,883 10,333
- of which marketing expenses 7,705 7,992 8,133 4,629 3,610 4,227 4,237 1,308
Depreciation and amortisation 1,999 1,500 1,079 335 546 630 620 910
Total operating costs 22,666 21,946 20,329 15,783 9,749 12,920 11,963 22,331
Profit / (Loss) before impairment losses 18,511 12,313 7,359 5,831 4,898 -2,067 -6,777 -21,820
Impairment (losses) / releases -10,946 -8,277 -4,919 -3,672 -4,207 -3,100 -1,900 -700
Operating profit / (loss) before tax 7,565 4,036 2,440 2,160 692 -5,167 -8,677 -22,520
Tax charge -1,857 -1,009 -611 -484 -172 1,276 2,167 5,996
Profit / (Loss) for the year 5,708 3,027 1,829 1,676 520 -3,891 -6,510 -16,524
P&L (NOK thousand)20162017 2015
Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4
ASSETS
Loans and advances to banks 63,559 52,081 34,536 51,219 27,735 49,293 27,631 17,204
Debt securities 488,535 324,510 220,474 301,265 110,002 158,215 101,177 114,583
Loans and advances to customers 1,904,116 1,472,644 1,180,590 853,569 634,159 450,671 261,281 36,325
Provision for impairment losses 37,278 26,340 18,439 13,531 9,900 5,700 2,600 700
Net loans and advances to customers 1,866,839 1,446,304 1,162,150 840,038 624,259 444,971 258,681 35,625
Deferred tax asset 8,902 10,760 11,769 12,380 10,989 11,161 9,885 7,717
Other intangible assets 31,606 27,042 19,133 12,898 9,835 7,635 7,384 7,123
Property, plant and equipment 1,675 1,513 433 346 166 260 137 157
Prepayments, accrued income & other assets 65,980 52,525 43,360 31,296 24,795 18,960 11,855 3,878
- of which accrued commission to agents 62,677 49,677 40,504 29,815 22,225 15,971 8,969 1,525
Other assets 108,163 91,841 74,695 56,920 45,784 38,015 29,261 18,875
Total assets 2,527,096 1,914,735 1,491,856 1,249,441 807,780 690,494 416,750 186,287
LIABILITIES & EQUITY
Deposits by customers 2,042,687 1,556,326 1,137,690 903,406 637,734 523,737 246,217 13,579
Provisions, acrruals and other liabilities 40,370 19,512 19,458 15,040 13,289 10,519 11,905 7,570
Subordinated loan 98,811 - - - - - - -
Total liabilities 2,181,868 1,575,838 1,157,148 918,446 651,024 534,257 258,122 21,149
Share capital 200,746 200,746 200,461 199,461 156,000 155,000 155,000 155,000
Surplus capital 143,475 137,767 133,862 131,534 756 - 3,628 10,138
Not registered capital 622 - - - - 1,500 - -
Other equity 384 384 384 - - -263 - -
Total equity 345,228 338,897 334,708 330,995 156,756 156,237 158,628 165,138
Total liabilities and equity 2,527,096 1,914,735 1,491,856 1,249,441 807,780 690,494 416,750 186,287
BS (NOK thousand)20162017
15
MONO-ME on Merkur Market as of 16th February 2017 Overview
Source: Infront, VPS Arena || Note(*): OSEEX = index consisting of Norwegian savings banks || Note(**): shareholders marked in gray are either Management, Board of Directors or Employees
Share price development * Shareholders as of 09.10.2017 **
0.00
0.25
0.50
0.75
1.00
1.25
1.50
1.75
2.00
2.25
2.50
2.75
2.2
2.4
2.6
2.8
3.0
3.2
3.4
3.6
3.8
4.0
4.2
4.4
4.6
4.8
Feb
-16
Mar
-16
Apr
-16
May
-16
Jun-
16
Jul-1
6
Aug
-16
Sep
-16
Oct
-16
Nov
-16
Dec
-16
Jan-
17
Feb
-17
Mar
-17
Apr
-17
May
-17
Jun-
17
Jul-1
7
Aug
-17
Sep
-17
Volum (#m)
MONO VOLUME MONO OSEEX (rebased) OSEBX (rebased)
Price per share (NOK) # Investor Role Type
# %
1 PRIORITET GROUP AB Company 23,960,344 11.9%
2 JO CAPITAL AS Board Member Company 18,622,029 9.3%
3 SONGA TRADING INC Company 16,192,589 8.1%
4 BARA EIENDOM AS Company 11,313,104 5.6%
5 HAVA FINANCIALS AS Company 5,480,572 2.7%
6 EKREM AS Company 4,646,854 2.3%
7 CITIBANK, N.A. Nominee 4,300,000 2.1%
8 SWEDBANK AB Nominee 4,000,000 2.0%
9 7FJELL VENTURES AS Company 3,885,000 1.9%
10 MIKE AS Company 3,715,500 1.9%
11 MJ CAPITAL AS Company 3,560,697 1.8%
12 GREVE-ISDAHL FINN Private Investor 3,501,000 1.7%
13 SANDSOLO HOLDING AS Company 3,300,000 1.6%
14 DAHLE BJØRN Private Investor 3,103,672 1.5%
15 LAS INVEST AS Company 3,100,000 1.5%
16 SPORTSMAGASINET AS Company 3,000,000 1.5%
17 HØYSÆTER T-BANECOMPAGNIE AS Company 2,841,464 1.4%
18 MEMO CAPITAL AS Company 2,350,000 1.2%
19 ANGARDE AS Company 2,327,754 1.2%
20 STIAN MIKKELSEN AS Company 2,225,000 1.1%
21 GREVE-ISDAHL JAN Chairman of the Board Private Investor 2,200,500 1.1%
22 HILDING INVEST AS CEO / Bent H. Gjendem Company 2,200,244 1.1%
23 RIMESTAD TOM HENNING COO Private Investor 1,733,012 0.9%
24 ARTEL INVEST AS Company 1,600,000 0.8%
25 VALLAND MARTIN CTO Private Investor 1,544,964 0.8%
26 EIANE CARL PEDER Private Investor 1,522,093 0.8%
27 BRASSETS A/S IT / Erik Brandstadmoen Company 1,500,000 0.7%
28 AMUNDSEN DATA AS IT / Tore Amundsen Company 1,350,000 0.7%
29 GEIR SKÅR HOLDING AS Company 1,300,000 0.6%
30 DELRAY TRADING AS Company 1,219,513 0.6%
Sum TOP 30 141,595,905 70.5%
Other shareholders 59,150,253 29.5%
Total 200,746,158 100.0%
Board of Directors, Management and Employees 32,372,120 16.1 %
Shares
16
Strategy going forward Continue to execute underlying business plan and pursue strategic add-ons
• Monobank has adapted to the recent changes in regulatory guidelines in Norway where necessary though moderate
modifications of underlying products and business conduct. Loan demand in Norway is not expected to be materially affected.
• Access to the Finnish debt registry was granted in September 2017. Temporary internally imposed lending restrictions have
thus been lifted. Loan growth in Finland is expected to accelerate considerably going forward.
• Direct marketing efforts will be increased to further build the Monobank brand which should have a positive impact on the share
of loans generated directly. The bank is also expanding its domestic distribution channels through additional agents.
• Further demand and attractive margins in Norway and Finland enables continued growth
• Consumer loans year-end 2017 of approximately NOK 2.3bn
Profitable
organic growth
• Efficient and scalable operations, diligent credit risk management as well as innovative and flexible IT infrastructure
• Considerable improvements in financial results is to be expected due to economies of scale. However, the bank continues to
be in a rapid development phase, and new opportunities, initiatives and projects will continue to have an impact on cost.
• Monobank’s core business will remain unsecured consumer lending. The bank will investigate new digital distribution channels
such as purchase financing and peer-to-peer solutions.
Maintain
efficient operations
Launch of credit
card product
• Successful launch of the Bank’s consumer loan product in Finland 29 May 2017
• Additional foreign markets are now being analyzed and evaluated for expansion
Multi-country
operation
• The development of the joint credit card project with Widerøe and EuroBonus continues
• Technical partners are Evry and Visa
• The target date for project completion is around March 2018
• A final launch plan will be developed based on the overall project progress and other commercial initiatives
• Further investigation of other strategic partners is ongoing
17
Contemplated private placement NOK 175 to 225 million at NOK 3.70 per offer share to fund further profitable growth
Note(*): MONO issued NOK 50m Tier 1 and NOK 50m Tier 2 Capital 29 August 2017. As of Q3 2017 NOK 27m Tier 1 (1.5% of RWA) and NOK 36m Tier 2 (2.0% of RWA) Capital counts towards MONO’s regulatory capital requirements.
Reported capital adequacy Transaction rationale Transaction details
Growth in net loans
16-17 OCT
18 OCT
18-20 OCT
~ 23 OCT
~ 06 NOV
~ 10 NOV
18 OCT
NOV / DEC
18-20 OCT
~ 07 NOV
Pre-sounding of key shareholders
Announcement of Q3 2017 report and private placement
Bookbuilding period in private placement
Roadshow in Bergen, Oslo, Helsinki, Stockholm and London
Conditional allocation in private placement and notice of EGM
EGM to resolve private placement and repair issue
Payment of shares in private placement
Delivery of shares in private placement
Ex. subscription rights in subsequent repair issue
Subscription period in subsequent repair issue
Net loans
36
259 445
624
840
1,162
1,446
1,867
~ 2,300
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
'15 2016 2017 '17E
Transaction timeline
36
223 186 179
216
322
284
421 ~ 433
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
'15 2016 2017 '17E16
.5 %
54.1
%
31.8
%
20.5
%
17.7
% 27
.8 %
21.5
%
21.6
%
20.0
%
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
'15 2016 2017
T2 * T1 * CET1
Cross-border expansion starting with Finland
2
Maintain highly profitable growth story in Norway
1
Credit card agreement with Widerøe / EuroBonus
3 CET1 Capital
Req. = 13.5 %
Total Capital
Req. = 17.0 %
Private Placement
of NOK 175-225 million
NOK 3.70 per
offer share
Current shareholders have already committed to subscribe
for NOK 80 million and guaranteed (conditional upon
approval from the NFSA) for an additional NOK 92 million
Monobank ASA | # 913 460 715 | Starvhusgaten 4, 5014 Bergen | www.monobank.no
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