Half Year 2026 Morrow Bank ASA Earnings Call

August 13, 2026

Operator: Morning reported the results of Q2 2026. Investors following the channel know that there has been a lot of activities and strategic deals lately. You can ask your questions for the Q&A in the live chat. I am happy to present the Morrow Bank top executives, CEO Øyvind Oanes, and CFO, Eirik Holtedahl. Welcome.

Speaker #1: And the results of the second quarter of 2026. Investors following the channel know that there has been a lot of activity and strategic deals lately.

Speaker #1: You can ask your questions for the Q&A in the live chat. I'm happy to present the Morrow Bank top executives and managers: CEO Eivind Uanes and CFO Eirik Holtedal. Welcome.

Speaker #1: Thank you. Eivind, a growth of 70% in the second quarter—what's the view of the quarter in brief?

Øyvind Oanes: Thank you.

Eirik Holtedahl: Thank you.

Operator: Øyvind, a growth of 70% in Q2. What is the view of the quarter in brief?

Speaker #2: It's a strong quarter. Underlying, if we look at pretty much all the KPIs, and with the growth, as we will show throughout the presentation.

Øyvind Oanes: It is a strong quarter, underlying if we look at pretty much all the KPIs and with the growth as we will show throughout the presentation. It is also an exciting quarter, as you alluded to with the large acquisition of MedMera Bank that was basically closed Thursday of the next quarter. But obviously was a key topic in Q2.

Speaker #2: There's also an exciting quarter, as you alluded to, with the large acquisition of Mimera Bank that was basically closed Thursday of the next quarter, but obviously was a key topic in Q2.

Speaker #1: With that, please go ahead and present, and I'll see you for the Q&A.

Operator: With that, please go ahead and present, and I will see you for the Q&A.

Speaker #2: Thank you, and welcome also from our side. We will go through a presentation here, as usual, and open up for questions at the end.

Øyvind Oanes: Thank you, and welcome also from our side. We will go through a presentation here as usual and open up for questions at the end. I will start by going through some of the highlights of the quarter, and we already touched upon some of these points. We have seen a very strong year-on-year loan book growth of 19%. If we are looking at the quarter isolated, that is roughly 2% growth in the quarter, and our gross lending book now stands at SEK 18 billion. As you can see on the graph, on the right-hand side of this slide, it is fairly evenly now distributed across the three markets on which we operate. Looking all the way down then to profit before tax, we could report a strong quarter with profits at SEK 100 million. That is up 17%, versus Q2 last year.

Speaker #2: I will start by going through some of the highlights of the quarter, and we already touched upon some of these points. We've seen a very strong year-on-year loan book growth of 19%.

Speaker #2: If we're looking at the quarter isolated, that's roughly 2% growth in the quarter. And our gross lending book now stands at SEK 18 billion.

Speaker #2: As you can see on the graph on the right-hand side of this slide, it's now fairly evenly distributed across the three markets on which we operate.

Speaker #2: Looking all the way down to profit before tax, we could report a strong quarter with profits at 100 million Swedish kronor. That's up 17% versus the second quarter last year.

Speaker #2: As I said, the quarter was also very much around the acquisition of Mimera Bank, and we spent a lot of effort, obviously, throughout the quarter—and we'll talk about that in a minute—meeting all the conditions, especially all the regulatory conditions, to be able to close that acquisition on the 1st of July.

Øyvind Oanes: As I said, the quarter was also very much around the acquisition of MedMera Bank, and we spent a lot of efforts obviously throughout the quarter, and we will talk about that in a minute, of meeting all the conditions, especially all the regulatory conditions, to be able to close that acquisition on 1 July. This is a very important acquisition, obviously for the bank, as it increases the size of the bank by around 65%. So when we report Q3, the SEK 18 billion number that you see on this page will be around SEK 30 billion if we put the two banks' balance sheets together.

Speaker #2: This is a very important acquisition, obviously, for the bank, as it increases the size of the bank by around 65%. So when we report Q3, the 18 billion number that you see on this page will be around 30 billion if we put the two banks' balance sheets together.

Speaker #2: We also worked quite hard on, obviously, securing the financing of the deal, and we successfully raised more than SEK 1 billion in a combination of rights issue, additional Tier 1, and Tier 2 that enabled us to, as I said, close the acquisition by the end of the quarter.

Øyvind Oanes: We also worked quite hard on obviously securing the financing of the deal, and we successfully raised more than SEK 1 billion in a combination of rights issue, Additional Tier 1, and Tier 2, that enabled us to, as I said, close the acquisition by the end of the quarter. We also continued to run the underlying business, obviously in Q2, in a very strong way. That included also offloading some NPLs in Sweden, where we could sell off around SEK 440 million in NPLs that came out of our numbers in April.

Speaker #2: We also continued to run the underlying business, obviously, in the second quarter in a very strong way. That included also offloading some NPLs in Sweden, where we could sell off around SEK 440 million in NPLs.

Speaker #2: That came out of our numbers in April. And last but not least, if you look across the other KPIs on the bottom side of this page, you would, in addition to the strong loan book growth, see that we continue to deliver strong cost income.

Øyvind Oanes: Last but not least, if you look across the other KPIs on the bottom side of this page, you would, in addition to the strong loan book growth, see that we continue to deliver strong cost-to-income, and particularly strong development, as we will also talk about later in the presentation on the credit quality when looking at the loan loss ratio here on this page of 3.5% reported for the quarter. That is down from 4.3% in Q2 2025. Last but not least, earnings per share came in at strong 31 øre, SEK 0.31 in the quarter and as you would hear later in the quarter, we have also stated our ambition to more than double the EPS when we look into the end of 2028. Moving on to the next page.

Speaker #2: And particularly strong development, as we will also talk about later in the presentation on the credit quality when looking at loan loss ratio, here on this page of 3.0%, 3.5% reported for the quarter.

Speaker #2: That's down from 4.3% in Q2 2025. Last but not least, earnings per share came in at a strong €0.31 in the quarter, and as you will hear later in the call, we have also stated our ambition to more than double the EPS when we look toward the end of 2028.

Speaker #2: Now, moving on to the next page. This is a bit of a recap, potentially, for those of you new to the case. Just a little bit of an overview of what Morrow Bank does.

Øyvind Oanes: This is a bit of a recap potentially for those of you new to the case. Just a little bit of an overview of what Morrow Bank does. We provide flexible consumer credit products across three markets in the Nordics, Sweden, Norway, and Finland, that comprises loans, credit cards, and also various savings accounts and savings products. The target market is creditworthy consumers, individuals. We see that our typical customer would have slightly above average annual income. The average loan amount that we give out is around SEK 160,000 and it is very important to also say that we are looking at a near-prime or a prime type of segment. So we see that 60% of our customers roughly own their own home and you cannot have any sort of payment remarks, and you need to be in permanent employment to qualify for a loan at Morrow Bank.

Speaker #2: We provide flexible consumer credit products across three markets in the Nordics: Sweden, Norway, and Finland. That comprises loans, credit cards, and also various savings accounts and savings products.

Speaker #2: The target market is creditworthy consumers—individuals. We see that our typical customer would have a slightly above-average annual income. The average loan amount that we give out is around 160,000 kroner.

Speaker #2: And it’s very important to also say that we’re looking at a near-prime or prime type of segment. So, we see that roughly 60% of our customers own their own home, and you can’t have any sort of payment remarks, and you need to be in permanent employment.

Speaker #2: To qualify for a loan at Morrow Bank. The market we address is large. When we look at unsecured credit across those three markets—Norway, Sweden, and Finland—that is roughly SEK 600 billion large.

Øyvind Oanes: The market we address is large. When we look at unsecured credit across those three markets, Norway, Sweden, and Finland, that is roughly SEK 600 billion large. As I said, with the inclusion of MedMera Bank, we are going to be at around SEK 30 billion, which means that we have now a market share of around 5%. So there is still more room to grow, we believe, in these markets. Talking about growth, just bringing back this slide as well, that sort of puts this into a longer-term perspective, potentially also something for you that look at the case for the first time. I think the most important thing to talk about on this page is that we have labeled it here on the page as well.

Speaker #2: As I said, with the inclusion of Mimera Bank, we're going to be at around $30 billion, which means that we now have a market share of around 5%.

Speaker #2: So there's still more room to grow, we believe, in these markets. Now, talking about growth, I'll just bring back this slide as well, which puts this into a longer-term perspective.

Speaker #2: Potentially also something for you that look at the case for the first time. I think the most important thing to talk about on this page is that we've labeled it here on the page as well.

Speaker #2: We did a bit of a restart if we look four or five years back, where the bank had gone somewhat sideways through the pandemic years.

Øyvind Oanes: We did a bit of a restart, if we look four or five years back, where the bank had gone somewhat sideways through the pandemic years. We put in place a completely new management. We exited unprofitable products. We simplified our tech platform, automated a lot of processes, and we have executed quite some M&A since then. Also, earlier this year, we re-domiciled the bank from Norway to Sweden. Obviously, when you see at the growth here represented by gross loans, you would see that we have more than doubled the lending book since the restart, so to speak. That is important also to understand that the acquisition now of MedMera Bank is, call it a natural continuation of that strategy, where we now leverage that scalable platform that we have built over the last few years to also do another large acquisition in this case.

Speaker #2: We put in place a completely new management team. We exited unprofitable products, simplified our tech platform, automated a lot of processes, and we've executed quite a bit of M&A since then.

Speaker #2: And also, earlier this year, we re-domiciled the bank from Norway to Sweden. And obviously, when you look at the growth here, represented by gross loans, you can see that we have more than doubled the lending book since the restart, so to speak.

Speaker #2: And that's important also to understand—that the acquisition now of Mimera Bank is, call it, a natural continuation of that strategy, where we now leverage that scalable platform that we've built over the last few years to also do another large acquisition in this case.

Speaker #2: That would, as I alluded to on the previous page, increase the lending book of the bank by around 65%, taking us up to approximately SEK 30 billion.

Øyvind Oanes: That would, as I alluded to on the previous page, increase the lending book of the bank by around 65%, taking us up to around SEK 30 billion. When we grow, we have grown obviously volume, and that is good. More importantly, we have also been able to demonstrate strong growth when we look at the earnings. Here you would see our CAGR earnings per share development over that same period, where you can see that we have delivered a 38% CAGR over the period on earnings. Obviously very strong. The fact that we now deliver also a strong Q2 just continues to deliver on this trend. As I already said, it is driven by strong growth in the lending book. It is driven also, obviously, by the fact that we have conducted now four acquisitions in the period.

Speaker #2: Now, when we grow, we have grown, obviously, in volume, and that's good. But more importantly, we've also been able to demonstrate strong growth when we look at the earnings.

Speaker #2: Here you can see our CAGR earnings per share development over that same period, where you can see that we have delivered a 38% CAGR over the period on earnings.

Speaker #2: Obviously, very strong. The fact that we now deliver also a strong second quarter just continues to deliver on this trend. And as I already said, it's driven by strong growth in the lending book.

Speaker #2: It's driven also, obviously, by the fact that we have conducted now four acquisitions in the period. Cost-income ratio has been a big driver, obviously, taking the cost levels dramatically down in the bank from a cost-income ratio above 40% to now below 28%, as we report this morning for Q2, demonstrating again the scalability.

Øyvind Oanes: Cost-to-Income Ratio has been a big driver, obviously taking the cost levels dramatically down in the bank from a Cost-to-Income Ratio above 40% to now below 28%, as we report this morning for Q2, demonstrating again the scalability. Comparing that to our peers, and you would see the peers at the bottom of this page, it is a significantly better performance than what we have seen in the market. That is obviously something that we are very happy to report. I think we always need to talk a little bit about the macro environment. There is a lot going on in the world at the moment on the global scene.

Speaker #2: Now, comparing that to our peers—you'll see the peers at the bottom of this page—it is a significantly better performance than what we have seen in the market.

Speaker #2: So, that's obviously something that we are very happy to report. Now, I think we always need to talk a little bit about the macro environment.

Speaker #2: There's a lot going on in the world at the moment on the sort of global scene. What we continue to see, though, is that we see a fairly robust and stable macro environment in the Nordics and the outlook for the KPIs that are more important for us to monitor is also showing a fairly positive trend.

Øyvind Oanes: What we continue to see, though, is that we see a fairly robust and stable macro environment in the Nordics and the outlook for the KPIs that are more important for us to monitor is also showing a fairly positive trend. Obviously growth, when we see growth in the market, that also drives demand for our products or the products that our products finance is probably the more right thing to put it. We continue to see a growth across the three markets also in the outlook, which we obviously like. Interest rates ticking a little bit up in 2026, but the outlook here is that that will start to come down again. The inflation is pretty much under control still across the market. So we believe that the outlook here for interest rates is still that will continue to go down again past 2026.

Speaker #2: Now, obviously, growth—when we see growth in the market—that also drives demand for our products or the products that our products finance. That's probably the more correct way to put it.

Speaker #2: And we continue to see growth across the three markets, also in the outlook, which we obviously like. Interest rates are ticking up a little bit in 2026, but the outlook here is that they will start to come down again.

Speaker #2: The inflation is pretty much under control still across the market, so we believe that the outlook here for interest rates is still that they will continue to go down again past 2026.

Speaker #2: Again, an important and key driver for our type of business. But maybe the most important driver that we always look at is obviously unemployment.

Øyvind Oanes: Again, an important and key driver for our type of business. But maybe the most important driver that we always look at is obviously unemployment. You would see from the graph on this page that we have a positive outlook on unemployment. Unemployment obviously means that the customer's payment behavior and payment capacity remains strong, as that will continue to trend downwards. If I sum up this page, the three key KPIs when it comes to the macroeconomic environment that we monitor because they can potentially have the biggest impact on our business, they continue to perform strongly, and the outlook here is stable to positive. The other big thing obviously that happened in the quarter, in addition to the underlying strong performance of Morrow Bank, was of course, the acquisition of MedMera Bank.

Speaker #2: And you would see from the graph on this page that we have a positive outlook on unemployment. Unemployment obviously means that the customers' payment behavior and payment capacity remain strong, as that will continue to trend downwards.

Speaker #2: So if I sum up this page, the sort of three key KPIs when it comes to the macroeconomic environment that we monitor, because they can potentially have the biggest impacts on our business, they continue to perform strongly.

Speaker #2: And the outlook here is stable to positive. Now, the other big thing, obviously, that happened in the quarter, in addition to the underlying strong performance of Morrow Bank, was, of course, the acquisition of Mimera Bank.

Speaker #2: And we talked quite a bit about that also at the previous report and in various investor discussions before the summer, but I think it's important for us to just recap a bit around that acquisition as well.

Øyvind Oanes: We have talked quite a bit about that also at the previous report and in various investor discussions before the summer. I think it's important for us to just recap a bit around that acquisition as well. Putting it a bit in the context, we have done some. This is not our first acquisition. We have done some acquisitions over the past couple of years. We have the three first one that you see here, Qliro, Lunar, and Moank. Those were pure performing loan portfolio acquisitions, so we acquired loan portfolios totaling around SEK 3 billion over the 18 months. Then we're adding MedMera to that equation with a strong actually SEK 12 billion gross loan volume at the end of Q2. Again, acquisitions is part of our strategy, and we're continuing to execute on that strategy as we've communicated over the many last quarters.

Speaker #2: Now, putting it a bit in the context, we have done some. This is not our first acquisition. We have done some acquisitions over the past couple of years.

Speaker #2: We have the first three that you see here: Clearo, Luna, and Moank. Those were pure performing loan portfolio acquisitions. So, we acquired loan portfolios totaling around SEK 3 billion over the past 18 months.

Speaker #2: And then we added, now we're adding Mimera to that equation, with a strong, actually, 12 billion gross loan volume at the end of Q2.

Speaker #2: So again, acquisitions are part of our strategy, and we're continuing to execute on that strategy, as we've communicated over the last many quarters. Putting that a bit into context—and for those of you who have followed us for a while—you would know that we moved the bank from Norway to Sweden.

Øyvind Oanes: Putting that a bit into context, for those of you who have followed us for a while, you would know that we moved the bank from Norway to Sweden. Key driver for that was to ensure level playing field, especially around the regulatory environment. That basically means again, around the capital requirements that the bank holds. As we moved the bank from Norway to Sweden at the beginning of January, we managed to free up quite some capital and hold some excess capital. We communicated that the intention with that capital was to deploy it into accretive M&A if we could find good targets. The good thing is that we found a good target fairly quickly, and already in March, we announced the acquisition of MedMera Bank.

Speaker #2: The key driver for that was to ensure a level playing field, especially around the regulatory environment. And that basically means, again, around the capital requirements that the bank holds.

Speaker #2: And as we moved the bank from Norway to Sweden at the beginning of January, we managed to free up quite a bit of capital and hold some excess capital.

Speaker #2: And we communicated that the intention with that capital was to deploy it into creative M&A, if we could find good targets. Now, the good thing is that we found a good target fairly quickly, and already in March, we announced the acquisition of Mimera Bank.

Speaker #2: That is a direct positive consequence of us being able to move the bank from Norway to Sweden and freeing up that capital. And just a couple of words on that transaction as well.

Øyvind Oanes: That is a direct positive consequences of us being able to move the bank from Norway to Sweden and freeing up that capital. Just a couple of words on that transaction as well. We believe it was a very competitive, strong price that we were able to achieve for a bank that actually performs very well. So a price-to-book ratio of 1.06 for a well-run and well-performing bank in the market, we believe is a strong, good price. The acquisition, as I said, successfully closed on 1 July, so not really in the quarter, but the first day in Q3. We were able to do so based on the fact that we also ran some quite successful financing projects and processes back in June, where we issued new shares to the seller, Kooperativa Förbundet, KF.

Speaker #2: We believe it was a very competitive, strong price that we were able to achieve for a bank that actually performs very well. So, a price-to-book of 1.06 for a well-run and well-performing bank in the market, we believe, is a strong and good price.

Speaker #2: The acquisition, as I said, successfully closed on the 1st of July, so not really in the quarter, but the first day in Q3. And we were able to do so based on the fact that we also ran some quite successful financing projects and processes.

Speaker #2: Back in June, we issued new shares to the seller, Cooperative Forening, Coop. They now hold around 10% of our shares, as you might have seen.

Øyvind Oanes: They now hold around 10% of our share, as you might have seen. In addition, we also went out with a structured rights issue, where we raised close to SEK 600 million. That was significantly oversubscribed. I believe it was 130 something percent oversubscribed, so happy with the interest in that project. Last but not least, also raised both AT1 and Tier 2 at very attractive prices. Actually, the record low prices for the bank in the market. The whole financing process went very well, and we are very happy that we could close all those projects and finally then take over the bank on 1 July. Basically, what are we getting now with MedMera Bank? We are getting a well-run and well-performing bank, as you would see on this page and the numbers here. We will add around 65% to our loan book size.

Speaker #2: In addition, we also went out with a structured rights issue where we raised close to 600 million. That was significantly oversubscribed—I believe it was 130-something percent oversubscribed.

Speaker #2: So happy with the interest in that project. And last but not least, we also raised both AT1 and Tier 2 at very attractive prices—actually, the record low prices for the bank in the market.

Speaker #2: So the whole sort of financing process went very well, and we're very happy that we could close all those projects and finally then take over the bank on the 1st of July.

Speaker #2: Now, what are we basically—what are we getting now with Mimera Bank? We're getting a well-run and well-performing bank, as you would see on this page and the numbers here.

Speaker #2: We will add around 65% to our loan book size. We report now around $18 billion. Mimera stood at around $12 billion at the end of the quarter.

Øyvind Oanes: We report now around SEK 18 billion. MedMera stood at around SEK 12 billion at the end of the quarter, so taking us to around SEK 30 billion. That would position us as the third-largest consumer lender niche bank in the Nordics. We will continue to run MedMera brand separately from Morrow. Currently also, they hold bank separately in a group structure. We believe that there are a lot of opportunities in continuing to support both brands, actually three brands with the KF brand, and build a strong multi-brand strategy as we go forward. Basically, continuing Morrow Bank, continuing with MedMera Bank value proposition as well as KF and building a broader reach in the market based on that. That was also very much part of the strategy and the rationale for buying the bank in the first place. Looking at cost income, both banks perform well.

Speaker #2: So, that takes us to around 30 billion. That would position us as the third largest consumer lender niche bank in the Nordics. We will continue to run the Mimera brand separately from Morrow.

Speaker #2: Currently also, the whole bank operates separately in a group structure. And we believe that there are a lot of opportunities in continuing to support both brands—actually, three brands—with the core brand, and to build a strong multi-brand strategy as we go forward.

Speaker #2: So basically, continuing with Morrow Bank, continuing with the Mimera Bank value proposition, as well as Coop, and building a broader reach in the market based on that.

Speaker #2: That was also very much part of the strategy and the rationale for buying the bank in the first place. Looking at cost to income, both banks perform well.

Speaker #2: But obviously, when you take two banks and two organizations and two systems and processes and put that together, as we communicated before, we definitely will be looking at taking out some synergies over time.

Øyvind Oanes: But obviously, when you take two banks and two organizations and two systems and processes and put that together, as we communicated before, we definitely will be looking at taking out some synergies over time and work that Cost-to-Income Ratio down towards 20% by the end of 2028, as communicated when we announced the transaction. Looking at the loss profile of the two banks, you would see quite a difference here, where you see that we reported for the H1. For the quarter, I alluded that earlier. For the quarter, we reported a loan loss ratio of 3.5%. For the H1 together, that amounts to 3.9% for Morrow, and the similar number for MedMera Bank would be 2.1%. That also again demonstrates that we are targeting and operating in slightly different segments.

Speaker #2: And work that cost-to-income ratio down towards 20% by the end of 2028, as communicated when we announced the transaction. Looking at the loss profile of the two banks, you would see quite a difference here, where you see that we reported for the first half-year.

Speaker #2: Now, quarter—I alluded to that earlier—for the quarter, we reported a loan loss ratio of 3.5%. For the first half year together, that amounts to 3.9% for Morrow.

Speaker #2: And the similar number for Mimera Bank would be 2.1%. Now, that also, again, demonstrates that we are targeting and operating in slightly different segments.

Speaker #2: We've sort of said earlier that Mimera Bank is targeting potentially a more prime consumer loan segment, whereas we are more of a near-prime brand.

Øyvind Oanes: We have sort of said earlier that MedMera Bank targeting potentially a more prime consumer loan segment, where we are more of a near-prime brand, basically positioning the two banks or the two brands slightly differently on, call it, the risk curve. That is something that we very much aim to continue to do as part of the multi-brand strategy as we go forward, position the brands into slightly different segments. Obviously, when we put these two banks together with all the data and all the customers and the analytics capacity of the two banks, we do believe that over time, we will see, not only mathematically when putting the two banks together, but also when operating a larger platform with more data, et cetera, we will see that the risk levels of the combined bank obviously will come down. Last but not least, looking at profit before tax.

Speaker #2: Basically, positioning the two banks, or the two brands, slightly differently on—call it—the risk curve. That is something that we very much aim to continue to do.

Speaker #2: As part of the multi-brand strategy as we go forward, we will position the brands into slightly different segments. Obviously, when we put these two banks together, with all the data, all the customers, and the analytics capacity of the two banks, we do believe that, over time, we will see—not only mathematically, when putting the two banks together, but also when operating a larger platform with more data, et cetera—that the risk levels of the combined bank, obviously, will come down.

Speaker #2: Last but not least, looking at profit before tax for the first half, we reported NOK 187 million. Mimera also reported an equally strong first half year.

Øyvind Oanes: H1, we reported 187 million. MedMera also reported equally a very strong H1 and delivered 122 million in profit before tax. That gives us quite some confidence around the EPS target that we communicated when we announced the transaction to more than double that EPS by end of 2028. Now over to you, Eirik.

Speaker #2: And delivered 122 million in profit before tax. That gives us quite some confidence around the EPS target that we communicated when we announced the transaction.

Speaker #2: ...to more than double that EPS by the end of 2028. Now, over to you, Erik. Take us through some of the financials.

Eirik Holtedahl: Thank you.

Øyvind Oanes: As I go through some of the financials.

Speaker #1: Thank you, Evan. Let's dig a bit deeper into Morrow Bank—and this is Morrow Bank only. As Evan said, we took over Mimera Bank on the 1st of July.

Eirik Holtedahl: Thank you, Øyvind. Let's dig a bit deeper into Morrow Bank, and this is Morrow Bank only. As Øyvind said, we took over MedMera Bank on 1 July, meaning Q3, hence Q2 will be Morrow Bank on a solo basis. The loan balance growth was good year-on-year. Actually, we increased it 19%. This was mainly driven, as you can see here, by the growth in the Norwegian market, the lower orange part of the bar, and that is actually our refinancing product, which has been around for one year and which has proven quite successful. That's also showing up in our loan growth. Overall, on the quarter-on-quarter basis, the development was flat, but you need to take into account we sold an NPL portfolio of NOK 440 million, which was offloaded in April.

Speaker #1: That means in the third quarter. Hence, the second quarter will be Morrow Bank on a solo basis. Now, the loan balance growth was good year on year.

Speaker #1: Actually, we increased it 19%. This was mainly driven, as you can see here, by the growth in the Norwegian market—the lower orange part of the bar.

Speaker #1: And that is actually our refinancing product, which has been around for one year and which has proven quite successful. That's also showing up in our loan growth.

Speaker #1: Overall, on a quarter-over-quarter basis, the development was flat. But you need to take into account that we sold an NPL portfolio of 440 million kroner, which was offloaded in April.

Speaker #1: Hence, the underlying growth was 2% quarter on quarter. And as always, we as we keep reiterating and also repeating and also demonstrate, we're always looking at for opportunities to buy a portfolios or companies if they are interesting and accretive for us.

Eirik Holtedahl: Hence, the underlying growth was 2% quarter on quarter. As always, as we keep reiterating, repeating, and also demonstrate, we are always looking out for opportunities to buy portfolios or companies if they are interesting and accretive for us. Going a bit further into the margin outlook, you can see that there is a small margin compression compared to one year ago. This is attributable that there is a small decrease in the yield going down from 13.5% to 13.2%, and also a small increase in the deposit rates, going up by 20 basis points. The latter is driven by the fact that we, in the quarter now or in this year, have been increasing our deposit rates basically to increase our liquidity so that we would be in the position to take over MedMera Bank and also meet the regulatory requirements.

Speaker #1: Going a bit further into the margin outlook, you can see that there's a small margin compression compared to one year ago. This is attributable to a small decrease in the yield, going down from 13.5% to 13.2%.

Speaker #1: And also a small increase in the deposit rate, going up by 20 bps. The latter is driven by the fact that in the quarter now, or in this year, we have been increasing our deposit rates basically to increase our liquidity so that we would be in a position to take over Mimera Bank and also meet the regulatory requirements.

Speaker #1: But if you look at it compared to last quarter, the figures are not here, but they're available on our IR site. You can also see that actually the NIM has increased by 0.1 percentage point quarter on quarter.

Eirik Holtedahl: If you look at it compared to last quarter, the figures are not here, but they are available on our IR site, you can also see that the NIM has increased by 0.1 percentage point quarter on quarter. What is important here is to look at also the risk-adjusted margin. We are not seeing that in this picture, but as Øyvind has shown here, we have a decrease, and we will show on later slides, we have a decrease in the loan losses, which are quite significant. By that, you can see that the risk-adjusted margin increases, be it either quarter on quarter or year on year. Going forward, our NIM will be somewhat lower. That is also when we take in MedMera Bank.

Speaker #1: And if you—but what's important here is to also look at the risk-adjusted margin. We're not seeing that in this picture, but as Evan has shown here, we have a decrease, and we will show that on later slides.

Speaker #1: We have a decrease in the loan losses, which is quite significant. And by that, you can see that our risk-adjusted margin increases, be it either quarter over quarter or year over year.

Speaker #1: Going forward, our NIM will be somewhat lower. That's also when we take in Mimera Bank. Mimera Bank has lower loan losses, but they also have a lower yield.

Eirik Holtedahl: MedMera Bank has lower loan losses, but they also have a lower yield, and that will also weigh in on our blended yield when we go forward and start to consolidate. Our risk-adjusted margin are lower, both definitely in MedMera, but also we are seeing a decreasing trend. Hence, our risk-adjusted margin will remain strong. On the total income side, we are seeing a steady upwards uptick. This is driven, of course, by the larger loan book, which we talked about, which I demonstrated a bit earlier. It is not fully covered by the growth in interest income because, as I said, there is a small compression on the net interest margin. In Q2, we also had some additional one-offs in relation to other income. You can see that it is SEK 36 million. Those are related to some insurance and card scheme one-offs.

Speaker #1: And that will also weigh in on our blended yield when we go forward and start to consolidate. But our risk-adjusted margins are lower, definitely in Mimera, but we are also seeing a decreasing trend.

Speaker #1: And hence, our risk-adjusted margin will remain strong. On the total income side, we're seeing a steady upward uptick. This is driven, of course, by the larger loan book we talked about, as was demonstrated a bit earlier.

Speaker #1: But also, there's a slight increase, but it's not fully covered by the growth in interest income. Because, as I said, there's a small compression on the net interest margin.

Speaker #1: In the second quarter, we also had some additional one-offs in relation to other income. You can see that it's 36 million kroner. Those are related to some insurance and card scheme one-offs.

Speaker #1: They will not be repeated in the third quarter, but we nevertheless will see that we have lower commission expenses going forward. Hence, there will be an expansion—not compared to Q2, but compared to previous quarters—on our other income.

Eirik Holtedahl: They will not be repeated in Q3, but nevertheless, we will see that we have lower commission expenses going forward. Hence, there will be an expansion, not compared to Q2, but compared to previous quarters on our other income. Of course, we will be growing our loan balance. On the cost side, you can see here that there is an increase, and we are not trying to hide that fact. We are recording a SEK 10 million one-off. Those are chiefly related to the MedMera acquisition as such. Also, some small leftovers, to call it that, from the transition to Sweden. What is also important to understand is that now we are becoming a larger bank.

Speaker #1: And, of course, we will be growing our loan balance. Now, on the cost side, you can see here that there is an increase. And we are not trying to hide that fact.

Speaker #1: We are recording a NOK 10 million one-off. Those are chiefly related to the Mimera acquisition as such. Also, some small leftovers—to call it that—from the transition to Sweden.

Speaker #1: But what's also important to understand is that now we're becoming a larger bank. Yes, we have demonstrated scalability, but now we're adding 65% to our loan book.

Eirik Holtedahl: Yes, we have demonstrated scalability, but now we are adding 65% on our loan book, and hence we are now starting to strengthen, let us call it, the overall structure of the bank in order to be able to service and run this considerably larger bank. We have already started to undertake these investments, and those are contributing to the fact that the underlying cost picture is increasing. As we will be growing our loan book, we will be increasing our top line. We are maintaining that we will have around a 20% Cost-to-Income Ratio when we have concluded the acquisition and integration of MedMera Bank. But then we are talking towards 2028 before that will fully materialize. We are clearly on that path. On the nice side here, and that is also what Even spoke about, we are seeing a very nice development in our loan loss ratios.

Speaker #1: And hence, we are now starting to strengthen, let's call it, the overall structure of the bank in order to be able to service and run this considerably larger bank.

Speaker #1: And that is also why we are starting—we have already started to undertake these investments. And those are contributing to the fact that the underlying cost picture is increasing.

Speaker #1: But we are, as we will be growing our loan book, we will be increasing our top line. We're maintaining that we will have around a 20% cost income ratio when we have concluded the acquisition and integration of Mimera Bank.

Speaker #1: But then we're talking towards 2028. Before that, it will be before that will fully materialize. But we are clearly on that path. On the nice side here—and that's also what Evan spoke about—we're seeing a very nice development in our loan loss ratios.

Speaker #1: We have previously been guiding between 4.5% to 4%. We've then been saying it probably will be closer to 4%. But the second quarter developed quite benignly.

Øyvind Oanes: We have previously been guiding between 4.5% to 4%. We have then been saying it probably will be closer to 4%, but the Q2 developed quite benignly, and we ended at 3.5%. That is measured in relation to the gross loan balance, to be clear about that. It is also quite interesting to see that the nominal loan loss cost is virtually flat for all these three quarters. At the same time, as we demonstrated earlier, we have grown the loan balance by 19%. Hence, if we had maintained last year's loan loss rates at this loan balance, we would have had SEK 36 million more in loan losses, and that more than covers the increase in cost, just to put that into perspective. Also, just to mention is the NPL sale here, which reduces our NPL ratio, meaning that our book is, let us say, cleaner, more healthy.

Eirik Holtedahl: We have previously been guiding between 4.5% to 4%. We have then been saying it probably will be closer to 4%, but the Q2 developed quite benignly, and we ended at 3.5%. That is measured in relation to the gross loan balance, to be clear about that. It is also quite interesting to see that the nominal loan loss cost is virtually flat for all these three quarters. At the same time, as we demonstrated earlier, we have grown the loan balance by 19%. Hence, if we had maintained last year's loan loss rates at this loan balance, we would have had SEK 36 million more in loan losses, and that more than covers the increase in cost, just to put that into perspective. Also, just to mention is the NPL sale here, which reduces our NPL ratio, meaning that our book is, let us say, cleaner, more healthy.

Speaker #1: And we ended at 3.5%. That is measured in relation to the gross loan balance, to be clear about that. It's also quite interesting to see that the nominal loan loss cost is virtually flat for all these three quarters.

Speaker #1: But at the same time, as we demonstrated earlier, we have grown the loan balance by 19%. And hence, if we had maintained last year's loan loss rates at this loan balance, we would have had NOK 36 million more in loan losses.

Speaker #1: And that more than covers the increase in cost, just to put that into perspective. Also, just to mention is the NPL sale here, which reduces our NPL ratio, meaning that our book is, let's say, cleaner, more healthy.

Speaker #1: And going forward, when we add in Mimera Bank, they have a different risk profile. They have lower loan losses, and we will then have a broader customer base.

Eirik Holtedahl: Going forward, when we add in MedMera Bank, they have a different risk profile. They have lower loan losses, and we will then have a broader customer base. We will be with lower risk, and which also will be more diversified, which should entail that our loan losses will be, our credit risk will be lower in the time to come. Finally, adding these elements together, total income growing, cost, yes, going up a little bit, but loan losses reducing much more than cost. You can see that we now landed at a profit before tax of SEK 100 million flat. This is equivalent to a return on equity of 11.9%, but what we like to measure the return on target equity, and which I will also come back to because we were at the end of the Q2 overcapitalized.

Speaker #1: We will be with lower risk, and it will also be more diversified, which should entail that our loan losses or loan loss, or credit risk, will be lower in the time to come.

Speaker #1: Finally, adding these elements together—total income growing, cost, yes, going up a little bit, but loan losses reducing much more than cost—you can see that we now landed at a profit before tax of 100 million Swedish kroner flat.

Speaker #1: This is equivalent to a return on equity of 11.9%. But what we like to measure is the return on target equity, which I will also come back to, because at the end of the second quarter, we were overcapitalized.

Speaker #1: If you remove that fact, we actually had a return on target equity of 16%, which is actually demonstrating that we are on a good path to achieve our 20% target for 2028.

Eirik Holtedahl: If you remove that fact, we had actually a return on target equity of 16%, which is actually demonstrating that we are on a good path to achieve our 20% target for 2028. The profit after tax for the quarter was SEK 78 million, or an earning per share of 31. As always here, we maintain that we expect to double our EPS and that the return on target equity will increase. A word on the capital structure. You can see here that our overall capital ratio has decreased compared to year on year, going from 17.9% to 16.2%. This is a CET1 ratio. This is because we are actually growing our loan balance faster than we have been growing our profits. That being said, if you look at our requirements, they are decreased. The requirements on left-hand side were those in Norway.

Speaker #1: The profit after tax for the quarter was $78 million, or an earnings per share of $0.31. And, as always here, we maintain that we expect to double our EPS.

Speaker #1: And that the return on target equity will increase. A word on the capital structure: you can see here that our overall capital ratio has decreased year over year, going from 17.9% to 16.2%.

Speaker #1: This is the CET1 ratio. This is because we're actually growing our loan balance faster than we have been growing our profits. But that being said, if you look at our requirements, they have decreased.

Speaker #1: The requirements on the left-hand side were those in Norway. The requirements on the right-hand side now, in the second quarter, are those that we have currently in Sweden. They are now at 9.5%.

Eirik Holtedahl: The requirements on the right-hand side now in Q2 are those that we have currently in Sweden. They are now at 9.5% before management buffers, et cetera. We have a healthy 6.7% headroom towards that. You will see now that we are utilizing this headroom in Q3 to buy MedMera Bank. Not going to go into the details of the acquisition. Even did that, but we have the AT1 and the Tier 2. We also have the rights issue at SEK 592 million before cost, which was undertaken on 1 July just after the balance sheet date.

Speaker #1: Before management buffers, et cetera. But we have a healthy 6.7% headroom towards that. And you will see now that we're utilizing this headroom in the third quarter to buy Mimera Bank.

Speaker #1: I'm not going to go into the details of the acquisition—Evan did that—but we have the $81 million and the Tier Two. We also have the rights issue at $592 million before costs, which was undertaken on the 1st of July, just after the balance sheet date.

Speaker #1: But by that, with the acquisition of Mimera and these capital increases, you can see that now in Q3 we are very close to achieving our target capital structure, meaning that we will not have much excess capital—just a comfortable buffer, but not more than that.

Eirik Holtedahl: By that, with the acquisition of MedMera and these capital increases, you can see that now in Q3, we are very close to achieving our target capital structure, meaning that we will have not much excess capital, just a comfortable buffer, but not more than that. As always, we will be continuing to produce profits, given that this development continues, and that we will therefore generate capital for further expansion going forward. With that, I will leave the word back to you, Even.

Speaker #1: And, as always, we will be continuing to produce profits, given that these developments continue. And that we will also, we will therefore generate capital for further expansion going forward.

Speaker #1: With that, I'll hand the word back to you, Evan.

Speaker #2: Thank you, Erik. Thank you. All right. So before summarizing today's presentation and opening up for questions, we always like to do a bit of peer benchmarking, where competitive people are now looking across some of the key KPIs, like loan growth, cost-income ratio, and last but not least here, EPS growth. You would see that Morrow Bank, over the period '22 to the last quarter—

Øyvind Oanes: Thank you, Eirik. Thank you. All right, so before summarizing today's presentation and opening up for questions, we always like to do a bit of peer benchmarking. We are competitive people. Now, looking across some of the key KPIs like loan growth, Cost-to-Income Ratio, and last but not least here, our EPS growth, you would see that Morrow Bank over the period 2022 to the last quarter, we continue to deliver strong numbers and continue to outperform the peer average. You would see the peers here at the bottom of the page. That is pretty much all the relevant niche banks that we compare ourselves to. So continue to deliver strong KPIs at Morrow Bank and continuing to outperform the peer average in the market.

Speaker #2: We continue to deliver strong numbers and continue to outperform the peer average. You would see the peers here at the bottom of the page.

Speaker #2: That's pretty much all the relevant niche banks that we compare ourselves to. So, we continue to deliver strong KPIs at Morrow Bank and continue to outperform the peer average in the market.

Speaker #2: Price/book and price/earnings—you can read them yourselves and compare to peers. And hopefully, the investors are appreciating those three performance KPIs at the top here, so that the two performance KPIs at the bottom will also continue to move up.

Øyvind Oanes: Price-to-book and price earnings, you can read them yourselves and compare to peers, and hopefully, the investors are appreciating those three performance KPIs on the top here so that the two performance KPIs on the bottom continue also to move up. We will do our best to deliver and continue to deliver strong growth and strong KPIs at the bank. Now, summarizing then the quarter, as I said, there are really two things that we are focused on. Obviously, not taking our eyes off the ball on the underlying business. We have strengthened the profitability throughout the quarter with a profit before tax reported this morning of SEK 100 million. That is 17% up year-on-year.

Speaker #2: We will do our best to deliver, and continue to deliver, strong growth and strong KPIs at the bank. Now, summarizing the quarter, as I said, there are really two things that we have focused on.

Speaker #2: Obviously, we are not taking our eyes off the ball on the underlying business. We have strengthened profitability throughout the quarter. With a profit before tax reported this morning of NOK 100 million, that is 17% up year on year.

Speaker #2: When looking at return on target equity, which we've mean is believe is the most relevant number to look at, we're dramatically up from or significantly up from around 12% at this period last year to now reported 16% for the quarter.

Øyvind Oanes: When looking at return on target equity, which we believe is the most relevant number to look at, we are dramatically up from, or significantly up from around 12% at this period last year to now reported 16% for the quarter. Earnings per share came in, as Eirik also said, at 0.31. That is also an improvement, and we continue to see that earnings per share should improve as we go forward. The MedMera acquisition was completed. We have said that a couple of times, I think, throughout the presentation. The loan book increases by 65%, literally, than the bank size. The size of the bank increases by 65%, taking us to a combined loan book around SEK 30 billion and positioning ourselves as the third largest Nordic consumer finance bank.

Speaker #2: Earnings per share came in, as Erik also said, at 0.31. That's also an improvement, and we continue to see that earnings per share should improve as we go forward.

Speaker #2: The Mimera acquisition was completed. We've said that a couple of times, I think, throughout the presentation. The loan book increases by 65%, literally than the bank size, the size of the bank increases by 65%.

Speaker #2: Taking us to a combined loan book of around 30 billion and positioning ourselves as the third largest Nordic consumer finance bank. This acquisition was enabled by actually doing quite a successful rights issue and issuing of bonds in June.

Øyvind Oanes: The acquisition was enabled by actually doing quite some successful rights issue and issuing of bonds in June, as we have talked about, at oversubscribed rights issue and record low pricing for both the AT1 and Tier 2, so also very successful and very happy with those processes. Taking a bit of outlook and view to the future, we continue to say that the return on target equity should go above 20%. We reported already 16% for this quarter, so we are confident with that target. Cost-to-Income Ratio, as Eirik alluded to already, we have not built in the synergies of MedMera Bank acquisition at all. That will come obviously over the next couple of years, but when we look at where that Cost-to-Income Ratio should be beyond that, we are also confident that that should come down toward 20% in the outlook.

Speaker #2: As we've talked about, an oversubscribed rights issue and record low pricing for both the AT1 and Tier 2. So, also very successful and very happy with those processes.

Speaker #2: Taking a bit of an outlook and view to the future, we continue to say that the return on target equity should go above 20%.

Speaker #2: We reported already 16% for this quarter, so we're comfortable with that target. Cost-income ratio, as Erik alluded to already, we haven't built in the synergies of the Mimera Bank acquisition at all.

Speaker #2: That will come, obviously, over the next couple of years. But when we look at, sort of, where that cost-income ratio should be beyond that, we are also confident that it should come down toward 20% in the outlook.

Speaker #2: Which, yet again, brings us to the last but not least KPI or target here: more than doubling the EPS by the end of 2028.

Øyvind Oanes: Which will again take us to the last but not least KPI or target here of more than doubling the EPS by end of 2028. With that, I would say thank you for listening to the presentation, and we can open up for questions.

Speaker #2: With that, I would like to thank you for listening to the presentation, and we can now open up for questions.

Speaker #1: Thank you so much, Evan and Erik. Let me start off. We have a bunch of questions from the viewers and investor community as well.

Operator: Thank you so much, Øyvind and Eirik. Let me start off. We have a bunch of questions from the viewers and investor community as well.

Speaker #1: What are the key value drivers from the Mimera acquisition?

Operator: What are the key value drivers from the MedMera acquisition?

Speaker #2: Oh, I mean, as I said, Mimera is a very strong performing bank, so they pretty much have the same value drivers as we do.

Øyvind Oanes: As I said, MedMera is a very strong performing bank. They pretty much have the same value drivers as we do. It is obviously growth. It is also the fact that they manage to have a good equation between the risk appetite and what they are looking at margins. They have a good risk-adjusted margin management together with the growth. For us, as we messed about this around the last few years, it is all about scale in this sector. For us, taking over something that not only brings scale with 65% more volume, but also comes with a solid foundation, a well-run machinery, that adds a lot of value to the group now.

Speaker #2: It is obviously growth. It is basically also the fact that they manage to have a good balance between their risk appetite and what they're looking at in terms of margins.

Speaker #2: So, they have good risk-adjusted margin management together with the growth. And for us, as we've discussed around this over the last few years, it's all about scale in this sector.

Speaker #2: And for us, taking over something that not only brings scale, with 65% more volume, but also comes with a solid foundation—a well-run machinery that adds a lot of value to the group now.

Speaker #1: All right. Maybe this is a question for Erik. Why is the current cost-income ratio temporary rather than structural?

Operator: Mm-hmm. All right. Maybe this is a question for Eirik. Why is the current Cost-to-Income Ratio temporary rather than structural?

Speaker #3: As I said earlier, we're investing in becoming a larger bank, and that is not for free. We need to have a broader platform now—a general platform.

Eirik Holtedahl: It is as I said earlier, we are investing in becoming a larger bank, and that is not for free. We need to have a broader platform now, general platform. We need to invest more in control functions, also in data management and the processing of that, and that does not come for free. That being said, it will be a little bit more elevated, but there is now a more, let us say, temporary cost. We are not calling them one-off, but we are spending some more, and we will over time, of course, work hard not to reduce that cost base in general. Basically now it is a time of investment. This, of course, just to repeat it, we are adding 65% to our loan book.

Speaker #3: We need to invest more in control functions, also in data management and the processing of that, and that does not come for free. That being said, it will be a little bit more elevated, but there is now a more, let's say, temporary cost.

Speaker #3: We're not calling them one-offs, but we are spending some more. And we will, over time, of course, work hard to not reduce that cost base in general, but basically now it's a time of investment.

Speaker #3: And this, of course—just to repeat—we are adding 65% to our loan book.

Speaker #1: Yeah.

Operator: Mm-hmm. Yeah. Another subject that you touched upon, your net interest margin on performing loans improved in this quarter. Is this level sustainable?

Speaker #2: And another subject that you touched upon: your net interest margin on performing loans improved in this quarter. Is this level sustainable?

Speaker #3: Yeah, largely yes. We do see, however, a little bit of pressure on the funding cost side now, going into the third quarter. The competition in the euro market is actually increasing.

Eirik Holtedahl: Largely, yes. We do see, however, a little bit of pressure on the funding cost side now going into Q3. The competition in the EUR market is actually increasing, so we also need to follow that. We need to raise more liquidity because we are growing after the MedMera acquisition. So there will be a little bit pressure going forward on the net interest margin, but we are not thinking that it will be considerable. Broadly, it should be at the levels we are seeing here, give or take a little bit.

Speaker #3: So, we also need to follow that. We need to raise more liquidity because we are growing after the Mimera acquisition. So, there will be a little bit of pressure going forward on the net interest margin, but we're not thinking that it'll be considerable.

Speaker #3: Broadly, it should be at the levels we're seeing here, give or take a little bit.

Speaker #1: Thank you.

Operator: Mm-hmm. Thank you. How sustainable is the improvement in credit quality?

Speaker #2: And how sustainable is the improvement in credit quality?

Speaker #3: Credit quality is this: we've been working quite hard over the last years, and we've been explaining that to the market. First, we had strong growth, and then we also tuned our credit models.

Eirik Holtedahl: Credit quality is we have been working quite hard over the last years, and we have been explaining about that to the market. First, we had strong growth, and then we also tuned our credit risk models. We adopted also our processes related to credit risk management. That means both on the intake as well as how to handle delinquent accounts.

Speaker #3: We also adopted our processes related to credit risk management. That means both on the intake, as well as how to handle delinquent accounts. We believe that is now starting to show results.

Eirik Holtedahl: And that, we believe now, is starting to show results. There is probably some benign macro in this, but from what we are seeing now, this overall level should be sustainable going forward. That being said, there can always come surprises, but we are adding a healthy MedMera portfolio, and we are also seeing good results in our own. So we think that the loan loss level should actually be favorable, or on a relative perspective, be favorable going forward.

Speaker #3: There's probably some benign macro in this, but from what we're seeing now, this overall level should be sustainable going forward. That being said, there can always be surprises, but we're adding a healthy Mimera portfolio.

Speaker #3: And we're also seeing good results in our own, so we think that the loan loss level should actually be favorable, or from a relative perspective, be favorable going forward.

Speaker #2: Okay, thank you for that very enlightening answer. We have a question from a viewer here: your average loan was 160,000 kroner. Do you know what the average loan is being used to buy or consume?

Operator: Okay. Thank you for that very enlightening answer. We have a question from a viewer here. Your average loan was SEK 160,000.

Operator: Okay. Thank you for that very enlightening answer. We have a question from a viewer here. Your average loan was SEK 160,000. Do you know anything what the average loan is being used to buy or consume?

Operator: Do you know anything what the average loan is being used to buy or consume?

Speaker #1: Yeah, that's a good question. Yes, we do. I mean, most of our loans, when we sort of look at what customers report, they need to take the loan for.

Øyvind Oanes: Well, that is a good question. Yes, we do. Most of our loans, when we look at what customers report they need to take the loan for, there is a lot of home improvement, refurbishing the kitchen, new bathroom, that type of thing. Our max loan amount goes all the way up to half a million Swedish krona. So you would also see some used cars in there. But those two categories are probably dominant in what customers use the loan for.

Speaker #1: There's a lot of home improvement, whether refurbishing the new bathroom, that type of thing. Our max loan amount goes all the way up to SEK 500,000.

Speaker #1: So you would also see some used cars in there, but those two categories are probably dominant in what customers use the loan for.

Speaker #2: Okay, thank you. You talked about doubling the EPS. What will drive the ambition to more than double the EPS by 2028?

Operator: Okay, thank you. You talked about doubling the EPS. What will drive the ambition to more than double the EPS by 2028?

Speaker #3: It's a combination of many factors. First of all, the main driver for a bank is the balance sheet—we're adding 65%. And also, EPS per share.

Eirik Holtedahl: It's a combination of many factors. First of all, the main driver for Morrow Bank is the balance sheet. We're adding 65%.

Speaker #3: We have had a capital increase, but as you've seen from our figures, we acquired a bank which cost us $2 billion, but in terms of share issuance, it was only $1 billion, to put it that way.

Eirik Holtedahl: EPS per shares, we have had a capital increase, but as you've seen from our figures, we acquired a bank which cost us SEK 2 billion, but in terms of share issuance, it was only SEK 1 billion, to put it that way.

Speaker #3: So that is contributing. Our loan balance is contributing, and we will work to maintain our margins. We will work to have an efficient cost ratio.

Eirik Holtedahl: That is contributing. Our loan balance is contributing, and we will work to maintain our margins. We will work to have an efficient cost ratio. We're aiming at 20%. As we discussed, keep an optimal, to put it that way, loan loss ratios, and the combination of those factors should altogether provide for a doubling of the EPS into 2028.

Speaker #3: We're aiming at 20%. And also, as we discussed, keep a good loan, an optimal—to put it that way—loan loss ratio. And the combination of those factors should altogether provide for a doubling of the EPS into 2028.

Speaker #2: Okay, thank you. Another viewer asks: could you give some more color on your evaluation of strategic alternatives for certain non-core assets in Morrow Bank that was press released in June, and any updates?

Operator: Okay, thank you. Another viewer asks, could you give some more color on your evaluation of strategic alternatives for certain non-core assets in the MedMera Bank that was press released in June? Any updates?

Speaker #1: Yeah, that is an ongoing process. We announced before the summer that we are looking at alternatives for some of the assets that, let's say, duplicate.

Øyvind Oanes: Mm-hmm. Yes, that is an ongoing process. As we announced before the summer, we are looking at alternatives for some of the assets that, let's say, duplicate. We do have now two banks. We have two IT platforms. We have two bank licenses, et cetera. We have still a fair amount of NPLs that we continue to offload from our balance sheet. Taking that into consideration, we are looking at what are the potential opportunities to structure something around that, and look at what the interest for that would be in the market as an ongoing process. We will obviously come back and report on that when we potentially conclude or we have some update.

Speaker #1: We do have now two banks. We have two IT platforms. We have two bank licenses, et cetera. We still have a fair amount of NPLs.

Speaker #1: That we continue to offload from our balance sheet. So, taking that into consideration, we're looking at what are the potential opportunities to structure something around that.

Speaker #1: And look at what the interest for that would be in the market. That's an ongoing process, and we'll obviously come back and report on that when we potentially conclude, or if we have some updates.

Speaker #2: Question about this: you guide for SEK 115 million in Mimera synergies by 2028. What is the expected annual synergy impact and integration cost? And can you maintain a 17% capital ratio without further equity issues?

Operator: Mm-hmm. A question around this. You guide for SEK 115 million in MedMera synergies by 2028. What is the expected annual synergy impact and integration cost, and can you maintain a 17% capital ratio without further equity issues?

Speaker #3: To start with the last part of the question, yes, we're sufficiently capitalized now, as you will see when we present our third quarter and fourth quarter figures this year.

Eirik Holtedahl: To start with the last part of the question, yes, we are sufficiently capitalized now, as you will see when we present our Q3 and Q4 figures this year. Also we will be adding more profits. So yes, we are sufficiently capitalized. As to the synergies, they are what we expect will come out after the integration, and also, of course, there will be some time to run in to make processes run smoothly, et cetera. That will take some time, but in 2028, we will expect that on a running basis, we will see the 150 million occurring.

Speaker #3: And also, we'll be adding more profit. So yes, we are sufficiently capitalized. As to the synergies, they are what we expect will come out after the integration, and also, of course, there will be some time to run in to make processes run smoothly, et cetera.

Speaker #3: That will take some time. But in 2028, we expect that on a running basis we will see the 150 million occurring.

Speaker #2: Thanks. Mimera also reported its H1 figures. How are these tracking relative to your expectations?

Operator: Mm-hmm. Thanks. MedMera also reported its H1 figures.

Operator: How are these tracking relative to your expectations?

Speaker #1: They are tracking on plan or even slightly better than plan. They reported 122 million profit before tax, which is a good increase from last year.

Øyvind Oanes: They are tracking on plan or even slightly better than planned. They reported 122 million profit before tax, which is a good increase from last year. We have seen that they have managed to grow their lending book. They have good control over the risk parameters. So we are very happy with the progress that MedMera also have reported for the first half of the year, the Q2. As I said in the starter, I am very happy that we have managed to have two thoughts in our heads at the same time, running the business, the underlying business, the core business, while doing the acquisition. Likewise for MedMera, they have obviously sold their bank while still having a really laser focus on continuing to deliver good performance in their underlying business. So we are happy with that.

Speaker #1: We've seen that they've managed to grow their lending book. They have good control over the risk parameters, so we are very happy with the progress that Mimera also has reported for the first half of the year, the second quarter.

Speaker #1: As I said at the start there, I'm very happy that we've managed to have two thoughts in our heads at the same time—running the business, the underlying business, the core business—while doing the acquisition.

Speaker #1: And likewise, for Mimera, they've obviously sold the bank—their bank—while still having a really laser focus on continuing to deliver good performance in their underlying business.

Speaker #1: So we're happy with that.

Speaker #2: One last question. What is your focus in H2?

Operator: Mm-hmm. One last question, what is your focus in H2?

Speaker #1: Yeah, well, the focus on H2—I mean, we now have the keys to the two Mimera as of July 1st. So, the focus now and going forward will obviously be to work with the Mimera organization, develop and strengthen the cooperation between the two banks that are now structured as a group, and look at how we can take out synergies, as we talked about.

Øyvind Oanes: Well, the focus on H2, we got the keys to MedMera on 1 July. The focus now and going forward will obviously be together with the MedMera organization, develop and strengthen the cooperation between the two banks that are now structured in a group and look at how we can take out synergies as we talked about. Synergies not only on the cost side, but synergies also on the business side. They have a strong business model. They target a slightly different segment than us. They have very strong processes. They have strong analytics, strong data, and we will be working with them, already are working with them to see how we can leverage and best practice share between the two banks. In parallel with obviously working on that longer-term plan of integrating this into one bank at some stage.

Speaker #1: But synergies are not only on the cost side, but also on the business side. They have a strong business model and target a slightly different segment than us.

Speaker #1: They have very strong processes. They have strong analytics, strong data, and we will be working with them—already are working with them—to see how we can sort of leverage and best practice-share between the two banks.

Speaker #1: In parallel with obviously working on that longer-term plan of integrating this into one bank at some stage.

Speaker #2: Thanks. By that, thank you Øivin and Erik, and thank you to everyone that has been watching. It's great to follow your actions corresponding to what you are communicating. We're already looking forward to the Q3 report.

Operator: Mm-hmm. Thanks. By that, thank you, Øyvind and Eirik, and thank you everyone that has been watching. It is great to follow your actions corresponding to what you are communicating. We are already looking forward to the Q3 report. Good luck with that.

Speaker #2: Good luck with that.

Speaker #1: Thank you. I look forward to being back.

Øyvind Oanes: Thank you. Look forward to being back.

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