Q1 in line with expectations 💪💪💪

Morrow Bank gross loan growth y/y was 26% up. To hold volume after purchasing two portfolios sized 16% of balance sheet is a challenge when churn is significant (as always) in a consumer finance portfolio. New sales are up a lot and management are working on new product launches in order to grow 5% annually. It will happen💪

Profits were up 43% to 62 MNOK despite slightly higher one-off costs due to Swedish license approval and ROE target is lifted to 15-17% in the medium term (2026) - we like it💪

Losses went down to 4,3% (from 4,5%) - we like it💪And we are not worried about the increase in stage 3 from 14,2% to 17,6%.

We only do minor revisions in our estimates and keep our target price of 17,9 kr.

Our conversation with management was good and we see no dark clouds arriving - it's not to late to buy into the story😃

Stay tuned - the set-up in Sweden will happen January 1st.

Best regards,

 David and Sverre

Hvaler Invest AS
Lillestrøm, Norway
14.05.25

Disclaimer:
Hvaler Invest is a significant shareholder so you cannot trust us (or perhaps you can?)