Successful launch in Finland and increased 2017 target

• Continued solid net loan growth of 284 million for the quarter, net loan balance of NOK 1 446 million
• Successful launch of consumer loan business in Finland on 29^th May
• Net interest income of NOK 37.1 million, up from NOK 29.9 million in Q1
• Operating expenses in line with expectations
• Net profit after tax reached NOK 3.0 million 
• Continued improved credit quality in line with projections after introducing internally developed score card
• Aggregate loans outstanding target raised to around NOK 2.3 billion by year end

Bergen, 16 August 2017:

Monobank continued its expansion through second quarter 2017, with continued strong net lending growth and increased net profit to NOK 3.0 million. Late May the bank commenced operations in Finland. Geographical expansion is a vital part of Monobanks strategy and the experiences from the Finnish operation will be utilised when exploring further expansion.

The credit quality has further improved in line with expectations. With a rapidly growing data base, the tuning of the internally developed credit model continues. The goal is to further optimize credit quality overall and selective pricing among different customer groups. The bank is starting to see the effects of this work.

Net total loans amounted to NOK 1 446 million excluding prepaid agency commissions and unspecified loss provisions.  Of net loans outstanding at 30^th June, 37.8 million was extended to Finnish customers. Overall, Monobank is raising its 2017 guidance on aggregate net loans outstanding to NOK 2.3 billion at the end of 2017.

Second quarter net interest income was NOK 37.1 million and the net interest margin was 8.7 per cent. Operating costs were in line with expectations. Operating profit before impairment provisions was NOK 12.3 million compared to a profit of NOK 7.4 million in the previous quarter. Deposits from customers amounted to NOK 1 556 million, Monobank's bank deposits and liquid securities amounted to NOK 377 million, and total equity was NOK 339 million.

While Monobank will continue to focus on unsecured consumer financing in Norway and Finland, the bank remains committed to develop its core business into other geographical areas. Cross border launches are expected to achieve considerable operational synergies and further strengthen the bank's growth platform. It will also contribute to diversify the business model and regulatory risk exposure. Consistent with the bank's growth strategy, the capital structure and capital adequacy will be monitored to ensure that liquidity and capital position are maintained at satisfactory levels.

"We have established a solid growth platform. The Finland expansion has been a success. We continue to build scale and quality into our IT and operational models. Going forward this will enable further profitable growth. In addition to geographical expansion we focus on other verticals such as the credit card development with Widerøe and other initiatives allowing Monobank to leverage on our leading "fintech" platform and experience. In total Monobank is well positioned to progress over the coming years", says Bent H. Gjendem, Chief Executive Officer at Monobank.

For further information contact:

Bent H. Gjendem, Chief Executive Officer at Monobank, phone: +47 996 11 996