Morrow Bank ("the Bank") today agreed to acquire a SEK ~1.6 billion (NOK ~1.6
billion) portfolio of consumer loans from Lunar Bank. 

This transaction is in line with the Morrow BankŽs communicated strategy to
pursue structural opportunities to drive growth and accelerate value creation. 

Due to a high degree of automation and self-service across Morrow Bank's
processes, the increased loan balance growth will have no impact on the Bank's
cost level. Preliminary estimates indicate that the transaction with Lunar
should have a positive effect on Morrow Bank's profitability from 2024 and
onwards, demonstrating the scalability of the Bank. 

"Our cost-efficiency and scalability has enabled us to look at inorganic growth
opportunities to improve returns further, as demonstrated by the two recent loan
acquisition agreements of Swedish portfolios. We will continue pursuing relevant
structural opportunities to leverage the scalability of our platform and
accelerate value creation beyond the organic," said CEO Øyvind Oanes.  

The transaction with Lunar Bank is subject to approval by the Danish FSA, and
expected to close before the end of September 2024 with a settlement in cash.
The acquisition will be fully covered by the Bank's available liquidity and
capital. Morrow Bank's Swedish gross loan book will, after the acquisition, be
around NOK 5.3 billion, accounting for ~35% of the Bank's overall loan volume. 

Morrow Bank considers its business plan to be fully funded and capitalised. 

For further information, please contact: 

Eirik Holtedahl, CFO 
tel: +47 96912291 
email: ir@morrowbank.com

 

About Morrow Bank ASA 

Morrow Bank is a Nordic niche bank offering personal loans, credit cards and
deposit accounts to consumers. The target group is creditworthy individuals with
stable personal finances and no payment remarks. Credit risk is managed largely
by automated processes for credit assessment and underwriting. The Bank has a
diversified and balanced distribution model utilizing both public and
proprietary channels. Operational efficiency and low cost are a foundation for
Morrow Bank and are enabled by centralized operations, modern systems and
digital set-up. To learn more, visit ir.morrowbank.com

This information is considered to be inside information pursuant to the EU
Market Abuse Regulation article 7 and is subject to the disclosure requirements
pursuant to section 5-12 of the Norwegian Securities Trading Act. This stock
exchange announcement was published by Henning Fagerbakke, Head of Finance,
Morrow Bank ASA, on 16 August 2024 at 12:45 CEST.